Mr Sunil Duggal, Chief Executive Officer, said “We are happy to announce that we have taken a number of actions in the last three months to further the journey of ESG transformation that was laid out last quarter. With the commitment to transforming the planet and becoming net-zero carbon by 2050 or sooner, the momentum for decarbonatization across the business has increased with the focus areas being renewable energy, fuel switch, fleet electrification, plantations & afforestation. We have entered into number of partnerships to brings best-in-class expertise and also strengthen our commitment to transforming the communities and the workplace. This has also been reflected in Vedanta’s ESG ratings which have seen an upward trend in terms of ratings by external agencies like Sustainayltics, MSCI and CDP etc.
Financial
- Record consolidated quarterly Revenue of ₹ 33,697 crore, up 50% Y-o-Y
- Highest ever quarterly EBITDA of ₹ 10,938 crore, up 42% Y-o-Y
- Attributable PAT (before exceptional items) at ₹ 4,189 crore, up 27% Y-o-Y
- Record consolidated Nine months Revenue of ₹ 91,850 crore, up 56%
- Highest ever Nine months EBITDA of ₹ 31,551 crore, up 73%
ESG
- Aluminium became the largest industrial consumer of renewable energy in India
- Jharsuguda collaborates with GEAR India for India’s largest E-forklift fleet
- Improved MSCI rating to B (earlier CCC) and CDP rating to B (earlier B-)
- Board has approved revised COC* to strengthen corporate governance
- 3,000th Nandghar established, benefitting 120,000+ children & 90,000 women
Operational
- Record performance at Aluminium, Zinc India, ESL and Facor
- Double digit growth across other business segments, sustained production at Oil
- Leveraging Portfolio with acquisition of NICOMET, became the sole producer of Nickel in India
Capital Allocation & Shareholder’s return
- Net Debt at ₹ 27,576 crore, reduced by ₹ 7,781 crore Y-o-Y
- Net Debt/EBITDA ratio at 0.7x, maintained at low level
- 2nd interim dividend pay-out of ₹ 5,019 crore (₹ 13.5 per share) in Q3 FY2022, record YTD dividend of ₹ 32.0 per share
Code of Business Conduct and Ethics
Mumbai, India: Vedanta Limited today announced its unaudited consolidated results for the third quarter (Q3) and nine months ended 31st December 2021.
Financial Highlights
| Q3 FY2022 |
| · Revenue of ₹ 33,697 crore, up 50% Y-o-Y
· EBITDA of ₹ 10,938 crore, up by 42% Y-o-Y · Robust Industry leading EBITDA margin1 of 37% · Att. PAT (before exceptional items) at ₹ 4,189 crore, up 27% Y-o-Y |
| Other Financial Highlights |
| · Strong double-digit ROCE at c.25%
· Net Debt/EBITDA at 0.7x, maintained at low level · Net Debt at ₹ 27,576 crore, reduction of ₹ 7,781 crore from 31st December 2020 · Strong liquidity position with total cash and cash equivalent at ₹ 25,207 crore · Second Interim Dividend of ₹ 13.5 per share; ₹ 5,019 crore in Q3 FY 2022 · India Ratings has upgraded outlook from ‘Stable’ to ‘Positive’ with AA- rating |
We delivered another strong quarter, with record quarterly and nine monthly Revenue and EBITDA. We reported consolidated quarterly Revenue of ₹ 33,697 crore, up 50% Y-o-Y, quarterly EBITDA of ₹ 10,938 crore, up 42% Y-o-Y, and quarterly attributable PAT (before exceptional items) of ₹ 4,189 crore, up 27% Y-o-Y, with sustained margins benefitting from operational efficiencies and high commodity prices despite input commodity headwinds. Overall, we have had a very good 9-months run with highest ever 9M production across almost all of our businesses. Q3 played a big part in it with highest ever quarterly production from HZL, Aluminium & ESL. Our commitment remains unchanged towards shareholders return and capital allocation. We reduced net debt by ₹7,781 crore Y-o-Y while maintaining net debt / EBITDA at low level of 0.7x and rewarded shareholders with 2nd interim dividend of INR 13.5 per Share, entailing a pay-out of ₹ 5,019 crore in this quarter “.
ESG Journey: Transforming for Good
| Actions in support of the Greater Good |
| · ESG Transformation Program
ü Supported by the three pillars of o Transforming Communities o Transforming the Planet o Transforming the Workplace |
| Net Zero by 2050 or sooner |
o 500 MW round the clock RE power purchase under final approvals o Vedanta becomes the largest industrial consumer of Renewable Energy in India – procured >2 billion units of RE from IEX & PXIL leading to 1.54 million tons CO2e reduction
o Jharsuguda: Collaborated with GEAR India; Supply of lithium-ion fork-lifts; India’s largest e-forklift fleet; 250KLPA Diesel saving o HZL: signed MoU with Normet & Epiroc; supply of Battery-powered UG fleet o ESL: Tie-up with Tata Motors for EVs (LMV); Tie-up with Eveez for 100% EVs for within the plant transportation o Cairn: commits 100% fleet electrification by 2025
o VAL-Lanjigarh signs partnership with GAIL; supply of natural gas for refinery; potential for reducing plant GHG intensity by 10%
o HZL commits to plant 1 million trees by FY2025; Cairn commits to plant 2 million trees by FY2030 o VAL-Jharsuguda plants 20,000 trees in a day; 2.5 lacs trees in nine months
o MoU to be signed with TERI as implementation partner for multiple environmental initiatives – water, habitat, climate
|
| Other Critical ESG Actions |
o Onboarded Agency for water positivity roadmap, water accounting across BUs o High impact initiatives – Ash-pond water reuse at Aluminium; Rainwater harvesting at Cairn; STP water usage at HZL; ZLD at ESL/HZL – Projects in progress o 3,000 KLD Zero Liquid Discharge plant commissioned at HZL’s Debari unit
o Specific projects underway for Jarofix, Red mud, Slag, Fly ash 100% utilization; Utilized 106% of fly-ash generated YTD o VAL-BALCO; Dispatched fly-ash 1st rake to Cement industries (6.1kt); Partnered with NHAI – 12-13% annual fly ash offtake o VAL- Lanjigarh- 32kT Red mud dispatched to Wonder Cement & Ultratech for Pilot
o Remodeled Code of Business Conduct and Ethics based on benchmarking with Global Standards and practices o Redrafted to ensure comprehensive coverage of all elements in structured manner
o Diversity, Equity and Inclusion Council established o All Women security teams deployed at Cairn & Aluminium o Women’s mine at HZL Zawar mine
o 3,000th Nandghar established benefitting 120,000+ children & 90,000 women |
| Operational Highlights Q3 FY2022 |
o Record Aluminium production of 578kt, up 16% Y-o-Y o Alumina production of 472kt, up 16% Y-o-Y
· Zinc India o Record refined metal production of 261kt, up 11% Y-o-Y o Mined metal production of 252kt, up 3% Y-o-Y
· Zinc International: o Gamsberg MIC production of 41 kt, down 5% Y-o-Y
· Oil & Gas: o Average gross operated production of 159 kboepd for Q3 FY2022, flat Y-o-Y o Infill wells development projects commenced
· Iron Ore: o Karnataka sales at 1.5 Mnt, up 24% y-o-y o Pig iron production of 202 kt, up 39% Y-o-Y o Commercial production started at recently acquired cement plant
· Nickel: o With NICOMET acquisition became the sole producer of Nickel in India
· Steel: o Record Hot Metal production at 379kt post acquisition, up 2% Y-o-Y o Highest ever saleable production at 350 kt post acquisition, up 3% Y-o-Y
· FACOR: o Record Fe Chrome production of 20 kt in Q3 FY22, up 13% Y-o-Y o EBITDA margin at $590 per tonne, ~5 times Y-o-Y
· Copper India: o Due legal process is being followed to achieve a sustainable restart of the operations |
- Excludes custom smelting at Copper business
- Pertains to unsuccessful exploration wells write off Open Acreage Licensing policy (OALP) blocks at Cairn
- Exceptional Items Gross of Tax
Revenue
Revenue for Q3 FY2022 was at ₹ 33,697 crore, higher by 50% Y-o-Y, primarily supported by improved commodity prices and higher sales volume across businesses, partially offset by lower sales volume at Zinc International and Iron & Steel business.
Revenue for Q3 FY2022 was higher by 12% Q-o-Q, primarily supported by improved commodity prices and higher sales volume across businesses, partially offset by lower sales volume at Zinc International and Oil & gas business.
EBITDA and EBITDA Margin
EBITDA for Q3 FY2022 was at ₹ 10,938 crore, higher by 42% Y-o-Y, primarily supported by improved commodity prices. This was partially offset higher Cost of production impacted by input commodity inflation.
EBITDA for Q3 FY2022 was higher by 3% Q-o-Q, primarily supported by improved commodity prices and higher sales volume across businesses, partially offset by higher Cost of production impacted by input commodity inflation.
We had a robust EBITDA margin1 of 37% during the quarter compared to 39% in Q3 FY2021 and 40% in Q2 FY2022.
Depreciation & Amortization
Depreciation & amortisation for Q3 FY2022 was at ₹ 2,274 crore, higher by 19% Y-o-Y, primarily on account of higher depletion charge at Oil & Gas, capitalization at Aluminium and Zinc India business.
Depreciation & amortisation for Q3 FY2022 was up by 7% Q-o-Q, mainly due to higher capitalisation at Aluminium and Zinc India business, partially offset by lower ore production at Zinc International.
Finance Cost and Investment Income
Finance cost for Q3 FY2022 was at ₹ 1,216 crore, down by 8% Y-o-Y, mainly due to lower average borrowings, partially offset by increased rate of borrowings.
Finance cost for Q3 FY2022 was up by 14% Q-o-Q, mainly due to higher average borrowings and amortization of finance cost.
Investment Income for Q3 FY2022 was at ₹ 516 crore, down by 33% Y-o-Y and 11% Q-o-Q, due to Mark to Market movement and change in Investment mix.
Exceptional Items
Exceptional items for Q3 FY2022 was at ₹ 37 crore, primarily on account of CWIP impairment at Doswada.
Taxes
The normalized ETR was 30% (excl. tax on exceptional items) compared to 27% in Q3 FY2021 and 26%in Q2 FY2022.
Attributable Profit after Tax and Earnings per Share (EPS)
Attributable Profit after Tax (PAT) before exceptional items for the quarter was at ₹ 4,189 crore up 27% Y-o-Y and down 10% Q-o-Q.
EPS for the quarter was at ₹ 11.24 per share compared to ₹ 8.91 per share in Q3 FY2021 and ₹ 12.46 per share in Q2 FY2022.
| Balance Sheet |
We have strong cash and cash equivalents of ₹ 25,207 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.
Gross debt was at ₹ 52,783 crore on 31st December 2021, deleveraged by ₹ 9,629 crore Y-o-Y. This was mainly due to deleveraging at Zinc India and Aluminium business.
Net debt was at ₹ 27,576 crore on 31st December 2021, reduction of ₹ 7,781 crore Y-o-Y, primarily driven by strong cash flow from operations and repayment of inter-company loan from Vedanta Resources, offset by capex and dividend payment.
- CRISIL Ratings at AA- with positive outlook
- India Ratings at AA- with positive outlook
Key Recognitions
Vedanta has been consistently recognized through the receipt of various awards and accolades. During the past quarter, we received the following recognitions:
- Hindustan Zinc’s Dariba Smelting Complex won the Prestigious ‘CII-National Awards for Excellence in Water Management’
- Vedanta Limited, Jharsuguda awarded under the Gold category ‘Kalinga Environment Excellence Award, 2020’ for Aluminium Smelting and Captive Power plant and Silver award for Power plant category
- Balco won the ‘SABERA Award 2021’ for its CSR efforts under the Responsible Business of the Year category
- Lanjigarh won Gold at the ‘CSR Times Award 2021’
- Cairn HR Team won the ‘Human Capital Award’ for ‘Developing Future Leaders’ by Frost & Sullivan
- Vedanta IOK bagged ‘Best Employer Brand Award’ at South India Best Employer Brand Awards 2021 held by World HRD Congress
- Sterlite Copper (Silvassa) wins the “Challengers Award” at the Sustainability 4.0 Awards 2021 under Mega Large Business Metals Category
- Balco bagged 2nd prize for ‘Best Pavilion’ at Rajyotsava, 2021, a festival organized by Govt. of Chhattisgarh commemorating the state’s 21st Foundation Day
- BALCO was recognized by News 18 (MP & Chhattisgarh) as Great Place To Work
- Jharsuguda won the ‘FICCI CSR Award’ under Women empowerment category for Project Subhalaxmi Co-operative
Results Conference Call
Please note that the results presentation is available in the Investor Relations section of the company website https://www.vedantalimited.com/Pages/FinancialReports.aspx
Following the announcement, a conference call at 6:00 PM (IST) on Jan 28, 2021, will be there, 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 Jan 28, 2022 from 6:00 – 7:00 PM (IST) |
Universal Dial-In | +91 22 6280 1114
+91 22 7115 8015 |
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| India National Toll Free | 1 800 120 1221 | ||||||||||||||
| International Toll Free* |
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| International Toll* |
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| Online Registration Link | https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=5525803&linkSecurityString=164548598a | ||||||||||||||
| Call Recording | Will be available on website January 30, 2022 onwards | ||||||||||||||
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