Vedanta Limited - Consolidated Results for the Second Quarter ended 30th September 2020

Vedanta Limited - Consolidated Results for the Second Quarter ended 30th September 2020

PR Newswire

MUMBAI, India, Nov. 6, 2020

- 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.

Vedanta_Limited_Logo

Financial & Corporate Highlights

Operational Highlights

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:

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.

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