MUMBAI, India, Jan. 28, 2016 /PRNewswire/ -- Vedanta Limited
(formerly known as Sesa Sterlite Ltd) today announced its unaudited
consolidated results for the third quarter ended 31 December 2015.
Financial Highlights
- Q3 FY2016 Revenues at Rs. 14,801
crore
- Robust EBITDA of Rs. 3,212 crore
and 26% EBITDA margin1, despite weak commodity
prices
- Attributable PAT at Rs. 18 crore,
primarily driven by lower oil and metal prices
- Generated free cash flow at Rs. 609
crore before growth capex
- Actively managing balance sheet, with a focus on optimising
opex and capex to maximize free cash flow; refinancing and terming
out maturing debt; and simplifying the group structure
- Strong financial position with total cash & cash
equivalents of Rs. 50,685 crore and
undrawn committed facilities of c. Rs. 4,800
crore
Operational Highlights
- Zinc-India: Strong refined
metal production; record refined silver production of
116 tonnes
- Oil & Gas: Stable Q3 production with 19 kbopd contribution
from Mangala EOR; Rajasthan water flood operating costs continue to
improve
- Aluminium: Record metal production; 7% lower cost of production
q-o-q driven by cost optimisation initiatives; received approval
for conversion of 3 units of 2,400 MW Jharsuguda IPP to CPP
- Copper-India: 89% utilisation,
affected by floods and unplanned shutdowns
- Power: Second 660 MW unit of 1,980 MW Talwandi Sabo
commissioned; 85% availability for both units
- Iron ore: Stable operations in Karnataka; slower ramp up in
Goa due to transportation
issues
- Excludes custom smelting at Copper India and Zinc India
operations
Tom Albanese, Chief Executive
Officer, Vedanta Limited, said: "In the weak commodity price
environment, we remain committed to optimising our operations,
leveraging our high quality asset base, and proactively managing
our balance sheet. I am encouraged to see the positive results of
our cost reduction programme gaining momentum, and believe that
this relentless focus on efficiency will not only make our business
more resilient through the cycle but position us favourably for any
future improvement in market conditions. Despite challenging
market conditions, these efforts have allowed us to generate a
robust EBITDA margin of 26%."
Consolidated Financial Performance
The consolidated financial performance of the company during the
period is as under:
(In Rs. crore, except as stated)
FY'
15
|
Particulars
|
Q3
|
Q2
|
Nine
months
|
Actual
|
FY
2016
|
FY
2015
|
%
Change
|
FY
2016
|
FY
2016
|
FY
2015
|
%
Change
|
73,364
|
Net Sales/Income from
operations
|
14,801
|
19,128
|
(23)%
|
16,349
|
48,102
|
55,632
|
(14)%
|
22,226
|
EBITDA
|
3,212
|
6,234
|
(48)%
|
4,113
|
11,365
|
18,240
|
(38)%
|
41%
|
EBITDA
Margin1
|
26%
|
43%
|
|
32%
|
30%
|
45%
|
|
5,659
|
Finance
cost
|
1,391
|
1,341
|
4%
|
1,418
|
4,167
|
4,338
|
(4)%
|
2,367
|
Other
Income
|
579
|
429
|
35%
|
721
|
2,194
|
2,325
|
(6)%
|
(611)
|
Forex loss/
(gain)
|
(136)
|
(405)
|
(66)%
|
(494)
|
(885)
|
(795)
|
11%
|
19,363
|
Profit before
Depreciation and Taxes
|
2,430
|
5,639
|
(57)%
|
3,797
|
10,009
|
16,813
|
(40)%
|
7,160
|
Depreciation and
Amortisation of goodwill
|
1,770
|
2,328
|
(24)%
|
1,660
|
5,148
|
6,396
|
(20)%
|
12,204
|
Profit before
Exceptional items
|
660
|
3,311
|
(80)%
|
2,137
|
4,861
|
10,417
|
(53)%
|
22,129
|
Exceptional
Items2
|
-
|
-
|
0%
|
-
|
-
|
2,173
|
|
1,448
|
Taxes3
|
160
|
478
|
(66)%
|
204
|
717
|
899
|
(20)%
|
(11,373)
|
Profit After
Taxes
|
500
|
2,834
|
(82)%
|
1,933
|
4,144
|
7,345
|
(44)%
|
10,183
|
Profit After Taxes
before Exceptional items
|
500
|
2,834
|
(82)%
|
1,933
|
4,144
|
9,010
|
(54)%
|
4,276
|
Minority
Interest
|
482
|
1,246
|
(61)%
|
959
|
2,287
|
3,763
|
(39)%
|
50%
|
Minority Interest
excl.Exceptional Items %
|
96%
|
44%
|
|
50%
|
55%
|
49%
|
|
(15,646)
|
Attributable PAT
after exceptional items
|
18
|
1,588
|
(99)%
|
974
|
1,858
|
3,582
|
(48)%
|
5,060
|
Attributable PAT
before exceptional items
|
18
|
1,588
|
(99)%
|
974
|
1,858
|
4,569
|
(59)%
|
(52.77)
|
Basic Earnings per
Share (Rs./share)
|
0.06
|
5.35
|
(99)%
|
3.28
|
6.27
|
12.08
|
(48)%
|
17.07
|
Basic EPS before
Exceptional Items
|
0.06
|
5.35
|
(99)%
|
3.28
|
6.27
|
15.41
|
(59)%
|
61.15
|
Exchange rate (Rs./$)
– Average
|
65.93
|
62.00
|
6%
|
64.91
|
64.78
|
60.77
|
7%
|
62.59
|
Exchange rate (Rs./$)
– Closing
|
66.33
|
63.33
|
5%
|
65.74
|
66.33
|
63.33
|
5%
|
- Excludes custom smelting at Copper India and Zinc India
operations
- Exceptional Items Gross of Tax
- Previous period figures have been regrouped / rearranged
wherever necessary to conform to current period
presentation
Revenues
Revenues during the quarter at Rs 14,801
crore, were lower by 9% q-o-q due to softening of oil and
metal prices, partially offset by improved volumes in the Power
business.
Revenues for the quarter were 23% lower y-o-y, on account of the
fall in oil and metal prices, partially offset by higher volumes at
Zinc India and Power.
EBITDA and EBITDA Margins
EBITDA at Rs. 3,212 crore was 22%
lower q-o-q, due to the fall in metal and oil prices, partially
offset by cost savings initiatives and due to a one-time benefit of
Rs. 216 crore at Copper India and
Zinc India, regarding an export incentive scheme based on a Supreme
Court judgement in October 2015.
EBITDA was down 48% y-o-y primarily due to weak commodity
prices.
We were able to maintain an EBITDA margin of 26% in the weaker
commodity price environment, driven by strong optimisation of
operating costs.
Depreciation and Amortisation
Depreciation and amortisation at Rs.1,770 crore, was
higher by Rs. 110 crore q-o-q on
account of assets capitalized in Q3 FY2016 at Aluminium and Power,
and a one-time depreciation charge at Lisheen post closure.
Depreciation and amortisation was lower y-o-y, largely on
account of lower amortisation following the impairment of goodwill
taken at the end of FY2015, primarily in the Oil & Gas
business. Depreciation was also lower driven by a change in the
useful life of our metals and mining assets, effected at the end of
the last financial year. This was partially offset by the
capitalisation of new capacities at Oil & Gas, Aluminium and
Power business, over the last year.
Finance Cost and Other Income
Finance cost at Rs. 1,391 crore
was marginally lower q-o-q due to the benefits of lower cost of
refinancing partly offset by capitalisation of the power units.
However finance costs were higher by Rs.50 crore y-o-y, primarily driven by
capitalisation of power units, forex impact on dollar denominated
borrowings, partially offset by benefits of lower cost of
refinancing.
Other income at Rs.579 crore
decreased by Rs.142 crore
sequentially due to timing differences, where income earned on
certain investments are recognised at maturity due to partial
adoption of AS-30.
Non-Operational Forex Loss/Gain
During the quarter, rupee depreciation of 1% led to a forex gain
of Rs. 136 crore on dollar-
denominated investments, advances and trade debtors.
Taxes
Tax expense was Rs. 160 crore
during the quarter, implying a tax rate of 24% compared to tax
expense of Rs. 204 crore (tax rate
10%) in Q2 FY2016. Tax rate is sequentially higher given the lower
profit base.
Attributable Profit After Tax and Earnings Per Share
(EPS)
Attributable Profit After Tax (PAT) for the quarter is at Rs.
18 crore. Attributable EPS for the
quarter was at Rs. 0.06 per share compared to Rs.3.28 per share in Q2, primarily due to lower
commodity prices.
Balance Sheet Management
The Company is actively managing its balance sheet in light of
the current commodity price environment, with a focus on maximizing
free cash flow; refinancing and terming out maturing debt; and
simplifying the group structure. Our financial position
remains robust with cash and liquid investments of Rs. 50,685 crore, which is invested in debt related
mutual funds, bank deposits and bonds, and undrawn committed
facilities of c. Rs. 4,800 crore as
on December 31, 2015.
Gross debt and net debt were at Rs. 80,952 crore and Rs. 30,267 crore respectively, at
31 December 2015, higher than
Rs 79,433 and 27,105 crore at 30
September 2015. Gross debt and net debt were higher over the
quarter primarily on account of project capex, unwinding of working
capital as guided last quarter, and payments of dividends.
Out of the total debt of Rs. 80,952
crore, the INR/ USD split is approximately 50% each.
Further, the gross debt comprises of long term loans of Rs.
67,166 crore and short term loans of
Rs. 13,786 crore.
FY2016 debt maturities are Rs 7,555
crore, which we intend to meet through committed term loans
of c.Rs 4000 crores, cash and liquid
investments of c. Rs 1,500 crore and
the balance would be funded through a combination of undrawn
committed facilities and further term loans that are in the process
of being tied up.
We continue to evaluate different structures and options for
future maturities with an objective to lower funding cost and/or
extend the maturity profile.
With the fall in commodity prices, CRISIL has recently revised
the company's long term credit rating to AA- (outlook negative)
from AA (stable).
Corporate
Merger – Vedanta Limited & Cairn India
The Board of Directors of the Company and Cairn India Limited,
at their respective meetings held on June
14, 2015, had approved the Scheme of Arrangement (the
"Scheme") between the Company and Cairn India Limited and their
respective shareholders and creditors, subject to regulatory and
other approvals. On September 10,
2015, BSE Limited and the National Stock Exchange of India
Limited issued 'No adverse observation' letters to the Scheme.
The applications for the scheme have been filed with the
respective High Courts, and the shareholders and creditors meetings
are expected to be convened in the current quarter. We continue to
work towards completion of the merger by Q2 CY2016.
Aluminium Business
Odisha Electricity Regulatory Commission (OERC) on conversion
of 2400 MW (4 x 600 MW) Independent Power Plant (IPP) to Captive
Power Plant (CPP)
Vedanta Limited had filed an application under the Electricity
Act and Electricity Rules before the Odisha Electricity Regulatory
Commission (OERC) for declaring the 2400 MW (4x600 MW) Power Plant
as a Captive Power Plant (CPP) to supply power for captive use due
to the merger of erstwhile Sterlite Energy Ltd. (SEL) with the
Company.
OERC after a detailed hearing, vide order dated January 27, 2016 has allowed the application of
the Company to the extent permitting conversion of three units of
600 MW (3 x 600 MW) of 2400 MW power plant w.e.f. April 01, 2015. OERC has ordered that one unit of
600 MW will continue to supply power to State Nominated Agency,
i.e., GRIDCO as per the PPA signed between the parties.
The OERC order will facilitate the Company to use the power
generated from the 3 x 600 MW power plant as captive power for its
aluminium smelter (SEZ) located at Jharsuguda. Under the
Electricity Act, supply of power from CPP does not attract cross
subsidy surcharge (CSS) and to that extent the company will have no
liability of CSS on the power sourced from its power
plant.
Annexure
Debt and Cash
(in Rs. Crore)
Company
|
31 Dec
2015
|
30 Sep
2015
|
Debt
|
Cash &
LI
|
Net
Debt
|
Debt
|
Cash &
LI
|
Net
Debt
|
Vedanta Ltd
Standalone
|
42,645
|
3,055
|
39,590
|
39,394
|
2,194
|
37,200
|
HZL
|
-
|
28,214
|
(28,214)
|
-
|
30,404
|
(30,404)
|
Zinc
International
|
64
|
673
|
(609)
|
-
|
1,041
|
(1,041)
|
Cairn
India
|
-
|
18,643
|
(18,643)
|
-
|
18,116
|
(18,116)
|
BALCO
|
5,949
|
25
|
5,924
|
5,731
|
75
|
5,656
|
Talwandi
Sabo
|
7,440
|
8
|
7,432
|
6,896
|
195
|
6,701
|
Twinstar Mauritius
Holdings Ltd¹ and Others²
|
24,854
|
67
|
24,787
|
27,412
|
303
|
27,109
|
Vedanta Ltd
Consolidated
|
80,952
|
50,685
|
30,267
|
79,433
|
52,328
|
27,105
|
- Debt at TSMHL comprised Rs.9,120 crore of
bank debt and Rs. 14,800 crore of
debt from Vedanta Resources Plc
- Others includes MALCO Energy, CMT, VGCB, Sesa Resources,
Fujairah Gold, and Vedanta Ltd.'s investment companies.
Debt Maturity Profile for Term Debt1
(in Rs. Crore)
Particulars
|
FY
2016
|
FY
2017
|
FY
2018
|
FY
2019
|
FY
2020
|
FY 2021 &
Later
|
Total
|
Vedanta Ltd
Standalone
|
3,935
|
3,510
|
6,065
|
6,324
|
3,199
|
7,527
|
30,560
|
Vedanta Ltd
Subsidiaries
|
3,620
|
4,282
|
4,242
|
4,266
|
1,737
|
3,659
|
21,806
|
Total
|
7,555
|
7,792
|
10,307
|
10,590
|
4,936
|
11,186
|
52,366
|
- Maturity profile excludes working capital facilities of
Rs.13,786
crore and debt from Vedanta Resources Plc of Rs.
14,800 crore.
Note: Debt numbers in the tables above are at book value,
and exclude inter-company eliminations
Results Conference Call
Please note that the results presentation is available in the
Investor Relations section of the company website
www.vedantalimited.com
Following the announcement, there will be a conference call at
6:00 PM (IST) on Thursday,
28th January 2016, 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
28 January
2016
|
India – 6:00 PM
(IST)
|
Mumbai main
access
+91 22 3938
1017
Mumbai standby
access
+91 22 6746
8333
|
Singapore – 8:30
PM (Singapore Time)
|
Toll free
number
800 101
2045
|
Hong Kong – 8:30
PM (Hong Kong Time)
|
Toll free
number
800 964
448
|
UK – 12:30 PM (UK
Time)
|
Toll free
number
0 808 101
1573
|
US – 7:30 AM
(Eastern Time)
|
Toll free
number
1 866 746
2133
|
For online
registration
|
http://services.choruscall.in/diamondpass/registration?confirmationNumber=5267915
|
Replay of Conference
Call
(28 Jan 2016 to
4 Feb 2016)
|
|
Mumbai
+91 22 3065
2322
+91 22 6181
3322
Passcode:
63835#
|
For further information, please contact:
Communications
|
|
Roma
Balwani
|
Tel: +91 22 6646
1000
|
President – Group
Communications,Sustainability & CSR
|
gc@vedanta.co.in
|
|
|
Investor
Relations
|
|
Ashwin
Bajaj
|
Tel: +91 22 6646
1531
|
Director – Investor
Relations
|
vedantaltd.ir@vedanta.co.in
|
|
|
Sunila
Martis
|
|
Manager – Investor
Relations
|
|
|
|
Vishesh
Pachnanda
|
|
Manager – Investor
Relations
|
|
About Vedanta Limited (Formerly Sesa Sterlite Ltd.)
Vedanta Limited is a diversified natural resources company,
whose business primarily involves producing oil & gas, zinc -
lead - silver, copper, iron ore, aluminium and commercial power.
The company has a presence across India, South
Africa, Namibia,
Australia, Ireland, Liberia and Sri
Lanka.
Vedanta Limited, formerly Sesa Sterlite Limited is the Indian
subsidiary of Vedanta Resources Plc, a London-listed company. 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. 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 log on to www.vedantalimited.com
Vedanta Limited
(Formerly known as Sesa Sterlite
Limited)
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai - 400
099
www.vedantalimited.com
Registered Office:
Sesa Ghor, 20 EDC Complex,
Patto, Panaji (Goa) - 403 001
CIN: L13209GA1965PLC000044
Disclaimer
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.
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