Vedanta Limited · NSE:VEDL
Vedanta — Q1 FY2021 Earnings Presentation
35 slides from Vedanta's earnings presentation, 2020
Slide 1: Q1 FY2021
transforming elements : = vedanta \ Ny . EDANTA LIMITED | _ VER | ALUMINIUM & POWER | COPPER | IRON ORE-& STEEL .
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from statement involves risk and uncertainties, and that, although we publicly available sources that have not been independently verified. believe that the assumption on which our forward-looking statements
Slide 3: Contents
Contents Section Presenter Page Q1 FY21 Review & Business Update Sunil Duggal, CEO 4 Financial Update Arun Kumar, CFO 12 Appendix 19 VEDANTA LIMITED – Q1 FY2021 INVESTOR PRESENTATION 3
Slide 4: Q1 FY2021 Review & Business Update
Q1 FY2021 Q1 FY2021 Review & Business Update Sunil Duggal Chief Executive Officer
Slide 5: Key Highlights: Q1 FY2021
Key Highlights: Q1 FY2021 ▪ Zinc India Metal production at 202kt with cost of production at $1,019/t ▪ Zinc International Gamsberg production at 25kt with cost of production $1,327/t ▪ O&G Rajasthan Operating cost at $6.9/boe vs $10.0/boe in Q4 FY20 Operational ▪ Aluminum cost of production at $1,26
Slide 6: Heading Towards – Zero Harm, Zero Waste, Zero Discharge
Heading Towards – Zero Harm, Zero Waste, Zero Discharge Safety Program Update Environment Update ▪ Increased focus on vehicles and Water ▪ ~7.5 million m3 of water No fatalities in Q1 driving & business partner conservation savings over three years management ▪ Guidance Note of VFL developed Visible
Slide 7: Zinc India: Strong Foundation Driving Growth
Zinc India: Strong Foundation Driving Growth Performance Update Metal in Concentrate Production ▪ MIC Production 202kt, down 5% y-o-y and 19% q-o-q due to lower production in April and lower workforce 249 213 202 availability on account of restrictions related to COVID-19 ▪ Metal Production 202kt, d
Slide 8: Zinc International: Gamsberg Positioning for Long Term Value Creation
Zinc International: Gamsberg Positioning for Long Term Value Creation Performance Update Gamsberg ▪ Production at 38kt, down 33% q-o-q and 36% ▪ Production at 25kt with exit recovery of 70% in y-o-y due to Skorpion Zinc going under Care June 20 and Maintenance from April 20 & COVID-19 ▪ COP $1,327/t
Slide 9: Oil & Gas: Focus on Delivery of Growth Projects
Oil & Gas: Focus on Delivery of Growth Projects Gross Production (kboepd) Growth Projects Target to complete following by Q3 FY21: ▪ MBA Infill & Polymer 161 159 ▪ New Raageshwari Deep Gas Terminal which will enhance production capacity to 240 mmscfd (from current 150) Q4 FY20 Q1 FY21 ▪ ABH Wells ho
Slide 10: Aluminium: Achieving Design Structure
Aluminium: Achieving Design Structure Structural Reduction in Cost Performance Update ▪ Aluminium COP at $1,268/t, down 13% q-o-q and 1,764 28% y-o-y 1,451 1,268 ▪ Lanjigarh production 476 kt, marginally down 1% q-o-q and up 7% y-o-y Q4 FY20 Q1 FY20 Q1 FY21 ▪ Lanjigarh COP at $218/t, down 16% q-o-q
Slide 11: Other Assets: Iron ore and ESL Steel
Other Assets: Iron ore and ESL Steel Iron Ore ESL Steel Performance Update Performance Update ▪ Karnataka sales 0.4 Mnt, down 64% y-o-y and ▪ Production 267kt, down 17% y-o-y and 16% q-o-q 74% q-o-q ▪ Sales 305kt, up 12% y-o-y and flat q-o-q ▪ Pig Iron production 109kt, down 39% y-o-y ▪ Margin at $4
Slide 12: Financial Update
Q1 FY2021 Financial Update Arun Kumar Chief Financial Officer
Slide 13: Financial snapshot
Financial snapshot EBITDA Net Debt# ND/EBITDA ₹ 4,008 cr ₹ 24,787 cr 1.2x Down 23% y-o-y Down 14% y-o-y Maintained at low level EBITDA Margin* Cash & Cash equivalent# ROCE^ 28% ₹ 33,781 cr c. 10% Robust Margin Liquidity Position Continuing double digit # Net debt and Cash & Cash equivalent as descri
Slide 14: EBITDA Bridge (Q1 FY 2020 vs. Q1 FY 2021)
EBITDA Bridge (Q1 FY 2020 vs. Q1 FY 2021) (In ₹ crore) Zinc, Lead & Silver (878) Brent (926) Aluminium 354 Aluminium (1,063) ESL 175 Steel (293) IOB 50 HZL (246) 5,189 3216 209 4,008 305 3,787 371 383 709 800 COVID Disruption Market & Regulatory Operational ₹ (1,401) crore ₹ 11 crore Q1 FY20 LME / B
Slide 15: EBITDA Bridge (Q4 FY 2020 vs. Q1 FY 2021)
EBITDA Bridge (Q4 FY 2020 vs. Q1 FY 2021) (In ₹ crore) Zinc, Lead & Silver (234) Brent (511) Aluminium (689) Aluminium 59 Steel (163) Cairn 110 HZL (229) 1594 356 4,262 403 4,844 40 189 4,008 415 242 COVID Disruption Market & Regulatory Operational ₹ (581) crore ₹ (443) crore Q4 FY20 LME / Brent Inp
Slide 16: Net Debt for Q1 FY 2021
Net Debt for Q1 FY 2021 (In ₹ crore) Inventory , Debtors & Others (521) Creditors / Customers advance (2,578) 2,441 101 24,787 21,273 1,207 3,132 3,099 FCF Post Capex ₹ (1,174) Crore Net Debt CF from WC Capex Dividend Translation Net Debt2 1st Apr’20 Operations Movements & Others 30th Jun’20 (Incl B
Slide 17: Balance Sheet
Balance Sheet Term Debt Maturities - ₹ 47,229 Crore ($6.3 bn) (as of Jun 30, 2020) ▪ Liquidity: 28% 30% ▪ Cash and Cash equivalent# at ₹ 33,781 crore 13.4 13.9 ▪ Undrawn line of credit ₹ 9,469 crore 16% 4.0 ▪ Net Interest: 7.7 15% 7.2 ▪ Interest Income – Returns ~5.8%. 6.9 11% ▪ Interest Expense – M
Slide 18: Key Investment Highlights
Key Investment Highlights 1 Large Low Cost, Long Life and Diversified Asset Base with an Attractive Commodity Mix 2 Ideally Positioned to Capitalise on Favourable Geographic Presence 3 Well-Invested Assets Driving Cash Flow Growth 4 Operational Excellence and Technology Driving Efficiency and Sustai
Slide 19: Appendix
2S vedanta aaa + Appendix
Slide 20: Income Statement
Income Statement Depreciation & Amortization In ₹ Crore Q1 Q1 Q4 FY’21 FY’20 FY’20 ▪ Lower compared to previous quarters primarily due Revenue from operations 15,687 21,167 19,513 to impairment of assets in Oil & Gas business in Q4 Other operating income 286 207 242 FY2020, and lower ore production
Slide 21: Entity Wise Cash and Debt
Entity Wise Cash and Debt (In ₹ crore) Jun 30, 2020 Mar 31, 2020 Jun 30, 2019 Company Cash & Cash & Cash & Debt Net Debt4 Debt Net Debt Debt Net Debt Cash Eq4 Cash Eq Cash Eq Vedanta Limited Standalone 33,247 4,070 29,177 38,937 5,029 33,908 40,171 4,147 36,024 Cairn India Holdings 3,700 7,726 (4,02
Slide 22: Debt Breakdown & Funding Sources
Debt Breakdown & Funding Sources Diversified Funding Sources for Term Debt of $6.3bn Debt Breakdown (as of 30th Jun 2020) (as of 30th Jun 2020) Debt breakdown as of (in $bn) (₹ in 000’ Cr) 30 Jun 2020 1% Term debt 6.3 47.2 Term Loans-INR 14% Working capital 0.5 3.6 Bonds-INR Short term borrowing 1.0
Slide 23: Segment Summary – Zinc India
Segment Summary – Zinc India Q1 Q4 Full year Production (in ’000 tonnes, or as stated) FY 2021 FY 2020 % change YoY FY2020 FY 2020 Mined metal content 202 213 (5)% 249 917 Integrated metal 202 219 (8)% 221 870 Refined Zinc – Integrated 157 172 (8)% 172 688 1 Refined Lead – Integrated 45 48 (7)% 49 1
Slide 24: Segment Summary – Zinc International
Segment Summary – Zinc International Q1 Q4 Full year Production (in’000 tonnes, or as stated) FY 2021 FY 2020 % change YoY FY2020 FY 2020 Refined Zinc – Skorpion 1 18 (96)% 15 67 Mined metal content- BMM 12 19 (36)% 12 66 Mined metal content- Gamsberg 25 23 11% 30 108 Total 38 60 (36)% 57 240 Financ
Slide 25: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Q1 Q4 Full year OIL AND GAS (boepd) FY 2021 FY 2020 % change YoY FY2020 FY 2020 Average Daily Gross Operated Production 158,779 180,059 (12)% 160,838 172,971 (boepd) Rajasthan 127,937 149,153 (14)% 132,315 144,260 Ravva 22,037 13,491 63% 17,562 14,232 Cambay 8,805 17,415
Slide 26: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Q1 Q4 Full year OIL AND GAS (boepd) FY 2021 FY 2020 % change YoY FY2020 FY 2020 Average Daily Production Gross operated 158,779 180,059 (12)% 160,838 172,971 Oil 142,772 165,983 (14)% 138,205 154,677 Gas (Mmscfd) 96 84 14% 136 110 Non operated- Working interest 492 162 20
Slide 27: Segment Summary – Aluminium
Segment Summary – Aluminium Q1 Q4 Full year Particulars (in’000 tonnes, or as stated) FY 2021 FY 2020 % change YoY FY2020 FY 2020 Alumina – Lanjigarh 476 446 7% 479 1,811 Total Aluminum Production 469 471 (0)% 474 1,904 Jharsuguda-I 132 134 (1)% 133 543 Jharsuguda-II 1 199 199 (0)% 196 800 245kt Kor
Slide 28: Aluminium profitability
Aluminium profitability $/t Q4 ‘20 1,690 62 72 1,823 (571) (560) (320) (34) 340 (145) (249) (55) 1,451 Q1 ‘21 1,268 1,497 1,601 64 40 517 469 26 281 360 134 295 (69) Ingot Value Realisation Alumina Power Other Conversion EBITDA Dep Int PBT LME Premium addition Hot & Others# 245 Metal # Conversion &
Slide 29: Segment Summary – Power
Segment Summary – Power Q1 Q4 Full year Particulars (in million units) FY 2021 FY 2020 % change YoY FY2020 FY 2020 Total Power Sales 1,843 3,523 (48)% 2,107 11,162 Jharsuguda 600 MW 685 267 157% 482 776 BALCO 300 MW 403 425 (5)% 460 1,726 HZL Wind Power 112 134 (16)% 71 437 TSPL 643 2,697 (76)% 1,09
Slide 30: Segment Summary – Iron Ore and Steel
Segment Summary – Iron Ore Particulars (in million dry metric tonnes, or Q1 Q4 Full year as stated) FY 2021 FY 2020 % change YoY FY2020 FY 2020 Sales 1.02 1.22 (17)% 2.27 6.63 Goa 0.6 0.0 0% 0.6 0.9 Karnataka 0.4 1.2 (64)% 1.6 5.8 Production of Saleable Ore 0.95 1.09 (13)% 0.77 4.36 Goa - - - 0.0 0.
Slide 31: Segment Summary – Copper India
Segment Summary – Copper India Q1 Q4 Full year Production (in ’000 tonnes, or as stated) FY 2021 FY 2020 % change YoY FY 2020 FY 2020 Copper - Cathodes 17 16 4% 26 77 Financials (In ₹ crore, except as stated) Revenue 1,377 1,777 (22)% 2,256 9,053 EBITDA (63) (66) 4% (68) (300) Copper LME Price ($/MT
Slide 32: Sales Summary
Sales Summary Sales volume Q1 FY2021 Q1 FY 2020 Q4 FY2020 FY2020 Zinc-India Sales Refined Zinc (kt) 163 167 173 680 Refined Lead (kt) 45 47 48 180 Total Zinc-Lead (kt) 208 215 220 860 Silver (tonnes) 146 155 144 586 Zinc-International Sales Zinc Refined (kt) 1 17 20 67 Zinc Concentrate (MIC) 28 29 3
Slide 33: Sales Summary
Sales Summary Q1 Q1 Q4 Sales volume Q1 Q1 Q4 Sales volume FY 2020 FY 2020 FY 2021 FY 2020 FY 2020 Power Sales (mu) FY 2021 FY 2020 FY 2020 Iron-Ore Sales Jharsuguda 600 MW 685 267 482 776 Goa (mn DMT) 0.6 - 0.6 0.9 TSPL 643 2,697 1,094 8,223 Karnataka (mn DMT) 0.4 1.2 1.6 5.8 BALCO 300 MW 403 425 46
Slide 34: Currency and Commodity Sensitivities
Currency and Commodity Sensitivities Foreign Currency - Impact of 1 Rs depreciation in FX Rate Currency Increase in EBITDA INR/USD ~ INR 500 cr / year Commodity prices – Impact of a 10% increase in Commodity Prices Q1 FY‘21 Commodity Average price EBITDA ($mn) Oil ($/bbl) 30 12 Zinc ($/t) 1,961 30 A
Slide 35: Group – Present Debt Structure
Group – Present Debt Structure ($ bn) Vedanta Resources (Consolidated) Volcan Q1FY21 Q1FY21 EBITDA 0.5 EBITDA - Net Debt 10.6 Net Debt 0.3 Vedanta Resources (Standalone) Q1FY21 % EBITDA 0.0 3% Divisions of Vedanta Limited Net Debt 7.3 69% 50.1% ⚫ Sesa Iron Ore ⚫ Sterlite Copper Vedanta Ltd (Consolid