Mining major Vedanta Ltd returns back to profit, reports Rs 4,352 cr profit in Q2FY25
Mumbai: Vedanta Ltd, led by billionaire Anil Agarwal, posted a net profit of Rs 4,352 crore for the September quarter, contrasting with a loss of Rs 1,783 crore in the same period last year, largely due to lower taxes.
The mining giant reported a 3.6 percent dip in revenue from operations, reaching Rs 37,171 crore, as per its exchange filing.
Quarterly EBITDA climbed 44 percent to Rs 10,364 crore, driven by favorable commodity prices, cost saving measures, and increased premiums across its businesses.
"The second half of this year will be a transformative period with our major growth and integration projects coming online and ramping up," said executive director Arun Misra, emphasizing the company's commitment to reducing production costs.
On a standalone basis, Vedanta's revenue decreased 5 percent to Rs 18,003 crore, while net profit after tax, excluding exceptional items, rose to Rs 7,635 crore from the previous year.
Chief Financial Officer Ajay Goel added, "This strong performance is driven by cost efficiency, volume growth, and favorable commodity prices. Additionally, we raised $1.4 billion at Vedanta through a $1 billion QIP and a $400 million HZL OFS.
"At the same time, with the $1.2 billion VRL bond issuance and ongoing deleveraging, we have reduced Holdco debt to $4.8 billion, the lowest level in a decade."
Vedanta also reported an exceptional gain of Rs 1,136 crore, primarily from an impairment reversal in its oil and gas business.
This gain was partially offset by an impairment charge in ASI and an additional cess in the zinc and iron ore segments, following a Supreme Court order imposing extra cess on mineralbearing land and mining rights.
The company highlighted that its demerger plan remains on schedule and is in its final phases, with meetings planned for shareholders and creditors in the coming months.
In the oil and gas sector, Vedanta’s consolidated revenue dropped by over 60% year-on-year to Rs 2,825 crore, putting downward pressure on total revenue.
Meanwhile, revenue from zinc, lead, and silver sales increased 21 percent year-on-year to Rs 7,953 crore, and revenue from the aluminium unit rose to Rs 13,734 crore from Rs 11,952 crore.
Vedanta raised Rs 8,500 crore through a Qualified Institutions Placement (QIP) at Rs 440 per share.
The net debt for the second quarter stood at Rs 56,927 crore, a reduction of Rs 4,400 crore from the previous quarter.
The net debt-to- EBITDA ratio was at 1.49x, with cash and cash equivalents at Rs 21,727 crore, up from Rs 16,702 crore a year earlier.
Operational highlights across key businesses
Aluminium
Achieved record-high first-half Cast Metal production at 1,205 kt, marking a 3% year-on-year (YoY) increase.
Set a new benchmark for quarterly Cast Metal production at 609 kt, a rise of 2% quarter-on-quarter (QoQ) and 3% YoY.
Reduced aluminium cost of production to $1,734 per tonne, down 4% YoY.
Alumina production increased to 499 kt, showing an 8% YoY growth.
Zinc India
Attained highestever firsthalf Metal production of 524 kt, reflecting a 5% YoY growth.
Record mined metal production in the second quarter at 256 kt, up 2% YoY, and refined metal production at 262 kt, up 8% YoY.
Zinc cost of production (COP) reached $1,071 per tonne, a 6% YoY and 3% QoQ reduction, marking the lowest firsthalf cost in four years.
Zinc International
Achieved lowestever quarterly cost of production (COP) for Gamsberg at $1,125 per tonne.
Zinc International cost decreased to $1,195 per tonne, down 13% YoY and 26% QoQ, the lowest since Q1 FY17.
Oil and Gas
Average daily gross operated production stood at 104.9 kboepd, with infill wells at Mangala and RDG fields partially offsetting natural decline.
Volume under the OALP arrangement rose to 4.0 kboepd from 1.0 kboepd YoY, driven by rampup in the Jaya Oilfield.
Iron Ore
Saleable ore production reached 1.3 million tonnes, increasing 7% YoY and 3% QoQ.
Steel
Production faced setbacks due to a planned shutdown for debottlenecking of the Steel Melting Shop and maintenance of the Oxygen Plant in Q2.
Facor
Ferro Chrome ore production at 38 kt doubled YoY, with Ferro Chrome production reaching 26 kt, up 18% YoY.
Copper India
Copper Cathodes production doubled QoQ to 41 kt, showing a 16% YoY rise.
Tuticorin Smelting operations remain halted since April 2018, with the company exploring legal options for a sustainable restart of the plant.
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