Record Aluminium Production Among Highlights of Strong Quarter for Vedanta Ltd.

Mumbai metals miner Vedanta Limited released results for the second quarter of FY 2018 last week. Results were positive across the board, including those of its aluminium operations.

The firm reported net sales of ₹21,520 crore in the just-ended quarter, up 37 percent year-on-year from last year’s second-quarter total of ₹15,665 crore, and up 18 percent quarter-on-quarter from last quarter’s total of ₹18,203 crore. EBITDA in the quarter came to ₹5,776 crore, up 24 percent year-on-year from last year’s Q2 total of ₹4,647 crore, and up 16 percent quarter-on-quarter from last quarter’s number of ₹4,965. The firm chalks up increases to higher volumes at Copper India, Zinc India, and Zinc International, as well as a ramp-up of aluminium operations. Also factoring in to the increase was a rise in commodity prices.

Leading the charge in the quarter for Vedanta was its aluminium operations, which turned out a quarterly record of 401 thousand metric tons. The aluminium business boasted an exit production run rate in the quarter of 1.6 million metric tons per annum.

Profit before exceptional items totaled ₹3,735 crore, good for a 23-percent rise year-on-year from last year’s second-quarter total of ₹3,040 crore, and up 27 percent quarter-on-quarter, besting Q1’s number of ₹2,951 crore. Similarly, profit after taxes but before exceptional items rose as well, to ₹2,862 crore, exceeding last year’s second-quarter total of ₹2,495 crore by 15 percent and surpassing the first quarter’s number of ₹2,270 crore by 26 percent.

Vedanta Ltd. boasted a strong balance sheet in the quarter, noting a reduction of gross debt of ₹11,466 crore since the end of March this year. Additionally, the firm’s net debt to EBITDA ratio came to 0.6x, which Vedanta says ranks with the lowest in India and globally. The firm ended the quarter in a robust financial position, with total cash and liquid investments of ₹40,206 crore.

Vedanta Ltd’s CEO Kuldip Kaura lauded his company’s performance in the quarter, opining that more of the same was in store for the firm in coming quarters.

“PAT for the quarter was up 41% and EBITDA was up 24% compared to last year on the back of solid operational performance in our Zinc and Copper businesses, supported by strong commodity prices. Key contracts on our announced Oil & Gas projects are at advanced stages of being awarded. We expect H2 of this fiscal year to be more robust with the continuing production ramp up and we continue to maintain a strong balance sheet and remain focused on creating long term shareholder value.”

Vedanta Limited is the Indian subsidiary of London-based Vedanta Resources Plc. The firm has operations in South Africa, Namibia, Australia, Ireland, and India.

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