Vedanta Resources — H1 FY2025 Earnings Presentation
36 slides from Vedanta Resources's earnings presentation, Dec 30, 2024
Slide 1: Vedanta Resources Earnings Presentation 1HFY25
Vedanta Resources EARNINGS PRESENTATION 1HFY25
Slide 2: Highlights
2 vedanta Zi i. Highlights yd a 1HFY25
Slide 3: H1 Highlights
EBITDA PAT before special items Revenue H1 Highlights +39% YoY 1 5x YoY 1 +6% YoY 1 Best-ever first half $ 690 million Performance $ 2,600 million Reported PAT $1,735 million $ 8,668 million supported by structural cost Second Highest 1H EBITDA after special items reduction and other strategic initi
Slide 4: Other Key Highlights – 1HFY25
Other Key Highlights – 1HFY25 Growth Projects: ▪ Commissioned 1.5 MTPA unit of Lanjigarh Refinery expansion Lanjigarh Refinery project Train - 1 ▪ Operationalized Bicholim Iron Ore Mine of 3MTPA capacity at Goa ▪ Received EC for underground mining and 300 KTPA Ferrochrome Plant expansion at FACOR Ot
Slide 5: Steady improvement in Credit Rating at both OptCo VEDL and Parent VRL
Steady improvement in Credit Rating at both OptCo VEDL and Parent VRL Vedanta Limited Vedanta Resources (Issuer Rating) S&P Global FITCH Vedanta Current Rating Rating Action Limited BB BB BB- BB- AA/Watch Upgrade from AA- B+ B+ CRISIL B+ B+ Developing/A1+ /Watch Positive B/stable B B AA/Watch Upgrad
Slide 6: Business Performance 1H FY25
Business Performance 1H FY25
Slide 7: Aluminium Business: Focused on growth and end-to-end integration
Aluminium Business Focused on growth and end-to-end integration Aluminium Production (kt) Key Highlights: 1,173 1,205 ▪ Best ever half yearly metal Production at 1205kt (+3% YoY) +3% y-o-y ▪ Highest ever Half-Yearly Domestic Sales at 545 kt (+18% YoY) 594 596 609 ▪ Half yearly CoP lower by 8% YoY; ▪
Slide 8: Zinc India: Highest-ever mined and refined metal production
Zinc India Highest-ever mined and refined metal production ▪ Highest-ever 2Q mined metal and refined metal production ▪ Highest-ever quarterly EBITDA of the last 6 quarters at 256 kt and 262 kt, respectively ▪ Domestic zinc market share jumped from 71% to 78% y-o-y ▪ Quarterly silver production of 1
Slide 9: Zinc International: Strong performance led by improved mining
Zinc International Strong performance led by improved mining Total MIC Production Key highlights: 134 ▪ 2Q production jumps 16% sequentially supported by 21% increase at Gamsberg 16% increase q-o-q 81 ▪ Lowest-ever quarterly CoP for Gamsberg at $1,125/t 66 44 38 ▪ Highest quarterly EBITDA in last 6
Slide 10: Oil & Gas: Investing strategically to sustain long-term value
Oil & Gas Investing strategically to sustain long-term value Gross Production (kboepd) Key highlights: ▪ Volumes under OALP blocks rise to 3.8 kboepd in 1H, supported by ramp up of Jaya oilfield 134.1 134.5 112.4 104.9 108.6 ▪ Quarterly production at 105 kboepd, natural decline in MBA fields, partia
Slide 11: Iron and Steel
Iron and Steel Karnataka Iron Ore VAB ESL FACOR Production (mnt) Production (kt) Saleable Ferro Chrome production (kt) production (kt) 53 2.6 430 702 2.4 395 652 31 218 378 356 28 205 26 1.2 1.3 189 296 22 1.2 2Q 1Q 2Q 1H 1H 2Q 1Q 2Q 1H 1H 2Q 1Q 2Q 1H 1H 2Q 1Q 2Q 1H 1H FY24 FY25 FY25 FY24 FY25 FY24
Slide 12: KCM is one of Zambia’s largest integrated copper producers
KCM is one of Zambia’s largest integrated copper producers 300ktpa 664.4Mt @ 2.4% Cu Overview of KCM assets Peak Cu production Reserves & Resources Key statistics Shaft 1: Current: 1.2Mtpa • 16.2Mt Cu Reserves & Resources supporting a 50+ year LOM with significant Design: 1.9Mtpa upside opportunitie
Slide 13: KCM end-to-end business partner approach
KCM end-to-end business partner approach Mining Concentrator TLP Smelter & Refinery ▪ Mine Design & Planning ▪ Stockpile and Feed ▪ TLP Feed ▪ Plant Feed ▪ Mine Development ▪ Operations ▪ TLP Operations ▪ Plant Operations ▪ Maintenance ▪ Maintenance ▪ Maintenance ▪ Maintenance ▪ Ore Production ▪ Che
Slide 14: Konkola Copper Mines: Low-cost brownfield expansion to achieve 300ktpa
Konkola Copper Mines Low-cost brownfield expansion to achieve 300ktpa production Project and Execution plan to achieve 300 ktpa KDMP ramp up to Cost & EBITDA potential Mine Portfolio Strong R&R with high Capacity achieve metal profitability >$0.6bn with long life copper grade. Expansion production 1
Slide 15: Environment, Social & Governance
Environment, Social & Governance > VZI Sensitivity: Internal (C3)
Slide 16: Our commitment to excellence – our path to leadership
ESG Our commitment to excellence – our path to leadership Transforming Communities Transforming Planet Transforming Workplace 2.09 million 835 MW RE RTC 22% Families skilled Women in workforce, 33% Under Construction in enabling functions 0.7x 45 transgender 38 million Water Positivity Women & child
Slide 17: CSR - Empowering communities with focused actions
CSR - Empowering communities with focused actions Highlights ~3.5 million $ 18.4 mn ~ 6363 Total Beneficiaries in 1HFY25 CSR Spend in 1HFY25 Nand Ghars Healthcare Drinking water > $200mn spent on CSR > 38 Initiatives and sanitation activities since 2020 > 15 Initiatives 54 57 Community Children’s 53
Slide 18: Finance Update
Finance Update 1HFY25 VZI Sensitivity: Internal (C3)
Slide 19: 1HFY25 financial snapshot
1HFY25 financial snapshot EBITDA PAT before REVENUE EBITDA Margin2 special items $ 8,668 million $ 2,600 million 36% $ 690 million 6% y-o-y 1 39% y-o-y1 858 bps y-o-y1 ~5x y-o-y1 FCF (Pre-capex) Cash & Cash ROCE3 Net Debt/EBITDA Equivalent 23% $ 1,282 million 2.3x $ 3,583 million Strong double
Slide 20: EBITDA Bridge (1HFY25 vs. 1HFY24)
EBITDA BRIDGE (1HFY25 vs. 1HFY24) (In $ mn) +39% vs 1HFY24 EBITDA Alum 314 Zinc 217 Market & Regulatory $ 611 Mn 24 L E Input ore Rebased olume Cost and ar eting Others 2 Brent Commodity EBIT A Premium Inflation 20 1. Comparatives excludes One Time Cairn Arbitration Gain in 1HFY24 amounting to $583m
Slide 21: Net Debt Walk 1HFY25
Net Debt Walk 1HFY25 (In $mn) FCF post Capex $ 632 million Net ebt Cash low or ing capital Cape Sta e L Offer i idend IP issue Others Net ebt 3 ar 24 rom Sale in for sale 3 Sep 24 Operations E L 21 Vedanta Resources Limited 1HFY25 Investor Presentation VZI Sensitivity: Internal (C3)
Slide 22: Balance sheet and debt breakdown
Balance sheet and debt breakdown Net debt / EBITDA Debt breakdown Reduced to 2.3x in 1HFY25 vs 3.3x in FY20 Gross Debt In $bn 3.3 2.8 2.8 Term debt 13.86 2.6 2.3 Working capital 0.29 1.9 Short term borrowing 0.80 Total consolidated debt 14.94 FY20 FY21 FY22 FY23 FY24 1HFY25 Cash and Cash Equivalents
Slide 23: Continued disciplined investment in value adding growth
Continued disciplined investment in value adding growth ($ Bn) FY growth Capex guidance 0.7 1.1 2.0 1.7 1.9 Growth Capex profile Others 1.9 Oil & Gas Zinc Al & Power 1.4 0.8 1.2 0.7 0.5 0.4 0.7 0.7 0.1 0.3 0.3 0.3 0.4 0.3 0.0 0.4 0.0 0.3 0.1 0.1 0.2 0.1 0.3 0.2 0.2 0.2 0.1 0.1 FY2021 FY2022 FY2023 F
Slide 24: Appendix
VEDANTA RESOURCES LIMITED EARNINGS PRESENTATION 1HFY25 Appendix VZI Sensitivity: Internal (C3)
Slide 25: FY25 Production and Cost Guidance
FY25 Production and Cost Guidance Aluminium Oil and Gas Alumina 2.3-2.4 Mnt Average Gross 110-120 kboepd Aluminium 2.3-2.4 Mnt Volume CoP1 $1,625/t - $1,725/t Opex $14-15/boe Zinc India Zinc International Mined Metal 1,100 - 1,125 kt Gamsberg 160 - 170 kt Finished Metal 1,075 – 1,100 kt BMM 50 – 60
Slide 26: Income statement
Income statement ▪ Depreciation & Amortization: Increased by 6% YoY mainly due In $ Mn 1HFY25 1HFY24 to increased capitalization at Aluminium. Revenue from operations 8,668 8,1391 EBITDA 2,600 1,8771 ▪ Finance Cost: Higher by 22% YoY owing to increase in blended Depreciation & amortization (653) (61
Slide 27: Project capex
Project capex Approved Spent up to Spent in Unspent4 as on Capex in Progress (In $ mn) Status Capex2 FY243 1HFY25 30th Sep 2024 Cairn India1 – Mangala, Bhagyam & Aishwariya infill, 1,070 399 109 561 OALP, ABH infill, RDG infill, Offshore infill etc Aluminium Sector Jharsuguda VAP capacity expansion
Slide 28: Entity-wise Cash and Debt
Entity-wise Cash and Debt (In $ mn) Sep 30, 2024 Mar 31, 2024 Company Cash & Cash Cash & Cash Debt Net Debt Debt Net Debt Eq Eq Vedanta Limited Standalone 4,853 1,113 3,740 5,067 286 4,781 1 Cairn India Holdings Limited 255 184 71 220 143 77 Zinc India 1,631 949 683 1,015 1,221 (206) Zinc Internatio
Slide 29: Funding sources and term debt maturities
Funding sources and term debt maturities Diversified Funding Sources for Long Term Debt of $13.9 Bn Long Term Debt Maturities : $13.9 bn (as on Sep 30, 2024) (as of Sep 30, 2024) Standalone Subsidiaries 5.3 4.2 2.6 2.8 2.5 15% 1.5 2.8 2.0 In $ Bn Bonds INR 1.2 1.7 27% Term Loan INR 0.2 0.8 Term Loan
Slide 30: Segment summary
Segment summary Half Year Half Year Aluminium (in ’000 tonnes, or as Zinc India (in ’000 tonnes, or as stated) 1HFY25 1HFY24 stated) 1HFY25 1HFY24 Mined metal content 519 509 Saleable metal 524 501 Alumina – Lanjigarh 1,039 859 Refined Zinc1 409 394 Total Aluminum Production 1,205 1,173 Refined Lead
Slide 31: Segment summary- continue
Segment summary- continue Half Year Half Year Oil and Gas (In kboepd, or as stated) Steel in ‘ tonnes, or as stated) 1HFY25 1HFY24 1HFY25 1HFY24 Average Daily Gross Operated Production 108.6 134.5 Total Production 652 702 Rajasthan 88.9 112.1 Pig Iron 145 124 Ravva 11.1 11.3 Billet Production 418 49
Slide 32: Sales summary
Sales summary Half Year Half Year Sales volume Half Year Sales volume Sales volume 1HFY25 1HFY24 Power Sales (mu) 1HFY25 1HFY24 1HFY25 1HFY24 Iron ore sales Jharsuguda 1,534 1,124 Zinc-India Sales Goa (mn dmt) TSPL 0.0 0.1 5,851 5,625 Refined Zinc (kt) 408 393 Karnataka (mn dmt) 2.0 2.5 HZL Wind pow
Slide 33: Group structure
Group structure As of 30-Sep-24 Listed entities Vedanta Resources Ltd Unlisted entities Divisions of Vedanta Limited ⚫ Sesa Iron Ore 56.38% ⚫ Sterlite Copper ⚫ Power (600 MW Jharsuguda) Vedanta Ltd ⚫ Aluminium (Odisha aluminium and power assets) ⚫ Cairn Oil & Gas* Subsidiaries of Vedanta Ltd ⚫ Athen
Slide 34: Awards and Accolades
Awards and Accolades Recognitions towards our commitment to excellence Vedanta RA and SK Honored by the BALCO- Four Jharsuguda- CII mines- 5-Star Rajasthan GST Stars in British HZL- KPMG India National Award Rating from the Department for being Safety Council ESG Excellence for Energy Indian Bureau
Slide 35: Earnings Call Details
Earnings Call Details Event Detail Earnings conference call on Dec 30, 2024, from 3:30 PM to 4:30 PM (IST) Online Registration Link Click Here - Registration Link Call Recording This will be available on Company website on Dec 31, 2024 35 Vedanta Resources Limited 1HFY25 Investor Presentation
Slide 36: 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