VEDL Vedanta Limited

Financial

• Record consolidated quarterly Revenue of ₹ 30,048 crore, up 44% Y-o-Y
• Record quarterly EBITDA of ₹ 10,582 crore, up 62% Y-o-Y
• Attributable PAT (before exceptional items) at ₹ 4,644 crore, up 486% Y-o-Y
• Record consolidated Half Year Revenue of ₹ 58,153 crore, up 59%
• Record Half Year EBITDA of ₹ 20,613 crore, up 96%

ESG

• Commits to Net-Zero Carbon by 2050 or sooner
• Pledges US$5 billion over next 10 years to accelerate transition to Net-Zero
• Renewed focus to be the leading ESG performer in the natural resources sector

Operational

• Strong volume performance across business segments
• Sustained margins on strong commodity prices

Capital allocation and Deleveraging

• Net Debt at ₹ 20,389 crore, reduced by ₹ 7,232 crore Y-o-Y
• Net Debt/EBITDA ratio at 0.5x, lowest in last 4 years
• Continues with the track record of rewarding shareholders with an interim dividend of ₹ 18.5 per share, (₹ 6,855 crore) in Q2 FY2022

MUMBAI, India, Oct. 29, 2021 /PRNewswire/ -- Vedanta Limited today announced its unaudited consolidated results for the second quarter (Q2) and half year ended 30^th September 2021.

Financial Highlights

Mr Sunil Duggal, Chief Executive Officer, said "Vedanta has set its sights on becoming a leader in terms of our ESG performance in the metals & mining sector, with a strong commitment towards achieving Net-Zero Carbon by 2050 or sooner, increasing workplace diversity, and a commitment to improve the quality of life of more than 100 million women & children. We are confident that these goals will also translate into improved financial performance, de-risk the business and create opportunities in the emerging green economy.

We continued our strong growth momentum this quarter as well, reporting record quarterly and half-yearly Revenue and EBITDA. We reported consolidated quarterly Revenue of ₹ 30,048 crore, up 44% Y-o-Y and quarterly EBITDA of ₹ 10,582 crore, up 62% Y-o-Y. Our attributable PAT (before exceptional items) stood at ₹ 4,644 crore, up 486% Y-o-Y. We witnessed steady volume performance across business segments, and sustained margins benefitting from high commodity prices despite a challenging cost environment. We continue to focus on prudent capital allocation and deleveraging. We reduced net debt by ₹ 7,232 crore Y-o-Y. We continue our commitment of rewarding shareholders with interim dividend of INR 18.5 per Share, entailing pay-out of ₹ 6,855 crore. "

Purpose-led ESG: Transforming For Good

Revenue

Revenue for Q2 FY2022 was at ₹ 30,048 crore, higher by 7% Q-o-Q, primarily supported by improved commodity prices, partially offset by lower sales volume at Zinc and Iron Ore business.

Revenue for Q2 FY2022 was higher by 44% Y-o-Y, primarily supported by improved commodity prices and higher volumes across businesses, partially offset by lower sales volume at Zinc India, copper and TSPL.

EBITDA and EBITDA Margin

EBITDA for Q2 FY2022 was at ₹ 10,582 crore, higher by 5% Q-o-Q, primarily supported by improved commodity prices, partially offset by lower volumes at Zinc & Iron Ore business, and higher COP impacted by input commodity inflation.

EBITDA for Q2 FY2022 was higher by 62% Y-o-Y, primarily supported by improved commodity prices and higher volumes at Aluminium. This was partially offset by lower sales volume at Zinc business and higher COP impacted by input commodity inflation.

We had a robust EBITDA margin¹ of 40% during the quarter compared to 36% in Q2 FY2021.

Depreciation & Amortization

Depreciation & amortisation for Q2 FY2022 was at ₹ 2,118 crore, flat Q-o-Q

Depreciation & amortisation for Q2 FY2022 was higher by 9% Y-o-Y, primarily on account of higher capitalization at Aluminium and oil & Gas and higher ore production at Zinc business.

Finance Cost and Investment Income

Finance cost for Q2 FY2022 was at ₹ 1,066 crore, down by 10% Q-o-Q and 19% Y-o-Y, primarily due to lower average borrowings in the quarter.

Investment Income for Q2 FY2022 was at ₹ 579 crore, down by 20% Q-o-Q, due to Mark to Market movement and one-time gain in Q1 FY2022.

Investment Income for Q2 FY2022 was down by 5% Y-o-Y, primarily due to Mark to Market movement and change in investment mix.

Exceptional Items

Exceptional items for Q2 FY2022 was at ₹ 46 crore, primarily on account of CWIP impairment at ESL Steel.

Taxes

The normalized ETR was 26% (excl. tax on exceptional items) that shows no variance to Q1 FY2022.

Attributable Profit after Tax and Earnings per Share (EPS)

Attributable Profit after Tax (PAT) before exceptional items for the quarter was at ₹ 4,644 crore up 8% Q-o-Q and 486% Y-o-Y.

EPS for the quarter before exceptional items was at ₹ 12.53 per share compared to ₹ 11.55 per share in Q1 FY2022 and ₹ 2.14 per share in Q2 FY2021.

Balance Sheet

We have strong cash and cash equivalents of ₹ 30,650 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.

Gross debt was at ₹ 51,040 crore on 30^th September 2021, decreased by ₹ 11,719 crore Y-o-Y. This was mainly due to deleveraging at Zinc and Aluminium business.

Net debt was at ₹ 20,389 crore on 30th September 2021, reduction of ₹ 7,232 crore Y-o-Y, primarily driven by strong cash flow from operations post capex and dividend pay-out.

• CRISIL Ratings at AA- with positive outlook
• India Ratings at AA- with stable outlook

Key Recognitions

Vedanta has been consistently recognized through the receipt of various awards and accolades. During the past quarter, we received the following recognitions:

• Hindustan Zinc awarded 'Most Sustainable Company in Mining Industry for 2021' by World Finance Magazine
• Hindustan Zinc awarded 'International Safety Award 2021 Merit' for the project at Rajpura Dariba Complex by British Safety Council
• Cairn Legal Team won the 'Legal Team of the Year' award at India Legal Awards 2021
• Cairn awarded under the gold category 'The Best Rural Health Initiative Award' of 5^th CSR Health Impact Awards organized by Integrated Health and Wellbeing Council
• Aluminium business won 'Diamond Award in Superior Achievement in Reputation Management Category and Gold Award in Mining and Extraction Industries Category for 'Mission Kalahandi: Zero Poverty, Zero Hunger' Campaign' by South Asian SABRE Awards
• BALCO won 'Excellent Energy Efficient unit for Excellence in Energy Management – 2021' by CII National Awards
• ESL Steel won '10th Exceed CSR Award 2021' for Livelihood Projects in Steel sector by Sustainable Development Foundation and supported by Ministry of Forest, Environment and Climate Change, Government of India
• Vizag General Cargo Berth, Visakhapatnam won 'Greentech Effective Safety Culture Award - 2021'

Results Conference Call

Please note that the results presentation is available in the Investor Relations section of the company website http://www.vedantalimited.com/investor-relations/results-reports.aspx

Following the announcement, a conference call at 6:00 PM (IST) on Oct 29, 2021, will be there, where senior management will discuss the company's results and performance. The dial-in numbers for the call are as below:

For further information, please contact:

About Vedanta Limited

Vedanta Limited, a subsidiary of Vedanta Resources Limited, is one of the world's leading Oil & Gas and Metals company with significant operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, and Aluminium & Power across India, South Africa, Namibia, and Australia. For two decades, Vedanta has been contributing significantly to nation building. Governance and sustainable development are at the core of Vedanta's strategy, with a strong focus on health, safety, and environment. Vedanta has put in place a comprehensive framework dedicating itself to the highest ESG standards to emerge as leaders in this space. It is among the 24 Indian companies who are signatories to the "Declaration of the Private Sector on Climate Change" and is committed to decarbonizing its operations by 2050. Giving back is in the DNA of Vedanta, which is focused on enhancing the lives of local communities. The company's flagship social impact program, Nand Ghars, have been set up as model anganwadis focused on eradicating child malnutrition, providing education, healthcare, and empowering women with skill development. Under the aegis of the Anil Agarwal Foundation, the umbrella entity for Vedanta's social initiatives, the Vedanta group has pledged Rs 5000 crore over the next five years on social impact programmes with a thrust on nutrition, women & child development, healthcare, animal welfare, and grass-root level sports. Vedanta and the group companies company have been featured in Dow Jones Sustainability Index 2020, and was conferred Frost & Sullivan Sustainability Awards 2020, CII Environmental Best Practices Award 2020, CSR Health Impact Award 2020, CII National Award 2020 for Excellence in Water Management, CII Digital Transformation Award 2020, ICSI National Award 2020 for excellence in Corporate Governance, People First HR Excellence Award 2020, 'Company with Great Managers 2020' by People Business and certified as a Great Place to Work 2021. Vedanta's flagship Nand Ghar Project was identified as best CSR project by Government of Rajasthan. 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.

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