MUMBAI: Vedanta Limited today announced its unaudited consolidated results for the Second quarter (Q2) and half year ended 30th September 2020.
Mr. Sunil Duggal, Chief Executive Officer, Vedanta, said “Vedanta has reported the highest quarterly operating result for more than 2 years. Our key growth projects are back on track and the expansion is being delivered through strict capital allocation and balance sheet focus, aimed at creating value for our stakeholders. Our large scale, diversified portfolio, positions us well to deliver strong margins and cash flows through the commodity cycle. Vedanta is fully committed to sustainable growth and contributes significantly towards building a self-reliant India”.
The consolidated financial performance of the company during the period is as under (In Rs. crore, except as stated):
Revenue in Q2 FY2021 was at ₹ 20,804 crores, higher by 33% q-o-q, primarily due to higher commodity prices, higher volumes at Zinc India, Iron ore, Copper, and Power business, partially offset by lower volumes at Aluminium and Steel business, rupee appreciation.
Revenue was lower by 4% y-o-y, mainly on account of lower volume at Oil & Gas business and lower commodity prices, partially offset by higher volumes at Zinc India business, and rupee depreciation.
EBITDA and EBITDA Margins
EBITDA for Q2 FY2021 was at ₹ 6,531 crores, higher by 63% q-o-q, mainly due to higher commodity prices, higher volumes at Zinc business, lower cost of production at Zinc India and Aluminium business, partially offset by higher input commodity prices, rupee appreciation and reversal in RPO liability in Aluminium business due to capping of RE certificates at lower prices in Q1 FY2021.
EBITDA for Q2 FY2021 was higher by 45% y-o-y, primarily due to higher volume at Zinc India business, subdued input commodity prices, lower cost of production at Aluminium, Steel & Zinc business and rupee depreciation, partially offset by lower volume at Oil & Gas business.
EBITDA margin1 for Q2 FY2021 was at 36%.
Depreciation & Amortization
Depreciation and amortization for Q2 FY2021 stood at ₹ 1,938 crores, higher by 12% q-o-q, mainly due to higher ore production at Zinc business.
It was lower 19% y-o-y, primarily due to impairment of assets in Oil & Gas business in Q4 FY2020, and Skorpion mine put under care and maintenance since April 2020.
Finance Cost and Investment Income
Finance cost for Q2 FY2021 was at ₹ 1,312 crore, higher by 5% q-o-q, primarily due to higher average borrowing cost, partially offset by a reduction in gross borrowings.
Finance cost was lower 2% y-o-y, mainly on account of reduction in gross borrowings.
Investment Income was at ₹ 607 crores, lower by 40% q-o-q and 27% y-o-y. This was primarily on account of mark to market (MTM) movement on investments.
The tax expense for Q2 FY2021 was ₹ 2,370 crore compared to ₹ 510 crores in Q1 FY21 & tax credit of ₹ 1,609 in Q2 FY2020. The normalized tax rate (excluding tax on dividend from Zinc India business) for the quarter is 29%, compared to 20% in Q1 FY2021, driven by a change in profit mix amongst businesses.
Attributable Profit after Tax and Earnings per Share (EPS)
Attributable Profit after Tax (PAT) for the quarter was ₹ 824 crore and Earnings per share for the quarter was at ₹ 2.22 per share.
We have robust cash and cash equivalents# of ₹ 35,569 crores. 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.
Gross debt was at ₹ 62,759 crores on 30th September 2020, higher by ₹ 4,191 crore as compared to 30th June 2020. This was mainly due to temporary borrowing at Zinc India.
Net debt was at ₹ 27,190 crores on 30th September 2020, higher by ₹ 92 crores as compared to 30th June 2020.
CRISIL rating at AA- with stable outlook (October 2020).
Cash & Cash equivalent is net of Intercompany Loan (ICL) disbursed to Vedanta Resources from CIHL of $526 mn, outstanding as on 30th Sep’20. As of date, an additional $430 mn has been disbursed and the total ICL outstanding amount is $ 956 mn.
Vedanta has been consistently recognized through the receipt of various awards and accolades. We received the following key recognitions recently:
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