Vedanta Q1 FY25 Results: Net profit jumps 37%, exceeds Street estimates; margin expands by 880 bps
Vedanta Q1 FY25 Results: Mining giant Vedanta reported a better-than-expected net profit for the April-June period. Read on to know key takeaways from the private sector mining giants latest earnings report.
Vedanta Q1 FY25 Results: Mining major Vedanta on Tuesday reported a consolidated net profit of Rs 3,606 crore for the April-June period, marking a jump of 36.6 per cent over the corresponding period a year ago. The Mumbai-headquartered company's net profit exceeded analysts' estimates.
Vedanta's quarterly revenue increased 5.7 per cent to Rs 35,239 crore compared with the year-ago period, according to a regulatory filing.
According to Zee Business research, Vedanta was estimated to log a net profit of Rs 2,783 crore over revenue of Rs 36,249 crore for the first quarter of the current financial year.
“Vedanta has delivered a strong start to the year, with exceptional EBITDA improvement of 47 per cent and PAT improvement by 54 per cent year over year on the back of improved margins, and robust cost reduction across all operations. Our aluminium and zinc divisions continue to outperform industry benchmarks, consistently ranking in the top quartiles and deciles of the global cost curve. These achievements are a direct result of our strategic focus on cost, as reflected in a 20 per cent year-over-year reduction in overall cost," said Arun Misra, Executive Director, Vedanta Ltd.
The mining company's earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped 47 per cent to Rs 10,275 crore, while its margin - a key measure of profitability - came in at 27.8 per cent for the June quarter, marking an increase of 880 bps on a year-on-year basis.
Zee Business analysts had pegged Vedanta's June-quarter EBITDA at Rs 9,688 crore and margin at 26.7 per cent.
"Our growth projects are well on track, and we remain committed to commissioning the majority of these projects in FY25. Moving ahead, our focus on operational efficiency, sustained expansion, and ESG excellence will guide our journey. With this dedication, we are confident in our ability to create substantial shareholder value in the year ahead," Misra added.
Vedanta's net debt stood at Rs 61,324 crore as of June 30, 2024, according to a statement. That marked a sequential increase of 8.9 per cent.
Vedanta shares ended flat at Rs 413.6 apiece on BSE after the earnings announcement. Read more on Vedanta stock
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