Billionaire Anil Agarwal's Vedanta Ltd on August 6 reported 36.5 percent increase in consolidated net profit at Rs 3,606 crore for the quarter ended June 30, 2024, against Rs 2,640 crore in the year-ago period.
The mining major's revenue from operations rose 5.6 percent to Rs 35,239 crore in Q1FY25 as against Rs 33,342 crore in Q1FY24, the company said in an exchange filing on August 6.
The surge in profit comes amid strong prices of zinc, lead, copper and nickel during the quarter. "This (earnings) reflects strong business performance on cost and volume which is additionally supported by elevated commodity prices," said Chief Financial Officer Ajay Goel.
At 2:57 pm on August 6, Vedanta's shares on the BSE were trading 0.3 percent higher at Rs 415 apiece.
First quarter EBITDA increased by by 47 percent YoY on account of structural cost saving initiatives across businesses, easing of input commodity inflation, favorable output commodity prices. It posted EBITDA margin at 34 percent in the quarter, as against 24 percent in the same quarter last year.
Segment results
Core earnings from the aluminium business shot up the most, rising 144 percent to Rs 4,441 crore. The company recorded Alumina production at Lanjigarh refinery at 539 kt, up 11 percent QoQ and 36 percent YoY, driven by new capacity.
"Our aluminium and zinc divisions continue to outperform industry benchmarks, consistently ranking in the top quartiles and deciles of the global cost curve. These achievements are a direct result of our strategic focus on cost, as reflected in a 20 percent year-over-year reduction in overall Cost," said Arun Misra, , Executive Director, Vedanta Ltd.
Earnings from Zinc, silver and lead business rose 17.8 percent to Rs 3,903 crore.
Debt and cash flow
The company's net debt stood at Rs 61,324 crore as on 30th June 2024, up by Rs 4,986 crore. Net debt was Rs 56,338 crore as of March 31. It's its net debt to EBITDA ratio is at 1.5x in 1QFY25, same as last quarter but down from 1.9x in 1QFY24.
Last month, the company raised Rs 8,500 crore through a Qualified Institutions Placement (QIP), which opened on July 15, at Rs 440 per share.
The company said it generated "robust" Free cash flow (pre capex) of Rs 4,371 crore up 41 percent YoY.
The mining major recently announced that its demerger proposal received a go ahead from 75 percent of its secured creditors. The company will now seek clearance from the stock exchanges and will file its demerger plan with the National Company Law Tribunal (NCLT).
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