Vedanta reports 61% y-o-y decline in Q2 net profit to ₹1,808 crore

• Indian multinational mining company Vedanta reported a 61% YoY decline in consolidated net profit to ₹1,808 crore in the September quarter.
  
• The mining company reported a 21% YoY increase in revenue to ₹36,237 crore during the quarter on the back of higher sales volume and strategic hedging gains.
  
• Its EBITDA margin also declined to 25% in the September quarter from 40% in the same period last year.
  

Vedanta on Friday reported a 61% year-on-year decline in consolidated net profit to ₹1,808 crore in the September quarter.

“Revenue increased by 21% YoY to ₹36,237 crore on account of higher sales volume, strategic hedging gains and foreign exchange gains, partially offset by lower commodity prices,” the company said in an exchange filing.

Vedanta reported a 24% YoY decline in its EBITDA (earnings before interest, taxes, depreciation and amortization) due to an increase in prices of commodities and a decline in prices of the output. Its operating margin came in at 25% for the quarter, down from 40% in the same quarter last year.

The company reported a 94% YoY increase in its power and fuel costs, at ₹8,553 crore from ₹4,412 crore a year ago. Its finance costs also increased 54%, and the company said this was mainly due to an increase in average borrowings. Its gross debt surged to ₹58,597 crore from ₹51,040 crore a year ago.

“We remain well positioned, with a rich diversified asset portfolio, strong balance sheet, and cost optimization levers, to withstand a challenging macroeconomic environment," said Sunil Duggal, CEO, Vedanta.

Here’s Vedanta’s Q2 FY23 in numbers:


Source: Company reports

So far in the current fiscal year, Vedanta has declared an interim dividend of ₹51 per share, amounting to ₹18,933 crore in total.

In its filing, the company said its key priorities will be cost leadership, a strong balance sheet, and optimised capital allocation. Amongst its focus areas are full capacity utilisation, improved efficiencies and timely execution of growth projects.

Aluminium segment reports a sharp decline despite an increase in production

Vedanta reported a sharp decline in its aluminium business despite a 2% YoY increase in production to 5.84 lakh tonnes.

Earlier this month, the company said the mined metal output at Zinc India increased 3% YoY to 2.55 lakh tonnes, while the output of finished steel increased 11% YoY to 3.25 lakh tonnes.


Source: Company reports

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