On consolidated basis, Vedanta's net profit declined 53.71% to Rs 2,690 crore despite of 20.6% increase in revenue from operations to Rs 36,237 crore in Q2 FY23 over Q2 FY22.
The mining company said that the increase in revenue was supported by higher sales volume, strategic hedging gains and foreign exchange gains; partially offset by lower commodity prices.Profit before tax in the second quarter stood at Rs 4,364 crore, down 44% from Rs 7,806 crore recorded in the same period last year.
EBITDA decreased by 24% to Rs 8,038 crore in Q2 FY23 as against Rs 10,582 crore reported in Q2 FY22. The rise in EBITDA was on account of input commodity inflation and lower output commodity prices; partially offset by improved operational performance, hedging gains and foreign exchange gains.
EBITDA margin slipped to 25% in Q2 FY23 compared with 40% recorded in the corresponding quarter previous year.
Depreciation & amortisation for Q2 FY23 was increased by 24% YoY to Rs 2,624 crore, mainly due to higher depletion charge in Oil & Gas and amortization at Zinc India.
In Q2 FY23, finance cost jumped 54% YoY to Rs 1,642 crore, mainly due to increase in average borrowings, partially offset by reduction in average interest rate of borrowings. Finance cost increased 36% quarter on quarter due to increase in average borrowings and average rate of borrowings.
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Investment Income for Q2 FY23 was up 9% YoY to Rs 631 crore, mainly due to Mark to Market movement and change in investment mix.
The company's gross debt declined by Rs 2,543 crore on quarter on quarter basis to Rs 58,597 crore as on 30 September 2022. Net debt stood at Rs 32,144 crore on 30 September 2022.
Cash and cash equivalents position remained healthy at Rs 26,453 crore. The company follows a board-approved investment policy and invests in high quality debt instruments with mutual funds, bonds, and fixed deposits with banks.
Sunil Duggal, chief executive officer of Vedanta, said I am pleased to share that we have generated strong free cash flow (pre capex) of Rs 8,369 crore underpinned by robust operational and financial performance. I am also happy to inform that Vedanta has entered in the club of top 10 DJSI ranked global metals and mining companies; ranking 6th globally.
Our growth and vertical integration projects, aimed to reduce market volatility impact and create shareholders' value, are progressing well. We remain well positioned, with a rich diversified asset portfolio, strong balance sheet, and cost optimization levers, to withstand challenging macroeconomic environment.
Meanwhile, the company said that the government has approved the extension of the production sharing contract (PSC) for the Rajasthan gas facility under the pre‐NELP Extension Policy by 10 years from 15 May 2020 to 14 May 2030.
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 and Namibia.
Shares of Vedanta were down 1.81% to settle at Rs 284.85 on the BSE.
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