Q3 PAT up 39% q-o-q to ₹ 1,574 crore
Q3 EBITDA up 13% q-o-q to ₹ 5,953 crore
MUMBAI, India, Jan. 31, 2019 /PRNewswire/ -- Vedanta Limited
today announced its unaudited consolidated results for the Third
quarter ("Q3") ended 31 December
2018.
Financial Highlights
• Continued strong financial performance
o Revenues of ₹ 23,669 crore, up 4 % q-o-q
o EBITDA of ₹ 5,953
crore, up 13% q-o-q
o EBITDA margin1 of 29%
o PAT up 39% q-o-q to ₹ 1,574 crore
• Strong Balance Sheet
o Net Debt at ₹ 39,531 crores in Q3 FY2019
o Strong financial position with total
cash & liquid investments of ₹ 30,530
crore
Operational Highlights
• Zinc India:
o Zinc-Lead MIC at 247kt, up 6 % q-o-q,
underground production up 38% y-o-y
o Record silver and lead production
• Zinc International: First shipment made from Gamsberg in
Dec 2018
• Aluminium:
o Record quarterly Alumina production of 404 kt
,up 16% q-o-q
o Captive Alumina COP at $ 308/t, lower 14 % q-o-q.
• Oil & Gas: Average gross daily production at 187kboepd;
Growth projects on track
• Steel: Exit monthly run rate of 1.5 mtpa
• Copper : Supreme Court passed an order to uphold NGT's order
& reopen Tuticorin smelter
1. Excludes custom smelting at Copper India and Zinc India
operations
Mr. Srinivasan Venkatakrishnan,
Chief Executive Officer, Vedanta, said "We are pleased with the
strong operational and financial results for the third
quarter. We achieved record Zinc and Lead MIC volumes and
silver production at Hindustan Zinc, and had the highest ever
Alumina production. We saw structural reductions in Aluminium
costs with increasing raw material linkages. The steel business
achieved strong margins and recent developments in our copper
business are directionally positive. Our profitability and
gearing metrics were strong. As compared to the second
quarter of this year, EBITDA rose 13% and Net Profit attributable
rose by 39%. Our growth projects and ramp-up plans are all on
track, to set the next quarter as a base for a strong next
year.
Consolidated
Financial Performance
|
The consolidated
financial performance of the company during the period is as
under:
|
(In ₹. crore,
except as stated)
|
FY
2018
|
Particulars (In
Rs. Crore, except as stated)
|
Q3
|
%
Change
|
Q2
|
%
Change
|
9m
|
9m
|
FY
2019
|
FY
2018
|
FY
2019
|
FY
2019
|
FY
2018
|
92,923
|
Net Sales/Income from
operations
|
23,669
|
24,361
|
(3%)
|
22,705
|
4%
|
68,580
|
65,293
|
24,900
|
EBITDA
|
5,953
|
6,677
|
(11%)
|
5,281
|
13%
|
17,682
|
17,133
|
35%
|
EBITDA
Margin1
|
29%
|
35%
|
(17%)
|
26%
|
10%
|
30%
|
35%
|
5,112
|
Finance
cost
|
1,358
|
1,125
|
21%
|
1,478
|
(8%)
|
4,288
|
3,907
|
3,205
|
Investment
Income
|
1,043
|
481
|
-
|
588
|
-
|
2,019
|
2,288
|
(38)
|
Exchange gain/
(loss)
|
47
|
(2)
|
-
|
(162)
|
|
(343)
|
35
|
22,955
|
Profit before
Depreciation and Taxes
|
5,685
|
6,031
|
(6%)
|
4,229
|
34%
|
15,070
|
15,549
|
6,283
|
Depreciation &
Amortization
|
2,207
|
1,645
|
34%
|
1,931
|
14%
|
5,934
|
4,600
|
16,672
|
Profit before
Exceptional items
|
3,478
|
4,386
|
(21%)
|
2,298
|
51%
|
9,136
|
10,949
|
(2,897)
|
Exceptional Items
(Credit)/Expense 2
|
-
|
158
|
-
|
(320)
|
-
|
(320)
|
(28)
|
5,339
|
Tax
|
1,146
|
1,397
|
(18%)
|
606
|
89%
|
2,864
|
2,936
|
(1,536)
|
Dividend Distribution
Tax (DDT)
|
-
|
-
|
|
-
|
|
-
|
-
|
2,074
|
Tax on Exceptional
items
|
-
|
(38)
|
-
|
112
|
-
|
112
|
24
|
13,692
|
Profit After
Taxes
|
2,332
|
2,869
|
(19%)
|
1,900
|
23%
|
6,480
|
8,017
|
12,869
|
Profit After Taxes
before Exceptional Items
|
2,332
|
2,989
|
(22%)
|
1,692
|
38%
|
6,272
|
8,013
|
11,333
|
Profit After Taxes
before Exceptional Items & DDT
|
2,332
|
2,989
|
(22%)
|
1,692
|
38%
|
6,272
|
8,013
|
3,350
|
Minority
Interest
|
758
|
875
|
(13%)
|
557
|
36%
|
2,030
|
2,477
|
10,342
|
Attributable PAT
after exceptional items
|
1,574
|
1,994
|
(21%)
|
1,343
|
17%
|
4,450
|
5,540
|
9,561
|
Attributable PAT
before exceptional items
|
1,574
|
2,114
|
(26%)
|
1,135
|
39%
|
4,242
|
5,605
|
8,025
|
Attributable PAT
before exceptional items & DDT
|
1,574
|
2,114
|
(26%)
|
1,135
|
39%
|
4,242
|
5,605
|
28.30
|
Basic Earnings per
Share (Rs./share)
|
4.25
|
5.38
|
(21%)
|
3.62
|
17%
|
12.01
|
14.93
|
26.17
|
Basic EPS before
Exceptional items
|
4.25
|
5.70
|
(25%)
|
3.06
|
39%
|
11.44
|
15.11
|
21.96
|
Basic EPS before
Exceptional items & DDT
|
4.25
|
5.70
|
(25%)
|
3.06
|
39%
|
11.44
|
15.11
|
64.45
|
Exchange rate (Rs./$)
– Average
|
72.11
|
64.74
|
11%
|
70.03
|
3%
|
69.68
|
64.49
|
65.04
|
Exchange rate (Rs./$)
– Closing
|
69.79
|
63.93
|
9%
|
72.55
|
(4%)
|
69.79
|
63.93
|
1. Excludes custom
smelting at Copper India and Zinc India operations
|
2. Exceptional Items
Gross of Tax
|
3. Previous period
figures have been regrouped or re-arranged wherever necessary to
conform to current period's presentation
|
Revenues
Revenue was higher 4% sequentially primarily on account of
higher volume at Zinc India & Aluminium business and currency
depreciation though was partially offset by lower commodity
prices.
Revenue was lower 3% on a y-o-y basis mainly on account of
shutdown of copper smelter at Tuticorin and lower commodity prices,
partially offset by currency depreciation and higher volumes at
Electrosteel and Aluminium business.
EBITDA and EBITDA Margins
On a sequential basis, EBITDA at ₹ 5,953 crore was
13% higher mainly on account of higher volume at Zinc India and
Electrosteel, supported by currency depreciation and write back of
liability pursuant to settlement agreement with a contractor at
Balco. This was partially offset by lower commodity prices.
On a y-o-y basis, EBITDA was 11% lower mainly on account of
lower commodity prices, input commodity inflation and shutdown of
copper smelter at Tuticorin partially offset by currency
depreciation and write back of liability pursuant to settlement
agreement with a contractor at Balco.
EBITDA margin improved q-o-q to 29% from 26% in Q2 FY2019.
Depreciation & Amortization
Depreciation at ₹ 2,207 crores was higher by ₹ 276
crores q-o-q, mainly on account of higher charge due to higher ore
production at Zinc India and Zinc International and due to
capitalisation of projects at Oil & Gas and Aluminium
business.
Depreciation was higher by ₹ 562 crores y-o-y, mainly on
account of higher charge due to higher ore production at Zinc India
and Zinc International, due to capitalisation of projects at Oil
& Gas and Aluminium business and due to acquisition of new
businesses.
Finance Cost and Investment Income
Finance cost during the quarter was ₹ 1,358 crore, lower by ₹ 120 crore q-o-q mainly due to higher interest
capitalisation during the quarter partially offset by interest cost
on account of temporary borrowings at Zinc India.
Finance cost was higher by ₹ 233
crore y-o-y mainly due to higher gross borrowings, increase
in interest rates in line with the market partially offset by
higher capitalisation during the period.
Investment income for Q3 was at ₹ 1,043
crore, higher by ₹ 455 crores q-o-q and higher by
₹ 562 crores y-o-y, primarily due to mark-to-market gain on
investments during the current quarter. This also includes mark to
market gains on a treasury investment made by its overseas
subsidiary through a purchase of economic interest in a structured
investment in Anglo American Plc from its ultimate parent, Volcan
Investments Limited.
Exceptional Items
There is no exceptional items during the quarter.
Q2 FY2019 exceptional items was a credit of ₹ 320 crores, relating to reversal of previously
recorded impairment at our Oil and Gas business and reversal of
charge relating to arbitration of a historical vendor claim
pursuant to Supreme Court Order in Aluminium business.
Q3 FY2018 exceptional items comprises a one-time charge of
₹ 158 crores relating to arbitration of a historical vendor
claim in the aluminium business and acquisition related cost to
ASI.
Taxes
Tax expense (before Exceptional items and DDT) was at ₹
1,146 crore during the quarter,
resulting in tax rate of 33%.
The tax rate for the year is expected to be around 30%as per
earlier guidance.
Attributable Profit after Tax and Earnings per Share
(EPS)
Attributable Profit after Tax (PAT) before exceptional items and
DDT for the quarter was at ₹ 1,574 crore.
EPS for the quarter before exceptional items was at ₹ 4.25 per
share.
Balance Sheet
Our financial position remains strong with cash and liquid
investments of ₹ 30,530 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.
The portfolio is rated by CRISIL which has assigned a rating of
"Tier I" (meaning Highest Safety) to our portfolio. Further, the
Company has undrawn fund based committed facilities of
~₹ 6,700 crore as on December 31,
2018.
As on 31 December 2018, net debt
was at ₹ 39,531 crore, higher q-o-q mainly on account of
dividend payments.
Corporate
Key Recognitions
Vedanta has been consistently recognized through the receipt of
various awards and accolades. During the past quarter, we received
the following recognitions:
- Vedanta Limited has been ranked as "A Corporate Disclosure
Champion" in the Disclosure Index Ratings 2018 for Indian
corporates by FTI Consulting.
- Cairn Oil & Gas's Raageshwari Gas Terminal (RGT) has won
'Sword of Honour' from British Safety Council for excellence in HSE
management.
- Hindustan Zinc received CII‐ITC Sustainability Awards 2018 for
Corporate Excellence – Outstanding Accomplishment Award,
Commendation for Significant Achievement in CSR and Excellence in
Environment Management Award.
- Vedanta Limited, Lanjigarh received the Kalinga Safety Award –
2018 in silver category at the 9th Odisha State Safety
Conclave (OSSC) 2018 for excellence in safety practices in Alumina
Production Industry.
- Hindustan Zinc received 'National Award for Excellence in Water
Management 2018' at the 4th Water Innovation Summit 2018 by CII –
Triveni Water Institute.
- Sesa Iron Ore received Qual Tech
Award 2018 in the improvement category.
- Hindustan Zinc received the 'Non‐Ferrous Best Performance Award
2018' by Indian Institute of Metals, under the category of
Non‐Ferrous Large Integrated Manufacturing Plants
- Sesa Iron ore received Logistics
Leadership Awards 2018.
- Balco received Gold Rating in Process Category at the
3rd CII National 5S Excellence Award held at
New Delhi.
- Cairn Oil & Gas was conferred with the MTM Corporate Star
Award 2018 in the Best Meeting/Exhibition category.
- Hindustan Zinc received India Sustainability Leadership Award
2018 in two categories ‐ Sustainable Business of the Year
Award & Sustainability Disclosure Leadership Award.
Results Conference Call
Please note that the results presentation is available in the
Investor Relations section of the company website
www.vedantalimited.com -
http://www.vedantalimited.com/investor-relations/results-reports.aspx
Following the announcement, there will be a conference call at
6:30 PM (IST) on Thursday,
31 January 2019, 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 31, 2019
|
India – 6:30 PM
(IST)
|
Mumbai main
access:
+91-22-7115-8015
+91-22-6280-1114
Toll free
numbers:
1800-120-1221
1800-266-1221
|
Singapore – 9:00
PM (Singapore Time)
|
Toll free
number
800-101-2045
|
Hong Kong – 9:00
PM (Hong Kong Time)
|
Toll free
number
800-964-448
|
UK – 1:00 PM (UK
Time)
|
Toll free
number
0 -808-101-1573
|
US – 08:00 AM
(Eastern Time)
|
Toll free
number
1-866-746-2133
|
For online
registration
|
https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=79574&linkSecurityString=1aacad50
|
Replay of Conference
Call
(Jan 31, 2019
to Feb 7, 2019)
|
India
+91-22-7194-5757
+91-22-6663-5757
Passcode:
63835#
|
About Vedanta Limited
Vedanta Limited, a subsidiary of Vedanta Resources Limited, is
one of the world's leading diversified natural resource companies
with business operations in India,
South Africa, Namibia and Australia. Vedanta is a leading producer of
Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Aluminium,
Steel and Commercial Power.
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. The
company is conferred with the Confederation of Indian Industry
(CII) 'Sustainable Plus Platinum label', ranking among the top 10
most sustainable companies in India.
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 visit www.vedantalimited.com
Vedanta Limited
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai - 400
099
www.vedantalimited.com
Registered Office:
Regd. Office: 1st Floor, 'C' wing, Unit 103,
Corporate Avenue, Atul Projects,
Chakala, Andheri (East),
Mumbai – 400 093
CIN: L13209MH1965PLC291394
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.
For further information, please contact:
Communications
Arun Arora
Head, Corporate Communications
Tel: +91-124-459-3000
gc@vedanta.co.in
Investor Relations
Rashmi Mohanty
Director –
Investor Relations
Tel: +91-22-6646-1531
vedantaltd.ir@vedanta.co.in
Sneha Tulsyan
Associate Manager – Investor Relations