Vedanta on Friday posted a 42% decline in consolidated net profit to Rs 3,092 crore in the December quarter (Q3FY23) compared to Rs 5,354 crore in the year-ago period. The drop in profits was mainly owing to soft metal prices, but the windfall tax on crude also impacted the firm. Compared to the previous quarter (Q2FY23), the profit was, however, up 15%. On BSE, the shares of Vedanta closed at Rs 319.85 apiece on Friday, down 1.96%.
The total revenue of the company in Q3FY23 stood at Rs 33,691 crore, which was flat year-on-year. “The revenue in Q3 of FY22 decreased by 7% quarter-on-quarter to Rs 33,691 crore on account of moderation in output commodity prices and lower strategic hedging gains, partially offset by favourable foreign exchange movement,” the company said in an exchange filing.
The board of directors of the company also approved the fourth interim dividend of Rs 12.50 per equity share amounting to Rs 4,647 crore. Till now in FY23, it has announced a total dividend of `81 per share, amounting to over Rs 30,000 crore.
Vedanta also reported Ebitda of Rs 7,100 crore in Q3FY23, lower than `10,938 crore in the same quarter last year. The margin went down from 37% in Q3FY22 to 24% in the quarter ending December 31, 2022. “In Q3FY23, Ebitda decreased by 12% quarter-on-quarter to Rs 7,100 crore on account of lower output commodity prices, lower strategic hedging gains; partially offset by improved operational performance, easing of input commodity inflation, and foreign exchange gains,” the company said.
“Free cash flow (pre capex) stood at Rs 6,504 crore (in Q3) with focus on working capital and cost optimisation. Our ESG initiatives have been recognised by several major external rating agencies. We have approved plans for another 941 MW RE power under group captive RE power development programme,” Sunil Duggal, chief executive officer, Vedanta, said.
He also announced that Vedanta and Hindustan Zinc Limited boards have taken strategic initiative to consolidate Zinc International under Hindustan Zinc, and said it will be a win-win transaction, unlocking significant value to shareholders of both companies.
The board also approved the sale of Vedanta Zinc International business (Gamsberg, Black Mountain and Skorpion operations) to Hindustan Zinc for a cash consideration of $2,981 million, including $562 million as deferred consideration linked to certain milestones.
The company said its quarterly alumina production decreased by 2% quarter-on-quarter to 443 kilotonnes due to maintenance activities in calciners.
Karnataka saleable iron ore production increased by 32% quarter-on-quarter to 1.4 million tonnes. Pig iron production was higher by 66% quarter-on-quarter as Q2FY23 was impacted by shut down in smaller blast furnace. Oil and gas production increased 3% quarter-on-quarter due to gains from exploration success in Ravva and gains from the infill well drilling campaign in Cambay, partially offset by natural decline.