Vedanta, a leading global diversified natural resources company, has reported remarkable financial results for the fourth quarter and full fiscal year 2023-24 (FY24). The company announced a Quarterly EBITDA of ₹ 8,969 crore, marking a 3% increase quarter-on-quarter (QoQ), with a robust EBITDA margin of approximately 30%, up by ~75 basis points. Additionally, there was a surge in Quarterly Free Cash Flow (Pre-Capex) of ₹ 9,948 crore, reflecting a staggering 131% QoQ increase. Furthermore, Vedanta successfully deleveraged by ₹ 6,155 crore QoQ, significantly improving its Net Debt/EBITDA ratio to 1.5x from 1.7x.
Financial Highlights for Q4FY24:
In Q4FY24, Vedanta achieved a consolidated revenue of ₹ 34,937 crore, remaining flat QoQ. The Consolidated EBITDA increased by 3% QoQ to ₹ 8,969 crore, with a noteworthy EBITDA margin of approximately 30%. The Profit After Tax (PAT), excluding exceptional items, stood at ₹ 2,453 crore. Vedanta also witnessed a strong double-digit return on capital employed of ~23%, indicating an improvement QoQ. The company’s Net Debt/EBITDA ratio improved to ~1.5x compared to 1.7x in Dec’23. Liquidity improved by 21% QoQ, with Strong Cash and Cash Equivalent of ₹ 15,421 crore. Vedanta generated robust Free Cash Flow (pre-capex) of ₹ 9,948 crore, reflecting a substantial increase of 131% QoQ.
Financial Highlights for FY24:
FY24 witnessed Vedanta achieving its second-highest annual consolidated revenue of ₹ 141,793 crore. The company also recorded its second-highest annual EBITDA of ₹ 36,455 crore, marking a 3% increase. The EBITDA margin* improved to 30%, up by ~240 basis points. Vedanta demonstrated a strong double-digit return on capital employed of approximately 23%, up by ~240 basis points year-on-year. Additionally, Vedanta successfully completed a liability management exercise at the Hold Co., resulting in a structural improvement in its capital structure. The company achieved the highest Dividend yield of ~17% p.a. (5 Year avg), 10x vs Nifty 50 Cos, with a Dividend payout of ₹ 18,572 crore in FY24.
Operational Highlights for FY24:
Vedanta’s key businesses delivered strong operating performance across various segments:
Aluminium: Achieved highest-ever annual aluminium cast metal production at 2,370 kt, up 3% YoY. Alumina production at Lanjigarh refinery reached 1,813 kt, up 1% YoY. Sustained cost reduction for 7th consecutive quarter reaching to $ 1,711/t in Q4. Stands in the first quartile of the global cost curve. Commissioned Train-I of 1.5 MTPA Lanjigarh refinery, taking total capacity to 3.5 MTPA.
Zinc India: Emerged as the 3rd largest producer of Silver globally. Recorded highest-ever annual mined metal, refined metal, and silver production. Maintained a strong foothold in the first decile of the global zinc mines cost curve. Achieved consecutive 5 quarters of cost optimization, with the lowest zinc cost of production in the last 3 years.
Zinc International: Achieved lower Gamsberg CoP in FY24. Recorded highest quarterly lead recovery and monthly zinc recovery. Oil and Gas: India’s first Field Development Plan under OALP regime approved for Jaya field, Gujarat. Maintained an average daily gross operated production of 127.5 kboepd. Iron ore: Achieved highest-ever Karnataka saleable ore production and sales. Operationalized the Bicholim mine in Goa, marking the commencement of first mining operation in Goa region after six years.
Steel: Recorded highest-ever annual saleable production and hot metal production. Facor: Achieved an all-time high annual Ferrochrome production. Recorded the highest-ever quarterly Ferro Chrome production in Q4FY24. Copper India: Achieved highest ever sales since the closure of Tuticorin operations. FY24 ESG Highlights:
Excellence in ESG: Vedanta and Hindustan Zinc ranked 3rd and 1st, respectively, among the top 10 global diversified Metal & Mining peers in the S&P Global Corporate Sustainability Assessment. Vedanta Aluminium ranked 1st among global aluminum peers. Gender Diversity: Achieved workplace gender diversity target for full-time employees 7 years in advance, with gender diversity for full-time employees standing at 20%. Renewable Energy (RE): Construction against RE Power Delivery agreements (PDAs) of 1836 MW on track, with power delivery expected to start from 1QFY25. Water Recycling: Achieved water recycling of 30% in FY24. Waste Utilization: HVLT waste usage at 90+%; Sustained Fly ash utilization at 100+%. Tree Plantation: Planted 2 million trees as part of a commitment to plant 7 million trees by 2030. Women & Child Welfare: Created 6,000+ Nand Ghars for women and child welfare. Exchequers Contribution: Contributed ~₹53,000 crore to National Exchequers. CSR Contribution
