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Published: April 25, 2024
Updated: April 25, 2024

Vedanta's Q4 Earnings: Profit Dips 27% to Rs 1,369 Crore; demonstrating Operational Resilience Amidst Challenges

Quarterly Performance Overview:

Vedanta Ltd, under Anil Agrawal's leadership, witnessed a 27.21% decline in consolidated net profit to Rs 1,369 crore for the March quarter, compared to Rs 1,881 crore in the previous year. Alongside, consolidated revenue from operations saw a 6.14% YoY decrease to Rs 34,937 crore.

Financial Metrics:

EBITDA for the quarter decreased by 4% YoY to Rs 8,969 crore. However, sequentially, EBITDA showed a 3% increase, driven by enhanced volumes and cost-saving measures. Despite market challenges, Vedanta maintained its liquidity and debt ratios, with net debt reducing by 10% QoQ to Rs 56,338 crore and net debt to EBITDA ratio improving to 1.5 times.

Market Response:

Post-announcement, Vedanta's shares experienced a marginal decline of 0.26% on the BSE, trading at Rs 382.25. The market's response indicates a nuanced evaluation of Vedanta's financial performance within the broader market context.

Free Cash Flow and Operational Highlights:

Vedanta showcased robust free cash flow (pre capex) of Rs 9,948 crore for the March quarter, marking a significant 131% increase in QoQ. The company highlighted its focus on operational excellence, achieving record production levels across key businesses, and significant milestones like the Lanjigarh refinery expansion and the launch of operations at the new Bicholim mine in Goa.

Strategic Priorities and Outlook:

Vedanta's leadership emphasized its commitment to sustainability and growth, highlighting achievements such as becoming the world's 3rd largest silver producer and leading ESG rankings in India. Looking ahead, the company remains dedicated to operational excellence, sustained growth, and ESG leadership, aiming to deliver substantial value for shareholders in the upcoming fiscal year.

Financial Commentary:

Chief Financial Officer Ajay Goel praised Vedanta's strong financial results, citing the second-highest annual revenue and EBITDA in the company's history. He emphasized the company's robust EBITDA margin of 30% in FY24, driven by cost optimization efforts and a balanced capital structure. Vedanta's unwavering commitment to value creation and financial prudence positions it for continued resilience and growth in the dynamic market environment.