Vedanta records PAT of Rs 7,013 crore in Q4 FY21

On a consolidated basis, Vedanta reported a net profit to Rs 7,013 crore in Q4 FY21 compared with a net loss of Rs 1,914 crore in Q4 FY20.

Net sales increased by 43% year-on-year (YoY) to Rs 27,874 crore during the quarter, primarily due to higher volume at Aluminium business, Zinc India, Iron ore business, higher power sales at TSPL and improved commodity prices.

EBITDA in Q4 FY21 was at Rs 9,107 crore, up by 88% from Rs 4,844 crore in Q4 FY20. EBITDA margin was at 38% as on 31 March 2021 as against 28% as on 31 March 2020.

The improvement in EBITDA was primarily due to higher volumes at Zinc India, Aluminium & Iron Ore business and higher commodity & oil prices in Q4 FY2021, partially offset by higher COP at Aluminium and steel business majorly due to input commodity inflation.

Exceptional items for Q4 FY2021 was at Rs 773 crore, primarily due to provision in Steel business for obtaining environmental clearance, provision against advances, settlement of structured investments and CWIP impairment in Aluminium.

The company reported a pre-tax profit of Rs 5,743 crore in the fourth quarter as against a pre-tax loss of Rs 15,269 crore in the same period last year.

Finance cost for Q4 FY21 was at Rs 1,325 crore, up 24% YoY, primarily due to lower interest capitalisation.

The company reported a consolidated net profit of Rs 12,151 crore in the year ended 31 March 2021 as against a net profit of Rs 3,993 crore in the year ended 31 March 2020. Net sales rose 4% to Rs 86,863 crore in FY21 over FY20.

Vedanta has cash and cash equivalents of Rs 32,614 crore. The company has undrawn committed facilities of Rs 7800 crore as on 31 March 2021.

Gross debt was at Rs 57,028 crore on 31 March 2021, decreased by Rs 2,159 crore YoY. This was mainly due to repayment of debt at Aluminum and Zinc Business.

Net debt was at Rs 24,414 crore on 31 March 2021, higher by Rs 2,988 crore YoY, primarily driven by dividend payment during the year and inter-company loan (ICL) to Vedanta Resources, partially offset by strong cash flow from operations post capex.

Sunil Duggal, chief executive officer, Vedanta, said: "We are delighted to announce an outstanding quarter. Our key businesses delivered record operational performance, maintaining the trajectory of cost and volumes, driven by structural integration and technology adoption.

Our businesses have shown resilience in uncertain market environment as we continue with our winning streak, reporting the highest ever quarterly EBITDA."

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.

The Vedanta scrip fell 2.20% to end at Rs 282.20 on Wednesday.

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