Vedanta Q3 result: PAT jumps 70% YoY; company records highest ever 3rd quarter EBITDA of ₹11,284 crore

Vedanta Q3 result: Anil Agarwal-led Vedanta, on Friday, January 31, reported a solid 70 per cent year-on-year (YoY) jump in its December quarter (Q3FY25) consolidated net profit to ₹4,876 crore from ₹2,868 crore in the same quarter last year. Revenue from operations for the quarter rose 10.2 per cent YoY to ₹38,526 crore from ₹34,968 crore in the corresponding quarter of the last financial year.

In an exchange filing, the company said it recorded the highest-ever third-quarter EBITDA of ₹11,284 crore, which was up 30 per cent YoY. The jump in EBITDA was driven by structural cost-saving initiatives across businesses and favourable output commodity prices, partially offset by input commodity inflation, said the company.

EBITDA margin for the quarter stood at 34 per cent, up 517 bps YoY.

“We have delivered our highest-ever third Quarter EBITDA of ₹11,284 crore. Our strategic focus on cost optimisation and production ramp-up across our key businesses has helped us to continue delivering this outperformance. We witnessed 58 per cent YoY jump in EBITDA at our aluminium business and 28 per cent YoY increase in our zinc India business. We expect this outperformance to continue in the coming quarters driven by our ongoing growth initiatives and business integration projects,” said Arun Misra, Executive Director, Vedanta Limited.

The company’s net debt stood at ₹57,358 crore, while the net debt to EBITDA ratio declined to 1.4 times in Q3FY25 against 1.7 times in Q3FY24.

Vedanta said its cash and cash equivalent improved by 66 per cent YoY on the back of robust free cash flow (pre-capex) of ₹ 6,766 crore.

Vedanta Q3: Operational highlights

Aluminium: The company reported the highest-ever aluminium production, 613 kt, which is up 2 per cent YoY. It also reported a record alumina production at 505 kt, which was up 7 per cent YoY.

Zinc India: Zinc India achieved lowest CoP in the last 15 quarters; CoP at 1,041$/t was down 5 per cent YoY and 3 per cent QoQ, said Vedanta.

Zinc International: Mined metal production of Zinc International increased 12 per cent YoY to 46 kt. However, Zinc International delivered the lowest CoP in the last seven years at 1181$/t, down 31 per cent YoY.

Iron ore: Pig Iron production rose 14 per cent QoQ and 7 per cent YoY to 217 kt. Saleable iron ore production increased 17 per cent QoQ and 10 per cent YoY to 1.5 million tonnes.

Steel: Saleable steel production declined 3 per cent YoY to 329kt on account of lower demand .

Copper India: Copper cathode production increased 9 per cent QoQ and 3 per cent YoY to 45 kt.

“This quarter marks a stellar performance, delivering the highest Q3 EBITDA of ₹11,284 crore, a remarkable 30 per cent growth year-on-year, with a robust EBITDA margin of 34 per cent. Our PAT stood at ₹4,876 crore, reflecting an exceptional 70 per cent YoY growth, showcasing the resilience of our business. This success has been driven by our focus on cost efficiencies, volume growth, and favourable commodity prices,” said Ajay Goel, CFO of Vedanta.

“The recent upgrade in our credit rating, along with a leverage improvement to 1.4 times, highlights our financial strength and the market’s confidence in Vedanta’s growth trajectory. Additionally, the demerger process is progressing well, with the shareholders’ and creditors’ meeting scheduled for February 2025,” said Goel.

The meeting of the company’s shareholders and creditors for demerger is scheduled for 18th February.

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