Vedanta Limited · NSE:VEDL
Vedanta — Q4 FY2024 Earnings Presentation
53 slides from Vedanta's earnings presentation, Apr 25, 2024
Slide 1: Cover letter to stock exchanges
VEDL/Sec./SE/24-25/31 April 25, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers “Exchange Plaza” Dalal Street, Fort Bandra-Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 500295 Scrip Code: VEDL Sub: Outcome of Board Meeting held on Apr
Slide 2: Press release: Audited consolidated results Q4 and FY24
Vedanta Limited Regd. Office: Vedanta Limited 1st Floor, ‘C’ Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai 400093, Maharashtra. www.vedantalimited.com CIN: L13209MH1965PLC291394 Vedanta Limited Mumbai, April 25, 2024: Audited Consolidated Results for the Fourth Qua
Slide 3: Operational Highlights FY24
Results for the Fourth Quarter and Full year ended 31st March 2024 Operational Highlights FY24 - Key businesses continue to deliver strong operating performance: ▪ Aluminium o Highest ever annual aluminium cast metal production at 2,370 kt, up 3% YoY. o Alumina production at Lanjigarh refinery at 1,
Slide 4: Steel, Facor and Copper highlights
Results for the Fourth Quarter and Full year ended 31st March 2024 ▪ Steel o Highest ever annual saleable production and hot metal production at 1,386 kt and 1,473 kt, up 8% YoY. o Highest ever DIP production of 212 kt, up 8% YoY. o Highest ever annual dispatch at 1,394 kt, up 11% YoY. ▪ Facor o Ach
Slide 5: Consolidated Financial Performance
Results for the Fourth Quarter and Full year ended 31st March 2024 Mr Arun Executive Director of Vedanta, “FY 2023-24 has been a remarkable year for Vedanta. We have achieved record production across our key businesses, a testament to our consistent focus on operational excellence. This focus, coupl
Slide 6: EBITDA and EBITDA margin
Results for the Fourth Quarter and Full year ended 31st March 2024 ▪ EBITDA and EBITDA Margin: o 4QFY24 EBITDA increased by 3% QoQ to ₹8,969 crore mainly driven by higher volume and structural cost saving initiatives across businesses partially offset by lower LME and exchange rate fluctuations. o F
Slide 7: Leverage, liquidity, and credit rating
Results for the Fourth Quarter and Full year ended 31st March 2024 o FY24 PAT before exceptional items at ₹ 11,254 crore. ▪ Leverage, liquidity, and credit rating: o Gross debt at ₹71,759 crore as on 31st Mar’24, reduced by ₹3,468 crore QoQ. o Net debt at ₹56,338 crore as on 31st Mar’24, reduced by
Slide 8: Results Conference Call
Results for the Fourth Quarter and Full year ended 31st March 2024 Results Conference Call – Please note that the results presentation is available in the Investor Relations section of the company website https://www.vedantalimited.com/eng/investor-relations-overview.php#resultsReports Following the
Slide 9: Disclaimer
Results for the Fourth Quarter and Full year ended 31st March 2024 Disclaimer This press release contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial perfo
Slide 10: Earnings Presentation 4QFY24 and FY 2023-24
EARNINGS PRESENTATION 4QFY24 and FY 2023-24
Slide 11: 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 12: Business Performance
Business Performance Arun Misra Executive Director Vedanta Limited Vedanta Limited 4QFY24 Investor Presentation
Slide 13: Our commitment to excellence – our path to leadership
ESG Our commitment to excellence – our path to leadership Transforming Communities Key Highlights FY’24 Aim 1 Keeping community welfare at the core of business decisions 1.4 million Aim 2 Empowering over 2.5 million families with enhanced 0.7x skillsets ( 40% y-o-y) Water Positivity Families skille
Slide 14: High Impact initiatives drive sustainability leadership
Sustainability Leadership High Impact initiatives drive sustainability leadership S&P CSA rankings 3 Vedanta Limited1 Among 238 global companies 1 Hindustan Zinc Hindustan Zinc 1 Among 238 global companies 1 Vedanta Aluminium2 Most sustainable aluminium producer Vedanta Limited - S&P CSA Ranking CDP
Slide 15: Renewable Power Update
Renewable Power Update Gearing for 1st power utilization from PDAs with Serentica Renewables Solar Plant Salient Features of the Project • Total Project Capacity : 4 GW of round the clock RE • PDAs as on date: 1826 MW • Projects: Solar and wind • Location: Rajasthan, Karnataka and Maharashtra • Deli
Slide 16: Empowering communities with focused actions
Empowering communities with focused actions Highlights 17.40 million ₹ 438 crore 6000+ Total Beneficiaries CSR Spend in FY24 Nand Ghars Healthcare Drinking water > 1900 crore spent on CSR > 32 Initiatives and sanitation activities since 2020 > 12 Initiatives ₹ crore Community Children’s 454 438 Infr
Slide 17: 4QFY24 Operational Highlights
4QFY24 Operational Highlights Strategic Growth via Enhanced Volume, Cost Optimization, and Efficient Project Execution Aluminium Zinc India Iron and Steel Other Highlights Cast house, Jharsuguda Dariba Smelting Complex, HZL Coke oven plant, ESL Steel Train-I Refinery, Lanjigarh HZL Silver Quarterly
Slide 18: FY24 Highlights
FY24 Highlights Leveraging cost efficiency to offset commodity prices and boost margins Aluminium Zinc India Others Silver Growth Continues • HZL is the only silver producer in India and is now the 3rd largest silver producer globally • With FY24 production of 746 MT, the production increased by c.5
Slide 19: Cost Leadership
Cost Leadership Aluminum and Zinc are among the lowest cost producers globally Aluminium Cost ($/t) 2,653 ✓ Stands in the first quartile of the global cost curve. ✓ Sustained cost reduction for 7 consecutive quarters > ✓ 940$/t reduction in CoP in last 7 quarters ✓ Beat annual CoP guidance of $1800/
Slide 20: Aluminium Business
Aluminium Business Highest ever production, with 50%+ improvement in annual margin Aluminium Production (kt) +3% y-o-y Key Highlights: ▪ Record annual Production at 2,370 kt, up by 3% y-o-y 2,291 2,370 +4% y-o-y ▪ Quarterly metal production at 598 kt, up 4% y-o-y 599 598 ▪ Highest ever production ru
Slide 21: Commissioned 1.5 MTPA alumina refinery unit at Lanjigarh
Project update (2 → 5 MTPA refinery) Commissioned 1.5 MTPA alumina refinery unit at Lanjigarh The 2 to 5 MTPA Expansion Project has achieved a Glimpses of Train-1 (1.5 MTPA) Expansion Project at Lanjigarh remarkable milestone by production of 1st Alumina from Train-I of 1.5 MTPA Expansion Project co
Slide 22: Zinc India
Zinc India Historic-high silver & metal production with strong cost resilience ▪ Highest-ever annual mined metal, refined metal and silver ▪ Positioned in 1st decile of global zinc mines cost curve production at 1,079 kt, 1,033 kt and 746 MT, respectively ▪ Consecutive 5 quarters of cost optimisatio
Slide 23: Zinc International
Zinc International Focus on production enhancement and cost reduction Total MIC Production VZI to deliver 500+ KTPA MIC run rate within 2 years Gamsberg (Phase – 2) VZI Production (kt) Gamsberg (kt) BMM (kt) 65 BMM Gamsberg - 20% q-o-q $466 mn 500+ 208 61 Approved Capex 450 70 60 50 14 147 4 MTPA →
Slide 24: Oil & Gas
Oil & Gas Enhancing Reserve and Resources to secure future profitability Gross Production (kboepd) Key highlights: ▪ 4QFY24 production at 118 kboepd, natural decline in the MBA 137 143 fields has been partially offset by infill wells brought online in 123 118 128 Mangala, Aishwariya and RDG fields.
Slide 25: Iron and Steel
Iron and Steel Driving performance with consistent production growth, paving ways for future capacities Karnataka Iron Ore VAB Steel Ferrochrome Sales (MnT) Production (KT) Saleable production (kt) Ferro Chrome production (kt) 80 831 1,386 5.9 1,285 67 696 5.0 +38% y-o-y +9% y-o-y 1.7 386 27 1.6 1.6
Slide 26: Finance Update
Finance Update ↑ Ajay Goel Chief Financial Officer, ESG Vedanta Limited Vedanta Limited 4QFY24 Investor Presentation
Slide 27: 4QFY24 financial snapshot
4QFY24 financial snapshot REVENUE EBITDA EBITDA Margin1 PAT before exceptional ₹ 34,937 crore ₹ 8,969 crore 30% ₹ 2,453 crore Flat q-o-q 3% q-o-q ~75 bps q-o-q 14% q-o-q Cash & Cash ROCE2 FCF (Pre-capex) Net Debt/EBITDA Equivalent c.23% ₹ 9,948 crore 1.5x ₹ 15,421 crore ~80 bps q-o-q 131%
Slide 28: EBITDA Bridge (4QFY24 vs. 3QFY24)
EBITDA BRIDGE (4QFY24 vs. 3QFY24) (In ₹ crore) +5% vs 3QFY24 EBITDA Iron ore (162) HZL (86) Alum 94 Market & Regulatory (₹148) crore 19 Ex rate: 4QFY24 83.04 vs 3QFY24 83.25 Vedanta Limited *LME/Brent/Premium includes SAED impact of Oil & Gas business. 4QFY24 Investor Presentation
Slide 29: EBITDA Bridge (4QFY24 vs. 4QFY23)
EBITDA BRIDGE (4QFY24 vs. 4QFY23) (In ₹ crore) Zinc (1,065) Alum (912) Iron Ore (160) +7% vs 4QFY23 ESL (351) EBITDA Market & Regulatory (₹995) crore 20 Ex rate: 4QFY24 83.04 vs 4QFY23 82.21 Vedanta Limited *LME/Brent/Premium includes SAED impact of Oil & Gas business. 4QFY24 Investor Presentation
Slide 30: Net Debt Walk 4QFY24
Net Debt Walk 4QFY24 (In ₹ crore) FCF post Capex ₹6,612 crore 21 Vedanta Limited 4QFY24 Investor Presentation
Slide 31: Balance sheet and debt breakdown
Balance sheet and debt breakdown Net debt / EBITDA Debt breakdown Gross Debt In $bn In ₹ 000’ crores 1.9 Term debt 8.29 69.06 1.6 1.7 1.5 1.3 Working capital 0.14 1.16 Short term borrowing 0.18 1.54 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 Total consolidated debt 8.61 71.76 • Liquidity: Cash and Cash Equi
Slide 32: Continued disciplined investment in value adding growth
Continued disciplined investment in value adding growth ($ Bn) FY growth capex guidance 1.2 0.7 1.1 2.0 1.7 Growth Capex profile Oil & Gas 1.9 Zinc 0.3 Al & Power Other 1.4 1.2 0.1 0.8 0.2 0.8 0.7 0.1 0.7 0.5 0.2 0.2 0.4 0.1 0.3 0.3 0.3 0.5 0.0 0.0 0.4 0.1 0.3 0.4 0.2 0.2 FY2020 FY2021 FY2022 FY2023
Slide 33: Commodity Outlook
Commodity Outlook Near term global demand improving; Indian demand remains solid Global Demand CAGR Forecasted Demand Growth CY 2024 (2023-2030) Global Demand India Demand Global Demand India Demand 9.5% 9.0% 8.9% 8.5% 8.0% 7.7% 7.5% 7.0% 5.2% 4.2% 4.5% 3.7% 2.7% 3.1% 2.6% 2.2% 2.5% 1.9% 2.0% 1.9% 1
Slide 34: FY25 key objectives
FY25 key objectives A transformative year on many fronts Aluminium Zinc • Bauxite: Increasing domestic bauxite mix including operationalizing Sijimali mine HZL: • Ramp-up of underground mines capacity to 1.25 MTPA • Alumina: Completing refinery expansion to 5 MTPA • Fumer plant: Ramp up to produce 3
Slide 35: FY25 Production and Cost Guidance
FY25 Production and Cost Guidance Aluminium Oil and Gas Alumina 2.7-3.0 Mnt Average Gross 120-140 kboepd Aluminium 2.3-2.4 Mnt Volume CoP1 $1,625/t - $1,725/t Opex $13-14/boe Zinc India Zinc International Gamsberg 160 - 180 kt Mined Metal 1,100 - 1,125 kt BMM 60 – 70 kt Finished Metal 1,075 – 1,100
Slide 36: Appendix
VEDANTA LIMITED EARNINGS PRESENTATION 4QFY24 Appendix
Slide 37: Summary of Income statement
Summary of Income statement 4Q 3Q Full Year ▪ Depreciation & Amortization In ₹ Crore FY24 FY24 FY24 FY23 o 4QFY24 decreased by 2% QoQ mainly in oil and gas partially offset by increased ore production at Zinc India. Revenue from operations 34,937 34,968 1,41,793 1,45,404 o FY24 increased by 2%, due
Slide 38: Project capex
Project capex Approved Spent up to Spent in Unspent4 as on Capex in Progress (In $ mn) Status Capex2 FY233 FY24 Mar 31, 2024 Cairn India1 – Mangala, Bhagyam & Aishwariya infill, 904 337 246 321 OALP, ABH infill, RDG infill, Offshore infill etc Aluminium Sector Jharsuguda VAP capacity expansion and o
Slide 39: Entity-wise Cash and Debt
Entity-wise Cash and Debt Mar 31, 2024 Dec 31, 2023 Mar 31, 2023 Company Cash & Cash & Cash & Debt Net Debt Debt Net Debt Debt Net Debt Cash Eq Cash Eq Cash Eq Vedanta Limited Standalone 42,232 2,385 39,847 44,134 1,052 43,082 42,023 7,364 34,659 Cairn India Holdings Limited1 1,835 1,191 644 1,839 8
Slide 40: Funding sources and term debt maturities
Funding sources and term debt maturities Diversified Funding Sources for Long Term Debt of $8.3 Bn Long Term Debt Maturities : ₹ 69.1K crore ($8.3 bn) (as of Mar 31, 2024) (as of Mar 31, 2024) 0.1% Standalone Subsidiaries In ₹ 000’ crore 19% 22% Bonds INR Term Loan INR 19.2 Term Loan Fx 18.3 16.9 Bo
Slide 41: Segment Summary – Aluminium
Segment Summary – Aluminium Particulars (in’000 tonnes, or as Quarter Full year stated) 4QFY24 4QFY23 % YoY 3QFY24 FY24 FY23 % YoY Alumina – Lanjigarh 484 411 18% 470 1,813 1,793 1% Total Aluminum Production 598 574 4% 599 2,370 2,291 3% Jharsuguda 452 430 5% 452 1,784 1,721 4% Balco 146 144 1% 147
Slide 42: Aluminium profitability
Aluminium profitability 1,711 $/t 4QFY24 166 2,365 2,3 2,199 688 617 406 56 598 LME Premium Realisation Alumina Power Other hot metal Conversion & EBITDA other 1,735 Hot metal cost 3QFY24 2,190 179 2,369 (707) (597) (431) (56) 578 33 Vedanta Limited 4QFY24 Investor Presentation
Slide 43: Segment Summary – Zinc India
Segment Summary – Zinc India Quarter Full Year Production (in ’000 tonnes, or as stated) 4QFY24 4QFY23 % YoY 3QFY24 FY24 FY23 % YoY Mined metal content 299 301 (1%) 271 1,079 1,062 2% Integrated metal 273 269 1% 259 1,033 1,032 0% Refined Zinc – Integrated 220 215 2% 203 817 821 0% Refined Lead – In
Slide 44: Segment summary – Zinc International
Segment summary – Zinc International Quarter Full Year Production (in’000 tonnes, or as stated) 4QFY24 4QFY23 % YoY 3QFY24 FY24 FY23 % YoY Mined metal content- BMM 12 14 (18%) 12 61 65 (6%) Mined metal content- Gamsberg 21 48 (56%) 29 147 208 (29%) Total 33 63 (47%) 41 208 273 (24%) Financials (In ₹
Slide 45: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Quarter Full Year Oil and Gas (kboepd) 4QFY24 4QFY23 % YoY 3QFY24 FY24 FY23 % YoY Average Daily Gross Operated Production (boepd) 117.8 137.0 (14%) 123.4 127.5 142.6 (11%) Rajasthan 97.8 112.5 (13%) 103.9 106.5 119.9 (11%) Ravva 10.5 13.2 (21%) 10.2 10.8 11.8 (8%) Cambay
Slide 46: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Quarter Full Year Oil and Gas (kboepd) 4QFY24 4QFY23 % YoY 3QFY24 FY24 FY23 % YoY Average Daily Production Gross operated 117.8 137.0 (14%) 123.4 127.5 142.6 (11%) Oil 95.5 111.4 (14%) 100.6 104.0 118.6 (12%) Gas (Mmscfd) 134 154 (13%) 137 141 144 (2%) Non-operated- Worki
Slide 47: Segment Summary – Iron Ore and Steel
Segment Summary – Iron Ore and Steel Iron Ore Particulars (in million dry metric tonnes, or Quarter Full Year as stated) 4QFY24 4QFY23 % YoY 3QFY24 FY24 FY23 % YoY Production of Saleable Ore 1.7 1.5 14% 1.4 5.6 5.3 5% Goa 0.0 - - 0.0 - Karnataka 1.7 1.5 13% 1.4 5.6 5.3 5% Production (’000 tonnes) Pi
Slide 48: Segment Summary – Facor and Copper
Segment Summary – Facor and Copper Copper Quarter Full year Production (in ’000 tonnes, or as stated) 4QFY24 4QFY23 % YoY 3QFY24 FY24 FY23 % YoY Copper - Cathodes 31 34 (10%) 43 141 148 (5%) Financials (In ₹ crore, except as stated) Revenue 5,015 5107 (2%) 5,376 19,730 17,491 13% EBITDA (9) 50 - 7 (
Slide 49: Sales Summary – Zinc and Aluminium
Sales Summary – Zinc and Aluminium Quarter Full year Sales volume 4QFY24 4QFY23 3QFY24 FY24 FY23 Zinc-India Sales Refined Zinc (kt) 221 216 203 817 821 Refined Lead (kt) 53 54 56 216 211 Total Zinc-Lead (kt) 274 270 259 1033 1,032 Silver (tonnes) 189 182 197 746 714 Zinc-International Sales Zinc Con
Slide 50: Sales summary – Iron & Steel, FACOR and Power
Sales summary – Iron & Steel, FACOR and Power Quarter Full Year Sales volume Quarter Full year Sales volume 4QFY24 4QFY23 3QFY24 FY24 FY23 Power Sales (mu) 4QFY24 4QFY23 3QFY24 FY24 FY23 Iron ore sales Jharsuguda 931 841 716 2,771 3,048 Goa (mn dmt) - 0.2 0.1 0.3 0.7 TSPL 2,187 2,659 2466 10,278 10,
Slide 51: Group structure
Group structure As of 31-Mar-24 Listed entities Vedanta Resources Ltd Unlisted entities Divisions of Vedanta Limited ⚫ Sesa Iron Ore 61.95% ⚫ Sterlite Copper ⚫ Power (600 MW Jharsuguda) Vedanta Ltd ⚫ Aluminium (Odisha aluminium and power assets) ⚫ Cairn Oil & Gas* Subsidiaries of Vedanta Ltd ⚫ Athen
Slide 52: Currency and commodity sensitivities
Currency and commodity sensitivities Foreign Currency - Impact of ₹ 1 depreciation in FX Rate Currency Increase in EBITDA INR/USD ~ ₹ 800 crore / year Commodity prices – Impact of a 10% increase in Commodity Prices FY24 Impact on Commodity Average price EBITDA ($mn) Oil ($/bbl) 83 65 Zinc ($/t) 2,47
Slide 53: Awards and Accolades
Awards and Accolades Recognitions towards our commitment to excellence National Vedanta Excellent and Business Leader Certification for Jharsuguda won in Kincentric Distinguished of the Year Award in 'Digital 3 categories at the Best Employer Category at 37th Smart Manufacturing Transformation in Ou