Vedanta Limited · NSE:VEDL
Vedanta — Q3 FY2024 Earnings Presentation
49 slides from Vedanta's earnings presentation, Jan 25, 2024
Slide 1: Exchange cover letter: Outcome of Board Meeting
VEDL/Sec./SE/23-24/216 January 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
Slide 2: Press release: Q3 and nine months results
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, January 25, 2024: Unaudited Consolidated Results for the Third
Slide 3: Operational and ESG highlights
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 o Quarterly cost reduction of 15%YoY and 4%QoQ driven by strong volume and commercial e
Slide 4: ESG highlights and Executive Director comments
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 VAL-J improved water recycling rate to 14%. HZL flagged off 10 EV trucks, each with
Slide 5: Revenue and EBITDA commentary
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 Revenue o 3QFY24 Revenue at ₹34,968 crore, up 4% QoQ1, driven by higher sales volume,
Slide 6: Key Recognitions and Results Conference Call
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 Key Recognitions – Vedanta has consistently received various awards and accolades. Few
Slide 7: About Vedanta Limited
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 *In case of dial-ins from any other country, please use the online registration link fo
Slide 8: Earnings Presentation 3QFY24
EARNINGS PRESENTATION 3QFY24 VEDANTA LIMITED TRANSFORMING TOGETHER Inclusive. Responsible. Value-accretive delivery Sensitivity: Internal (C3)
Slide 9: 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 10: Business Performance
Business Performance Arun Misra Executive Director Vedanta Limited Sensitivity: Internal (C3)
Slide 11: Sustainability Leadership
Sustainability Leadership Solidifying our ESG commitment with S&P CSA ranking upgrade from 6th to 3rd Vedanta Limited ranked 3rd in S&P Global Corporate Sustainability Assessment (CSA) in Metal and Mining Industry Group among 238 companies. Our subsidiary Hindustan Zinc topped the index. Integrating
Slide 12: Steadily progressing on our repurposed ESG strategy
Steadily progressing on our repurposed ESG strategy Net carbon neutrality by 2050 Achieving net water positivity Innovating for a greener or sooner by 2030 business model Solar Panels Affluent treatment plant at HZL Miyawaki forestation Update on Initiatives Update on Initiatives Update on Initiativ
Slide 13: Empowering communities with focused actions
Empowering communities with focused actions Highlights 16.53 million ₹ 308 crore 5700+ Total Beneficiaries CSR Spend in 9MFY24 Operational Nandghar Healthcare Drinking water > 1800 crore spent on CSR > 30 Initiatives and sanitation activities since 2020 > 15 Initiatives ₹ crore Community Children’s
Slide 14: Workplace Diversity Equity and Inclusion
Workplace Diversity Equity and Inclusion Redefining workplace diversity equity and inclusivity with progressive policies Diversity Equity Inclusivity • V-Lead: Building Army of 100 • Hiring 30% women in core • Launched Parenthood & Childcare > women CXOs through focused operations from premium insti
Slide 15: Good time ahead for power sector in India
Power Sector Good time ahead for power sector in India Strong Correlation between GDP and RE installed capacity vs RE % share Power Consumption Per Capita (units)1 Power Demand Growth %1 in power generation mix2 Electricity Requirement Growth Rate 1600 50% 25,940 45% 44% 1380 45% GDP Growth Rate 140
Slide 16: Vedanta's Power vertical vision on the face of opportunity
Vedanta’s Power vertical vision on the face of opportunity “Capture a larger pie of the growth opportunities available in the Power Sector 2.0 & contribute to fuel the growth to achieve a 7 Trillion $ Indian economy by 2030” Thermal Opportunity Vedanta’s Installed IPP Capacity Peak Power - Demand Ca
Slide 17: 3QFY24 Operational Highlights
3QFY24 Operational Highlights Leveraging cost efficiency to offset weak commodity prices and boost margins Aluminium Zinc India Iron and Steel Other Highlights Cast house, Jharsuguda Dariba Smelting Complex, HZL Coke oven plant, ESL Steel Fumer Plant, Chanderiya RD Mill Mined Metal Production IOK Sa
Slide 18: Cost Leadership
Cost Leadership Vedanta scales the global cost curve, quarter by quarter Aluminium Cost ($/t) 2,653 ✓ Stands in the first quartile of the global cost curve. ✓ Sustained cost reduction for 6 consecutive quarters > ✓ 900$/t reduction in CoP in last 6 quarters ✓ Expected to comfortably achieve annual g
Slide 19: Aluminium Business
Aluminium Business Focused on growth and business integration Aluminium Production (kt) Key Highlights: +3% y-o-y ▪ Highest ever quarterly aluminium production up 6% y-o-y, +6% y-o-y 1,716 1,772 1% q-o-q ▪ Highest ever production run rate 594 599 566 ▪ Increasing trend for 4th consecutive quarter ▪
Slide 20: Aluminium Business: Vision to be 3 MTPA Integrated Aluminium producer
Aluminium Business: Vision to be 3 MTPA Integrated Aluminium producer Aluminium Value Chain – Existing Post Expansion (< 2 years) Target Outcome Bauxite Alumina Smelting Bauxite Alumina Smelting Vertically ~6 MTPA Aluminium Aluminium integrated (50% – domestic 2 MTPA 9 MTPA 51 MTPA (45% Captive) 2.3
Slide 21: Zinc India
Zinc India Robust performance rooted by strategy, sustained cost optimization and ESG excellence ▪ Highest ever 9 Months mined metal production at 780 kt and ▪ HZL in 1st decile of global zinc mines cost curve silver production at 556 MT. ▪ Ranked highest globally in S&P Corporate Sustainability ▪ Q
Slide 22: 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) BMM Gamsberg - 38% q-o-q 51 $466 mn 500+ 49 Approved Capex 450 159 80 60 17 18 126 4 MTPA →
Slide 23: Oil & Gas
Oil & Gas Focussed on volume enhancement through accelerating growth projects Gross Production (kboepd) Key highlights: 145 144 ▪ 3QFY24 production at 123 kboepd, natural decline in the MBA 134 131 123 fields has been partially offset by infill wells brought online in ABH, Aishwariya, and Bhagyam fi
Slide 24: Iron and Steel
Iron and Steel Driving performance with consistent production growth, paving ways for future capacities Karnataka Iron Ore VAB ESL FACOR Sales (mnt) Production (kt) Saleable production (kt) Ferro Chrome production (kt) 1,043 53 4.2 633 48 899 3.3 510 +11% y-o-y +15% y-o-y +43% y-o-y 378 22 22 1.6 20
Slide 25: Iron & steel: Potential to create long term growth
Iron & steel: Potential to create long term growth 4 MTPA 13 MTPA 500 KTPA 12 KTPA STEEL & Pig Iron IRON ORE FERRO ALLOY NICKEL ▪ Expansion at Bokaro / Goa ▪ Production ramp up in Liberia ▪ Underground Mine ▪ Capacity expansion ▪ Greenfield at Bellary ▪ Concentrator plant in Liberia expansion to 1.5
Slide 26: Finance Update
VEDANTA LIMITED Finance Update 3QFY24 Ajay Goel Chief Financial Officer Sensitivity: Internal (C3)
Slide 27: 3QFY24 financial snapshot
3QFY24 financial snapshot PAT before REVENUE EBITDA EBITDA Margin2 exceptional ₹ 34,968 crore ₹ 8,677 crore 29% ₹ 2,868 ₹ 3,132 crorecrore 4% q-o-q1 21% q-o-q1 438 bps q-o-q1 112% q-o-q1 (+ 1% vs 3QFY23) Cash & Cash ROCE3 FCF (Pre-capex) Net Debt/EBITDA Equivalent c.23% ₹ 4,306 crore 1.70x ₹
Slide 28: EBITDA Bridge (3QFY24 vs. 2QFY24)
EBITDA BRIDGE (3QFY24 vs. 2QFY24) (In ₹ crore) +21% vs 2QFY24 Adj EBITDA Alum 122 Zinc 109 IOB 183 Market & Regulatory ₹605 crore 2 23 1. Ex rate: 3QFY24 83.25 vs 2QFY24 82.68 Vedanta Limited 2. One off Impact is one time Cairn Arbitration Gain in 2QFY24 Sensitivity: Internal (C3) 3QFY24 Investor Pr
Slide 29: EBITDA Bridge (3QFY24 vs. 3QFY23)
EBITDA BRIDGE (3QFY24 vs. 3QFY23) (In ₹ crore) +22% vs 3QFY23 EBITDA Alum (642) Zinc (568) Oil & Gas (401) Iron Ore 254 Market & Regulatory ₹1,128 crore 24 Ex rate: 3QFY24 83.25 vs 3QFY23 82.14 Vedanta Limited Sensitivity: Internal (C3) 3QFY24 Investor Presentation
Slide 30: Net Debt Walk 3QFY24
Net Debt Walk 3QFY24 (In ₹ crore) FCF post Capex ₹1,461 crore 25 Vedanta Limited Sensitivity: Internal (C3) 3QFY24 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 1.88 1.64 Term debt 8.37 69.67 1.70 1.28 Working capital 0.21 1.78 0.96 Short term borrowing 0.46 3.78 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 Total consolidated debt 9.04 75.23 • Liquidity: Cash and Cash
Slide 32: FY25 key priorities
FY25 key priorities Sustain positive momentum in production growth across businesses Drive margin expansion through focused cost compression and marketing Create resilient and integrated Aluminium operations Continued focus on sustainable shareholder value creation Deliver capex projects on schedule
Slide 33: Appendix
VEDANTA LIMITED EARNINGS PRESENTATION 3QFY24 Appendix Sensitivity: Internal (C3)
Slide 34: Summary of Income statement
Summary of Income statement 3Q 2Q 3Q Commentary In ₹ Crore FY24 FY24 FY23 ▪ Depreciation & Amortization: Increased by 6% q-o-q Revenue from operations 34,968 33,738* 33,691 largely due to capitalization at HZL and Oil & Gas Business. Other operating income 573 399 411 ▪ Finance Cost: Deceased by 4%
Slide 35: Entity-wise Cash and Debt
Entity-wise Cash and Debt Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Company Cash & Cash & Cash & Debt Net Debt Debt Net Debt Debt Net Debt Cash Eq Cash Eq Cash Eq Vedanta Limited Standalone 44,134 1,052 43,082 42,494 1,959 40,535 45,245 3,388 41,857 Cairn India Holdings Limited1 1,839 879 960 2,628 1,8
Slide 36: Funding sources and term debt maturities
Funding sources and term debt maturities Diversified Funding Sources for Long Term Debt of $8.4 Bn Long Term Debt Maturities : ₹ 69.7K crore ($8.4 bn) (as of Dec 31, 2023) (as of Dec 31, 2023) Standalone Subsidiaries 0.1% In ₹ 000’ crore 19% 15% 34.6 Bonds INR Term Loan INR Term Loan Fx 16.6 Bonds F
Slide 37: Segment Summary – Aluminium
Segment Summary – Aluminium Particulars (in’000 tonnes, or as Quarter 9 months stated) 3QFY24 3QFY23 % YoY 2QFY24 9MFY24 9MFY23 % YoY Alumina – Lanjigarh 470 443 6% 464 1,329 1382 (4%) Total Aluminum Production 599 566 6% 594 1,772 1,716 3% Jharsuguda 452 424 7% 447 1,332 1,291 3% Balco 147 142 4% 1
Slide 38: Aluminium profitability
Aluminium profitability 1,735 $/t 0 179 3QFY24 2,369 2,190 707 1,662 597 431 56 578 LME Strategic Premium Realisation Alumina Power Other hot Conversion & EBITDA Hedging metal other 1,814 Hot metal cost 2QFY24 2,154 5 201 2,360 (697) (625) (493) (142) 403 33 Vedanta Limited Sensitivity: Internal (C3
Slide 39: Segment Summary – Zinc India
Segment Summary – Zinc India Quarter 9 Months Production (in ’000 tonnes, or as stated) 3QFY24 3QFY23 % YoY 2QFY24 9MFY24 9MFY23 % YoY Mined metal content 271 254 7% 252 780 761 2% Integrated metal 259 257 1% 241 760 762 0% Refined Zinc – Integrated 203 210 (4%) 185 597 606 (1%) Refined Lead – Integ
Slide 40: Segment summary – Zinc International
Segment summary – Zinc International Quarter 9 Months Production (in’000 tonnes, or as stated) 3QFY24 3QFY23 % YoY 2QFY24 9MFY24 9MFY23 % YoY Mined metal content- BMM 12 17 (30%) 18 49 51 (3%) Mined metal content- Gamsberg 29 52 (44%) 48 126 159 (21%) Total 41 69 (40%) 66 175 210 (17%) Financials (I
Slide 41: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Quarter 9 Months Oil and Gas (boepd) 3QFY24 3QFY23 % YoY 2QFY24 9MFY24 9MFY23 % YoY Average Daily Gross Operated Production 123,413 144,789 (15%) 134,092 1,30,776 1,44,441 (9)% (boepd) Rajasthan 103,873 118,314 (12%) 112,215 1,09,325 1,22,291 (11%) Ravva 10,223 13,064 (22
Slide 42: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Quarter 9 Months Oil and Gas (boepd) 3QFY24 3QFY23 % YoY 2QFY24 9MFY24 9MFY23 % YoY Average Daily Production Gross operated 1,23,413 1,44,789 (15%) 1,34,092 1,30,776 1,44,441 (9%) Oil 1,00,550 1,18,530 (15%) 1,09,117 1,06,860 1,21,015 (12%) Gas (Mmscfd) 137 158 (13%) 150
Slide 43: Segment Summary – Iron Ore and Steel
Segment Summary – Iron Ore and Steel Iron Ore Particulars (in million dry metric tonnes, or Quarter 9 Months as stated) 3QFY24 3QFY23 % YoY 2QFY24 9MFY24 9MFY23 % YoY Production of Saleable Ore 1.4 1.4 (3%) 1.2 3.8 3.8 1% Goa - - - - - Karnataka 1.4 1.4 (3%) 1.2 3.8 3.8 1% Production (’000 tonnes) P
Slide 44: Segment Summary – Facor and Copper
Segment Summary – Facor and Copper Copper Quarter 9 Months Production (in ’000 tonnes, or as stated) 3QFY24 3QFY23 % YoY 2QFY24 9MFY24 9MFY23 % YoY Copper - Cathodes 43 34 27% 35 110 114 (4%) Financials (In ₹ crore, except as stated) Revenue 5,376 4,158 29% 4,606 14,715 12,384 19% EBITDA 7 (55) - (6
Slide 45: Sales Summary – Zinc and Aluminium
Sales Summary – Zinc and Aluminium Quarter 9 Months Sales volume 3QFY24 3QFY23 2QFY24 9MFY24 9MFY23 Zinc-India Sales Refined Zinc (kt) 203 210 185 596 605 Refined Lead (kt) 56 46 57 163 157 Total Zinc-Lead (kt) 259 257 242 759 762 Silver (tonnes) 197 161 181 556 532 Zinc-International Sales Zinc Con
Slide 46: Sales summary – Iron & Steel, FACOR and Power
Sales summary – Iron & Steel, FACOR and Power Quarter 9 Months Sales volume Quarter 9Months Sales volume 3QFY24 3QFY23 2QFY24 9MFY24 9MFY23 Power Sales (mu) 3QFY24 3QFY23 2QFY24 9MFY24 9MFY23 Iron ore sales Jharsuguda 716 736 506 1840 2207 Goa (mn dmt) 0.1 0.2 0.0 0.3 0.6 TSPL 2466 2,652 2795 8091 8
Slide 47: Group structure
Group structure As of 31-Dec-23 Listed entities Vedanta Resources Ltd Unlisted entities Divisions of Vedanta Limited ⚫ Sesa Iron Ore 63.71% ⚫ Sterlite Copper ⚫ Power (600 MW Jharsuguda) Vedanta Ltd ⚫ Aluminium (Odisha aluminium and power assets) ⚫ Cairn Oil & Gas* Subsidiaries of Vedanta Ltd ⚫ Athen
Slide 48: 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 9MFY24 Impact on Commodity Average price EBITDA ($mn) Oil ($/bbl) 83 50 Zinc ($/t) 2,
Slide 49: Earnings conference call dial in details
Earnings conference call dial in details Event Telephone Number Earnings conference call +91 22 6280 1114 on January 25, 2024, from Universal Dial-In +91 22 7115 8015 4:45 to 5:45 PM (IST) India National Toll Free 1 800 120 1221 Canada 01180014243444 Hong Kong 800964448 Japan 00531161110 Internation