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Vedanta

28-Jul-21 19:00 Hrs IST

Quarterended June 2021 compared with Quarter ended June 2020.

Consolidated Net sales of Vedanta increased77.88% to Rs 28412 crore primarily due to improved commodity prices and highervolumes across businesses. Sales of IronOre segment has gone up 146.64% to Rs 1,576 crore (accounting for 5.60% oftotal sales). Sales of Power segment hasgone up 20.33% to Rs 1,225 crore (accounting for 4.35% of total sales). Sales of oil & Gas segment has gone up78.91% to Rs 2,485 crore (accounting for 8.83% of total sales). Sales of copper segment has gone up 154.10%to Rs 3,499 crore (accounting for 12.44% of total sales). Sales of Aluminum segment has gone up 69.83%to Rs 10,263 crore (accounting for 36.48% of total sales). Sales of otherssegment has gone up 59.48% to Rs 1,641 crore (accounting for 5.83% of totalsales). Sales of segment has gone up199.20% to Rs 1,119 crore (accounting for 3.98% of total sales). Sales of Zinc & Lead - India segment hasgone up 62.68% to Rs 5,217 crore (accounting for 18.55% of total sales). Salesof Silver - India segment rose 71.47% to Rs 1,106 crore (accounting for 3.93%of total sales). Inter-segment salescame down from Rs 34 crore to Rs 26 crore.

Operating profit margin has jumped from 25%to 34.74% primarily due to improved commodity prices and higher volumes acrossbusinesses. This was partially offset by higher COP due to input commodityinflation. This led 147.21% rise in operating profit to Rs 9,871 crore. Rawmaterial cost as a % of total sales (net of stock adjustments) decreased from28.46% to 28.13%. Purchase of finishedgoods cost rose from 0.08% to 0.30%. Employee cost decreased from 4.20% to2.34%. Other expenses fell from 41.84% to 35.40%. Power and Oil fuel cost fellfrom 15.38% to 13.43%.

Other income fell 27.90% to Rs 739crore. Profit before interest, tax andother unallocable items (PBIT) has jumped 237.85% to Rs 7,872 crore. PBIT of Iron Ore segment rose 350.61% to Rs739 crore (accounting for 9.39% of total PBIT). PBIT of Power segment fell 22.17% to Rs 179 crore (accounting for 2.27%of total PBIT). PBIT of oil & Gassegment rose 161.82% to Rs 576 crore (accounting for 7.32% of total PBIT). PBIT of copper segment rose 36.52% to Rs -157crore (accounting for -1.99% of total PBIT). PBIT of Aluminum segment rose 281.49% to Rs 3,235 crore (accounting for41.10% of total PBIT). PBIT of othersreported profit of Rs 151 crore compared to loss of Rs 61 crore. PBIT of segment rose 1,029.17% to Rs 271crore (accounting for 3.44% of total PBIT). PBIT of Zinc & Lead - India segment rose 285.86% to Rs 1,883 crore(accounting for 23.92% of total PBIT). PBIT of Silver - India segment rose 87.03% to Rs 995 crore (accountingfor 12.64% of total PBIT).

PBIT margin of Iron Ore segment rose from25.67% to 46.89%. PBIT margin of Powersegment fell from 22.59% to 14.61%. PBITmargin of oil & Gas segment rose from 15.84% to 23.18%. PBIT margin of copper segment rose fromnegative 8.35% to negative 4.49%. PBITmargin of Aluminum segment rose from 14.03% to 31.52%. PBIT margin of others segment rose fromnegative 5.93% to 9.20%. PBIT margin ofsegment rose from 6.42% to 24.22%. PBITmargin of Zinc & Lead - India segment rose from 15.22% to 36.09%. PBIT margin of Silver - India segment rosefrom 82.48% to 89.96%. Overall PBITmargin rose from 14.82% to 27.98%.

Provision for interest fell 5.59% to Rs 1182crore. Provision for depreciation rose22.56% to Rs 2124 crore. Profit before tax grew 259.27% to Rs 7,304 crore. Share of profit/loss were nil in both theperiods.

PBT before EO was up 259% to Rs 7305 crore.The company reported EO expense of Rs 134 crore primarily due to payment underamnesty scheme at Zinc India compared to nil in the corresponding previous yearquarter. PBT after EO was up 255% to Rs 7171 crore.

Provision for tax was expense of Rs 1935crore, compared to Rs 511 crore. Effective tax rate was 26.81% compared to 25.14%. Minority interestincreased 116.56% to Rs 1,059 crore. Netprofit attributable to owners of the company increased 308.91% to Rs 4,224crore.

Fullyear results analysis

Net sales (including other operating income)of Vedanta has increased 4.23% to Rs 88021 crore. Sales of Iron Ore segment has gone up 30.75%to Rs 4,528 crore (accounting for 5.20% of total sales). Sales of Power segment has gone down 8.28% toRs 5,375 crore (accounting for 6.18% of total sales). Sales of oil & Gas segment has gone down40.52% to Rs 7,531 crore (accounting for 8.66% of total sales). Sales of copper segment has gone up 20.29% toRs 10,890 crore (accounting for 12.52% of total sales). Sales of Aluminum segment has gone up 7.78%to Rs 28,644 crore (accounting for 32.92% of total sales). Sales of others segment has gone up 12.44% toRs 5,377 crore (accounting for 6.18% of total sales). Sales of segment has gone down 12.76% to Rs2,729 crore (accounting for 3.14% of total sales). Sales of Zinc & Lead - India segment hasgone up 11.68% to Rs 17,550 crore (accounting for 20.17% of total sales). Sales of Silver - India segment rose 79.30%to Rs 4,382 crore (accounting for 5.04% of total sales). Inter-segment sales rose Rs 138 crore to Rs143 crore.

Operating profit margin has jumped from24.50% to 31.04%, leading to 32.05% rise in operating profit to Rs 27,318crore. Raw material cost as a % of totalsales (net of stock adjustments) increased from 25.48% to 26.19%. Purchase of finished goods cost fell from0.27% to 0.05%. Employee cost increasedfrom 3.20% to 3.28%. Other expensesfell from 46.25% to 39.16%. Power andOil fuel cost fell from 19.65% to 15.68%.

Other income rose 36.29% to Rs 3421crore. Profit before interest, tax andother unallocable items (PBIT) has jumped 63.74% to Rs 19,932 crore. PBIT of Iron Ore segment rose 120.85% to Rs1,716 crore (accounting for 8.61% of total PBIT). PBIT of Power segment fell 25.33% to Rs 731crore (accounting for 3.67% of total PBIT). PBIT of oil & Gas segment fell 56.48% to Rs 1,983 crore (accountingfor 9.95% of total PBIT). PBIT of coppersegment fell 22.99% to Rs -392 crore (accounting for -1.97% of total PBIT). PBIT of Aluminum segment rose 3,270.29% to Rs5,898 crore (accounting for 29.59% of total PBIT). PBIT of others reported profit of Rs 352crore compared to loss of Rs 1 crore. PBIT of reported profit of Rs 491 crore compared to loss of Rs 253 crore. PBIT of Zinc & Lead - India segment rose22.67% to Rs 5,302 crore (accounting for 26.60% of total PBIT). PBIT of Silver - India segment rose 81.14% toRs 3,851 crore (accounting for 19.32% of total PBIT).

PBIT margin of Iron Ore segment rose from 22.44%to 37.90%. PBIT margin of Power segmentfell from 16.71% to 13.60%. PBIT marginof oil & Gas segment fell from 35.99% to 26.33%. PBIT margin of copper segment rose fromnegative 5.62% to negative 3.60%. PBITmargin of Aluminum segment rose from 0.66% to 20.59%. PBIT margin of others segment rose fromnegative 0.02% to 6.55%. PBIT margin ofsegment rose from negative 8.09% to 17.99%. PBIT margin of Zinc & Lead - India segment rose from 27.50% to30.21%. PBIT margin of Silver - Indiasegment rose from 86.99% to 87.88%. Overall PBIT margin rose from 14.55% to 22.91%.

Provision for interest rose 4.68% to Rs 5210crore. Loan funds declined from Rs49,800 crore as of 31 March 2020 to Rs 41,677 crore as of 31 March 2021. Inventories declined from Rs 11,335 crore asof 31 March 2020 to Rs 9,923 crore as of 31 March 2021. Sundry debtors were higher at Rs 3,491 croreas of 31 March 2021 compared to Rs 2,697 crore as of 31 March 2020. Cash and bank balance rose to Rs 16,629 croreas of 31 March 2021 from Rs 12,502 crore as of 31 March 2020. Investments declined from Rs 24,753 crore asof 31 March 2020 to Rs 16,660 crore as of 31 March 2021.

Provision for depreciation fell 16% to Rs7638 crore. Fixed assets declined fromRs 1,04,859 crore as of 31 March 2020 to Rs 1,03,309 crore as of 31 March2021. Intangible assets increased fromRs 2,630 crore to Rs 3,475 crore.

Profit before tax grew 96.02% to Rs 17,891crore. Extraordinary items wereincreased to Rs -524 crore pertains to provision in Steel business forobtaining environmental clearance, provision against advances, settlement ofstructured investments and CWIP impairment partly offset by RPO liabilityreversal in Aluminium. Provision for taxwas debit of Rs 2334 crore, compared to credit of Rs 3516 crore. Effective tax rate was 13.44% compared to42.57%.

Minority interest increased 78.65% to Rs3,430 crore. Net profit was Rs 11602crore compared to loss of Rs 6664 crore.

Promoters' stake was 55.11% as of 31 March2021 compared to 50.14% as of 31 March 2020 . Promoters pledged stake was 99.99% as of 31 March 2021

Cash flow from operating activities increasedto Rs 23,980 crore for year ended March 2021 from Rs 19,300 crore for yearended March 2020. Cash flow used inacquiring fixed assets during the year ended March 2021 stood at Rs 6,886crore, compared to Rs 7,814 crore during the year ended March 2020.

MrSunil Duggal, Chief Executive Officer, Vedanta, said “We are happy toannounce another strong quarter with continued momentum across all businesses.Our consolidated revenue was up 79% y-o-y at Rs 28,105 crore and attributableprofit after tax (before exceptional items) up 314% y-o-y at Rs 4,280 crore. Wedelivered record operational performance, maintaining the trajectory of costand volumes, driven by structural integration and technology adoption. Despitethe uncertain market conditions, we have continued with our winning streak by reportingthe highest ever quarterly EBITDA of Rs 10,032 crore, up 150% y-o-y.

Our priority remains supporting ouremployees, partners, and communities to navigate through these tough times byproviding every possible medical & other required assistance. We arefocused on the key value drivers and lowering our carbon footprint, to unlock asustainable future growth for the company and maximize value for stakeholders.”

The scrip is currently trading at Rs 270

Vedanta : Consolidated Results
Particulars	2106 (03)	2006 (03)	Var.(%)	2103 (12)	2003 (12)	Var.(%)
Net Sales	28,412	15,973	78	88,021	84,447	4
OPM (%)	34.7	25.0		31.0	24.5
OP	9,871	3,993	147	27,318	20,687	32
Other Inc.	739	1,025	-28	3,421	2,510	36
PBIDT	10,610	5,018	111	30,739	23,197	33
Interest	1,182	1,252	-6	5,210	4,977	5
PBDT	9,428	3,766	150	25,529	18,220	40
Depreciation	2,124	1,733	23	7,638	9,093	-16
PBT	7,304	2,033	259	17,891	9,127	96
Share of Profit/(Loss) from Associates	1	0	-	-1	-1	0
PBT before EO	7,305	2,033	259	17,890	9,126	96
EO Income	-134	0	-	-678	-17,386	97
PBT after EO	7,171	2,033	255	17,366	-8,260	LP
Taxation	1,888	511	279	2,180	-3,516	PL
PAT	5,283	1,522	247	15,032	-4,744	LP
Minority Interest (MI)	1,059	489	117	3,430	1,920	79
Net profit	4,224	1,033	309	11,602	-6,664	LP
EPS (Rs)*	#	#		31.1
Notes
* EPS is on current equity of Rs 371.72 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Vedanta : Consolidated Segment Results
	% of (Total)	2106 (03)	2006 (03)	Var.(%)	% of (Total)	2103 (12)	2003 (12)	Var.(%)
Sales
Iron Ore	6	1576	639	147	5	4528	3463	31
Power	4	1225	1018	20	6	5375	5860	-8
oil & Gas	9	2485	1389	79	9	7531	12661	-41
copper	12	3499	1377	154	13	10890	9053	20
Aluminum	36	10263	6043	70	33	28644	26577	8
others	6	1641	1029	59	6	5377	4782	12
Zinc International	4	1119	374	199	3	2729	3128	-13
Zinc & Lead - India	19	5217	3207	63	20	17550	15715	12
Silver - India	4	1106	645	71	5	4382	2444	79
Total Reported Sales	100	28131	15721	79	100	87006	83683	4
Less: Inter segment revenues		26	34	-24		143	138	4
Net Sales		28105	15687	79		86863	83545	4
PBIT
Iron Ore	9	739	164	351	9	1716	777	121
Power	2	179	230	-22	4	731	979	-25
oil & Gas	7	576	220	162	10	1983	4557	-56
copper	-2	-157	-115	37	-2	-392	-509	-23
Aluminum	41	3235	848	281	30	5898	175	3270
others	2	151	-61	LP	2	352	-1	LP
Zinc International	3	271	24	1029	2	491	-253	LP
Zinc & Lead - India	24	1883	488	286	27	5302	4322	23
Silver - India	13	995	532	87	19	3851	2126	81
Total PBIT	100	7872	2330	238	100	19932	12173	64
Less : Interest		1182	1252	-6		5210	4977	5
Add: Other un-allcoable		480	955	-50		2491	-15455	LP
PBT		7170	2033	253		17213	-8259	LP