Mining conglomerate Vedanta Ltd on Friday reported a consolidated net profit of Rs 4,352 crore in the September 2024 quarter on the back of lower tax expenses.
However, the company posted a consolidated net loss of Rs 1,783 crore in the year-ago period.
Its tax expenses dropped to Rs 2,030 crore against Rs 9,092 crore in the July-September period a year ago.
The company's consolidated income during the quarter declined to Rs 38,934 crore over Rs 39,585 a year ago, according to a regulatory filing.
The second half of this year will be a transformative period with the company's major growth and integration projects coming online and ramping up, Vedanta Ltd Executive Director Arun Misra said.
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"Through our structural interventions and initiatives, we have significantly reduced our cost of production over the past 12-15 months, and we will continue this trend in the coming quarters," he said.
Further, the company said its demerger is on track and in its final stages, with shareholder and creditor meetings scheduled in the coming months.
Vedanta Ltd CFO Ajay Goel said, "We delivered our highest-ever 1H EBITDA of Rs 20,639 crore, up 46 per cent Y-o-Y (Year-on-Year), with a robust 34 per cent EBITDA margin and PAT (Profit After Tax) before exceptional items of Rs 4,467 crore, a 230 per cent Y-o-Y increase. This strong performance is driven by cost efficiency, volume growth and favourable commodity prices."
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"Additionally, we raised USD 1.4 billion at Vedanta through a USD 1 billion QIP (Qualified institutional placements) and a USD 400 million HZL OFS.
"At the same time, with the USD 1.2 billion VRL bond issuance and ongoing deleveraging, we have reduced Holdco (holding company) debt to USD 4.8 billion, the lowest level in a decade. This positions us well to generate lasting value for our stakeholders, both now and in the years to come," Goel said.
The company said its gross debt stood at Rs 78,654 crore as of September 30, 2024.
The board, in its meeting held on Friday, has approved the acquisition of 100 per cent shares of Sterlite Iron and Steel Company Ltd (SISCOL) by Sesa Resources Ltd (SRL).
Accordingly, SISCOL will become a step-down subsidiary of Vedanta Ltd.
The board has also approved Rs 5,209 crore capital expenditure, which includes Rs 565 crore of acquisition cost, for Athena Chhattisgarh Power Plant Project in Chhattisgarh.
In 2022, Vedanta Ltd acquired Athena Chhattisgarh Power Ltd to meet its captive power requirements.
The power plant consists of two 600 MW units. Its first unit is scheduled to go operational in the first quarter of 2025-26, while the second unit will become operational in the third quarter of FY26.
"Capex will be spread over upcoming financial years and financed through a combination of internally generated funds and borrowed capital," it said.
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The plant benefits from a strategic location near water and coal resources.
Additionally, the board has approved the expansion of the smelter capacity of Bharat Aluminium Company Ltd (BALCO), a subsidiary of Vedanta, "by 435 KTPA (kilo tonne per annum) and rolled products by 130 KTPA".
Vedanta Ltd, a subsidiary of Vedanta Resources Ltd, 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 and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminium, power and glass substrate.
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