Mumbai, January 31, 2025 — Vedanta Limited has reported its highest-ever Q3 EBITDA of ₹11,284 crore, showcasing robust operational performance and strategic cost efficiencies. The company's profit after tax surged 70% YoY to ₹4,876 crore, supported by strong commodity prices, cost optimizations, and increased production across key businesses.
Financial Performance (₹ in Crore)
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 | FY24 (Audited) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 38,526 | 37,171 | 34,968 | 1,10,936 | 1,02,048 | 1,41,793 |
| EBITDA | 11,284 | 10,364 | 8,677 | 31,924 | 22,849 | 36,455 |
| EBITDA Margin (%) | 34% | 34% | 29% | 34% | 30% | - |
| Profit Before Tax (PBT) | 6,661 | 5,765 | 4,105 | 18,352 | 8,729 | 20,365 |
| Net Profit (PAT) | 4,876 | 5,603 | 2,868 | 15,574 | 5,264 | 7,539 |
| Earnings Per Share (₹) | 9.09* | 11.26* | 5.42* | 30.07* | 7.73* | 11.42 |
Key Financial Highlights
- Revenue growth: Up 10% YoY to ₹38,526 crore, supported by strong pricing and volume growth.
- EBITDA margin at 34%, up 517 bps YoY, driven by cost optimization and favorable market conditions.
- Cash and cash equivalents: ₹21,138 crore, a 66% YoY increase ensuring strong liquidity.
- Net debt: ₹57,358 crore, with a net debt/EBITDA ratio of 1.4x, the lowest in 7 quarters.
- Dividend Declaration: ₹8.5 per share fourth interim dividend, bringing the total FY25 dividend to ₹43.5 per share.
Operational Performance & Business Segment Updates
Aluminium
- Record aluminium production of 613 kt, up 2% YoY.
- Alumina production at 505 kt, up 7% YoY.
- Lowest hot metal cost ($896/t) in 14 quarters, leading to 58% YoY EBITDA growth.
Zinc India
- Mined metal production at 784 kt, highest-ever 9M output.
- 15-quarter lowest CoP of $1,041/t, down 5% YoY.
- EBITDA up 28% YoY, led by structural cost reductions.
Zinc International
- Mined metal production at 46 kt, up 12% YoY.
- Gamsberg delivered its lowest-ever CoP of $1,002/t.
Oil & Gas
- Production at 99.4 kboepd, impacted by natural decline in offshore fields.
- New exploration investments including 9 infill wells in Mangala and Aishwarya fields.
- ASP Injection ongoing at key fields to enhance recovery rates.
Iron Ore & Steel
- Iron ore production at 1.5 million tonnes, up 10% YoY.
- Pig iron production at 217 kt, up 7% YoY.
- Ferrochrome production surged 35% YoY, driven by new furnace commissioning.
Copper
- Copper cathode production at 45 kt, up 3% YoY.
- Revenue up 8% YoY, driven by improved LME copper pricing.
ESG & Sustainability Leadership
- Vedanta ranked 4th among 248 global metal and mining companies in S&P Global’s 2024 Corporate Sustainability Assessment.
- Hindustan Zinc secured the top position, while Vedanta Aluminium ranked 2nd globally in its sector.
- Renewable Energy (RE) Expansion: Agreements for 1,920 MW of renewable power in place.
- Waste Utilization: Achieved 86% High-Value Waste Treatment (HVLT).
- Tree Plantation: 2.2 million trees planted, progressing towards 7 million trees by 2030.
- CSR Contribution: ₹254 crore spent in the first 9 months of FY25, impacting over 5 million people.
Corporate Announcements & Strategic Moves
Demerger Update
- Shareholder & Creditor Meeting scheduled for February 18, 2025.
- Vedanta to separate Aluminium, Power, Oil & Gas, and Iron Ore businesses into independent entities.
- Decision made to not proceed with the demerger of Base Metals, focusing instead on unlocking shareholder value through other means.
Debt Reduction & Credit Rating
- CRISIL upgraded Vedanta’s rating from AA- to AA.
- Parent company VRL successfully refinanced $3.1 billion in debt over the last 4 months, reducing the average coupon rate by 250 bps.
- VRL deleveraging of ~$1 billion in the past 9 months.
Management Commentary
Arun Misra, Executive Director, Vedanta Limited: "We have delivered our highest-ever third-quarter EBITDA of ₹11,284 crore. Our relentless focus on cost efficiency and operational excellence has resulted in a 70% YoY PAT growth. With continued structural cost initiatives and business integration, we expect this momentum to continue in the coming quarters."Ajay Goel, CFO, Vedanta Limited: "This quarter's performance is a testament to our disciplined financial strategy. With an improved net debt/EBITDA ratio, stronger cash flows, and a recent credit rating upgrade, Vedanta is well-positioned for sustained growth and shareholder value creation."
Outlook & Growth Strategy
- Expanding Aluminium & Zinc businesses to leverage global demand.
- Scaling renewable energy initiatives for sustainable operations.
- Driving growth in Oil & Gas through new drilling and exploration projects.
- Maintaining a strong balance sheet and reducing debt to enhance financial stability.
Conclusion
Vedanta Limited has delivered record-breaking financial results, driven by cost efficiency, production growth, and strategic investments. With a strong balance sheet, favorable market conditions, and a commitment to sustainability, Vedanta remains on track for continued success in FY25 and beyond.
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