MUMBAI, India, Jan. 29, 2021 /PRNewswire/ -- Vedanta Limited
today announced its unaudited consolidated results for the Third
quarter (Q3) and Nine Months ended 31st December 2020.
Financial & Corporate Highlights
- Strong financial performance in Q3 FY2021
-
- Revenues of ₹ 22,498 crores, up
8% q-o-q, primarily due to increase in commodity prices and higher
sales at Aluminium, Iron ore and Steel business
- Robust EBITDA margin1 of 39%, highest in last 4 years
- EBITDA of ₹ 7,695 crores, up 18%
q-o-q and y-o-y, highest quarterly performance for > 2
years
- Attributable PAT (before exceptional items and tax on dividend)
of ₹ 3,017 crores, up 51%
q-o-q
- Strong Balance Sheet
-
- Continuing double-digit Return on Capital Employed (ROCE) of c.
13%
- Net Debt/EBITDA at 1.5x, maintained at low level
- Liquidity position with total cash & cash equivalents at ₹
27,055 crores
Operational Highlights
- Zinc India:
-
- Highest ever quarterly ore production at 4.0 million tonnes,
with highest ever mine development of 27 km
- Mined metal production at 244 kt, up 2% q-o-q
- Zinc International:
-
- Gamsberg highest ever production of 43kt in Q3 FY2021, up by
23% q-o-q
- Oil & Gas:
-
- Average Daily Gross Operated Production at 160 kboepd, down 3%
q-o-q
- New gas facility commissioned; gas production being ramped up
by ~15 kboepd
- Aluminium:
-
- Aluminium volume 497kt, up by 5% q-o-q
- Sustained lower cost of production at $
1,387/t and EBITDA margin of 28%
- Iron Ore:
-
- Capitalized opportunity to increase Goa sales to 0.6
Mnt
- Karnataka sales of 1.2 Mnt
- Steel:
-
- Highest ever hot metal production of 372 kt since
acquisition
- Robust EBITDA margin at $111/t,
up 18% q-o-q
- Value Added Product (VAP) mix increased to 85% in Q3 FY2021
from 71% in Q2 FY2021
1. Excludes custom smelting at Copper India
and Zinc India operations
Mr. Sunil Duggal, Chief
Executive Officer, Vedanta, said, "We continue to strengthen our
position as one of the largest diversified natural resource
businesses in the world with our strategy focused on value-added
growth. Our businesses stayed resilient in the quarter amidst
uncertain market environment as we continued with our winning
streak reporting the highest EBITDA in last two years. We
continue to ramp up across the Zinc and Iron & Steel
verticals along with successful project delivery in the Oil &
Gas vertical. Aluminium business has had yet another exemplary
quarter as it continued the momentum of cost
rationalisation from improved integration and
systemic improvements. As we look forward to the
year, we have in place the building blocks to enhance our
performance in all our businesses as we continue to deliver
for all our stakeholders."
Mr. GR Arun Kumar, Chief Financial Officer, Vedanta, said,
"We are focussed on driving operations effectively in
this conducive price environment to maximise earnings to cash
conversion, allocate capital wisely while supporting high
return organic growth projects across businesses and continue to
drive costs down structurally to sustain these cash flows into
future. The Balance Sheet continues to remain strong with a
consolidated Net Debt / EBITDA ratio of ~1.5X with improving debt
maturity profile. Yet we target to reduce net debt by above
Rs 5,000 crores in the coming
quarter. ROCE at double digit levels of ~13% will thus leave enough
on the table to ensure good shareholder returns. The guidance has
remained constant or better through the year on volumes, costs,
below EBITDA items as well as growth capex thus delivering a
well-managed set of financials during the
year."
Consolidated Financial Performance
The consolidated financial performance of the company during the
period is as
under:
(In Rs.
crore, except as stated)
|
FY2020
|
Particulars
|
Q3
|
%
Change
|
Q2*
|
%
Change
|
9M
|
FY2021
|
FY2020
|
FY2021
|
FY2021
|
FY2020
|
83,545
|
Net Sales/Income from
operations
|
22,498
|
21,126
|
6%
|
20,804
|
8%
|
58,989
|
64,032
|
902
|
Other Operating
Income
|
237
|
234
|
2%
|
303
|
(22%)
|
826
|
660
|
21,060
|
EBITDA
|
7,695
|
6,531
|
18%
|
6,531
|
18%
|
18,234
|
16,216
|
29%
|
EBITDA
Margin1
|
39%
|
34%
|
-
|
36%
|
-
|
35%
|
29%
|
4,977
|
Finance
cost
|
1,321
|
1,231
|
7%
|
1,312
|
1%
|
3,885
|
3,913
|
2,443
|
Investment
Income
|
771
|
629
|
23%
|
621
|
24%
|
2,409
|
1,832
|
(306)
|
Exchange gain/(loss)
- (Non-operational)
|
177
|
(0)
|
-
|
30
|
-
|
200
|
(32)
|
18,220
|
Profit before
Depreciation and Taxes
|
7,322
|
5,928
|
24%
|
5,870
|
25%
|
16,958
|
14,103
|
9,093
|
Depreciation &
Amortization
|
1,912
|
2,291
|
(17%)
|
1,938
|
(1%)
|
5,583
|
6,841
|
9,127
|
Profit before
Exceptional items
|
5,410
|
3,637
|
49%
|
3,932
|
38%
|
11,374
|
7,261
|
(17,386)
|
Exceptional Items
Credit/(Expense)2
|
(0)
|
168
|
-
|
95
|
-
|
95
|
(254)
|
(8,259)
|
Profit Before
Tax
|
5,410
|
3,805
|
42%
|
4,027
|
34%
|
11,469
|
7,008
|
3,078
|
Tax Charge/
(Credit)
|
1,468
|
1,082
|
36%
|
1,150
|
28%
|
3,032
|
2,169
|
(73)
|
One-time tax charge/
(Credit)3
|
(282)
|
0
|
-
|
1,187
|
-
|
1,001
|
(2,501)
|
(6,521)
|
Tax on Exceptional
items/ (Credit)
|
0
|
58
|
-
|
33
|
-
|
33
|
2
|
(4,743)
|
Profit After
Taxes
|
4,224
|
2,665
|
59%
|
1,657
|
155%
|
7,403
|
7,338
|
6,122
|
Profit After Taxes
before exceptional items
|
4,224
|
2,555
|
65%
|
1,595
|
165%
|
7,341
|
7,594
|
6,049
|
Profit After Taxes
before exceptional items & one-time tax
|
3,942
|
2,555
|
54%
|
2,782
|
42%
|
8,342
|
5,093
|
1,920
|
Minority
Interest
|
925
|
317
|
192%
|
819
|
13%
|
2,233
|
1,481
|
(6,664)
|
Attributable
PAT
|
3,299
|
2,347
|
41%
|
838
|
294%
|
5,170
|
5,856
|
3,993
|
Attributable PAT
before exceptional items
|
3,299
|
2,238
|
47%
|
806
|
309%
|
5,138
|
5,906
|
4,066
|
Attributable PAT
before exceptional items & one-time tax
|
3,017
|
2,238
|
35%
|
1,993
|
51%
|
6,139
|
3,405
|
(18.00)
|
Basic Earnings per
Share (₹/share)
|
8.91
|
6.34
|
41%
|
2.26
|
294%
|
13.96
|
15.82
|
10.78
|
Basic EPS before
Exceptional items
|
8.91
|
6.05
|
47%
|
2.18
|
309%
|
13.87
|
15.95
|
70.86
|
Exchange rate (₹/$) -
Average
|
73.74
|
71.06
|
4%
|
74.24
|
(1%)
|
74.48
|
70.34
|
74.81
|
Exchange rate (₹/$) -
Closing
|
73.02
|
71.27
|
2%
|
73.63
|
(1%)
|
73.02
|
71.27
|
|
* Q2 FY21 restated,
refer note 7 of Vedanta Consolidated results
|
|
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 Q3 FY2021 was at ₹ 22,498 crores, higher by 8%
q-o-q, primarily due to higher commodity prices, higher sales at
Aluminium, Iron ore and Steel business, partially offset by lower
sales at Zinc India, lower PLF at TSPL and rupee appreciation.
Revenue was up by 6% y-o-y, mainly on account of higher
commodity prices, rupee depreciation and higher volumes at Zinc
India and Iron Ore business, partially offset by lower volumes at
Oil and Gas business, lower power sales in TSPL.
EBITDA and EBITDA Margins
EBITDA for Q3 FY2021 was at ₹ 7,695 crores, higher by 18%
q-o-q, primarily due to higher commodity prices, higher sales at
Aluminium, Iron ore, Steel business, partially offset by higher
input commodity prices and rupee appreciation.
EBITDA for Q3 FY2021 was higher by 18% y-o-y, mainly on account
of higher commodity prices, rupee depreciation and higher volumes
at Zinc India and Iron Ore business, partially offset by one offs
pertaining to past exploration cost recovery at Oil and Gas
business in Q3 FY2020.
EBITDA margin1 for Q3 FY2021 was at 39%.
Depreciation & Amortization
Depreciation and amortization for Q3 FY2021 stood at
₹ 1,912 crores, flat q-o-q.
It was lower 17% 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 Q3 FY2021 was at ₹ 1,321 crore, flat
q-o-q.
Finance cost was higher by 7% y-o-y, mainly on account of
increase in gross borrowings and lower capitalisation of interest
cost.
Investment Income was at ₹ 771 crore, higher by 24% q-o-q
and 23% y-o-y. This was primarily on account of one-off incomes in
Q3 FY2021 pertaining to interest on power debtors and tax
refund.
Taxes
Tax charge for Q3 FY2021 stood at ₹ 1,186 cr (Q2 FY2021:
Tax charge of ₹ 2,370 cr). The normalized ETR is 27% in Q3
FY2021 (excluding tax on dividend from Zinc India) compared to 29%
in Q2 FY21 which is due to PBT mix within entities. Tax charge for
Q3 FY2020 was ₹ 1,141 cr and ETR was 30%.
Attributable Profit after Tax and Earnings per Share
(EPS)
Attributable Profit after Tax (PAT) for the quarter was
₹ 3,299 crore and Earnings per share for the quarter was at
₹ 8.91 per share.
Balance Sheet
We have cash and cash equivalents of ₹ 27,055 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 ₹ 62,412 crore on 31st
December 2020, higher by ₹ 3,225
crore as compared to 31st March
2020, majorly on account of temporary borrowing at Zinc
India.
Net debt was at ₹ 35,357 crore on 31st
December 2020, higher by
₹ 14,084 crores as compared to 31st March 2020, on account of dividend payment and
intercompany loan to VRL, offset by positive cash flow.
CRISIL rating at AA- with stable outlook
India ratings AA- with negative
outlook
Key Recognitions
Vedanta has been consistently recognized through the receipt of
various awards and accolades. We received the following key
recognitions recently:
CAIRN
- Project "CREST" awarded for Best Project under External
Collaboration of the year at 10th inflection procurement
innovation.
- Cairn was awarded for 'Good work on Road by Ministry of
Transport and Highways, Rajasthan.
- Cairn Won Best Technology Implementation Award'20 for the
project 'Next Generation Workplace – Office 365' at the CIO
Conclave Award 2020.
- Maru Samvad, a Cairn communication-led community engagement
campaign, won gold for Best Regional Communication Campaign; won
bronze for Best Campaign in Energy at ET Brand Equity Kaleido
Awards'20.
HZL
- HZL was the only Indian Metal & Mining company featured in
The Sustainability Yearbook 2020 by S & P Global for 3rd
consecutive year as Sustainability Leaders (& Member)
- HZL's Corporate Communication Team bagged the Udaipur Media
Awards 2020 for their efforts as a corporate towards local and
regional media of Rajasthan.
- HZL receives "Excellent Renewable Initiative under Platinum
Category" for 22 MW Solar Power Project at Rampura Agucha
Mine.
- Ms. Amrita Singh, Head Domestic Marketing – HZL, was conferred
with "Woman Procurement Leader" at 2nd India Procurement Leadership
Forum & Awards 2020.
- HZL has received recognition in the category of "Significant
Achievement in HR Excellence Award" by CII
ALUMINIUM & POWER
- CEO Ajay Kapur awarded Business
Leader of the Year by ET Now
- Aluminium & Power business awarded Best Employer Brands by
ET Now
- Vedanta Ltd., Jharsuguda was the winner of CII-EHS Award 2019
at State Level for Best Practices in HSE
- Balco, Jharsugda & TSPL received HR Excellence Awards by
CII
- Balco wins the Golden Peacock
Award in Corporate Social Responsibility
SESA GOA
- Sesa Goa's Value Added Business won Social Impact Award by
Indian Chamber of Commerce
- Sesa Goa's Value Added Business won IMC RBNQ Performance
Excellence Trophy-2019'
STERLITE COPPER
- Sterlite Copper Silvassa unit won Par Excellence Award for
Kaizen Competition by Quality Circle Forum India at 6th National
Conclave on 5S
ELECTROSTEEL
- CSR department of ESL won 3 awards in National Summit &
Award Ceremony' organized by ASSOCHAM National CSR Awards 2020
under Education, Health and Skill Development category
- Pankaj Malhan, CEO and
Whole-Time Director of Electrosteel Steels Limited has been
recognized as 'Business Leader of the Year Award' by ET Now.
CSR
- Nand Ghar was awarded for 'Best CSR Practices' at ET Now World
CSR Awards 2020.
- Change Maker Award '20 by Union Minister Finance &
Corporate Affairs, GOI to Mrs. Ritu
Jhingon
- Mr. Khurram Nayaab from our CSR team was featured in '101
Fabulous Leaders globally' by ET Now
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
6:30 PM (IST) on Friday,
29th January 2021, 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 January 29, 2021
|
India – 6:30 PM
(IST)
|
Local Dial-in
+91 7045671221
Toll
free:
1800 120
1221,
1800 266
1221
Universal
access:
+91 22 7115
8015
+91 22 6280
1114
|
Singapore – 9:00
PM (Singapore Time)
|
Toll free
number: 800 101 2045
Int'l Toll:
+65 31575746
|
Hong Kong – 9:00
PM (HKT)
|
Toll free
number: 800 964 448
Int'l Toll:
+852 30186877
|
UK – 1:00 PM (UK
Time)
|
Toll free
number: 0 808 101 1573
Int'l Toll:
+44 2034785524
|
US – 8:00 AM
(Eastern Time)
|
Toll free
number: 1 866 746 2133
Int'l Toll: +1
3233868721
|
Online Registration
Link
|
https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=3706657&linkSecurityString=b904b5837
|
Call
Recording
|
Will be available on
website 30th Jan.'2021 onwards
|
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.
For further information, please contact:
Investor
Relations
Varun
Kapoor
Director, Investor
Relations
|
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
|
Logo:
https://mma.prnewswire.com/media/661292/Vedanta_Limited_Logo.jpg