Indian multinational, Vedanta Limited (“Vedanta”) (NSE: VEDL), world’s leading critical and future minerals, energy and technology conglomerate announced its results for Q2 and H1 ending September 30, 2024. It reported highest-ever 1H EBITDA at $2.47 billion, up 46% YoY1.
The company’s Q2 consolidated revenue was $4.4 billion, up 5% QoQ and 10% YoY1, while the consolidated EBITDA was $1.2 billion, up 44% YoY1. PAT before exceptional items was $533 million, up 230% YoY1. Vedanta registered industry best EBITDA margin2 of 34%, up ~900 bps YoY1. It generated free cash flow (pre capex) of $1.02 billion up 50% YoY1. Net debt/EBITDA at 1.49x in 2QFY25, marking the best position in the last 6 quarters.
Commenting on the results, Ajay Goel, CFO, Vedanta Limited, said, “This has been an outstanding quarter, highlighted by significant progress in our corporate and strategic initiatives, strong financial results, and excellent operational performance. This strong performance is driven by cost efficiency, volume growth, and favourable commodity prices. Additionally, we raised $1.4 billion at Vedanta through a $1 billion QIP and a $400 million HZL OFS. At the same time, with the $1.2 billion VRL bond issuance and ongoing deleveraging, we have reduced Holdco. debt to $4.8 billion, the lowest level in a decade.”
Vedanta expects to build on this momentum in the second half of this year as many of its growth projects come online. Historically, Vedanta has recorded over 60% of its revenues in the second half of the year.
Arun Misra, Executive Director, Vedanta Limited added, “Through our structural interventions and initiatives, we have significantly reduced our cost of production over the past 12-15 months, and we will continue this trend in the coming quarters. As we move forward, operational excellence, sustained growth, ESG leadership and a robust pipeline of growth projects remain our strategic priorities.”
Vedanta has proposed one of India’s largest demergers that will ultimately result in six separate listed companies. The company’s demerger is on track and is in its final stages.
For more information, please visit www.vedantalimited.com.
Note: USD-INR exchange rate used in the release: 83.8 for Q2 & 83.6 for H1.
1Comparatives exclude impact of one-time cairn arbitration gain in 2Q FY24.
2 Excludes custom smelting at copper business.
The company’s Q2 consolidated revenue was $4.4 billion, up 5% QoQ and 10% YoY1, while the consolidated EBITDA was $1.2 billion, up 44% YoY1. PAT before exceptional items was $533 million, up 230% YoY1. Vedanta registered industry best EBITDA margin2 of 34%, up ~900 bps YoY1. It generated free cash flow (pre capex) of $1.02 billion up 50% YoY1. Net debt/EBITDA at 1.49x in 2QFY25, marking the best position in the last 6 quarters.
Vedanta expects to build on this momentum in the second half of this year as many of its growth projects come online. Historically, Vedanta has recorded over 60% of its revenues in the second half of the year.
Arun Misra, Executive Director, Vedanta Limited added, “Through our structural interventions and initiatives, we have significantly reduced our cost of production over the past 12-15 months, and we will continue this trend in the coming quarters. As we move forward, operational excellence, sustained growth, ESG leadership and a robust pipeline of growth projects remain our strategic priorities.”
Vedanta has proposed one of India’s largest demergers that will ultimately result in six separate listed companies. The company’s demerger is on track and is in its final stages.
For more information, please visit www.vedantalimited.com.
Note: USD-INR exchange rate used in the release: 83.8 for Q2 & 83.6 for H1.
1Comparatives exclude impact of one-time cairn arbitration gain in 2Q FY24.
2 Excludes custom smelting at copper business.
