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.
Financial & Corporate 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 International: Gamsberg production at 24kt in Q2, ramp up in progress.
? Oil & Gas:
? 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)
Net Sales/Income from operations
Other Operating Income
Exchange gain/(loss) - (Non operational)
Profit before Depreciation and Taxes
Depreciation & Amortization
Profit before Exceptional items
Exceptional Items Credit/(Expense)2
Tax Charge /(Credit)
Tax on Exceptional items
Profit After Taxes (PAT)
Basic Earnings per Share (?/share)
Exchange rate (?/$) - Average
Exchange rate (?/$) - Closing
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
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 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.
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 .
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.
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:
Earnings conference call on November 14, 2019
India ? 6:00 PM (IST)
Singapore ? 8:30 PM (Singapore Time)
Toll free number
Hong Kong ? 8:30 PM (Hong Kong Time)
Toll free number
UK ? 12:30 PM (UK Time)
Toll free number
US ? 7:30 AM (Eastern Time)
Toll free number
Online Registration Link
Replay of Conference Call
(November 14, 2019 to November 20, 2019)
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, 75, Nehru Road,
Vile Parle (East), Mumbai - 400 099
Regd. Office: 1st Floor, 'C' wing, Unit 103,
Corporate Avenue, Atul Projects,
Chakala, Andheri (East),
Mumbai ? 400 093
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:
Head, Corporate Communications
Head ? Investor Relations
Associate General Manager ? Investor Relations
Manager ? Investor Relations
SOURCE Vedanta Limited
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