Metals-to-oil conglomerate Vedanta Limited announced on October 28 that its consolidated profit after tax (PAT) for the September quarter fell by 53% year over year to Rs 2690 crore.
In the same quarter of the previous fiscal year, the company had net income of Rs 5,812 crore.
The Anil Agarwal-owned company’s consolidated revenue from operations increased by 20% to Rs 36,237 crore from Rs 30,048 crore recorded during the same period of the previous year.
EBITDA, also known as earnings before interest, taxes, depreciation, and amortisation, fell by 24 percent year over year to Rs 8,038 crore from Rs 10,582 crore in Q2 FY23. EBITDA margins dropped from 40% to 25% by 1500 basis points.
The September quarter’s performance was impacted by lower commodity prices. Due to a dramatic price reduction in the aluminium industry as well as the windfall tax and reduced crude prices, the impact on the company’s oil and gas segment was particularly severe.
“I am pleased to share that we have generated strong free cash flow (pre capex) of Rs 8,369 crore underpinned by robust operational and financial performance. We remain well positioned, with a rich diversified asset portfolio, strong balance sheet, and cost optimization levers, to withstand challenging macroeconomic environment,” Sunil Duggal, Chief Executive Officer, Vedanta said.
According to the business, higher depletion charges in Oil & Gas and amortisation at Zinc India were the key reasons depreciation and amortisation increased by 24 percent YoY and 6 percent QoQ to Rs 2,624 crore.
As of September 30th, 2022, total debt was 58,597 crores, a decrease of Rs 2,543 crore QoQ.
Vedanta experienced a 1.16 percent decline as it finished at Rs 285 on the National Stock Exchange. The stock has lost 6% over the past year, but it has made about 10% during the past month.
