Vedanta Posts Rs 2,640 Crore Net Profit in Q1, Down 40% YoY; Exceeds Estimated Rs 1200 Crore
Vedanta, in its Q1 earnings report, recorded a consolidated net profit of Rs 2,640 crore, a 40% decline from the same quarter last year. However, the profit figure surpassed the estimated Rs 1200 crore.
The revenue from operations for the first quarter fell by 13% to Rs 33,342 crore compared to Rs 38,251 crore last year. This drop in revenue is primarily attributed to a significant reduction in output commodity prices, partially offset by favorable exchange rate movements.
During the April-June period, the company reported an EBITDA of Rs 6,975 crore, down by 35% from Rs 10,741 crore in the same period last year, mainly due to lower output commodity prices and reduced sales.
The EBITDA margin for the quarter stood at 24%. However, the financial costs increased by nearly 74% to Rs 2,110 crore during the June quarter due to an increase in the blended cost of borrowings and average borrowings.
In terms of key businesses, Vedanta witnessed a 2% year-on-year increase in aluminium production to 579 kt, while the cost of production decreased by 27% year-on-year.
For the Zinc India business, the company achieved its highest-ever mined metal production at 257 kt in the first quarter, up 2% year-on-year. Refined metal production remained stable at 260 kt, and saleable silver production saw a marginal increase of 1% to 179 tonnes.
As of June, the company’s gross debt stood at Rs 73,484 crore, rising from Rs 66,182 crore in the preceding March quarter. The net debt was reported at Rs 59,192 crore.
At the end of the June quarter, Vedanta possessed cash and cash equivalents worth Rs 14,292 crore.
Sunil Duggal, CEO of Vedanta, expressed the company’s commitment to achieving operational excellence and enhancing competitiveness in the market. The company aims to lead the charge towards a more sustainable and responsible future.
Ahead of the results, Vedanta’s scrip closed 1.44% lower at Rs 278.15 on NSE. The company continues to navigate market challenges while striving to improve its financial performance and sustainability initiatives.
