Latest news with #VedantaLtd
Mint
15 hours ago
- Business
- Mint
Vedanta Q1 profit falls 11%; Co drops plan to tap strategic reserves
Mumbai: Vedanta Ltd's profit for the April-June period fell by over a tenth from a year ago due to higher tax expenses, even as it produced the most zinc and alumina ever for a first fiscal quarter. The metals and mining major has shelved its plans to transfer ₹ 12,587 crore from its strategic reserves to retained earnings, the total profits that a company keeps after distributing dividends to shareholders. The move was seen as an attempt by the company to free up cash by liquidating reserves to increase the dividend outgo to its shareholders, including its London-based parent company Vedanta Resources. Vedanta had earlier moved the Mumbai bench of the National Company Law Tribunal to seek its nod on the transaction. 'In view of evolving strategic priorities, the Board of Directors, at its meeting held today, has decided not to pursue the aforesaid Scheme at this stage,' the company said in a regulatory filing on Thursday. The company's board also approved an additional $84 million for the expansion of its zinc mines at Gamsberg in South Africa. Earlier, it had approved a $466 million plan to double the mine's capacity from 4 million tonnes a year. With the additional investment, the capacity will be ramped up to 8.4 million tonnes a year, making Vedanta Zinc International the largest Zinc producer in South Africa, the company said. Vedanta Ltd reported a profit of ₹ 3,185 crore, lower than ₹ 3,606 crore a year ago. The corresponding quarter last year had a deferred tax gain of ₹ 735 crore, which turned to a ₹ 206 crore outgo this year, impacting its bottom line. Its revenue for the quarter was 6% higher year-on-year at ₹ 37,434 crore. The company's stock closed 2.16% lower at ₹ 425.3 on the BSE on Thursday. The earnings were disclosed during trading hours. 'Our 1Q performance has set a strong foundation for the year ahead. Amidst global market volatility, we delivered the highest-ever first quarter Ebitda,' Anil Agarwal, chairman, Vedanta, said in a press statement. The company reported earnings before interest, tax, depreciation and amortization (Ebitda) of ₹ 9,528 crore, up 1% year-on-year. 'This strong performance alongside corporate initiatives, such as the HZL stake sale which generated ₹ 3028 crore cash, has enabled Vedanta to deliver a Net Debt to EBITDA ratio of 1.3x,' said Ajay Goel, chief financial officer of the company. 'Given our NCD (non-convertible debenture) issuance of ₹ 5,000 crore and other refinancing, the cost of our debt has reduced by around 130bps y-o-y to 9.2%. The recent reaffirmation in credit rating at AA by both Crisil and ICRA highlights our financial strength and market's confidence in Vedanta's growth story,' he said.
Mint
19 hours ago
- Business
- Mint
Vedanta Q1 consolidated net profit at ₹3185 crore declines 11.7% year on year
Q1 Results: Vedanta reported a consolidated net profit of ₹ 3185 crore (attributed to owners of the company during the quarter ending June 2025), declining 11.7% compared to ₹ 3606 crore in the year-ago quarter. The reported net profit by Vedanta at ₹ 4,457 during Q1 FY26 also marked a decline of 13% compared to ₹ 5,095 crore in the year-ago quarter. The total revenues from operations at ₹ 37,824 during the April-June 2025 quarter reported by Vedanta grew 5.75% compared to the ₹ 354 crore reported during the April-June 2024 quarter. At the operating level, The earnings before interest, tax, depreciation, and amortization, or EBITDA, at ₹ 10,746, as per the company, marked an increase of 6% over the ₹ 10,275 crore reported during the year-ago quarter. The EBITDA margin at 35% during Q1FY26 also improved from 34% during Q1FY25. The declining raw material costs, such as that of coal and many other ores, are likely to have helped improve the operating profit. While reported net profit by Vedanta at ₹ 4,457 declined 13% year-on-year. The reported net profit, however, also included one-time expenses of ₹ 543 crore during the quarter gone by. While the reported net profit for the year-ago quarter included one-time gains of ₹ 662 crore. Hence, adjusted for these one-offs, Vedanta Ltd. said that its adjusted net profit at ₹ 5000 crore during Q1FY26 actually increased. 13% compared to ₹ 4,433 crore in Q1FY15. Vedanta said that in the aluminum segment, with Lanjigarh recording its highest-ever Alumina production at 587 kt (up 9% YoY and 36% sequentially), it is on track to achieve 3 MMT record volume in FY26 In addition Zinc India had recorded highest-ever first-quarter mined metal production at 265 kt, up 1% YoY , while Zinc International's Mined metal production jumped 50% YoY and 12% sequentially to 57 kt Vedanta also has commissioned 950 MW of merchant power capacity YTD, taking total merchant power generation capacity to 3.83 GW. Vedanta had paid an interim dividend of ₹ 7/share, the record date for which stood on 24 June 2025. Anil Agarwal, Chairman, Vedanta, in a statement said that, Our 1Q performance has set a strong foundation for the year ahead. Amidst global market volatility, we delivered the highest-ever first-quarter EBITDA. Operationally, we achieved the lowest hot metal cost (ex-alumina) in the last 16 quarters, the lowest ever. 1Q Zinc India CoP, 74% YoY increase in Ginsberg's production, 33% sequential surge in power sales, and 150% sequential jump in Ferro Chrome volumes." Vedanta share price, which had traded weak after opening lower at ₹ 428.80, compared to the previous day' close of ₹ 434.70, amid a stock market sell-off, however dipped lower post Q1 results. The Vedanta share price dipped to the ₹ 425.50 level, which meant a decline of up to 2.1% during the intraday trades.
&w=3840&q=100)
Business Standard
19 hours ago
- Business
- Business Standard
Vedanta Q1 results: Profit down 12% to ₹3,185 cr; Ebitda hits record high
Agarwal-owned mining major Vedanta Ltd reported an 11.7 per cent drop in its consolidated net profit (attributed to the owners) to ₹3,185 crore for the first quarter of the financial year 2025-26 (Q1 FY26). During the same period last year, the company had reported a net profit of ₹3,606 crore. On a quarterly basis, consolidated net profit fell 8.5 per cent from ₹3,483 crore in Q4 FY25. Consolidated revenue from operations, however, grew by 6.2 per cent to ₹37,434 crore year-on-year (Y-o-Y) from ₹35,239 crore. Quarter-on-quarter (Q-o-Q) revenue fell 6 per cent from ₹39,789 crore, due to weaker pricing and lower volumes, the company said in its exchange filing on Thursday. Vedanta records highest-ever Ebitda The company recorded its highest-ever first-quarter earnings before interest, tax, depreciation and amortisation (Ebitda) at ₹10,746 crore, up 5 per cent Y-o-Y. Ebitda margin expanded by 81 basis points to 35 per cent, the highest in 13 quarters, supported by lower costs and higher operational efficiencies. 'We delivered the highest-ever Q1 Ebitda amidst global volatility. The lowest hot metal cost in 16 quarters, record zinc production in India, and a 150 per cent Q-o-Q surge in ferrochrome volumes underline our operational strength,' said Anil Agarwal, chairman, Vedanta Ltd. He added that new capacity commissioning in alumina refining, smelting and thermal power in Q2 is expected to further strengthen the company's full-year performance. Vedanta's consolidated finance cost declined 9 per cent Y-o-Y to ₹2,026 crore, reflecting reduced borrowings and refinancing benefits. The company's net debt to Ebitda ratio improved to 1.3 times, with cash and cash equivalents at ₹22,137 crore as of June 30, 2025 — a 33 per cent increase over the previous year. Gross debt stood at ₹80,357 crore. Vedanta Q1: Dividend declared During the quarter ended June 30, 2025, the company's board of directors approved the first interim dividend of ₹7 per equity share on a face value of ₹1 per share for FY26. With this, the total dividend declared for FY26 currently stands at ₹7 per share. Shares of Vedanta Ltd closed trading at ₹425.30 on the BSE, down 2 per cent shortly after the company posted its earnings report. Vedanta Q1 highlights Net profit: ₹3,185 crore Earnings per share (EPS): ₹8.15 (basic) ₹8.09 (diluted) Gross debt: ₹80,357 crore Interim dividend for FY26: ₹7 per equity share
News18
20 hours ago
- Business
- News18
Vedanta Ltd adjusted PAT grows 13 pc to Rs 5,000 cr in Q1
Agency: PTI Last Updated: New Delhi, Jul 31 (PTI) Vedanta Ltd on Thursday posted a 13 per cent rise in consolidated 'adjusted profit after tax" to Rs 5,000 crore in June quarter, driven by higher revenues. The metals and mining company had recorded an adjusted PAT of Rs 4,433 crore in the April-June period of preceding 2024-25 financial year. In a statement, Vedanta Ltd said its 'adjusted PAT jumps 13 per cent year-on-year (y-o-y) to Rs 5,000 cr, while PAT stands at Rs 4,457crore". The adjusted PAT accounts for the write-off for Cairn's exploration cost in OALP blocks. OALP stands for open acreage licensing policy. In the first quarter, the company's revenues increased to Rs 37,434 crore from Rs 35,239 core in the same period a year ago. Expenses were at Rs 32,756 crore as against Rs 30,772 crore in the year ago period. Anil Agarwal, Chairman, Vedanta said, 'Our 1Q performance has set a strong foundation for the year ahead. Amidst global market volatility, we delivered the highest-ever first quarter EBITDA." 'Operationally, the company achieved the lowest hot metal cost (ex-alumina) in the last 16 quarters, lowest-ever 1Q Zinc India CoP, 74 per cent YoY increase in Gamsberg's production, 33 per cent QoQ surge in power sales, and 150 per cent QoQ jump in Ferro Chrome volumes." The ramp-up of the Lanjigarh refinery to 587 kilo tonnes demonstrates company's progress towards delivering over 3 MnT of alumina in FY26, he said. Ajay Goel, CFO, Vedanta, said this quarter, the company has achieved the highest- ever first quarter EBITDA of Rs 10,746 crore, reflecting a 5 per cent YoY growth. The EBITDA margin expanded by 81 basis points to 35 per cent, which is the highest in last 13 quarters. 'This strong performance alongside corporate initiatives, such as the HZL stake sale which generated Rs 3,028 crore cash, has enabled Vedanta to deliver a net debt-to-EBITDA ratio of 1.3x," he said. Goel said given the NCD issuance of Rs 5,000 crore and other refinancing, the cost of the company's debt has reduced by around 130 bps YoY to 9.2 per cent. With capex spend of Rs 5,155 crore and consolidated dividend payout of Rs 4,280 crore, the net debt stands at Rs 58,220 crore, Vedanta Ltd said. In power segment, total power sales increased 33 per cent QoQ. TSPL (Talwandi Sabo Power) achieved 90 per cent plant availability, while 650 MW of Meenakshi power plant capacity is now operational. The company also commissioned unit 1 of 600 MW Athena Power Plant in July. Mined metal production at Zinc International jumped 50 per cent YoY and 12 per cent QoQ to 57 kilo tonnes, while overall cost of production reduced 21 per cent on year to USD 1,269 per tonnes. Gamsberg's first quarter production also jumped 74 per cent YoY and 13 per cent sequentially, driven by mining ramp up and improved ore availability, the company said. Iron ore production at 1.8 Mnt was up 42 per cent YoY and pig iron production at 213 KT was up 4 per cent YoY, it said. PTI ABI HVA view comments First Published: July 31, 2025, 16:30 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
2 days ago
- Business
- Mint
Vedanta's parent refunded part of brand fee amid ED scrutiny, says short-seller Viceroy
Mumbai: Vedanta Resources, the London-based parent of Vedanta Ltd, refunded a part of the brand fee paid by its India-listed subsidiary in FY24 amid scrutiny from the Directorate of Enforcement, which at the time was investigating the company's brand fee payments, US-based short-seller Viceroy Research alleged on Wednesday. Vedanta Resources refunded ₹ 1,030 crore ($123 million) to Vedanta Ltd in 2023 without intimating its auditors, the short-seller alleged. The transaction can be seen in the FY24 annual report of the company. The short-seller did not clarify which legal provisions, if any, were violated by Vedanta. However, the ED investigation into the company was still ongoing, the short-seller said, citing unnamed former employees, advisors and counter-parties of the Vedanta Group. 'Stakeholders should not mistake the absence of public updates for resolution; the risk is unresolved, ongoing, and material.' In an emailed response, a Vedanta spokesperson said, 'The said short sellers have repeatedly circulated mala fide and misleading 'reports' replete with inaccuracies. The brand fee paid by Vedanta to Vedanta Resources Limited (VRL) for each financial year is determined based on the approved business plan, with a true-up mechanism implemented in the subsequent cycle to align with actual performance.' For FY24, due to macroeconomic headwinds, the actual turnover did not meet the business plan. In line with prudent financial practices, Vedanta proactively requested VRL to refund the excess brand fee amount in advance, rather than the routine adjustment cycle. Additionally, any notional opportunity cost of capital was equitably addressed through a discount extended by VRL on the subsequent brand fee,' the spokesperson said. Regarding the ED notice during Q1 FY24, the spokesperson said, 'It was a routine request. The matter did not warrant disclosure under applicable regulations, and all required information has been duly furnished. There are no outstanding queries in this regard.' This is the latest in Viceroy's series of allegations against Vedanta Group. The short-seller has accused the London-based parent of draining cash from Vedanta Ltd. through high dividends and brand fee payments, among other things. Vedanta Group has denied all allegations. Earlier, former Chief Justice of India DY Chandrachud had provided a legal opinion to Vedanta on the Viceroy reports in a professional capacity. He said that the first and the most expansive Viceroy report on Vedanta lacked credibility, and the researchers behind the report had 'dubious credentials'. He highlighted Viceroy's interest in profiteering from a possible rout in Vedanta Resources' commercial papers as a result of the short-seller's reports. He also said he suspected the timing of the report, coming just as India-listed Vedanta Ltd is headed for a demerger. Viceroy subsequently disputed the former chief justice's legal opinion, saying that it did not answer any question raised by it with regards to dividend payments and alleged financial mismanagement at the mining and minerals conglomerate. The Vedanta Ltd stock is down 4.7% since its close on 8 July, a day before Viceroy published its first report on the Vedanta Group. Vedanta Ltd and its subsidiaries pay between 0.75% and 3% of their revenues as brand and strategic services fee to Vedanta Resources, as per a Vedanta Resources presentation. The fee is paid at the beginning of a financial year by estimating the revenue during the year. At the end of the year, any excess fee paid is returned. The short-seller has called this arrangement a rolling credit facility from Vedanta Ltd to Vedanta Resources with 'zero interest, zero collateral, and zero transparency'. While the structure is unique compared to most multinational companies and conglomerates, where brand fees are paid at the end of the year, Viceroy alleged anomalies. Whenever Vedanta Resources faced a liquidity crunch, it triggered ad hoc remittances from Vedanta Ltd as brand fees, the short-seller said. These ad hoc payments were what originally drew the attention of the ED, the short-seller said. In FY25, group companies paid a consolidated brand fee of $361 million to Vedanta Resources, as per Viceroy's calculation. The number was $339 million the previous year. In all, the group companies paid $1.2 billion in brand fees between FY22 and FY25, which was equivalent to 12% of Vedanta Ltd's aggregate net profit during this period. For FY26, Vedanta Ltd has already remitted $400 million in brand fees to Vedanta Resources in April, as per Viceroy. The company is yet to disclose this figure in its financial statements. India-listed Vedanta Ltd will disclose its April-June quarter earnings on Thursday. The brand fees are a core income stream for Vedanta Resources, which has no operating businesses and relies on income from its subsidiaries. The fees help the London-based company service its $4.9 billion net debt, which includes $835 million a year in interest payments. The brand fee structure has been a concern for Vedanta Resources' offshore lenders, Viceroy said. 'It was clear to them that there was no legal or commercial justification for the brand fees and that they were very vulnerable to regulatory intervention.'
