- EBITDA for Q2 FY2021 of ₹ 6,531
crores, up by 63% q-o-q and 45% y-o-y, highest in >2
years
- Attributable PAT (before exceptional items & tax on
dividend) of ₹ 1,979 crores, up 75%
q-o-q
MUMBAI, India ,
Nov. 6, 2020 /PRNewswire/ -- Vedanta
Limited today announced its unaudited consolidated results for the
Second quarter (Q2) and half year ended 30th
September 2020.
Financial & Corporate Highlights
- Strong financial performance in Q2 FY2021
-
- Revenues of ₹ 20,804 crores, up
33% q-o-q, primarily due to increase in commodity prices and better
volumes at Zinc, Iron ore and Copper business
- Robust EBITDA margin1 of 36%
- EBITDA of ₹ 6,531 crores, up 63%
q-o-q
- Attributable PAT (before exceptional items and tax on dividend)
of ₹ 1,979 crores, up 75% q-o-q
- Strong Balance Sheet
-
- Net Debt/EBITDA at 1.2x, maintained at low level
- Continuing double-digit Return on Capital Employed (ROCE) of c.
12%
- Strong financial position with total cash & cash equivalent
at ₹ 35,569 crores
Operational Highlights
- Zinc India:
-
- Mined metal production at 238 kt, up 18% q-o-q. Refined metal
production at 237 kt, up 18% q-o-q
- Lowest ever cost of production at $919/ton, since commencement of underground
operations, down 10% sequentially
- Record silver production at 203 tonnes, up 73% q-o-q
- Zinc International:
-
- Gamsberg production at 35 kt in Q2 FY2021, up by 38% q-o-q
- Oil & Gas:
-
- Average gross production of 165 kboepd for the quarter, up by
4% q-o-q
- 239 wells drilled. 98 hooked-up, up by 14% q-o-q.
- Lower operating expense at Rajasthan block for Q2 FY2021 at
$7.0/boe vs $8.2/boe in Q2 FY2020
- Aluminium:
-
- Alumina production of 462kt, down 3% q-o-q
- Aluminium COP at $ 1,288/ton,
lower by 30% y-o-y, up 2% sequentially
- Iron Ore:
-
- Karnataka sales 1.3 Mnt,
significantly up q-o-q
- Steel:
-
- Saleable production stood at 260 kt, down 3% q-o-q
- Value Added Product (VAP) mix increased to 71% in Q2 FY 2021
from 44% in Q1 FY 2021
- TSPL: Plant availability factor (PAF) at 81%
1. Excludes custom smelting at Copper
India and Zinc India operations
Mr. Sunil Duggal, Chief
Executive Officer, Vedanta, said "Vedanta has reported the highest
quarterly operating result for more than 2 years. Our key growth
projects are back on track and the expansion is being
delivered through strict capital allocation and balance sheet
focus, aimed at creating value for our stakeholders. Our large
scale, diversified portfolio, positions us well to deliver strong
margins and cash flows through the commodity cycle. Vedanta is
fully committed to sustainable growth and contribute significantly
towards building a self-reliant India".
Consolidated Financial Performance
The consolidated financial performance of the company during the
period is as under:
(In
Rs. crore, except as stated)
FY2020
|
Particulars
|
Q2
|
%
Change
|
Q1
|
%
Change
|
H1
|
FY2021
|
FY2020
|
FY2021
|
FY2021
|
FY2020
|
83,545
|
Net
Sales/Income from operations
|
20,804
|
21,739
|
(4%)
|
15,687
|
33%
|
36,491
|
42,906
|
902
|
Other Operating
Income
|
303
|
219
|
38%
|
286
|
6%
|
589
|
426
|
21,060
|
EBITDA
|
6,531
|
4,497
|
45%
|
4,008
|
63%
|
10,539
|
9,685
|
29%
|
EBITDA
Margin1
|
36%
|
25%
|
-
|
28%
|
-
|
33%
|
26%
|
4,977
|
Finance
cost
|
1,312
|
1,340
|
(2%)
|
1,252
|
5%
|
2,564
|
2,681
|
2,443
|
Investment
Income
|
607
|
832
|
(27%)
|
1,016
|
(40%)
|
1,624
|
1,204
|
(306)
|
Exchange
gain/(loss) - (Non-Operational)
|
30
|
(50)
|
-
|
(6)
|
-
|
24
|
(32)
|
18,220
|
Profit before
Depreciation and Taxes
|
5,856
|
3,939
|
49%
|
3,766
|
55%
|
9,622
|
8,176
|
9,093
|
Depreciation
& Amortization
|
1,938
|
2,395
|
(19%)
|
1,733
|
12%
|
3,671
|
4,550
|
9,127
|
Profit before
Exceptional items
|
3,918
|
1,544
|
154%
|
2,033
|
93%
|
5,951
|
3,626
|
(17,386)
|
Exceptional
Items Credit/(Expense)2
|
95
|
(422)
|
-
|
(0)
|
-
|
95
|
(422)
|
(8,259)
|
Profit
Before Tax
|
4,013
|
1,122
|
-
|
2,033
|
-
|
6,046
|
3,204
|
3,078
|
Tax Charge/
(Credit)
|
1,149
|
948
|
-
|
414
|
-
|
1,564
|
1,086
|
(73)
|
One-time tax
charge/ (Credit)3
|
1,187
|
(2,501)
|
-
|
96
|
-
|
1,283
|
(2,501)
|
(6,521)
|
Tax on
Exceptional items/ (Credit)
|
33
|
(56)
|
-
|
(0)
|
-
|
33
|
(56)
|
(4,743)
|
Profit After
Taxes
|
1,644
|
2,730
|
(40%)
|
1,523
|
8%
|
3,166
|
4,674
|
6,049
|
Profit After
Taxes before exceptional items & one-time tax
|
2,769
|
595
|
-
|
1,619
|
71%
|
4,388
|
2,539
|
1,920
|
Minority
Interest
|
820
|
572
|
43%
|
489
|
67%
|
1,309
|
1,165
|
(6,664)
|
Attributable
PAT
|
824
|
2,158
|
(62%)
|
1,033
|
(20%)
|
1,857
|
3,509
|
4,066
|
Attributable
PAT before exceptional items & one-time
tax
|
1,979
|
(38)
|
-
|
1,129
|
75%
|
3,108
|
1,313
|
(18.00)
|
Basic Earnings
per Share (₹/share)
|
2.22
|
5.83
|
(62%)
|
2.79
|
(20%)
|
5.01
|
9.48
|
10.78
|
Basic EPS
before Exceptional items
|
2.14
|
6.26
|
(66%)
|
2.79
|
(23%)
|
4.93
|
9.90
|
70.86
|
Exchange rate
(₹/$) - Average
|
74.24
|
70.35
|
6%
|
75.48
|
(2%)
|
74.85
|
69.97
|
74.81
|
Exchange rate
(₹/$) - Closing
|
73.63
|
70.50
|
4%
|
75.29
|
(2%)
|
73.63
|
70.50
|
1. Excludes custom smelting at
Copper India and Zinc India operations
2.
Exceptional Items Gross of Tax
3. One-time tax charge/ (credit)
includes tax on dividend and impact of change in
ordinance
4. Previous period figures have
been regrouped or re-arranged wherever necessary to conform to
current period's presentation
Revenues
Revenue in Q2 FY2021 was at ₹ 20,804 crores, higher by 33%
q-o-q, primarily due to higher commodity prices, higher volumes at
Zinc India, Iron ore, Copper and Power business, partially offset
by lower volumes at Aluminium and Steel business, rupee
appreciation.
Revenue was lower by 4% y-o-y, mainly on account of lower volume
at Oil & Gas business and lower commodity prices, partially
offset by higher volumes at Zinc India business, and rupee
depreciation.
EBITDA and EBITDA Margins
EBITDA for Q2 FY2021 was at ₹ 6,531 crores, higher by 63%
q-o-q, mainly due to higher commodity prices, higher volumes at
Zinc business, lower cost of production at Zinc India and Aluminium
business, partially offset by higher input commodity prices, rupee
appreciation and reversal in RPO liability in Aluminium business
due to capping of RE certificates at lower prices in Q1 FY2021.
EBITDA for Q2 FY2021 was higher by 45% y-o-y, primarily due to
higher volume at Zinc India business, subdued input commodity
prices, lower cost of production at Aluminium, Steel & Zinc
business and rupee depreciation, partially offset by lower volume
at Oil & Gas business.
EBITDA margin1 for Q2 FY2021 was at 36%.
Depreciation & Amortization
Depreciation and amortization for Q2 FY2021 stood at
₹ 1,938 crores, higher by 12% q-o-q, mainly due to higher ore
production at Zinc business.
It was lower 19% y-o-y, primarily due to impairment of assets in
Oil & Gas business in Q4 FY2020, and Skorpion mine put under
care and maintenance since April
2020.
Finance Cost and Investment Income
Finance cost for Q2 FY2021 was at ₹ 1,312 crore, higher by
5% q-o-q, primarily due to higher average borrowing cost, partially
offset by reduction in gross borrowings.
Finance cost was lower 2% y-o-y, mainly on account of reduction
in gross borrowings.
Investment Income was at ₹ 607 crore, lower by 40% q-o-q
and 27% y-o-y. This was primarily on account of mark to market
(MTM) movement on investments.
Taxes
Tax expense for Q2 FY2021 was ₹ 2,370
crore compared to ₹ 510 crore
in Q1 FY21 & tax credit of ₹ 1,609 in Q2 FY2020. Normalised tax
rate (excluding tax on dividend from Zinc India business) for the
quarter is 29%, compared to 20% in Q1 FY2021, driven by change in
profit mix amongst businesses.
Attributable Profit after Tax and Earnings per Share
(EPS)
Attributable Profit after Tax (PAT) for the quarter was
₹ 824 crore and Earnings per share for the quarter was at
₹ 2.22 per share.
Balance Sheet
We have robust cash and cash equivalents# of
₹ 35,569 crore. The Company invests in high quality debt
instruments as per the Board approved policy. The portfolio is
rated by CRISIL, which has assigned a rating of "Tier-I" (implying
Highest Safety) to our portfolio.
Gross debt was at ₹ 62,759 crore on 30th
September 2020, higher by
₹ 4,191 crore as compared to 30th June 2020. This was mainly due to temporary
borrowing at Zinc India.
Net debt was at ₹ 27,190 crore on 30th
September 2020, higher by ₹
92 crores as compared to
30th June 2020.
CRISIL rating at AA- with stable outlook (October 2020).
# Cash & Cash equivalent is net of Inter –
company Loan (ICL) disbursed to Vedanta Resources from CIHL of
$526 mn, outstanding as on 30th
Sep'20. As on date, additional $430
mn has been disbursed and total ICL outstanding amount is
$ 956 mn.
Key Recognitions
Vedanta has been consistently recognized through the receipt of
various awards and accolades. We received the following key
recognitions recently:
- Cairn Oil & Gas won the Sustainability 4.0 Awards by Frost
& Sullivan and The Energy and Resources Institute (TERI)- The
Leaders Award and the first runner-up of Jury Special Mention Award
on "Recycling of Produced Water for Injection Purpose"
- Hindustan Zinc's Sandhya Rasakatla becomes first woman in
India to supervise Underground
Ground Mine operation
- Hindustan Zinc has been conferred with the "CII Environmental
Best Practices Award 2020" for "Most Innovative Environmental
Project". It was presented for the 'Use of mine tailing waste in
backfilling through paste-fill technology'
- HZL's Pantnagar Metal Plant wins 2 Frost & Sullivan
Sustainability Awards for excellence in corporate sustainable
development practices that provide a measurable and verifiable
framework for sustainability
- Cairn Oil & Gas efforts towards battling COVID-19 through
Project "Sanjeevani" has been recognised by the District
Administration and District Health Department of Barmer,
Rajasthan
- Hindustan Zinc & Vedanta Aluminum Jharsuguda received the
CSR Health Impact Award for exemplary work towards fighting
Covid-19 by Integrated Health and Wellbeing (IHW) Council
- The solar project at Rampura Agucha Mine, HZL, has been
registered under Gold Standard for its responsible stewardship
towards carbon footprint
- BALCO, Vedanta Aluminum Jharsuguda & Vedanta Lanjigarh won
21st CII National Award for Excellence in Energy
Management as 'Excellent Energy Efficient Units'
- Vedanta Lanjigarh won CII Eastern Region Excellence Award for
Safety, Health & Environment in large scale manufacturing
unit
- Quality Circle Forum of India
(QCFI) certified Rajasthan Operational sites- Central Polymer
Facility, Bhagyam Operations and Satellite Field and Unloading Bay
-SFON Operations with "FIVE-S Workplace Management System" for
waste elimination through workplace organisation
- 26th Bhamashah Award was awarded to 5 HZL Units (Chanderiya
Smelting Complex, Rajpura Dariba Complex, Zawar Mines, Rampura Agucha Mines and Kayad
Mine) for its outstanding contribution towards the education
system
- Vedanta Lanjigarh won 4th CII National HR Circle
awards for 'Employee Relations & Employee Engagement' &
'Digital Transformation & Technology Adoption'
- BALCO won ET Now Best Brand award, recognition as an eminent
brand at par with global names
- Vedanta – Value-Added business was nominated for Indian Chamber
of Commerce National Occupational Health & Safety Awards for
the year 2020 and have been selected for Gold Award for
Manufacturing and Engineering Sector in Large Enterprise
Category
Results Conference Call
Please note that the results presentation is available in the
Investor Relations section of the company website
www.vedantalimited.com -
http://www.vedantalimited.com/investor-relations/results-reports.aspx
Following the announcement, there will be a conference call at
6:00 PM (IST) on Friday, 6th November 2020, where senior management will
discuss the company's results and performance. The dial-in numbers
for the call are as below:
Event
|
|
Telephone
Number
|
Earnings conference
call on November 06, 2020
|
India – 6:00 PM
(IST)
|
India:
Local Dial In: +91 7045671221
Toll
free: 1800 120 1221, 1800 266 1221
Universal
access:
+91 22 7115
8015
+91 22 6280
1114
|
Singapore – 8:30
PM (Singapore Time)
|
Toll free
number: 800 101 2045
Toll number:
6531575746
|
Hong Kong – 8:30
PM (Hong Kong Time)
|
Toll free
number 800 964 448
Toll number:
85230186877
|
UK – 12:30 PM (UK
Time)
|
Toll free
number 0 808 101 1573
Toll number:
442034785524
|
US – 7:30 AM
(Eastern Time)*
|
Toll free
number 1 866 746 2133
Toll number:
13233868721
|
Online Registration
Link
|
https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=6799303&linkSecurityString=136de11357
|
Replay of Conference
Call
(06/11/2020 to
12/11/2020)
|
|
India
+912271945757
Passcode: 63835#
|
*Stands corrected owing to Daylight savings
For further information, please contact:
Investor
Relations
James Cartwright
Head, Investor Relations
Tel: +44 (0) 20 7659 4732
Tel: +91 124 476 4096
vedantaltd.ir@vedanta.co.in
Suruchi Daga
Associate General Manager
Raksha Jain
Manager
Shweta Arora
Manager
Communications
Ms. Roma Balwani
Director, Communications and Brand
Tel: +91 11 4916 6250
gc@vedanta.co.in
Mr. Abhinaba Das
Head, Media Relations
Mr. Anirvan Bhattacharjee /
Lennon D'Souza
Adfactors PR
Tel: +91 22 67574444 / +91 11 40565100
adfactorsvedanta@adfactorspr.com
About Vedanta Limited
Vedanta Limited, a subsidiary of Vedanta Resources Limited, is
one of the world's leading Oil & Gas and Metals company with
significant operations in Oil & Gas, Zinc, Lead, Silver,
Copper, Iron Ore, Steel, and Aluminium & Power across
India, South Africa, Namibia, and Australia. For two decades, Vedanta has been
contributing significantly to nation building. Governance and
sustainable development are at the core of Vedanta's strategy, with
a strong focus on health, safety, and environment. Giving back is
in the DNA of Vedanta, which is focused on enhancing the lives of
local communities. Under the aegis of Vedanta Cares, the flagship
social impact program, Nand Ghars have been set up as model
anganwadis focused on eradicating child malnutrition, providing
education, healthcare, and empowering women with skill development.
The company has been featured in Dow Jones Sustainability Index,
and was conferred CII-ITC Sustainability Award, the FICCI CSR
Award, Dun & Bradstreet Awards in Metals & Mining, and
certified as a Great Place to Work. Vedanta Limited is listed on
the Bombay Stock Exchange and the National Stock Exchange in
India and has ADRs listed on the
New York Stock Exchange. For more information please visit
www.vedantalimited.com
Vedanta Limited
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai - 400
099
www.vedantalimited.com
Registered Office:
Regd. Office: 1st Floor, 'C' wing,
Unit 103,
Corporate Avenue, Atul Projects,
Chakala, Andheri (East),
Mumbai – 400 093
CIN: L13209MH1965PLC291394
Disclaimer
This press release contains "forward-looking statements" – that
is, statements related to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance, and often contain words
such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "should" or "will." Forward–looking statements by their
nature address matters that are, to different degrees, uncertain.
For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in
interest and or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other matters
of national, regional and global scale, including those of a
political, economic, business, competitive or regulatory nature.
These uncertainties may cause our actual future results to be
materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking
statements.
Logo:
https://mma.prnewswire.com/media/661292/Vedanta_Limited_Logo.jpg