Vedanta Q3 Results: PAT jumps 41% YoY to Rs 3,299 crores

Vedanta Ltd’s quarterly profit rose and revenue jumped to the highest in seven quarters, aided by rising commodity prices and higher other income. Vedanta reported 40.5% jump in consolidated net profit to Rs 3,299 crore on a 6.5% rise in net sales to Rs 22,498 crore in Q3 FY21 over Q3 FY20.

Net profit of the Anil Agarwal controlled mining conglomerate rose 40.5% YoY to Rs 3,299 crore in the quarter ended December. That compares with the Rs 2,623-crore consensus estimate of analysts. Revenue rose 6.5% YoY to Rs 22,735 crore analysts had estimated Rs 22,533-crore.

Profit before tax in Q3 FY21 stood at Rs 5,410 crore, up by 42.1% from Rs 3,806 crore in Q3 FY20. Current tax expense during the quarter increased 130.3% to Rs 1,186 crore from Rs 515 crore in the same period last year.

EBITDA rose 18% to Rs 7,695 crore in Q3 December 2020 from Rs 6,531 crore in Q3 FY20. EBITDA margin was at 39% as on 31 December 2020 as against 34% as on 31 December 2019.

Finance cost was higher by 7% year-on-year (YoY), mainly on account of increase in gross borrowings and lower capitalisation of the interest cost.

“We are ramping up across the zinc and iron & steel verticals along with successful project delivery in the oil & gas vertical,” said Sunil Duggal, CEO Vedanta. “The aluminium business has had yet another exemplary quarter as it continued the momentum of cost rationalization,” he added.

The company said that the revenue improvement was mainly on account of higher commodity prices, rupee depreciation and higher volumes at Zinc India and Iron Ore business, partially offset by lower volumes at Oil and Gas business, lower power sales in Talwandi Sabo Power (TSPL).

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