Vedanta Q3 earnings: Net profit falls 18%, revenue rises to Rs 34,968 crore

Vedanta Q3 earnings: Revenue from operations rose 3.8 percent to Rs 34,968 crore in October-December 2023, from Rs 33,691 crore in the same period of the previous fiscal. Sequentially, revenue was down nine percent.

SUMMARY

• Profit after tax before exceptional items zoomed 8% YoY to Rs 2,868 crore. It climbed 112% on a QoQ basis.
• The metal and mining firm said it generated strong free cash flow (pre capex) of Rs 4,306 crore in 3QFY24. 
• Vedanta said it posted its highest ever Q3 consolidated revenue up 4% QoQ. 

Metal and mining major Vedanta Ltd reported a 18.30% fall in consolidated net profit for the December 2023 quarter. Net profit fell to Rs 2,013 crore in the December 2023 quarter against Rs 2,464 crore in the December 2022 quarter. Consolidated revenue from operations climbed 3.76 percent to Rs 34,968 crore in the last quarter against Rs 33,691 crore in the year-ago period.

Vedanta said it posted its highest ever Q3 consolidated revenue, up 4% QoQ.

Consolidated quarterly earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 22% to Rs 8,677 crore on a YoY basis and climbed 21% on a QoQ basis.

Profit after tax before exceptional items zoomed 8% YoY to Rs 2,868 crore. It climbed 112% on a QoQ basis. The metal and mining firm said it generated strong free cash flow (pre capex) of Rs 4,306 crore in 3QFY24.

The earnings were announced after market hours today. The metal stock ended 0.40% higher at Rs 263.55 on BSE. Market cap of the firm stood at Rs 97,966 crore.

Production growth

Vedanta’s mined metal production rose 7 percent year-on-year (YoY) and saleable silver output went up by 22 percent YoY in the third quarter of this fiscal, according to its business update released on January 3.

The company claimed that it recorded the “highest-ever” production of mined metal and silver during the first nine-month period of this fiscal. Between April and December, the mined metal output stood at 780 kt, up 2 percent YoY driven by improved mined metal grades. Saleable silver production during the same period stood at 556 tonne, up 5 percent YoY, it said.

Debt restructuring

During the third quarter, Vedanta restructured its debt worth $3.2 billion and the move was approved by more than 97 percent of its bondholders.  As of December 31, 2023, the company’s net debt stands at Rs 62,493 crore.

On December 14, 2023, the holding company of the Vedanta Group secured $1.25 billion from private credit lenders for debt refinancing and a new credit facility. The company said that fundraising will help create a long-term sustainable capital structure and demonstrate its continued ability to access global capital markets and investor confidence in the underlying business.

With Thanks Reference to: https://www.businesstoday.in/markets/company-stock/story/vedanta-q3-earnings-net-profit-falls-revenue-rises-shares-end-flat-414874-2024-01-25 and https://www.moneycontrol.com/news/business/earnings/vedanta-q3-results-net-profit-falls-18-due-to-rise-in-materials-finance-costs-12110371.html