Vedanta Ltd Q2 Results FY2023, Net Profit at Rs. 2690 crores

On 28th October 2022, Vedanta Ltd announced its second quarter results for the period ending 30th September 2022. 

Q2FY23 Performance updates:

- Revenue increased by 21%YoY to Rs.36,237 crore on account of higher sales volume, strategic hedging gains and foreign exchange gains; partially offset by lower commodity prices. 
-  EBITDA decreased by 24%YoY to Rs.8,038 crore on account of input commodity inflation and lower output commodity prices; partially offset by improved operational performance, hedging gains and foreign exchange gains. EBITDA margin stood at 25%.
-  Profit after Tax was at Rs.2,690 crore, down 54%YoY and 52%QoQ

Business Highlights:

- Aluminium: The company completed Jharsuguda capacity ramp-up to 1.8 MTPA; with total aluminum production capacity reached 2.4 MTPA. The Aluminium production reached 584kt, increased by 2%YoY and Alumina production at 454kt, down 11%YoY due to scheduled maintenance
- Zinc India reported the highest ever 2Q mined metal production of 255kt, up by 3%YoY with best ever 2Q Refined metal production of 246kt, up by 18%YoY driven by improved smelter performance and better-mined metal availability 
- Silver production at 194 tonnes, up 28%YoY
- Zinc International reported a highest ever MIC production at Gamsberg of 55kt, up 43%YoY on higher tonnes treated and higher zinc recoveries with overall production at 74kt, increased 35%YoY with Gamsberg ramp up
- Oil and Gas segment signed a 10-year extension to production sharing contract to operate Rajasthan Oil block. The segment secured 8 blocks in DSF-III round and 1 block in the special CBM round 2021. Average gross operated production of 140,471 boepd; lower production was partially offset by infill wells in MB1 and RDG2 field
- Karnataka iron ore sales at 1.3 million tonnes, increased by 7%YoY. The Pig iron production was down by 42%YoY on account of the shutdown at smaller blast furnaces 
- Steel’s saleable production was reported at 324kt, which increased 11%YoY with the completion of debottlenecking activities in 1QFY23 
- Ferro chrome production was reported at 11kt, lower 42%YoY on account of shutdown for relining of furnace
- Copper India:  Due legal process is being followed to achieve a sustainable restart of the operations

Mr. Sunil Duggal, Chief Executive Officer, Vedanta, said “I am pleased to share that we have generated strong free cash flow (pre capex) of ₹8,369 crore underpinned by robust operational and financial performance. I am also happy to inform that Vedanta has entered in the club of top 10 DJSI ranked global metals and mining companies; ranking 6th globally. Our growth and vertical integration projects, aimed to reduce market volatility impact and create shareholders’ value, are progressing well. We remain well positioned, with a rich diversified asset portfolio, strong balance sheet, and cost optimization levers, to withstand challenging macroeconomic environment.”

Vedanta share price dropped by 1.42%.