Vedanta Limited , a global diversified natural resources company, has announced its financial results for the second quarter, showcasing robust growth and operational achievements across its business segments.

Financial Highlights

Vedanta recorded its highest ever second quarter revenue at ₹39,218.00 crore, marking a 6% year-over-year increase. The company achieved a record second quarter EBITDA of ₹11,612.00 crore, up 12% compared to the same period last year. This growth was supported by a 69 basis points expansion in EBITDA margin to 34%.

Profit after tax (PAT) before exceptional items jumped 13% year-over-year to ₹5,026.00 crore. The reported PAT stood at ₹3,479.00 crore after accounting for exceptional items.

Operational Performance

Vedanta demonstrated strong operational performance across its business segments:

• Aluminium: Record quarterly alumina production at 653 kt, up 31% YoY. Aluminium production reached 617 kt, a 1% increase YoY.
• Zinc India: Highest-ever second quarter mined metal production at 258 kt, up 1% YoY. The company achieved its lowest Q2 cost of production in the last 5 years at $994/t.
• Zinc International: Mined metal production jumped 38% YoY to 60 kt, with Gamsberg's production increasing by 54% YoY.
• Oil & Gas: Production stood at 89.3 kboepd for Q2.
• Iron Ore: Record quarterly pig iron production at 238 kt, up 26% YoY.

Strategic Developments

Vedanta made significant progress on new projects, including:

• Commissioning of 1.3 GW of new power plant capacities
• First metal production from the new BALCO smelter
• First alumina output from the 1.5 MTPA train 2 at Lanjigarh refinery
• Start of 160 KTPA Roaster at Debari

Financial Position

The company's net debt to EBITDA ratio improved to 1.37x from 1.49x in the same quarter of the previous year. Vedanta maintained a strong liquidity position with cash and cash equivalents of ₹21,481.00 crore.

Management Commentary

Mr. Arun Misra, ED, Vedanta, commented on the results: "Our H1 performance reflects Vedanta's resilience. We delivered 8% YoY EBITDA growth in a period marked by uncertainties and lower prices of key commodities that we deal with versus the annual average of the previous year. Supported by this increased production capacity and the recovery in commodity prices, Vedanta is well positioned to deliver its best performance, with full year EBITDA potentially surpassing the historic best EBITDA of ~USD 6bn delivered previously."

Dividend

The Board of Directors approved a second interim dividend of ₹16.00 per equity share, bringing the total dividend declared for the current fiscal year to ₹23.00 per equity share.

Vedanta's strong Q2 performance, coupled with its strategic initiatives and operational improvements, positions the company for continued growth in the coming quarters. However, investors should note that future performance may be subject to market conditions and commodity price fluctuations.

About Vedanta Limited

Vedanta Limited is a diversified natural resources company with operations spanning India, South Africa, Namibia, and other global locations. The company is a major producer of oil and gas, zinc, lead, silver, copper, iron ore, steel, aluminium, and power.

Vedanta Ltd. has released its financial results for the second quarter, revealing a significant drop in net profit despite revenue growth.

Financial Performance

Vedanta reported a quarterly net profit of ₹18.00 billion, marking a 58% decrease from ₹43.00 billion in the same period last year. This figure fell short of analyst estimates, which had projected a net profit of ₹34.64 billion.

Despite the profit decline, the company's revenue grew to ₹399.00 billion from ₹376.00 billion year-over-year, surpassing analyst expectations of ₹382.50 billion.

EBITDA and Margins

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed improvement, increasing to ₹114.00 billion from ₹98.28 billion in the previous year. This figure exceeded analyst estimates of ₹105.90 billion.

Vedanta's EBITDA margin also saw an uptick, rising to 28.59% from 26.11% in the comparable period.

Profit Before Tax and Exceptional Items

The company's profit before tax increased to ₹70.15 billion from ₹57.60 billion year-over-year. However, Vedanta recorded an exceptional item of ₹20.70 billion, which significantly impacted its bottom line.

Dividend Declaration

Despite the profit decline, Vedanta's Board has approved a second interim dividend of ₹16.00 per equity share for the current fiscal year. This brings the total dividend declared for the year to ₹23.00 per share, demonstrating the company's commitment to shareholder returns.

Market Outlook

While Vedanta has shown revenue growth and improved EBITDA, the substantial drop in net profit may concern investors. The impact of the exceptional item highlights the challenges faced by the company in the current market environment.

Investors and analysts will likely focus on:

1. The nature and potential recurrence of the exceptional items
2. Strategies to improve profitability in future quarters
3. The sustainability of the dividend policy given the profit decline
4. Operational performance across various segments of the business

Conclusion

Vedanta's Q2 results present a mixed picture, with strong top-line growth and improved operational efficiency offset by a significant decline in net profit. The company's ability to navigate market challenges and improve its bottom line will be crucial in maintaining investor confidence in the coming quarters.