Earnings Review
Vedanta's Jul-Sept PAT beats Street, revenue dips 3% YoY
This story was originally published at 16:52 IST on 8 November 2024
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--Vedanta one-time income of INR 18.68 bln in Jul-Sept
--Vedanta Jul-Sept exploration cost write-off INR 430 mln, down 84% on year
--Vedanta Jul-Sept consol investment income INR 7.22 bln vs INR 5.66 bln
--Vedanta board OKs INR 52.09 bln capex for Chhattisgarh power project
--Vedanta net debt INR 569.27 bln as on Sept 30, down INR 44 bln vs Jun 30
--Vedanta Jul-Sept consol EBITDA margin 34% vs 25% year ago
--Vedanta Jul-Sept consol EBITDA INR 103.64 bln vs INR 71.97 bln year ago
--Vedanta Apr-Sept consol revenue INR 733.98 bln vs INR 726.78 bln year ago
--Vedanta Apr-Sept consol net profit INR 79.58 bln vs INR 8.57 bln year ago
--Vedanta Jul-Sept consol net tax expense INR 20.30 bln vs INR 90.92 bln
--Vedanta Jul-Sept consol revenue INR 376.34 bln vs INR 389.45 bln year ago
--Vedanta Jul-Sept consol PAT INR 43.52 bln vs INR 17.83 bln loss year ago
--Analysts saw Vedanta Jul-Sept consol net profit INR 24.45 bln
--Vedanta Jul-Sept consol net profit INR 43.52 bln
By Anand J.C.
MUMBAI – Vedanta Ltd.'s net profit for the September quarter beat the Street's estimate comfortably on the back of lower tax expenditure. The company's consolidated net profit for the September quarter was INR 43.52 billion, higher than analysts' expectation of INR 24.45 billion. The company had reported a net loss of INR 17.83 billion in the same quarter a year ago.
Vedanta reported an exceptional gain of INR 11.36 billion net of tax in the September quarter, earned due to an impairment reversal in its oil and gas business. However, this gain was partly offset by an impairment charge, and a cess on zinc and iron ore due to the Supreme Court's judgment of levying additional cess on mineral-bearing land and mining rights. The company reported a one-time gain of INR 8.1 billion in the same quarter last year, in part due to the same reasons.
The net tax expense incurred in the September quarter, including tax paid on the one-time gain, was INR 20.30 billion, lower than INR 90.92 billion in the same quarter a year ago.
The company's total consolidated revenue from operations in the latest quarter was INR 376.34 billion, 3.4% lower on year. Analysts had expected the company's top-line to be INR 350.68 billion. The company's other income was INR 13 billion in Jul-Sept, more than double compared to the corresponding period last year.
Vedanta's consolidated operating profit in the latest quarter was INR 103.64 billion, 44% higher than INR 71.97 billion a year ago. The figure for last year's September quarter operating profit excludes the impact of a one-time claim arbitration gain. The company's earnings before interest, tax, depreciation and amortisation margin in the September quarter was 34%, 900 basis points higher on year.
Total expenses in the September quarter were INR 331.69 billion, 2% higher on year. The cost of materials consumed increased 15.9% on year to INR 126.34 billion.
SEGMENT PERFORMANCE
Vedanta's revenue from its India zinc and lead business was INR 64.03 billion, 21.8% higher on year. The company's international zinc operations earned revenue of INR 10.12 billion, 6.4% lower on year. Vedanta's domestic silver business revenues increased 19.5% on year to INR 15.50 billion in the latest quarter.
The company's oil and gas business revenue was INR 28.25 billion in the September quarter, 65.7% lower than INR 82.29 billion in the same quarter a year ago. Revenue from its aluminium business was INR 137.34 billion, 15% higher on year, while revenue from the copper business was INR 63.76 billion, 38.4% higher on year.
The company said its consolidated revenue rose 5% sequentially due to increased volume and premia, which was partially offset by lower output commodity prices. Vedanta's depreciation and amortisation expenses increased 2% on year due to its oil and gas business in addition to increased capitalisation in its aluminium business. The company's finance costs rose 6% on higher average borrowings, it said in a press release.
Vedanta's consolidated net debt was INR 569.27 billion as of Sept. 30, INR 44 billion lower than its net debt of INR 613.24 billion as of Jun. 30. On an annual basis, the net debt remained largely unchanged. While Vedanta's standalone net debt fell to INR 313.37 billion as of Sept. 30 from INR 425.14 billion as of June-end, Hindustan Zinc Ltd.'s debt increased to INR 57.21 billion from INR 2.93 billion in the same period. Vedanta's net debt-to-EBITDA was 1.49 times in Jul-Sept, the lowest in the last six quarters.
For Apr-Sept, Vedanta's consolidated net profit soared over 800% on year to INR 79.58 billion while revenue from operations for the same period was INR 733.98 billion, largely unchanged on year. Shares of Vedanta closed at INR 457.90 apiece on the National Stock Exchange on Friday, unchanged from the previous close. End
Edited by Avishek Dutta
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