Vedanta Q3 Results: Profit Drops 41% But Beats Estimates
Vedanta's Q3 revenue was at Rs 33,691 crore compared to Rs 33,697 crore last year.
Vedanta Ltd. reported a 41% decline in net profit for the three months ended December. The bottom line, however, exceeded average analyst estimates.
The mining major reported a consolidated net profit of Rs 2,464 crore for the quarter under review, compared with Rs 4,164 crore a year ago, according to an exchange filing. The analysts tracked by Bloomberg had estimated net income of Rs 1,742.9 crore.
Revenue for the Anil Agarwal-led company changed little during the quarter, and was at Rs 33,691 crore compared to Rs 33,697 crore in the previous year.
Vedanta Q3 FY23 Highlights (Consolidated, YoY)
Revenues are down 0.02% at Rs 33,691 crore, compared to the Bloomberg estimate of Rs 33,981.10 crore.
Ebitda was down 36.06% at Rs 6,656 crore, against a forecast of Rs 7,242.78 crore.
Ebitda margin narrowed to 19.76% against 30.89% a year ago. Analysts had estimated it at 21.3%.
"We have delivered a strong set of financial results and steady operational performance in a challenging macroeconomic environment... free cash flow (pre-capex) stood at Rs 6,504 crore ,with a focus on working capital and cost optimisation," said Vedanta CEO Sunil Duggal.
On the ESG plans of the company, Duggal said Vedanta has approved another 941 MW renewable energy project.
"I am also happy to share that the boards of Vedanta and Hindustan Zinc Ltd. have taken the strategic initiative to consolidate Zinc International under Hindustan Zinc. It will be a win-win transaction, unlocking significant value for both Vedanta Ltd. and Hindustan Zinc Ltd. shareholders," he said.
Segment-Wise Ebitda (YoY)
Zinc, lead, and silver declined 18.45% to Rs 3,575 crore.
Zinc International declined 15.53% to Rs 310 crore.
Oil and gas revenue rose 34.32% to Rs 2,004 crore.
Aluminium declined 74.27% to Rs 964 crore.
Copper reported a loss of Rs 55 crore, against a profit of Rs 15 crore.
Iron ore declined 86.83% to Rs 54 crore.
Power declined 4.24% to Rs 271 crore.
Other segments clocked a loss of Rs 23 crore, against Rs 240 crore a year ago.
The board also approved an interim dividend of Rs 12.50 per share for the current financial year. The record date for the payment of the dividend is Feb. 4. The cumulative outgo, on account of the dividend, would be Rs 4,647 crore, Vedanta said in its filing.
The board also approved plans for the company to source 91 MW of hybrid renewable power and 600 MW of solar power for its aluminium operations in Jharsuguda and its copper, oil, and gas operations across India.
To this end, Vedanta said it will execute power delivery agreements through special-purpose vehicles, which will be affiliates of Serentica Renewables India Pvt.—formerly Sterlite Power Technologies Pvt. Serentica is engaged in the business of supplying solar- and wind-based renewable energy and battery storage solutions.