Vedanta's first quarter results showed a 40% YoY decline in net profit and a 13% decline in revenue

24 Jul 2023 , 12:57 PM

Vedanta posted a consolidated net profit of Rs 2,640 crore on Friday, down from Rs 4,421 crore in the same period last year and a decrease of roughly 40%. The profit amount, however, exceeded the expectation of Rs 1200 crore.

Operations revenue decreased 13% to Rs 33,342 crore for the first quarter from Rs 38,251 crore. The sharp decline in production commodity prices, which has been partially offset by favourable exchange rate movement, is the main cause of the revenue decline.

Due to lower output commodity prices and lower sales, the business recorded an EBITDA of Rs 6,975 crore for the April–June period, a 35% decrease from Rs 10,741 crore in the same time last year.

EBITDA margin was 24% during the quarter. During the June quarter, financial costs increased by about 74% to Rs 2,110 crore, due to a rise in the blended cost of borrowings and average borrowings.

Among the important industries, production of aluminium climbed by 2% annually to 579 kt, while production costs decreased by 27% annually.

In the first quarter, Zinc India’s operation produced 257 kt of mined metal, a 2% increase over the same period last year. Saleable silver production increased by a negligible 1% to 179 tonnes, while refined metal production remained steady at 260 kt.

The company’s gross debt increased from Rs 66,182 crore in the previous March quarter to Rs 73,484 crore as of June. The corporation had a net debt of Rs 59,192 crore.

At the end of the June quarter, Vedanta had Rs 14,292 crore in cash and cash equivalents.

‘As we advance, we remain dedicated to establishing operational excellence and boosting our market competitiveness. Sunil Duggal, CEO of Vedanta, declared, ‘We are resolved to lead the push toward a more sustainable and responsible tomorrow.

The company’s stock price on Friday closed 1.44% lower at Rs 278.15 on the NSE, ahead of the results.

For feedback and suggestions, write to us at [e-mail]