Vedanta Limited · NSE:VEDL
Vedanta — Q4 FY2023 Earnings Presentation
44 slides from Vedanta's earnings presentation, May 12, 2023
Slide 1: 4QFY23 Earnings Presentation
VEDANTA LIMITED INVESTOR PRESENTATION May 12, 2023 4QFY23 Earnings Presentation Sensitivity: Internal (C3)
Slide 2: Cautionary statement and disclaimer
Cautionary statement and disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. Any forwa
Slide 3: 4QFY23 Business Update
VEDANTA LIMITED INVESTOR PRESENTATION 4QFY23 Business Update Sunil Duggal Group CEO & Chief Safety Officer Sensitivity: Internal (C3)
Slide 4: Disciplined Investment Case
Investment Case Robust financial profile 1 World-class natural resources powerhouse 7 with strong ROCE, cash flow and balance sheet Well positioned to capitalize 2 on India’s growth with attractive commodity mix 6 Focused on digitalization and innovation 3 Committed to ESG leadership 5 Disciplined c
Slide 5: FY23 ESG highlights
FY23 ESG highlights RE Power Waste Utilization Water Positivity 1,636 MW 95% 4 PDA in place HVLT usage Units water +ve 2Bn+ 113% 29% Units utilized Fly Ash usage Water Recycling Nand Ghars Biomass ESG Ratings 77,000+ 6th 4,500+ tons of Biomass firing Global ranking on Dow Jones Sustainability Index
Slide 6: Pillar 1 – transforming communities
Pillar 1 – transforming communities : Steadily progressing on our repurposed ESG strategy 44 mn ₹454 crore 4,500+ CSR CSR spend Total Beneficiaries1 NandGhars Areas of focus in CSR 1 > 33 Initiatives Healthcare 2 Drinking water and sanitation: > 17 Initiatives 3 4 Children’s well-being Community Inf
Slide 7: Pillar 2 – transforming the planet
Pillar 2 – transforming the planet: Steadily progressing on our repurposed ESG strategy Baseline 2030 FY23 Our aims Key KPIs (UoM) Progress against few key KPIs (FY21) Target Status Absolute GHG emissions 60mn 45mn 64.9mn (TCO2e) GHG intensity 5.2 6.45 6.22 Net carbon (TCO2e/T of metal) (2025) neutr
Slide 8: Pillar 3 – transforming the workplace
Pillar 3 – transforming the workplace: Steadily progressing on our repurposed ESG strategy Key KPIs Baseline 2030 Our aims FY23 Status Progress against few key KPIs (UoM) (FY21) Target Ongoing target- Fatal incidences 8 Zero 13 (Number) Prioritizing safety and Fatalities health of employees Fataliti
Slide 9: FY23 operational and financial highlights
FY23 operational and financial highlights Operational Highlights Financial Highlights Record production across key businesses Revenue EBITDA → Aluminium : 2.3 mnt ₹ 145,404 crore ₹ 35,241 crore → HZL: crossed 1 mnt mark All time high 2nd highest o MIC: 1.062 mnt o Refined metal: 1.032 mnt EBITDA Mar
Slide 10: 4QFY23 operational and financial highlights
4QFY23 operational and financial highlights Operational Highlights Financial Highlights Production growth across key businesses Revenue EBITDA → Aluminium : 574 kt, up 1% QoQ ₹ 37,225 crore ₹ 9,362 crore → HZL: mined metal at 301 kt, up 19% QoQ → IOK: saleable ore at 1.5 mnt, up 6% QoQ EBITDA Margin
Slide 11: Aluminium: Highest ever aluminium production
Aluminium: Highest ever aluminium production Aluminium: Achieved record metal production in FY23 Key Highlights COP ($/T) ▪ Record annual aluminium production at 2,291 kt Production (kt) Margin ($/t) 2,324 2,268 2,291 2,182 2,149 2,059 1,858 ▪ Aluminium domestic sales at 775kt, up 28% YoY ▪ Commissi
Slide 12: Aluminium: Strategic Initiatives
Aluminium: Strategic Initiatives ▪ Aluminium capacity expansion to 3 MTPA Progress on Lanjigarh Refinery Expansion o Balco capacity expansion to 1 MTPA – 1QFY25 o Debottlenecking for balance 0.2 MTPA – 4QFY25 ▪ VAP 60% → 90% o JSG VAP expansion from 1 to 1.6 MTPA – 3QFY24 (120 KTPA Billet Commission
Slide 13: Zinc India: Setting new benchmarks
Zinc India: Setting new benchmarks: Refined metal production crossed 1 MnT milestone Key highlights Strategic Initiatives ▪ Highest-ever annual mined metal production, up 4% YoY ▪ Rajpura Dariba Mill revamp ▪ Record-high annual refined metal production, up 7% YoY ▪ 1.6 LTPA Fumer commissioning ▪ All
Slide 14: Zinc International: Well positioned for long term value creation
Zinc International: Well positioned for long term value creation MIC Production (KT) Key highlights 273 Gamsberg: Gamsberg BMM 223 65 ▪ Highest ever annual MIC production at 208 kt, up 22%YoY 52 208 ▪ Gamsberg annual CoP (ex TcRc) lower by 12% YoY 69 55 63 170 60 17 14 BMM: 10 40 52 20 45 48 ▪ Annua
Slide 15: Oil & Gas: Partnering in India's journey to energy self-reliance
Oil & Gas: Partnering in India’s journey to energy self-reliance Key Highlights Gross production (kboepd) ▪ Signed off Rajasthan 10-year PSC extension ▪ Secured 8 blocks in DSF-III round & 1 block in special CBM 154 161 145 137 143 round 2021 ▪ Drilled 62 wells across Bhagyam, ABH, Satellite Fields,
Slide 16: Iron ore and VAB
Iron ore and VAB Iron ore sales - Karnataka Key Highlights ▪ Export ban lifted in Karnataka 5.7 5.0 ▪ Barbil mines fully ramped up 1.7 1.6 ▪ Commenced export shipments from Western Cluster, Liberia 1.2 ▪ Acquired Bicholim iron ore mines in Goa 4Q 3Q 4Q FY22 FY23 FY22 FY23 FY23 ▪ Completed relining o
Slide 17: ESL Steel and FACOR
ESL Steel and FACOR ESL FACOR Key Highlights Key Highlights ▪ Record annual hot metal production of 1,367 kt ▪ Record annual ore production of 290 kt, up 16% YoY ▪ Enhanced hot metal capacity to 1.7 mnt ▪ Commissioned new 60 KTPA furnace; total capacity increased from 80KTPA → 140 KTPA Strategic Ini
Slide 18: Strategy to enhance long term value
Strategy to enhance long term value Optimize capital Operational Delivering on STRATEGIC Committed to ESG Augment reserves excellence and allocation & growth PRIORITIES leadership & resources base maintain strong cost leadership opportunities Balance Sheet o Achieve net o Disciplined o Focus on full
Slide 19: 4QFY23 Finance Update
VEDANTA LIMITED INVESTOR PRESENTATION 4QFY23 Finance Update Ajay Agarwal Acting Group CFO Sensitivity: Internal (C3)
Slide 20: 4QFY23 financial snapshot
4QFY23 financial snapshot Revenue EBITDA EBITDA Margin1 Profit after tax ₹ 37,225 crore ₹ 9,362 crore 29% ₹ 3,132 crore Higher 10% QoQ Higher 32% QoQ Maintained strong Higher 1% QoQ margin FCF (Pre Capex) Net Debt / EBITDA Cash and Cash ROCE 2 equivalents c.21% ₹ 7,211 crore 1.28x ₹ 20,922 crore Mai
Slide 21: EBITDA bridge 4QFY23 vs. 3QFY23
EBITDA bridge 4QFY23 vs. 3QFY23 (QoQ comparison) (In ₹ crore) Zinc 365 Aluminium 347 ESL 335 9,362 Cairn (102) IOB 57 Zinc 187 Aluminium 39 Market & Regulatory Operational: ₹ 238 crore ₹ 2,005 crore 21 Ex rate: 3QFY23 82.1 vs 4QFY23 82.2 Vedanta Limited Note: others include inventory adj 4QFY23 Inve
Slide 22: Net Debt Walk- 4QFY23
Net Debt Walk- 4QFY23 (In ₹ crore) Inventory, Debtors & others 759 1,197 Creditors 34 45,260 10,434 38,076 7,838 4,184 793 FCF Post Capex Rs 4,447 Cr Net Debt Cash flow from WC Movements Capex Dividend Translation and Net Debt 31st Dec'22 operations Others 31st Mar'23 22 WC: Working Capital Vedanta
Slide 23: Balance sheet and debt breakdown
Balance sheet and debt breakdown Net debt / EBITDA (Maintained within capital allocation framework) Debt breakdown (as of 31st Mar’2023) Gross Debt In $bn In ₹ 000’ crores 1.28 1.12 1.01 Term debt 6.7 54.5 0.89 Working capital 0.3 2.7 0.46 FY'19 FY'20 FY'21 FY'22 FY'23 Short term borrowing 1.1 8.9 T
Slide 24: Continued discipline investment in value adding growth
Continued discipline investment in value adding growth ($ Bn) FY growth Capex guidance 1.5 1.2 0.7 1.1 2.0 Growth Capex profile Oil & Gas Zinc 1.7 Al & Power Other 0.3 1.2 1.1 0.2 0.1 0.6 0.8 0.5 0.1 0.7 0.5 0.2 0.2 0.3 0.1 0.3 0.3 0.5 0.5 0.0 0.0 0.4 0.5 0.1 0.2 0.2 FY2019 FY2020 FY2021 FY2022 FY20
Slide 25: Appendix
VEDANTA LIMITED INVESTOR PRESENTATION 4QFY23 Appendix Sensitivity: Internal (C3)
Slide 26: FY24 Production and Cost Guidance
FY24 Production and Cost Guidance Zinc India Aluminium ▪ Mined Metal : 1,075 - 1,100 kt ▪ Alumina: 2.5 - 2.7 Mnt ▪ Finished Metal: 1,050 – 1075 kt ▪ Aluminium: 2.2 - 2.3 Mnt ▪ Silver: 725 - 750 tonnes ▪ COP1: $1,800/t - $1,900/t ▪ COP: $1,125/t - $1,175/t excluding royalty Zinc International Oil & G
Slide 27: Income statement
Income statement ▪ Depreciation & Amortization In ₹ Crore 4Q 3Q FY23 FY22 FY23 FY23 o 4QFY23 increased by 2%QoQ due to increased ore Revenue from operations 37,225 33,691 1,45,404 1,31,192 production at Zinc India Other operating income 705 411 1,904 1,540 o FY23 increased by 19%, due to increase in
Slide 28: Project capex
Project capex Approved Spent up to Spent in Unspent4 as on Capex in Progress (In $ mn) Status Capex2 FY223 FY23 31st Mar 2023 Cairn India1 – Mangala, Bhagyam & Aishwariya infill, 1,069 188 392 489 OALP, ABH infill, RDG infill, Shale, Offshore infill etc Aluminium Sector Jharsuguda VAP capacity expan
Slide 29: Entity-wise Cash and Debt
Entity-wise Cash and Debt (In ₹ crore) Mar 31, 2023 Dec 31, 2022 Mar 31, 2022 Company Cash & Cash & Cash & Debt Net Debt Debt Net Debt Debt Net Debt Cash Eq Cash Eq Cash Eq Vedanta Limited Standalone 42,023 7,364 34,659 45,245 3,388 41,857 36,696 7,057 29,639 Cairn India Holdings Limited1 2,662 1,61
Slide 30: Funding sources and term debt maturities
Funding sources and term debt maturities Diversified Funding Sources for Long Term Debt of $6.7 Bn Long Term Debt Maturities : ₹ 54,542 crore ($6.7 bn) (as of 31st Mar’23) (as on 31st Mar’23) 0.1% Standalone Subsidiaries 12% 18% 25.4 In ₹ 000’ crore Bonds INR Term Loan INR 7.5 Term Loan Fx Bonds Fx
Slide 31: Segment Summary – Aluminium
Segment Summary – Aluminium Quarter Full Year Particulars (in’000 tonnes, or as stated) 4QFY23 4QFY22 3QFY23 FY23 FY22 % YoY Alumina – Lanjigarh 411 503 443 1,793 1,968 (9%) Total Aluminum Production 574 572 566 2,291 2,268 1% Jharsuguda 430 428 424 1,721 1,687 2% Balco 144 144 142 570 582 (2%) Fina
Slide 32: Aluminium profitability
Aluminium profitability $/t 3QFY23 2,324 71 153 2548 (757) (782) (611) (190) 209 2,149 2,059 4QFY23 149 24 2,569 2,395 730 1,839 758 571 119 391 LME Strategic Premium Realisation Alumina Power Other hot Conversion & EBITDA Hedging metal other 32 Vedanta Limited 4QFY23 Investor Presentation Sensitivi
Slide 33: Segment Summary – Zinc India
Segment Summary – Zinc India Quarter Full Year Production (in ’000 tonnes, or as stated) 4QFY23 4QFY22 3QFY23 FY23 FY22 % YoY Mined metal content 301 295 254 1,062 1017 4% Integrated metal 269 260 257 1,032 967 7% Refined Zinc – Integrated 215 211 210 821 776 6% Refined Lead – Integrated1 54 49 46 2
Slide 34: Segment summary – Zinc International
Segment summary – Zinc International Quarter Full Year Production (in’000 tonnes, or as stated) 4QFY23 4QFY22 3QFY23 FY23 FY22 % YoY Mined metal content- BMM 14 10 17 65 52 25% Mined metal content- Gamsberg 48 45 52 208 170 22% Total 63 55 69 273 223 22% Financials (In ₹ Crore, except as stated) Rev
Slide 35: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Quarter Full Year OIL AND GAS (boepd) 4QFY23 4QFY22 3QFY23 FY23 FY22 % YOY Average Daily Gross Operated Production 1,37,034 1,53,840 1,44,789 1,42,615 1,60,851 (11%) (boepd) Rajasthan 1,12,546 1,32,443 1,18,314 1,19,888 1,37,723 (13%) Ravva 13,223 13,248 13,064 11,802 14,
Slide 36: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Quarter Full Year OIL AND GAS (boepd) 4QFY23 4QFY22 3QFY23 FY23 FY22 % YOY Average Daily Production Gross operated 1,37,034 1,53,840 1,44,789 1,42,615 1,60,851 (11%) Oil 1,11,359 1,30,758 1,18,530 1,18,634 1,35,662 (13%) Gas (Mmscfd) 154 138 158 144 151 (5%) Non-operated-
Slide 37: Segment Summary – Iron Ore and Steel
Segment Summary – Iron Ore and Steel Iron Ore Particulars (in million dry metric tonnes, or as Quarter Full Year stated) 4QFY23 4QFY22 3QFY23 FY23 FY22 % YoY Production of Saleable Ore 1.5 1.4 1.4 5.3 5.4 (2%) Goa - - - - - - Karnataka 1.5 1.4 1.4 5.3 5.4 (2%) Production (’000 tonnes) Pig Iron 186 1
Slide 38: Segment Summary – FACOR and Copper
Segment Summary – FACOR and Copper Copper Quarter Full Year Production (in ’000 tonnes, or as stated) 4QFY23 4QFY22 3QFY23 FY23 FY22 % YoY Copper - Cathodes 34 34 34 148 125 18% Financials (In ₹ crore, except as stated) Revenue 5,107 4,351 4,158 17,491 15,151 15% EBITDA 50 16 (55) (4) (115) 97% Copp
Slide 39: Sales Summary – Zinc and Aluminium
Sales Summary – Zinc and Aluminium Quarter Full Year Sales volume 4QFY23 4QFY22 3QFY23 FY23 FY22 Zinc-India Sales Refined Zinc (kt) 216 214 210 821 777 Refined Lead (kt) 54 49 46 211 192 Total Zinc-Lead (kt) 270 263 257 1032 969 Silver (tonnes) 182 162 161 714 647 Zinc-International Sales Zinc Conce
Slide 40: Sales summary – Iron & Steel, FACOR and Power
Sales summary – Iron & Steel, FACOR and Power Quarter Full Year Sales volume Quarter Full Year Sales volume 4QFY23 4QFY22 3QFY23 FY23 FY22 Power Sales (mu) 4QFY23 4QFY22 3QFY23 FY23 FY22 Iron ore sales Jharsuguda 841 - 736 3,048 2,060 Goa (mn dmt) 0.2 0.5 0.2 0.7 1.1 TSPL 2,659 2,486 2,651 10,744 8,
Slide 41: Currency and commodity sensitivities
Currency and commodity sensitivities Foreign Currency - Impact of ₹ 1 depreciation in FX Rate Currency Increase in EBITDA INR/USD ~ ₹ 1000 crore / year Commodity prices – Impact of a 10% increase in Commodity Prices FY23 Impact on Commodity Average price EBITDA ($mn) Oil ($/bbl) 96 74 Zinc ($/t) 3,3
Slide 42: Group structure
Group structure As of 31-Mar-23 Listed entities Vedanta Resources Ltd Unlisted entities Divisions of Vedanta Limited 79.4% 68.1% ⚫ Sesa Iron Ore ⚫ Sterlite Copper Konkola ⚫ Power (600 MW Jharsuguda) Copper Vedanta Ltd Mines (KCM) ⚫ Aluminium (Odisha aluminium and power assets) ⚫ Cairn Oil & Gas* Sub
Slide 43: Awards and Recognition - 4QFY23
Awards and Recognition - 4QFY23 Our group companies received more than 50 awards in the finance, operational excellence, sustainability, CSR and HR categories Sustainability development Finance and Operational Health, Safety & HR & CSR HZL and BALCO won multiple awards at‘36th Vedanta Limited won pr
Slide 44: Results Conference Call Details
Results Conference Call Details Results conference call is scheduled at 5:00 PM (IST) on May 12, 2023. The dial-in numbers for the call are given below: Event Telephone Number Earnings conference call on +91 22 6280 1114 May 12, 2023, from 5:00 - Universal Dial-In +91 22 7115 8015 6:00 PM (IST) Indi