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Vedanta Q3 and 9M FY24-25 Results: announces 70% hike in YoY Profit

  • Psu Connect Date: 31-01-25
Vedanta Q3 and 9M FY24-25 Results: announces 70% hike in YoY Profit

Mumbai, January 31, 2025: Vedanta Limited today announced its Unaudited Consolidated Results for the Third Quarter ended 31st Dec 2024.

3QFY25 Financial Highlights:

Consolidated Revenue of Rs 38,526 crore, up 4% QoQ and 10% YoY

Consolidated EBITDA of Rs 11,284 crore, up 30% YoY and 9% QoQ; Margin1 at 34% up 517 bps YoY

Profit after tax (before exceptional) at Rs 4,876 crore, up 70% YoY and 9% QoQ

Net Debt at Rs 57,358 crores with Net debt/ EBITDA at 1.4x (vs 1.7x in 3QFY24)

Cash and Cash Equivalent improved by 66% YoY on the back of robust Free cash flow (pre-capex) of Rs 6,766 crore

CRISIL upgraded long-term credit rating from AA- to AA with Watch Developing

Parent company, VRL successfully restructured $3.1 billion through bond issuances in the last 4 months resulting in longer maturities of up to 8 years, better covenants terms and a significant reduction in average coupon rate by 250 bps.

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Operational Highlights: 

3QFY25 key operational highlights across the businesses:

  • Aluminum

  • Highest ever Aluminum production of 613 kt, up 2% YoY

  • Record Alumina production at 505 kt up 7% YoY

  • Zinc India

  • Zinc India achieved lowest CoP in the last 15 quarters; CoP at 1041$/t down 5% YoY and 3% QoQ 

  • Zinc International

  • Mined metal production of Zinc International at 46 kt up 12% YoY

  • Zinc International delivered lowest CoP in last 7 years at 1181$/t down 31% YoY

1Excludes custom smelting at copper business.

  • Iron ore

  • Pig Iron production at 217 kt, up 14% QoQ & 7% YoY

  • Saleable Iron Ore production at 1.5 million tonnes, up 17% QoQ & 10% YoY 

  • Steel

  • Saleable steel production at 329kt, lower 3% YoY on account of lower demand

  • Copper India: 

  • Copper cathode production at 45 kt up 9% QoQ & 3% YoY

9Month FY25 Production: All time high production of key commodities including Aluminium (+3% YoY), Alumina (16% YoY), Refined metal at Zinc India (+3% YoY), Iron Ore (8% YoY) and Ferrochrome (+35% YoY)

9Month FY25 Cost of Production (CoP): Lower cost of production on account of structural initiatives in key business including, Aluminium (-3% YoY), Zinc India (- 6% YoY) and Zinc International (-10% YoY)

Commenting on Q3FY25 results, Mr Arun Misra, Executive Director Vedanta Limited said. “We have delivered our highest-ever 3rd Quarter EBITDA of Rs 11,284 crore. Our strategic focus on cost optimization and production ramp-up across our key businesses has helped us to continue delivering this outperformance. Notably, we witnessed 58% YoY jump in EBITDA at our Aluminium business and 28% YoY increase in our Zinc India business. We expect this outperformance to continue in the coming quarters driven by our ongoing growth initiatives and business integration projects. 

I am also pleased to note that Vedanta Group companies have once again demonstrated their leadership in sustainability. In the S&P Global Corporate Sustainability Assessment 2024, HZL secured the top position, while Vedanta Limited ranked 4th among 248 global diversified peers. With our commitment to operational excellence and robust ESG practices, we are confident to capitalize on emerging opportunities and navigate any challenges.”

Mr Ajay Goel, CFO, Vedanta, said “This quarter marks a stellar performance, delivering the highest Q3 EBITDA of Rs 11,284 crore, a remarkable 30% growth year-on-year, with a robust EBITDA margin of 34%. Our PAT stood at Rs 4,876 crore, reflecting an exceptional 70% YoY growth, showcasing the resilience of our business. This success has been driven by our focus on cost efficiencies, volume growth, and favourable commodity prices. The recent upgrade in our credit rating, along with a leverage improvement to 1.4x, highlights our financial strength and the market’s confidence in Vedanta’s growth trajectory. Additionally, the demerger process is progressing well, with the shareholders’ and creditors’ meeting scheduled for February 2025”

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3QFY25 ESG Highlights

  • ESG Leadership: Vedanta Limited ranked 4th among 248 companies in the Diversified Metal and Mining Industry Group in the S&P Global Corporate Sustainability Assessment (CSA) 2024. Notably, our subsidiary Hindustan Zinc secured the top position, while Vedanta Aluminium ranked 2nd among its global peers. 

  • Renewable Energy (RE): RE Power Delivery agreements (PDAs) of 1920 MW in place. Overall, RE utilization as of Q3FY25 is at 1.75 bn units. 

  • Waste Utilization: Q3FY25 HVLT waste usage at 86%

  • Tree Plantation: 2.2 million trees planted as part of a commitment to plant 7 million trees by 2030

  • Women & Child Welfare: 6900+ Nand Ghars created for women and child welfare

CSR contribution: Spent Rs 254 crore in 9 month FY’25 on CSR initiatives for communities, positively touching over 5 million lives

Revenue:

  • 3QFY25 consolidated revenue at Rs 38,526 crore, up 4% QoQ and 10% YoY driven by favorable market prices and higher premiums

EBITDA and EBITDA Margin:

  • 3QFY25 EBITDA increased by 9% QoQ to Rs 11,284 crore mainly driven by higher output commodity prices partially offset by input commodity inflation

  • 3QFY25 EBITDA higher by 30% YoY on account of structural cost saving initiatives across businesses, favorable output commodity prices, partially offset by input commodity inflation

  • EBITDA margin1 at 34% in 3QFY25, improved ~517 bps YoY

Depreciation & Amortization:

  • 3QFY25 Depreciation & Amortization Rs 2,681 crore flat QoQ and decreased 4% YoY mainly at Copper and Alum business

Finance Cost:

  • 3QFY25 lower 8% QoQ in line with average borrowings partially offset by one-time items.

  • 3QFY25 remained flat YoY

Investment Income:

3QFY25 higher 9% QoQ and YoY due to change in investment mix and higher interest on income tax refund in 3QFY25

Taxes:

Normalized ETR for 3QFY25 is 27% as compared to 30% in 3QFY24, mainly due to changes in profit mix and reduction in tax rate of a foreign subsidiary

Profit After Tax:

            3QFY25 Profit after tax at Rs 4,876 crore, higher 9% QoQ and 70% YoY

Leverage, liquidity, and credit rating:

  • Gross debt at Rs 78,496 crore as on 31st Dec 2024 

  • Net debt at Rs 57,358 crore as on 31st Dec 2024. Net debt to EBITDA ratio improved to 1.4x vs 1.7x in Dec 2023

  • Cash and cash equivalents position remains strong at Rs 21,138 crore. The Company follows a Board-approved investment policy and invests in high quality debt instruments with mutual funds, bonds, and fixed deposits with banks

  • ICRA Ratings has maintained the ratings of Vedanta at ICRA AA in 3Q FY25 while continuing on Watch with Developing Implications

  • In 3Q FY25, CRISIL Ratings assigned a rating of CRISIL AA while placing the ratings on Watch with Developing Implications

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