Vedanta Ltd, led by billionaire Anil Agarwal, reported a significant increase in its consolidated net profit for the first quarter of FY25. The company’s net profit surged by 36.5% to ₹3,606 crore for the quarter ending June 30, 2024, compared to ₹2,640 crore in the same period last year.
Financial Highlights:
- Net Profit: ₹3,606 crore, up 36.5% YoY
- Revenue from Operations: ₹35,239 crore, up 5.6% YoY
- EBITDA: Increased by 47% YoY, with an EBITDA margin of 34% compared to 24% last year
Commodity Prices Impact: The rise in profit is attributed to strong prices for key commodities like zinc, lead, copper, and nickel. Chief Financial Officer Ajay Goel highlighted that the strong performance is a result of favorable commodity prices along with cost and volume efficiencies.
Segment Performance:
- Aluminium Business: Core earnings rose by 144% to ₹4,441 crore, with alumina production increasing significantly by 36% YoY.
- Zinc, Silver, and Lead: Earnings rose by 17.8% to ₹3,903 crore.
Debt and Cash Flow:
- Net Debt: ₹61,324 crore as of June 30, 2024, up from ₹56,338 crore as of March 31.
- Net Debt to EBITDA Ratio: Remained at 1.5x, same as the last quarter but improved from 1.9x YoY.
- Free Cash Flow: ₹4,371 crore, up 41% YoY.
| Financial Metric | Q1 FY25 | Q1 FY24 | Change |
|---|---|---|---|
| Net Profit | ₹3,606 crore | ₹2,640 crore | +36.5% |
| Revenue from Operations | ₹35,239 crore | ₹33,342 crore | +5.6% |
| EBITDA | Increased by 47% YoY | Not Provided | – |
| EBITDA Margin | 34% | 24% | +10 percentage points |
| Aluminium Business Core Earnings | ₹4,441 crore | Not Provided | +144% |
| Zinc, Silver, and Lead Earnings | ₹3,903 crore | Not Provided | +17.8% |
| Net Debt | ₹61,324 crore | ₹56,338 crore | +₹4,986 crore |
| Net Debt to EBITDA Ratio | 1.5x | 1.5x (previous quarter) | – |
| Free Cash Flow (pre-capex) | ₹4,371 crore | ₹3,098 crore | +41% |
| Share Price (as of 3:00 PM) | ₹414.35 | Not Applicable | – |
Recent Developments:
- Vedanta raised ₹8,500 crore through a Qualified Institutions Placement (QIP) in July.
- The company’s demerger proposal has been approved by 75% of its secured creditors and will now be submitted to the stock exchanges and the National Company Law Tribunal (NCLT).
As of 3:00 PM, Vedanta’s shares were trading at ₹414.35.
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