Vedanta Q1 FY22 PAT spurts 247% to Rs 5,282 cr

Vedanta's consolidated net profit soared 247% to Rs 5,282 crore on a 79.2% jump in net sales to Rs 28,105 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21).

Revenue for Q1 FY2022 was higher by 79.2% Y-o-Y (year-on-year), primarily due to improved commodity prices and higher volumes across businesses. The revenues for Q1 FY2022 was at Rs 28,105 crore, higher by 1% Q-o-Q (quarter-on-quarter), primarily due to improved commodity prices, partially offset by lower sales volume at Zinc India, Iron Ore & Steel and Copper business. Consolidated profit before tax surged 255% to Rs 7,217 crore in Q1 FY22 as against Rs 2,033 crore in Q1 FY21. The Q1 earnings was declared at the fag end of trading hours yesterday, 26 July 2021.

On a consolidated basis, EBITDA for Q1 FY2022 stood at Rs 10,032 crore, rising 10% Q-o-Q from Rs 9,107 crore in Q4 FY21, primarily due to improved commodity prices, partially offset by lower volumes at Zinc India, Iron Ore & Steel business, and higher COP due to input commodity inflation. Meanwhile, EBITDA for Q1 FY2022 was at Rs 10,032 crore, growing 150% Y-o-Y from Rs 4,008 crore in Q1 FY21, primarily due to improved commodity prices and higher volumes across businesses. This was partially offset by higher COP due to input commodity inflation. EBITDA margin stood at 41% during the quarter compared to 28% in Q1 FY2021.

Exceptional items for Q1 FY2022 was at Rs 134 crore, primarily due to payment under amnesty scheme at Zinc India. The normalized effective tax rate (ETR) was 26% (excl. tax on exceptional items) compared to 28% (excl. tax on exceptional and one-off items) in Q4 FY2021, primarily on account of change in profit mix.

Vedanta has a robust cash and cash equivalents of Rs 31,318 crore. The company follows a board approved investment policy and invests in high quality debt instruments with mutual funds, bonds and fixed deposits with banks. Gross debt was at Rs 51,579 crore on 30 June 2021, reducing Rs 5,449 crore on a Q-o-Q basis. This was mainly due to deleveraging of Vedanta Standalone.

Net debt stood at Rs 20,261 crore on 30 June 2021, decreased by Rs 6,989 crore on a Y-o-Y basis and by Rs 4,153 crore on a Q-o-Q basis, primarily driven by strong cash flow from operations post capex and inter-company loan repayment from Vedanta Resources.

Sunil Duggal, the chief executive officer (CEO) of Vedanta, has said that: "We are happy to announce another strong quarter with continued momentum across all businesses. Our consolidated revenue was up 79% Y-o-Y at Rs 28,105 crore and attributable profit after tax (before exceptional items) up 314% Y-o-Y at Rs 4,280 crore. We delivered record operational performance, maintaining the trajectory of cost and volumes, driven by structural integration and technology adoption. Despite the uncertain market conditions, we have continued with our winning streak by reporting the highest ever quarterly EBITDA of Rs 10,032 crore, up 150% Y-o-Y."

"Our priority remains supporting our employees, partners, and communities to navigate through these tough times by providing every possible medical & other required assistance. We are focused on the key value drivers and lowering our carbon footprint, to unlock a sustainable future growth for the company and maximize value for stakeholders."

Meanwhile, the board approved BALCO Smelter expansion by 414 kilo tonnes per annum (KTPA), subject to requisite Government approvals, at the cost of Rs 6,611 crore which will help to reach 92% VAP portfolio at location. This includes investment made to build new township for improved safety and security. Vedanta has also approved Jharsuguda Carbon Plant Adequacy facility at the cost of Rs 635 crore instead of debottlenecking (approved in May 2021 as part of 100 KTPA at Rs 210 crore) for sustaining reliability and catering anode for 1.78 million tonnes per annum (MTPA) with future scalability to 2 MTPA.

Vedanta, a subsidiary of Vedanta Resources, is one of the world's leading oil & gas and metals company with significant operations in oil & gas, zinc, lead, silver, copper, iron ore, steel, and aluminium & power across India, South Africa, Namibia, and Australia.

Shares of Vedanta slipped 0.29% to Rs 270.70 on BSE. It traded in the range of Rs 270.05 and Rs 276.50 during the day.

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