Vedanta Limited reports highest ever quarterly consolidated EBITDA of ₹ 13,768 crore; Net debt declines by ₹ 6,590 crore.
Consolidated Results for the Fourth Quarter and Full Year ended 31st March 2022
Financial Highlights –
§ 4QFY22:
o Record consolidated quarterly revenue of ₹ 39,342 crore, up 41% YoY
o Highest ever quarterly EBITDA of ₹ 13,768 crore, up 51% YoY
o PAT (before exceptional and one-time tax credit) of ₹ 7,570 crore, up 48% YoY
o Net Debt at ₹ 20,979 crore, declined by ₹ 6,590 crore since 31st Dec 2021
§ FY22:
o All time high consolidated revenue of ₹ 131,192 crore, up 51% YoY
o Highest ever annual EBITDA of ₹ 45,319 crore, up 66% YoY
o Robust Industry leading EBITDA margin1 of 39%
o PAT (before exceptional and one-time tax credit) of ₹ 24,299 crore, up 95% YoY
o Free cash flow before capex ₹ 27,154 crore, up 69% YoY
o Strong double-digit ROCE2 at c.30%, ~1.6 times YoY
o Net Debt/EBITDA at 0.5x lowest in 5 years; net debt to equity at 0.25x
o Strong liquidity position with total cash and cash equivalent at ₹ 32,130 crore
o Record dividend payout of ₹ 45/share; ~14% dividend yield
o Credit rating upgrade by both CRISIL and India Rating to AA with stable outlook
Shareholders value creation –
Vedanta has consistent track record of rewarding its shareholders with strong dividend pay-out. Last year we paid ₹ 45 per share amounting to ₹ 16,728 crore which translates into ~14% dividend yield one of the highest among peers in FY22 and had record total shareholder’s return. The board, in its meeting held today 28th April, has approved first interim dividend for FY23 of ₹ 31.5 per share amounting to ₹ 11,710 crore. This is line with our robust performance on profitability and cash flows. This will also help the Vedanta group in deleveraging, in line with latest capital allocation policy.
Operational Highlights FY22 –
§ Record annual volume across key businesses with stable production from Oil and Gas
§ Maintained 1st quartile cost curve positioning globally, across key segments
§ Strong margins across key businesses despite increase in input commodity prices and power cost
§ Aluminium:
o Record Aluminium production at 2,268kt, up 15%YoY
o Highest ever Alumina production at 1,968kt, up 7%YoY
§ Zinc India
o Highest ever Mined metal production, crossed 1 million tonnes mark
o Best ever metal production of 967kt, up 4%YoY
§ Zinc International:
o Record mined metal production at Gamsberg of 170 kt, up 18%YoY
§ Oil & Gas:
o Sustained average gross operated production at 161 kboepd
o Two new discoveries named Durga and Jaya in OALP block
§ Iron Ore:
o Highest ever sales of 5.7 million tonnes at Karnataka, up 30%YoY
o Record pig iron production of 790 kt, up 33%YoY
o Continued engagement with the stakeholders for resumption of Goa mining
§ Steel:
o Record Hot metal production of 1.36 million tonnes, up 5%YoY
o Saleable Steel production at 1.26 million tonnes, up 6%YoY
o Commenced commercial production from recently acquired two Iron ore mines in Orissa
§ FACOR:
o Record Ferro Chrome production of 75 kt
o EBITDA margin increased by 3x to $534 per tonne
§ Copper India:
o Due legal process is being followed to achieve a sustainable restart of the operations
ESG Highlights –
§ 3,200+ Nand Ghars created for women and child welfare, signed MoU with Government of Rajasthan for developing 25,000 Nand Ghars
§ ₹ 359 crores Social Investment; improving the lives of 4.36 million people
§ ₹ 54,104 crore contribution to the National Exchequer
§ ~13.75 million tonnes GHG emissions avoided
§ 31% water recycled
§ Electric mobility: Jharsuguda partners with GEAR India to supply 23 e-forklifts; deployed 50+ electric vehicles at Hindustan Zinc and ESL steel together
§ 10-year MoU signed with TERI to develop implementation programs to further our ESG vision
§ Signed Power Distribution Agreement for 580 MW renewable energy – a significant milestone towards 2.5 GW RE Round the Clock commitment
§ Launched green Aluminium under the brands ‘Restora’ & ‘Restora Ultra’ to usher new era of green metals
§ Collaboration with TUV-SUD to develop roadmap for our ‘Net Water Positive’ Initiative
§ 1st fly ash rake from Jharsuguda dispatched to ACC-Holcim
§ Commenced Ash backfilling in one of the coal India’s open cast mines in Mar’22
§ Used 17kt biomass in Hindustan Zinc; committed to using 5% biomass in our thermal power plants
Mr Sunil Duggal, Chief Executive Officer, Vedanta, said “I am delighted to share record operational and financial performance for FY22. We have delivered historical best EBITDA of ₹45,319 crore and PAT (before exceptional and one-time tax credit) of ₹24,299 crore. This reflects our relentless focus on volume growth and operational efficiency, underpinned by structural integration and technology adoption. The strong free cash flow (pre capex) of ₹27,154 crore has allowed us to reinvest for growth, further strengthen our balance sheet and continue our attractive dividend pay-out. As a part of our ESG Journey, we have signed an agreement for 580 MW renewable power distribution which brings us one step closer towards becoming a Net Zero Carbon organization. As we leap forward, we are committed to make Vedanta stronger through growth, vertical integration, operational efficiencies and renewed ESG purpose.”
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1. Excluding custom smelting
2. Return on capital employed on LTM basis
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