Vedanta rose 0.95% to Rs 303.70 after the company reported consolidated attributable net profit of Rs 4,615 crore in Q2 September 2021, steeply higher than Rs 824 crore in Q2 September 2020.
On a consolidated basis, net sales rose 44% to Rs 30,048 crore in Q2 September 2021 over Q2 September 2020. Revenue for Q2FY2022 was higher by 7% Q-o-Q, primarily supported by improved commodity prices, partially offset by lower sales volume at zinc and iron ore business. The YoY rise in the revenue was supported by improved commodity prices and higher volumes across businesses, partially offset by lower sales volume at Zinc India, copper and TSPL.Profit Before Tax jumped 95% to Rs 7,806 crore in Q2 September 2021 over Q2 September 2020.
EBITDA jumped 62% YoY to Rs 10,582 crore during the period under review. EBITDA margin stood at 40% in Q2 September 2021 higher than 36% in the same period last year.
EBITDA for Q2 FY2022 rose 5% Q-o-Q, primarily supported by improved commodity prices, partially offset by lower volumes at Zinc & Iron Ore business, and higher COP impacted by input commodity inflation. The YoY rise in the EBITDA was supported by improved commodity prices and higher volumes at aluminium. This was partially offset by lower sales volume at Zinc business and higher COP impacted by input commodity inflation.
Depreciation & amortisation for Q2 FY2022 was higher by 9% Y-o-Y, primarily on account of higher capitalization at Aluminium and oil & gas and higher ore production at Zinc business.
Finance cost for Q2FY2022 was at Rs 1,066 crore, down by 10% Q-o-Q and 19% Y-o-Y, primarily due to lower average borrowings in the quarter.
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The company's had cash and cash equivalents of Rs 30,650 crore. Gross debt was at Rs 51,040 crore on 30 September 2021, decreased by Rs 11,719 crore Y-o-Y. This was mainly due to deleveraging at zinc and aluminium business.
Net debt was at Rs 20,389 crore on 30 September 2021, reduction of Rs 7,232 crore Y-o-Y, primarily driven by strong cash flow from operations post capexand dividend pay-out.
Sunil Duggal, chief executive officer, said "Vedanta has set its sights on becoming a leader in terms of our ESG performance in the metals & mining sector, with a strong commitment towards achieving Net-Zero Carbon by 2050 or sooner, increasing workplace diversity, and a commitment to improve the quality of life of more than 100 million women & children. We are confident that these goals will also translate into improved financial performance, de-risk the business and create opportunities in the emerging green economy. We continued our strong growth momentum this quarter as well, reporting record quarterly and half-yearly Revenue and EBITDA. We reported consolidated quarterly Revenue of ₹30,048 crore, up 44% Y-o-Y and quarterly EBITDA of ₹10,582 crore, up 62% Y-o-Y. Our attributable PAT (before exceptional items) stood at ₹4,644 crore, up 486% Y-o-Y. We witnessed steady volume performance across business segments, and sustained margins benefitting from high commodity prices despite a challenging cost environment. We continue to focus on prudent capital allocation and deleveraging. We reduced net debt by ₹7,232 crore Y-o-Y. We continue our commitment of rewarding shareholders with interim dividend of INR 18.5 per Share, entailing pay-out of ₹6,855 crore."
The company reported highest quarterly Aluminium production of 570kt, up 21% Y-o-Y. It reported highest quarterly Alumina production of 511kt, up 11% Y-o-Y. The firm reported record-high mined metal production of 248kt since UG transition, up 4% Y-o-Y. It reported record quarterly pig iron production of 208 kt, up 12% Y-o-Y. The company's saleable steel production stood at 293kt, up 12% Y-o-Y.
The company has given a capex guidance of $1.1 billion for FY22 and has spent around $0.3 billion as of September 2021.
The board approved first interim dividend of Rs 18.5 per share.
Further, Vedanta's board also approved the scheme of arrangement between the company and its shareholders. "The scheme inter alia provides for capital reorganisation of the company, whereby it is proposed to transfer amounts standing to the credit of the general reserves to the retained earnings of the company with effect from the appointed date (as defined in the scheme)," he added. The scheme is subject to the receipt of regulatory approvals/ clearances from the National Company Law Tribunal, Mumbai Bench, the Securities and Exchange Board of India (through BSE and National Stock Exchange) and such other approvals/ clearances as may be applicable, the company said.
Vedanta, a subsidiary of Vedanta Resources, 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.
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