Vedanta Q4 Results: PAT falls 27% YoY to Rs 1,369 crore, misses estimates

Vedanta Q4 Results: Vedanta Limited reported on Thursday, April 25, a 27.21 per cent year-on-year (YoY) fall in its consolidated profit after tax (PAT) at Rs 1,369 crore for the quarter ended March 31, 2024 (Q4 FY24). The numbers were much below Zee Business analysts' estimates of Rs 2,036 crore. In the year-ago period, the metal giant had posted a profit of Rs 1,881 crore.

Revenue from operations came in at Rs 34,937 crore, down 6.1 per cent YoY. 

EBITDA, or earnings before interest, taxes, depreciation, and amortisation, slipped 4 per cent on a YoY basis to Rs 8,969 crore against Rs 9,362 crore in the year-ago, while the EBITDA margin stood at 30 per cent against 29 per cent in the corresponding quarter of the previous fiscal.

Commenting on the fourth quarter results, Arun Mishra, the executive director of Vedanta, said, "FY 2023–24 has been a remarkable year for Vedanta. We have achieved record production across our key businesses, a testament to our consistent focus on operational excellence. This focus and our commitment to cost leadership ensured strong margins even during a challenging commodity market. We're especially proud of the Lanjigarh refinery expansion to 3.5 MTPA, taking us closer to a fully integrated 3 MTPA aluminium operation. Commencing operations at the new Bicholim mine in Goa marks a significant step in our growth journey." 

HZL is now the world's third-largest silver producer. "Our commitment to sustainability has been recognised globally; we topped the ESG rankings in India and ranked 3rd worldwide. This focus is further strengthened by securing 1,826 MW of renewable power through PDAs, with the first power delivery scheduled for Q1 FY25. As we move forward, operational excellence, continued growth, and ESG leadership remain our strategic priorities. With this commitment, we are confident in delivering significant value for our shareholders in the coming year," Mishra added.

Financial Highlights (FY24)

• Second-ever highest annual consolidated Revenue of Rs 141,793 crore.
• Second-ever highest annual EBITDA of Rs 36,455 crore, up 3%.
• EBITDA margin* improved to 30%, up ~240 bps.
• Strong double-digit return on capital employed c.23%, up ~240 bps YoY.
• Successful liability management exercise at Hold Co., resulting in a structural improvement in
• capital structure.
• Highest Dividend yield ~17% p.a. (5 Year avg), 10x vs Nifty 50 Cos, Dividend of Rs 18,572 crore
• paid in FY24.

*Excludes custom smelting at copper business

SOURCE: EARNINGS RELEASE

Vedanta is one of the world’s leading natural resources companies, spanning across India, South Africa, Namibia, Liberia, the UAE, Korea, Taiwan, and Japan, with significant operations in oil & gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminium, power & glass substrates, and foraying into semiconductors and display glass.