Vedanta Limited · NSE:VEDL
Vedanta — Q1 FY2024 Earnings Presentation
36 slides from Vedanta's earnings presentation, July 2023
Slide 1: Earnings Presentation 1QFY24 - Transforming Together
EARNINGS PRESENTATION 1QFY24 VEDANTA LIMITED TRANSFORMING TOGETHER Inclusive. Responsible. Value-accretive delivery 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: Business Performance
VEDANTA LIMITED EARNINGS PRESENTATION 1QFY24 Business Performance Sunil Duggal Group CEO Sensitivity: Internal (C3)
Slide 4: ESG Highlights
ESG Highlights Achieving sustainability milestone Quarterly Highlights Environment Social Governance 5500+ All Statutory 838 MW RTC PDAs committees chaired by Renewable Energy Nand-Ghar Independent Directors 5% y-o-y reduction in ~14% Policy updates of the Fresh Water Consumption Gender Diversity Ve
Slide 5: Progressing well on our key ESG aims
Progressing well on our key ESG aims Uplifting over 100 mn Net carbon neutrality Achieving net water women & children through by 2050 or sooner positivity by 2030 Education, Nutrition, Healthcare & Welfare Women & Children to be uplifted GHG intensity (tCO2e/t of metal) Water Positivity Ratio (%) FY
Slide 6: Net-Zero Carbon by 2050 or Sooner - Roadmap
Net-Zero Carbon by 2050 or Sooner - Roadmap ▪ 80 projects in planning or AIM TO REDUCE 25% ABSOLUTE GHG EMISSIONS BY FY2030 implementation stage during FY24 FY Emissions (mnt of CO2e) ▪ 40% in advanced stages of planning Decarbonization Initiatives ▪ Project Mix: - 25% vs FY21 baseline o RE Growth P
Slide 7: Operational Highlights
Operational Highlights Strong existing business performance; New venture – A step towards India’s self reliance Operational Highlights Other Highlights ▪ Aluminium o Metal Production grew 2% y-o-y and 1% q-o-q o Hot metal CoP lower by 27% y-o-y and 6% q-o-q ▪ Zinc India o Achieved highest-ever 1Q mi
Slide 8: Aluminium Business
Aluminium Business Focussed on excellence, growth and business integration Aluminium Production Key Highlights: +2% y-o-y ▪ Aluminium production up 2% y-o-y, 1% q-o-q 565 574 579 ▪ Aluminium CoP lower by 27% y-o-y, 6% q-o-q o Lower input commodity cost o Higher operational and buying efficiency ▪ Hi
Slide 9: Aluminium Business: Vision to be 3 MTPA Aluminium producer
Aluminium Business: Vision to be 3 MTPA Aluminium producer Aluminium Value Chain – Existing Post Expansion (< 2 years) Target Outcome Bauxite Alumina Smelting Bauxite Alumina Smelting ~6 MTPA Aluminium Aluminium (50% – domestic 2 MTPA 9 MTPA 51 MTPA procurement) (45% Captive) 2.3 MTPA (Captive Bauxi
Slide 10: Zinc India
Zinc India On track to achieve guided performance ▪ Highest-ever Q1 mined metal production at 257 kt, +2% y-o-y ▪ Continuous optimization of cost; achieved ~$100/t cost reduction over last two consecutive quarters ▪ Refined metal production → 260 kt, stable y-o-y o Softened coal and input commodity
Slide 11: Zinc International
Zinc International BMM production grew 29% y-o-y Total MIC Production Key highlights: Gamsberg BMM 68 68 ▪ Total MIC production increased 1% y-o-y and 9% q-o-q 63 60 15 14 19 ▪ BMM production increased 29% y-o-y and 34% q-o-q 40 53 49 48 ▪ Gamsberg production: 20 0 o lower by 7% y-o-y due to lower z
Slide 12: Oil & Gas
Oil & Gas Stable operations with focus on growth projects Gross Production (Kboepd) Key highlights: -2% ▪ Production: Impact of natural decline in MBA field partially 148 offset by – 137 135 o Infill wells in Mangala, Bhagyam, Aishwarya and RDG fields ▪ Opex: 1Q 4Q 1Q FY23 FY23 FY24 o Lower by 7% q-
Slide 13: Iron Ore, Steel, FACOR
Iron Ore, Steel, FACOR Iron Ore Steel FACOR Karnataka Iron VAB Ferrochrome Production Saleable Production ore Sales Production 324 kt 10 kt 1 Mnt 213 kt ▪ Highest ever VAB Production higher ▪ Hot metal production higher by 22% ▪ Ore production at 76 kt, higher by by 13% y-o-y y-o-y due to debottlene
Slide 14: Finance Update
VEDANTA LIMITED EARNINGS PRESENTATION 1QFY24 Finance Update Sonal Shrivastava Group CFO Sensitivity: Internal (C3)
Slide 15: 1QFY24 financial snapshot
1QFY24 financial snapshot REVENUE EBITDA EBITDA Margin1 PAT ₹ 33,342 crore ₹ 6,975 crore 24% ₹ ₹3,132 3,308crore crore (+ 1% vs 3QFY23) Cash & Cash ROCE2 FCF (Pre-capex) Net Debt/EBITDA Equivalent 17% ₹ 3,098 crore 1.88x ₹ 14,292 crore 15 1. Excludes custom smelting at Copper Business Vedanta Limite
Slide 16: EBITDA Bridge (1QFY24 vs. 4QFY23)
EBITDA BRIDGE (1QFY24 vs. 4QFY23) (In ₹ crore) Zinc (1,010) Aluminum (590) -9% vs 4QFY23 Steel (279) Rebased EBITDA Oil & Gas (77) Market & Regulatory ₹(1,724) crore 16 Ex rate: 1QFY24 82.16 vs 4QFY23 82.21 Vedanta Limited Note: others include strategic hedging and one-time gain in 4QFY23 1QFY24 Inv
Slide 17: EBITDA Bridge (1QFY24 vs. 1QFY23)
EBITDA BRIDGE (1QFY24 vs. 1QFY23) (In ₹ crore) Aluminium (2,747) Zinc (2,330) +3% vs 1QFY23 Oil & Gas (566) Steel (426) Rebased EBITDA Market & Regulatory ₹(4,000) crore 17 Ex rate: 1QFY24 82.16 vs 1QFY23 77.06 Vedanta Limited Note: others include strategic hedging and inventory adj 1QFY24 Investor
Slide 18: Balance sheet and debt breakdown
Balance sheet and debt breakdown Net debt / EBITDA Debt breakdown 1.88 Gross Debt As on As on 1.28 (₹ 000’ crores) 30 June 2023 31 March 2023 1.01 Term debt 62.5 54.5 0.89 0.46 Working capital 4.8 2.7 Short term borrowing 6.2 8.9 FY'20 FY'21 FY'22 FY'23 1Q Total consolidated debt 73.5 66.2 FY'24 Cas
Slide 19: FY24 key priorities
FY24 key priorities Deliver on target volume growth across businesses Strive for timely completion of capex projects Focus on integrated Aluminum operations to reduce impact on market volatility Continued focus on sustainable shareholder Reduce costs to sustain and improve margins value creation Imp
Slide 20: Appendix
VEDANTA LIMITED EARNINGS PRESENTATION 1QFY24 Appendix Sensitivity: Internal (C3)
Slide 21: Income statement
Income statement ▪ Depreciation & Amortization In ₹ Crore 1Q 4Q 1Q o 1QFY24 reduced by 8%QoQ largely due to decrease in FY24 FY23 FY23 amortization at HZL Revenue from operations 33,342 37,225 38,251 o 1QFY24 increased by 3% YoY mainly due to capitalization of Other operating income 391 705 371 asse
Slide 22: Entity-wise Cash and Debt
Entity-wise Cash and Debt June 30, 2023 Mar 31, 2023 June 30, 2022 Company Cash & Cash & Cash & Debt Net Debt Debt Net Debt Debt Net Debt Cash Eq Cash Eq Cash Eq Vedanta Limited Standalone 44,274 1,396 42,878 42,023 7,364 34,659 45,177 4,903 40,274 Cairn India Holdings Limited1 2,590 1,338 1,252 2,6
Slide 23: Funding sources and term debt maturities
Funding sources and term debt maturities Diversified Funding Sources for Long Term Debt of $7.6 Bn Long Term Debt Maturities : ₹ 62,486 crore ($7.6 bn) (as of 30th Jun’23) (as on 30th Jun’23) 0.1% Standalone Subsidiaries 16% 28.5 In ₹ 000’ crore 21% Bonds INR Term Loan INR 10.6 Term Loan Fx Bonds Fx
Slide 24: Segment Summary – Aluminium
Segment Summary – Aluminium Quarter Full Year Particulars (in’000 tonnes, or as stated) 1QFY24 1QFY23 % YoY 4QFY23 FY23 Alumina – Lanjigarh 395 485 (18%) 411 1,793 Total Aluminum Production 579 565 2% 574 2,291 Jharsuguda 433 423 2% 430 1,721 Balco 146 142 2% 144 570 Financials (In ₹ crore, except a
Slide 25: Aluminium profitability
Aluminium profitability Hot metal cost $/t 4QFY23 2,395 24 149 2,569 (730) (758) (571) (119) 391 2,059 1QFY24 1,932 8 180 2,258 773 2,446 1,673 642 517 123 391 LME Strategic Premium Realisation Alumina Power Other hot Conversion & EBITDA Hedging metal other 25 Vedanta Limited 1QFY24 Investor Present
Slide 26: Segment Summary – Zinc India
Segment Summary – Zinc India Quarter Full Year Production (in ’000 tonnes, or as stated) 1QFY24 1QFY23 % YoY 4QFY23 FY23 Mined metal content 257 252 2% 301 1,062 Integrated metal 260 260 - 269 1,032 Refined Zinc – Integrated 209 206 1% 215 821 Refined Lead – Integrated1 51 54 (6%) 54 211 Refined Sal
Slide 27: Segment summary – Zinc International
Segment summary – Zinc International Quarter Full Year Production (in’000 tonnes, or as stated) 1QFY24 1QFY23 % YoY 4QFY23 FY23 Mined metal content- BMM 19 15 29% 14 65 Mined metal content- Gamsberg 49 53 (7%) 48 208 Total 68 68 1% 63 273 Financials (In ₹ Crore, except as stated) Revenue 1,103 1,459
Slide 28: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Quarter Full Year OIL AND GAS (boepd) 1QFY24 1QFY23 % YoY 4QFY23 FY23 Average Daily Gross Operated Production (boepd) 134,867 148,104 (9%) 137,034 142,615 Rajasthan 111,916 127,815 (12%) 112,546 119,888 Ravva 11,663 10,990 6% 13,223 11,802 Cambay 11,001 9,209 19% 10,923 1
Slide 29: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Quarter Full Year OIL AND GAS (boepd) 1QFY24 1QFY23 % YoY 4QFY23 FY23 Average Daily Production Gross operated 134,867 148,104 (9%) 137,034 142,615 Oil 110,959 126,292 (12%) 111,359 118,634 Gas (Mmscfd) 143 131 9% 154 144 Non-operated- Working interest 392 489 (20%) 421 45
Slide 30: Segment Summary – Iron Ore and Steel
Segment Summary – Iron Ore and Steel Iron Ore Quarter Full Year Particulars (in million dry metric tonnes, or as stated) 1QFY24 1QFY23 % YoY 4QFY23 FY23 Production of Saleable Ore 1.2 1.3 (9%) 1.5 5.3 Goa - - - - Karnataka 1.2 1.3 (9%) 1.5 5.3 Production (’000 tonnes) Pig Iron 213 189 13% 186 696 Fi
Slide 31: Segment Summary – FACOR and Copper
Segment Summary – FACOR and Copper Copper Quarter Full Year Production (in ’000 tonnes, or as stated) 1QFY24 1QFY23 % YoY 4QFY23 FY23 Copper - Cathodes 31 38 (19%) 34 148 Financials (In ₹ crore, except as stated) Revenue 4,733 4,215 12% 5,107 17,491 EBITDA (2) (14) (86%) 50 (4) Copper LME Price ($/M
Slide 32: Sales Summary – Zinc and Aluminium
Sales Summary – Zinc and Aluminium Quarter Full Year Sales volume 1QFY24 1QFY23 % YoY 4QFY23 FY23 Zinc-India Sales Refined Zinc (kt) 208 206 1% 216 821 Refined Lead (kt) 50 54 (6%) 54 211 Total Zinc-Lead (kt) 259 260 (1%) 270 1,032 Silver (tonnes) 179 177 1% 182 714 Zinc-International Sales Zinc Con
Slide 33: Sales summary – Iron & Steel, FACOR and Power
Sales summary – Iron & Steel, FACOR and Power Quarter Full Year Sales volume Quarter Full Year Sales volume 1QFY24 1QFY23 4QFY23 FY23 Power Sales (mu) 1QFY24 1QFY23 4QFY23 FY23 Iron ore sales Jharsuguda 618 837 841 3,048 Goa (mn dmt) 0.1 0.4 0.2 0.7 TSPL 2,830 2,590 2,659 10,744 Karnataka (mn dmt) 1
Slide 34: Group structure
Group structure As of 30-Jun-23 Listed entities Vedanta Resources Ltd Unlisted entities Divisions of Vedanta Limited 68.1% ⚫ Sesa Iron Ore ⚫ Sterlite Copper ⚫ Power (600 MW Jharsuguda) Vedanta Ltd ⚫ Aluminium (Odisha aluminium and power assets) ⚫ Cairn Oil & Gas* Subsidiaries of Vedanta Ltd 64.9% 51
Slide 35: Awards and Accolades
Awards and Accolades Recognitions towards our commitment to excellence 21st Greentech National Award International Excellence Award for Manufacturing Great Place to Safety Award by Best Occupational by Quality Circle Competitiveness Work British Safety Health Practices Forum of India by IRIM Council
Slide 36: Earnings conference call dial in details
Earnings conference call dial in details Event Telephone Number Earnings conference call on July +91 22 6280 1114 Universal Dial-In 21, 2023, from 8:00 - 9:00 PM +91 22 7115 8015 (IST) India National Toll Free 1 800 120 1221 Canada 01180014243444 Hong Kong 800964448 Japan 00531161110 International T