Vedanta Q3FY24 results: Net profit declines 18%, net sales edges up

Mining conglomerate Vedanta Ltd on Thursday reported an 18.3 per cent decline in its consolidated net profit to Rs 2,013 crore for the December quarter of 2023-24 due to lower other income and a higher tax charge.

For Q3FY24, the Anil Agarwal-promoted company reported a net profit of Rs 2013 crore, down 18.3 per cent on a year-on-year (Y-o-Y) basis. The net sales for the company rose 3.8 per cent to touch Rs 34,968 crore during the same period.

The growth in revenues, the company said, was driven by higher sales volume and favourable movement in the exchange rate, which is partially offset by the decrease in commodity prices. The Ebitda (earnings before interest, taxes, depreciation, and amortization) for the quarter under review was Rs 8,677 crore, up 22 per cent on a year-on-year (Y-o-Y) basis.

The Ebitda growth, the company said, was helped by an improved operational performance, favorable forex impact, and higher output commodity prices. For the quarter under review, the company also reported a tax charge of Rs 1,237 crore, higher than Rs 839 crore seen in the same quarter a year ago.

Other income for the company in Q3FY24 also dipped 51.9 per cent Y-o-Y to Rs 779 crore. Sequentially, the company reported a 9.3 per cent dip in net sales in Q3FY24 and returned to profits from a loss of Rs 1,783 crore reported in the previous quarter.

As of December 2023, the company’s gross debt stood at Rs 75,227 crore, while the net debt stood at Rs 62,493 crore. On the proposed demerger of its businesses into separate listed entities, the company in an address to analysts said it is awaiting a nod from markets regulator Securities and Exchange Board of India.