Vedanta reported 40.5% jump in consolidated net profit to Rs 3,299 crore on a 6.5% rise in net sales to Rs 22,498 crore in Q3 FY21 over Q3 FY20.
The company said that the revenue improvement was mainly on account of higher commodity prices, rupee depreciation and higher volumes at Zinc India and Iron Ore business, partially offset by lower volumes at Oil and Gas business, lower power sales in Talwandi Sabo Power (TSPL).
Profit before tax in Q3 FY21 stood at Rs 5,410 crore, up by 42.1% from Rs 3,806 crore in Q3 FY20. Current tax expense during the quarter increased 130.3% to Rs 1,186 crore from Rs 515 crore in the same period last year.
EBITDA rose 18% to Rs 7,695 crore in Q3 December 2020 from Rs 6,531 crore in Q3 FY20. EBITDA margin was at 39% as on 31 December 2020 as against 34% as on 31 December 2019.
Finance cost was higher by 7% year-on-year (YoY), mainly on account of increase in gross borrowings and lower capitalisation of interest cost.
Gross debt was at Rs 62,412 crore on 31 December 2020, higher by Rs 3,225 crore as compared to 31 March 2020, majorly on account of temporary borrowing at Zinc India. Net debt was at Rs 35,357 crore on 31st December 2020, higher by Rs 14,084 crores as compared to 31st March 2020, on account of dividend payment and intercompany loan to VRL, offset by positive cash flow.
"We have cash and cash equivalents of Rs 27,055 crore. The company invests in high quality debt instruments as per the Board approved policy. The portfolio is rated by CRISIL, which has assigned a rating of 'Tier-I' (implying Highest Safety) to our portfolio," the company said in a statement.
Also Read
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.
We 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."
GR Arun Kumar, Chief Financial Officer, Vedanta, said, "We are 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. ROCE at double digit levels of approximately 13% will thus leave enough on the table to ensure good shareholder returns.
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."
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.
The scrip shed 0.92% to Rs 161.20 on Friday. It traded in the range of 160.40 and 165.25 so far during the day.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content