Vedanta Limited: Consolidated Results for the Third Quarter ended 31st December 2020

MUMBAI, India, Jan. 29, 2021

Financial & Corporate Highlights

• Strong financial performance in Q3 FY2021
• Revenues of ₹ 22,498 crores, up 8% q-o-q, primarily due to increase in commodity prices and higher sales at Aluminium, Iron ore and Steel business
• Robust EBITDA margin1 of 39%, highest in last 4 years
• EBITDA of ₹ 7,695 crores, up 18% q-o-q and y-o-y, highest quarterly performance for > 2 years
• Attributable PAT (before exceptional items and tax on dividend) of ₹ 3,017 crores, up 51% q-o-q
  
• Strong Balance Sheet
• Continuing double-digit Return on Capital Employed (ROCE) of c. 13%
• Net Debt/EBITDA at 1.5x, maintained at low level
• Liquidity position with total cash & cash equivalents at ₹ 27,055 crores

Operational Highlights

• Zinc India:
• Highest ever quarterly ore production at 4.0 million tonnes, with highest ever mine development of 27 km
• Mined metal production at 244 kt, up 2% q-o-q
• Zinc International:
• Gamsberg highest ever production of 43kt in Q3 FY2021, up by 23% q-o-q
• Oil & Gas:
• Average Daily Gross Operated Production at 160 kboepd, down 3% q-o-q
• New gas facility commissioned; gas production being ramped up by ~15 kboepd
• Aluminium:
• Aluminium volume 497kt, up by 5% q-o-q
• Sustained lower cost of production at $ 1,387/t and EBITDA margin of 28%
• Iron Ore:
• Capitalized opportunity to increase Goa sales to 0.6 Mnt
• Karnataka sales of 1.2 Mnt
• Steel:
• Highest ever hot metal production of 372 kt since acquisition
• Robust EBITDA margin at $111/t, up 18% q-o-q
• Value Added Product (VAP) mix increased to 85% in Q3 FY2021 from 71% in Q2 FY2021

^{1.  Excludes custom smelting at Copper India and Zinc India operations}

Mr. Sunil Duggal, Chief Executive Officer, Vedanta, said, "We continue to strengthen our position as one of the largest diversified natural resource businesses in the world with our strategy focused on value-added growth. Our businesses stayed resilient in the quarter amidst uncertain market environment as we continued with our winning streak reporting the highest EBITDA in last two years. We continue to ramp up across the Zinc and Iron & Steel verticals along with successful project delivery in the Oil & Gas vertical. Aluminium business has had yet another exemplary quarter as it continued the momentum of cost rationalisation from improved integration and systemic improvements. As we look forward to the year, we have in place the building blocks to enhance our performance in all our businesses as we continue to deliver for all our stakeholders."

Mr. GR Arun Kumar, Chief Financial Officer, Vedanta, said, "We are focussed on driving operations effectively in this conducive price environment to maximise earnings to cash conversion,  allocate capital wisely while supporting high return organic growth projects across businesses and continue to drive costs down structurally to sustain these cash flows into future. The Balance Sheet continues to remain strong with a consolidated Net Debt / EBITDA ratio of ~1.5X with improving debt maturity profile. Yet we target to reduce net debt by above Rs 5,000 crores in the coming quarter. ROCE at double digit levels of ~13% will thus leave enough on the table to ensure good shareholder returns. The guidance has remained constant or better through the year on volumes, costs, below EBITDA items as well as growth capex thus delivering a well-managed set of financials during the year."