Vedanta Q3 FY25 results: Net profit rises 76.2% to Rs 3,547 crore

Anil Agarwal-promoted Vedanta Ltd reported a 76.2 per cent rise in the net profit in the December quarter (Q3FY25) on the back of improved performance in its zinc and aluminium businesses.

 

During the quarter, the metals and oil & gas company reported a consolidated net profit of Rs 3,547 crore, compared to Rs 2,013 crore a year ago. This was accompanied by a 10 per cent rise in revenue to  Rs 39,115 crore from the previous year.

 

Arun Misra, executive director, Vedanta Ltd, told Business Standard that the profit growth was “solely on the back of maintaining volumes produced last year while reducing costs by about nine per cent year-on-year, despite a sharp rise in commodity input prices. The structural and strategic steps taken last year have started yielding results.”

 

He added that the zinc and aluminium businesses each contributed 40 per cent to the overall Ebitda. Misra said the push for cost reduction will continue, and the company expects this outperformance to sustain in the coming quarters, driven by ongoing growth initiatives and business integration projects.

 

Vedanta’s consolidated Ebitda stood at Rs 11,284 crore, up 30 per cent from a year ago. However, profits in its iron ore business took a hit, which Misra attributed to “market indexes collapsing, impacting performance.”

 

Demerger and financial outlook

 

On the planned demerger — where Vedanta aims to split its businesses into four new entities—Ajay Goel, chief financial officer, said, “We expect the demerger to conclude around June-July this year.”

 

Goel noted that capital expenditure (capex) for the current financial year would end at $1.5 billion, tapering to $1.3-$1.4 billion next year, with an overall capex of $5 billion over the next three years.

 

On deleveraging, Goel added: “Vedanta Resources has deleveraged by $1 billion in the current fiscal alone. We will continue reducing debt at both Vedanta Resources and Vedanta India.”

 

Vedanta Resources is the parent company of Vedanta Ltd.