Vedanta Q3 profit up 59 % to Rs 4,224 crore

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January 29, 2021 6:27 PM

Vedanta's total income during the October-December quarter rose to Rs 23,621 crore from Rs 22,007 crore in the year-ago period, the filing said.

Vedanta Group, Vedanta Q3 earnings, Vedanata December quarter net profits, Investment income of Vedanta, Vedanta chemicals and oil verticals, Sunil Duggal, Chief Executive Officer, VedantaVedanta's total expenses during the quarter were almost flat at Rs 18,211 crore

Vedanta Ltd on Friday reported a 59 per cent jump in its consolidated profit to Rs 4,224 crore for the quarter ended on December 31, 2020. The company had posted a profit after share in profit/loss of jointly controlled entities and associates of Rs 2,665 crore in the year-ago period, Vedanta said in a regulatory filing to the BSE.

Its total income during the October-December quarter rose to Rs 23,621 crore from Rs 22,007 crore in the year-ago period, the filing said. Total expenses during the quarter were almost flat at Rs 18,211 crore.

The company in a statement said EBITDA for the third quarter of FY2021 of Rs 7,695 crore was up by 18 per cent q-o-q and y-o-y, the highest in the last 11 quarters while attributable PAT (before exceptional items and tax on dividend) of Rs 3,017 crore was up 51 per cent q-o-q.

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.”

He said the company will 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, he said.

GR Arun Kumar, Chief Financial Officer, Vedanta, said the company is 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. “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.”

The statement said depreciation and amortization for the third quarter stood almost flat at Rs 1,912 crores.
Finance cost for the quarter was also almost flat at Rs 1,321 crore. “Investment income was at Rs 771 crore, higher by 24 per cent q-o-q and 23 per cent y-o-y. This was primarily on account of one-off incomes in Q3 FY2021 pertaining to interest on power debtors and tax refund,” the statement said. Tax charge during the quarter stood at Rs 1,186 crore, the company said.

“We have cash and cash equivalents of Rs 27,055 crore. …Gross debt was at Rs 62,412 crore on December 31, 2020, higher by Rs 3,225 crore as compared to March 31, 2020, majorly on account of temporary borrowing at Zinc India. “Net debt was at Rs 35,357 crore on December 31, 2020, higher by Rs 14,084 crores as compared to March 31, 2020, on account of dividend payment and intercompany loan to VRL, offset by positive cash flow,” it said.

Zinc India recorded the highest ever quarterly ore production at 4 million tonnes while aluminium volume was 497kt, up by 5 per cent q-o-q.

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