Vedanta Q1 Results: Net Profit Rises 6% To Rs 5,592 Crore, Revenue Up 36%

Vedanta clocks highest ever first quarter consolidated Ebitda of Rs 10,741 crore;

Sunil Duggal, chief executive officer, Vedanta.

Source : Getty

Vedanta on Thursday posted a 6 per cent rise in net profit at Rs 5,592 crore for the quarter ended June 30 because of higher sales volume, commodity prices, and strategic hedging gains.

The diversified natural resources company had posted a consolidated net profit of Rs 5,282 crore in the year-ago period.

According to a company statement, Vedanta’s consolidated revenue increased 36 per cent to Rs 38,251 crore. The company clocks highest ever first quarter consolidated Ebitda of Rs 10,741 crore.

Vedanta’s Chief Executive Officer Sunil Duggal said that this year the company's key priorities will be delivery on committed volumes, timely execution of projects for growth, value addition, vertical integration, and cost reduction across its key businesses, and proactive commodity price risk management.

“We recorded best-ever 1Q Ebitda of Rs 10,741 crore and PAT of Rs 5,592 crore despite inflationary cost pressures. This year, our key priorities will be delivery on committed volumes, timely execution of projects for growth, value addition, vertical integration & cost reduction across our key businesses, and proactive commodity price risk management. We are continuing work on our renewed ESG purpose of ‘Transforming for Good’. We are the only domestic private player contributing 25 per cent of India’s Oil & Gas production,” Duggal said in a statement.

In the first quarter of the ongoing fiscal, the company's depreciation and amortisation increased by 16 per cent year-on-year to Rs 2,464 crore on account of higher depletion charge in oil and gas and higher ore production at Zinc India.

In the reporting quarter, the finance cost increased by two per cent year-on-year to Rs 1,206 crore, mainly on account of rise in average borrowings, partially offset by reduction in average interest rate of borrowings.

The company's gross debt rose by Rs 8,031 crore in the first quarter of FY23 to Rs 61,140 crore.

The full profit for the quarter, including profits of jointly-controlled entities, rose by 6 per cent to Rs 5,592 crore, the company said.

Vedanta Ltd, a subsidiary of Vedanta Resources Ltd, has operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa and Namibia.

Financial snapshot

• Consolidated Revenue of Rs 38,251 crore, up 36%YoY
• Achieved best-ever 1Q EBITDA of Rs 10,741 crore, up 7%YoY
• Strong Industry leading EBITDA margin of 32%
• Profit after tax (PAT) at Rs 5,592, up 6%YoY
• Return on capital employed improved 780bps YoY to 30%
• Net Debt/EBITDA at 0.6x, maintained at low levels
• Strong liquidity position with cash and cash equivalent at Rs 34,342 crore
• 1^st interim dividend of Rs 31.5/share
• 2^nd Interim dividend of Rs 19.5/share declared in Jul’22, record YTD July’22 dividend yield of 15.4%