Le Lézard
Classified in: Mining industry, Oil industry, Business
Subjects: ERN, CCA

Vedanta Limited: Consolidated Results for the Second Quarter Ended 30 September 2019


MUMBAI, India, Nov. 14, 2019 /PRNewswire/ -- Vedanta Limited today announced its unaudited consolidated results for the Second quarter (Q2) and half year ended 30 September 2019.

Vedanta_Limited_Logo

Financial & Corporate Highlights

Operational Highlights

The overall volume and cost across businesses is better/ same compared to same quarter last year, supported by favourable tailwinds on input commodity costs . Business wise highlights are :

Zinc India:

? Zinc International: Gamsberg production at 24kt in Q2, ramp up in progress.

? Oil & Gas:

? Aluminium:

? Iron Ore: Highest ever quarterly sales in Karnataka at 1.4 million tonnes.

? Steel:  Sales at 283 kt , up 6% y-o-y.

? TSPL: Plant availability of 92%.

1 Attributable PAT after exceptional items
2 Excludes custom smelting at Copper India and Zinc India operations

Mr. Srinivasan Venkatakrishnan, Chief Executive Officer, Vedanta, said, "We are at an exciting transition that will see the company accelerate in the expansion of its reserves and resource base over coming quarters. This expansion is being delivered through strict capital allocation and balance sheet focus aimed at creating value for our stakeholders. As we look forward to the year, we have in place the building blocks to enhance our performance in the three key businesses. We have immense confidence in being able to deliver the best from our assets and people whilst always being committed to our core values around ethics, governance and social responsibility."

Consolidated Financial Performance

The consolidated financial performance of the company during the period is as under:

(In Rs. crore, except as stated)

FY2019

Particulars

Q2

%
Change

Q1

%
Change

H1

FY2020

FY2019

FY 2020

FY2020

FY2019

90,901

 Net Sales/Income from operations

21,739

22,432

(3%)

21,167

3%

42,906

44,374

1,147

 Other Operating Income

219

273

(20%)

207

6%

426

537

24,012

 EBITDA

4,497

5,281

(15%)

5,188

(13%)

9,685

11,729

30%

 EBITDA Margin1

25%

26%


27%


26%

30%

5,689

 Finance cost

1,340

1,478

(9%)

1,341

(0%)

2,681

2,930

3,617

 Investment Income

832

587

42%

373

-

1,204

976

(508)

 Exchange gain/(loss) - (Non operational)

(50)

(161)

(70%)

17

-

(32)

(390)

21,432

 Profit before Depreciation and Taxes 

3,939

4,229

(7%)

4,237

(7%)

8,176

9,385

8,192

 Depreciation & Amortization

2,395

1,931

24%

2,155

11%

4,550

3,727

13,240

 Profit before Exceptional items

1,544

2,298

(33%)

2,082

(26%)

3,626

5,658

320

 Exceptional Items Credit/(Expense)2

(422)

320

-

-

-

(422)

320

3,750

 Tax Charge /(Credit)

(1,553)

606

-

138

-

(1,415)

1,718

112

 Tax on Exceptional items

(56)

112

-

-

-

(56)

112

9,698

 Profit After Taxes  (PAT)

2,730

1,900

44%

1,944

41%

4,674

4,148

2,633

 Minority Interest

572

557

3%

593

(3%)

1,165

1,272

7,065

 Attributable PAT 

2,158

1,343

61%

1,351

60%

3,509

2,876

19.07

 Basic Earnings per Share (?/share)

5.83

3.62

61%

3.65

60%

9.48

7.76

69.89

 Exchange rate (?/$) - Average

70.35

70.03

0%

69.58

1%

69.97

68.51

69.17

 Exchange rate (?/$) - Closing

70.50

72.55

(3%)

68.96

2%

70.50

72.55

1.  Excludes custom smelting at Copper India and Zinc India operations
2.  Exceptional Items Gross of Tax
3.  Previous period figures have been regrouped or re-arranged wherever necessary to conform to current period's presentation

Revenues

Revenue in Q2 FY2020 was at ? 21,739 crore, lower 3% y-o-y, primarily due to lower commodity prices partially offset by additional volumes from commencement of Gamsberg operations and higher sales at Iron Ore Karnataka.

Revenue was higher by  3% on a sequential basis, primarily due to liquidation of concentrate inventory at Copper , partially offset by lower commodity prices.

EBITDA and EBITDA Margins

EBITDA for Q2 FY2020 was at ? 4,497 crore, lower by 15% y-o-y, mainly due to lower commodity prices, partially offset by additional volumes from commencement of Gamsberg operations, higher sales at Iron Ore Karnataka and easing of input commodity inflation.

EBITDA for Q2 FY2020 was lower by 13% as compared to Q1 FY 20 primarily due to lower commodity prices.

EBITDA margin for Q2 FY2020 was at 25%.

Depreciation & Amortization

Depreciation and amortization for Q2 FY2020 was at ? 2,395 crore, higher by 24% y-o-y and 11% q-o-q. This was mainly due to higher ore production at Zinc businesses, commencement of Gamsberg operations and higher charge at Oil & Gas due to capitalisation.

Finance Cost and Investment Income

Finance cost for Q2 FY2020 was at ? 1,340 crore, lower by 9% y-o-y, primarily due to reduction in gross borrowings, while on a sequential basis the finance cost remained flat.

Investment Income was at ? 832 crore, higher by 42% y-o-y. This was primarily on account of mark to market gain on investments due to softening of yields, partially offset by one-time reclassification from Other Comprehensive Income to profit and loss account at HZL in Q2 FY 19.

Investment Income increased from ? 373 crore in Q1 FY 20 to ? 832 crore in Q2 FY 20 on account of mark to market gain on investments.

Exceptional Items

Exceptional item primarily is a charge of ? 504 crores, relating to impairment at Avanstrate Inc, partially offset by accrual of Interest against pending claims at TSPL based on Supreme Court order giving a net charge of ? 422 crores.

Taxes

Section 115BAA of the Income- tax Act, 1961 has been introduced by the Taxation Laws (Amendment) Ordinance, 2019. Based on the expected timing of exercising of the option under Section 115BAA by the respective entities, the Group has re-measured its deferred tax balances leading to a deferred tax credit of Rs 2,501 crore on deferred tax balances as at March 31, 2019 being recognized in the current quarter.

Normalised tax rate for the quarter is 32% as against 27% last quarter.

Attributable Profit after Tax and Earnings per Share (EPS)

Attributable Profit after Tax (PAT) for the quarter was ? 2,158 crore and Earnings per share for the quarter was at ? 5.83 per share .

Balance Sheet

We have robust cash and liquid investments of ? 35,817 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. Further, the Company has undrawn committed facilities of c. ? 7,200 crore as on 30th September 2019.

Gross debt was at ? 55,898 crore on 30th September 2019, lower by ? 3,279 crore as compared to 30th  June 2019. This was mainly due to repayment of debt at TSPL and Vedanta Standalone.

Net debt was at ? 20,081 crore on 30th September 2019, lower by ? 8,322 crores as compared to June 30, 2019, primarily due to free cash flow generation during the period and realisation of power debtors at TSPL.

Key Recognitions

Vedanta has been consistently recognized through the receipt of various awards and accolades. We received the following key recognitions recently:

Results Conference Call

Please note that the results presentation is available in the Investor Relations section of the company website www.vedantalimited.com - http://www.vedantalimited.com/investor-relations/results-reports.aspx

Following the announcement, there will be a conference call at 6:00 PM (IST) on Thursday, 14th November 2019, where senior management will discuss the company's results and performance. The dial-in numbers for the call are as below:

Event


Telephone Number

Earnings conference call on November 14, 2019

India ? 6:00 PM (IST)

India: +91-7045671221

Toll free: 
1800-120-1221,
1800-266-1221

Universal access:

+91-22-6280-1114

+91-22-7115-8015

Singapore ? 8:30 PM (Singapore Time)

Toll free number

8001012045
International toll
6531575746

Hong Kong ? 8:30 PM (Hong Kong Time)

Toll free number

800964448

International toll
85230186877

UK ? 12:30 PM (UK Time)

Toll free number

08081011573

International toll

+44-2034785524

US ? 7:30 AM (Eastern Time)

Toll free number

18667462133

International toll

1-3233868721

Online Registration Link

https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=100540&linkSecurityString=2f483238

Replay of Conference Call

(November 14, 2019 to November 20, 2019)


India
+91-22-71945757, +91-22-66635757

Passcode: 63835#

 

About Vedanta Limited

Vedanta Limited, a subsidiary of Vedanta Resources Limited, is one of the world's leading diversified natural resource companies with business operations in India, South Africa, Namibia and Australia. Vedanta is a leading producer of Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, Aluminium & Power.

Governance and Sustainable Development are at the core of Vedanta's strategy, with a strong focus on health, safety and environment and on enhancing the lives of local communities. The company is conferred with, CII-ITC Sustainability Award, FICCI CSR Award, Dun & Bradstreet Awards in Metals & Mining & The Great Place to Work.

For two decades, Vedanta has been contributing to India's growth story. The company is amongst the top private sector contributors to the exchequer with the highest ever contribution of INR 42, 560 Crore in FY 2019. Vedanta contributes 1 percent of India's GDP.

Vedanta Limited is listed on the Bombay Stock Exchange and the National Stock Exchange in India and has ADRs listed on the New York Stock Exchange.

For more information, please visit www.vedantalimited.com

Vedanta Limited
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai - 400 099
www.vedantalimited.com

Registered Office:
Regd. Office: 1st Floor, 'C' wing, Unit 103,
Corporate Avenue, Atul Projects,
Chakala, Andheri (East),
Mumbai ? 400 093

CIN: L13209MH1965PLC291394

Disclaimer

This press release contains "forward-looking statements" ? that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward?looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

For further information, please contact:

Communications
Arun Arora
Head, Corporate Communications
Tel: +91-11-4916-6250
gc@vedanta.co.in

Investor Relations
James Cartwright
Head ? Investor Relations
Tel: +91-124-476-4096
vedantaltd.ir@vedanta.co.in  

Suruchi Daga
Associate General Manager ? Investor Relations

Raksha Jain
Manager ? Investor Relations

 

SOURCE Vedanta Limited


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