Q1 EBITDA at ₹ 5,188 crore, robust margin
of 27%
Q1 Att. PAT1 at ₹ 1,351
crore, down 12% y-o-y
MUMBAI, India, July 26, 2019 /PRNewswire/ -- Vedanta Limited
today announced its unaudited consolidated results for the First
quarter (Q1) ended 30 June 2019.
Financial & Corporate Highlights
- Structured investment at CIHL unwound with net cumulative
gain of c. USD 100 million in c. 8
months
- Continued strong financial performance despite market
headwinds
-
- Revenues of ₹ 21,167 crore,
down 4% y-o-y
- EBITDA of ₹ 5,188 crore, down
20% y-o-y, mainly driven by market and regulatory factors
- Robust EBITDA margin2 of 27%
- Attributable PAT at ₹ 1,351
crore, down 12% y-o-y
- Strong Balance Sheet
-
- Net Debt/EBITDA at 1.3x lowest among Indian peers
- Gross debt at ₹ 59,517 crore,
lower by ₹ 6,708 crore as compared to
31st March 2019
- Strong financial position with total cash & liquid
investments of ₹ 30,774
crore
Operational Highlights
- Oil & Gas:
-
- Average gross production of 180 kboepd, down 8%
y-o-y
- 10 New Blocks allotted in OALP II & III
Auctions
- Zinc India:
-
- Refined metal production at 219kt, up 3% y-o-y
- Silver production at 159 MT,
up 15% y-o-y
- Zinc International: Gamsberg production at 23kt in Q1, ramp
up in progress.
- Steel: Saleable production at 323 kt , up 34% y-o-y
- Aluminium:
-
- Record quarterly Alumina production of 446kt, up 37%
y-o-y
- Hot metal cost at $ 1,764/ton,
lower by 8% y-o-y.
- TSPL: Record Plant availability of 95%
1. PAT before exceptional & before
DDT
2. Excludes custom smelting at Copper
India and Zinc India operations
Mr. Srinivasan
Venkatakrishnan, Chief Executive Officer, Vedanta, said,
"We continue to strengthen our position as one of the
largest diversified natural resource businesses in the world with
our strategy focused on value-added growth. Our businesses stayed
resilient in a quarter with low commodity prices and uncertain
market environment and we continued to ramp up across the key
verticals, Zinc & Oil & Gas. Silver is outperforming
as we climb up the ranks among the top global silver producers.
Aluminium business is steadily moving towards its target cost. We
are also pleased with the superior returns that have been achieved
with the unwinding of the structured investment transaction at CIHL
for the benefit of all shareholders of Vedanta. We look
forward to exciting quarters ahead as we continue to deliver
for all our stakeholders."
Consolidated
Financial Performance
|
The consolidated
financial performance of the company during the period is as
under:
|
(In Rs. crore,
except as stated)
|
|
Particulars
|
Q1
|
%
Change
|
Q4
|
%
Change
|
FY2019
|
FY2020
|
FY2019
|
FY
2019
|
Revenue from
operations
|
21,167
|
21,942
|
(4%)
|
23,092
|
(8%)
|
90,901
|
Other Operating
Income
|
207
|
264
|
(21%)
|
376
|
(45%)
|
1,147
|
EBITDA
|
5,188
|
6,448
|
(20%)
|
6,330
|
(18%)
|
24,012
|
EBITDA
Margin1
|
27%
|
34%
|
|
31%
|
|
30%
|
Finance
cost
|
1,341
|
1,452
|
(8%)
|
1,401
|
(4%)
|
5,689
|
Investment
Income
|
373
|
388
|
(4%)
|
1,599
|
(77%)
|
3,618
|
Exchange
gain/(loss) - (Non-operational)
|
17
|
(228)
|
-
|
(166)
|
-
|
(509)
|
Profit before
Depreciation and Taxes
|
4,237
|
5,156
|
(18%)
|
6,362
|
(33%)
|
21,432
|
Depreciation
& Amortization
|
2,155
|
1,796
|
20%
|
2,258
|
(5%)
|
8,192
|
Profit before
Exceptional items
|
2,082
|
3,360
|
(38%)
|
4,104
|
(49%)
|
13,240
|
Exceptional
Items Credit/(Expense)2
|
-
|
-
|
-
|
-
|
-
|
320
|
Tax
|
138
|
1,112
|
(88%)
|
886
|
(84%)
|
3,750
|
Tax on
Exceptional items
|
-
|
-
|
-
|
-
|
-
|
112
|
Profit After
Taxes
|
1,944
|
2,248
|
(14%)
|
3,218
|
(40%)
|
9,698
|
Profit After
Taxes before Exceptional Items
|
1,944
|
2,248
|
(14%)
|
3,218
|
(40%)
|
9,490
|
Minority
Interest
|
593
|
715
|
(17%)
|
603
|
(2%)
|
2,633
|
Attributable
PAT after exceptional items
|
1,351
|
1,533
|
(12%)
|
2,615
|
(48%)
|
7,065
|
Attributable
PAT before exceptional items
|
1,351
|
1,533
|
(12%)
|
2,615
|
(48%)
|
6,857
|
Basic Earnings
per Share (₹/share)
|
3.65
|
4.13
|
(12%)
|
7.06
|
(48%)
|
19.07
|
Basic EPS
before Exceptional items
|
3.65
|
4.13
|
(12%)
|
7.06
|
(48%)
|
18.50
|
Exchange rate
(₹/$) - Average
|
69.58
|
67.04
|
4%
|
70.49
|
(1%)
|
69.89
|
Exchange rate
(₹/$) - Closing
|
68.96
|
68.58
|
1%
|
69.17
|
(0%)
|
69.17
|
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 in Q1 FY2020 was at ₹ 21,167 crore, lower 4% y-o-y,
primarily due to lower commodity prices partially offset by
higher aluminium sales, volume addition from ESL, commencement of
Gamsberg mine and currency depreciation.
EBITDA and EBITDA Margins
EBITDA for Q1 FY2020 was at ₹ 5,188 crore, lower by 20%
y-o-y, mainly due to lower commodity prices partially offset
by easing of input commodity inflation, rupee depreciation and
volume addition from ESL acquisition.
EBITDA margin1 during the quarter was at 27% compared
to 34% in Q1 FY2019.
Depreciation & Amortization
Depreciation and amortization for Q1 FY2020 was at ₹ 2,155
crore, higher by 20% y-o-y. This was mainly due to higher ore
production at Zinc businesses, change in reserves estimates and
asset capitalisation at Zinc India, commencement of Gamsberg
operations and increased charge at Oil & Gas due to
capitalisation.
Finance Cost and Investment Income
Finance cost for Q1 FY2020 was at ₹ 1,341 crore, lower by
8% y-o-y, primarily due to higher capitalisation of borrowing cost
and one-time commitment charges in Q1 FY2019 partially offset by
higher average borrowing cost in line with market trends.
Investment Income was at ₹ 373 crore, flat y-o-y. The
unwinding of structured investment resulted in a net gain of
Rs 746 crore (including associated
exchange differences) since the date of investment. The difference
between the same and the unrealised gain upto March 31, 2019 of Rs 924
crore (including associated exchange differences) amounting
to Rs 178 crore has been accounted
for in the current quarter's results. This is offset by a mark to
market loss in Q1 FY19.
Taxes
Tax rate for the quarter is 27% (excluding impact of deferred
tax assets recognition at ESL). The deferred tax asset at ESL
represents recognition of past unrecognised deferred tax assets
which has been recognised on a proportionate basis for the
quarter.
Attributable Profit after Tax and Earnings per Share
(EPS)
Attributable Profit after Tax (PAT) before exceptional items and
DDT for the quarter was ₹ 1,351 crore.
EPS for the quarter before exceptional items was at ₹ 3.65
per share.
We have robust cash and liquid investments of ₹ 30,774
crore. The Company invests in high quality debt instruments as per
the Board approved policy. The portfolio is rated by CRISIL, which
has assigned a rating of "Tier-I" (implying Highest Safety) to our
portfolio. Further, the Company has undrawn committed facilities of
c. ₹ 4,900 crore as on 30th June 2019.
Gross debt was at ₹ 59,517 crore on 30th
June 2019, lower by ₹ 6,708
crore as compared to 31 March 2019. This was mainly due to
repayment of debt at Cairn India Holding Limited (CIHL), Vedanta
Limited Standalone and temporary borrowings at Zinc India.
Net debt was at ₹ 28,743 crore on 30th
June 2019, higher by ₹ 1,787
crores as compared to March 31, 2019,
primarily due to working capital unwinding and regrouping of lease
liability to borrowing due to INDAS 116 implementation.
CIHL Structured Investments
Cairn India Holdings Limited (CIHL), an overseas subsidiary of
the Company, and Volcan Investments Limited have agreed to unwind
entirely the structured investment entered between them in
December 2018 ahead of the originally
envisaged schedule. With this, Volcan will exercise the early
exchange option available to it on 26 July
2019 and consequent to this the full exchange of its two
issues of mandatory exchangeable bonds secured by shares in
Anglo American plc, will settle on
12 August 2019. The share price of
Anglo American has close to doubled,
since Volcan invested, delivering attractive gains to all
investors.
The investment by CIHL, which was entered into as part of its
cash management activities, has delivered a net gain of over
USD 100 mm in the 8-month period it
was held. Cash proceeds from the settlement of the transaction will
be paid to CIHL on 13 August
2019.
Following the redemption of the structured instrument, completed
with due Board approvals, CIHL will have no further economic
exposure to Anglo American plc
shares.
Key Recognitions
Vedanta has been consistently recognized through the receipt of
various awards and accolades. During the quarter, we received the
following recognitions:
- Vedanta Limited and HZL conferred with Dun & Bradstreet
Awards under Metal & Minerals and non-ferrous metals category
respectively.
- Balco bagged 'Golden
Peacock Award 2019' in the category of Energy Efficiency for
successful reduction in the energy usage over 3 years by Indian
Institute of Directors.
- TSPL received CII national HR Excellence Award in the category
of HR Excellence.
- Hindustan Zinc received CSR Health Impact Award under Women
& Child Health Initiative and was conferred with the title of
'Game Changer' for its Khushi Anganwadi Program during 3rd CSR
Health Impact Awards.
- Hindustan Zinc's Dariba CPP received award in 'Platinum
Category' in 'Golden Bird Awards – 2019' for 'Safety Excellence'
& 'Energy Efficiency'.
- TSPL bagged FAME Excellence award (Gold Award) for
Excellence in Best HR Practices.
- Sesa Goa Iron Ore won Secona Shields Award 2019 in Best
Control Command Centre for Innovative Practices &
Technology.
- Vedanta Limited Jharsuguda won Smart exporter-Aluminium" award
at smart logistics summit and awards - 2019 organized by maritime
gateway.
- Vedanta Limited Jharsuguda bagged "the highest performing
container exporter" award by Kolkata port.
- Cairn Oil & Gas has been conferred the '3rd CSR
Health Impact Award 2019' for its health programs related to the
'Swastha Bharat Initiative'.
- Cairn Oil & Gas received the award from The Chartered
Institute of Procurement & Supply UK for the second successive
year in the category of Best Cross-Functional Teamwork
Project.
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 Friday, 26th July 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 July 26, 2019
|
India – 6:30 PM
(IST)
|
India:
+91-7045671221
Toll free:
1800-120-1221
Universal
access:
+91-22-7115-8015
+91-22-6280-1114
|
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 – 2:00 PM (UK
Time)
|
Toll free
number
0-808-101-1573
|
US – 9:00 AM
(Eastern Time)
|
Toll free
number
1-866-746-2133
|
For online
registration
|
https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=91306&linkSecurityString=26af0028
|
Replay of Conference
Call (July 26,2019 to August 2, 2019)
|
|
Mumbai
+91-22-7194-5757
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, Steel,
Aluminium & 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, CII-ITC Sustainability Award, FICCI
CSR Award, Dun & Bradstreet Awards in Metals & Mining &
The Great Place to Work.
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:
+91-11-4916-6250
gc@vedanta.co.in
|
|
|
Investor
Relations
Rashmi
Mohanty
Director – Investor
Relations
|
Tel:
+91-124-476-4096
vedantaltd.ir@vedanta.co.in
|
Suruchi
Daga
Associate General
Manager – Investor Relations
Raksha
Jain
Manager – Investor
Relations
|
|