Vedanta Limited · NSE:VEDL
Vedanta — Q1 FY2022 Earnings Presentation
46 slides from Vedanta's earnings presentation, Jul 26, 2021
Slide 1: Q1 FY2022 Earnings Presentation
VEDANTA LIMITED INVESTOR PRESENTATION 26 JULY 2021 Q1 FY2022 Earnings Presentation Sensitivity: Internal (C3)
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 FY22 Review & Business Update Sunil Duggal, CEO 4 Financial Update Ajay Goel, Deputy CFO 23 Appendix 30 VEDANTA LIMITED – Q1 FY2022 INVESTOR PRESENTATION 3 Sensitivity: Internal (C3)
Slide 4: Q1 FY2022 Review and Business Update
VEDANTA LIMITED INVESTOR PRESENTATION Q1 FY2022 Q1 FY2022 Review and Business Update Sunil Duggal Group CEO & Chief Safety Officer Sensitivity: Internal (C3)
Slide 5: Vedanta Cares: Our Efforts to Help India during COVID
Vedanta Cares: Our Efforts to Help India during COVID Benefitted ~530,000 people over 500 villages in 9 states ~2,243 502 350,000 METRIC TONNES OXYGEN PEOPLE OF MEDICAL CONCENTRATORS VACCINATED OXYGEN SUPPLIED DISTRIBUTED 1,966* 100,000 COVID CARE BEDS PPE KITS ACROSS 21 SUPPLIED HOSPITALS * Includi
Slide 6: Vedanta Cares: Roadmap for ₹5,000 crore in Next Years
Vedanta Cares: Roadmap for ₹ 5,000 crore in Next 5 Years Vedanta has spent more than ₹ 2,000 crore in the last 5 years in CSR Footprint: Over 75 Lacs people to be benefitted in next 5 years Launch of Swasth Gaon Abhiyaan Working with Global Partners Health Care Women & Child Animal Welfare Sports CS
Slide 7: Vedanta Cares: Swasth Gaon Abhiyaan across 1000 villages
Vedanta Cares: Swasth Gaon* Abhiyaan across 1000 villages COVID Support During Potential Third Wave Corona Mukt Gaon^ 1,000 Villages 23 Districts Major Thrust Areas 11 States Vaccination Drive across the villages Oxygen Generation Plants / Oxygen Concentrators Telemedicine Services (e-Sanjeevani) Me
Slide 8: Our Preparation For COVID
Our Preparation For COVID All necessary infrastructure available at site; hospital beds, oxygen and doctor staff. Additionally, we have tie ups with hospitals for emergency Global Standards to Manage Health & Hygiene at Workplace 24*7 health helpline for employees and their family members Most of ou
Slide 9: Heading Towards – Zero Harm, Zero Waste, Zero Discharge
Heading Towards – Zero Harm, Zero Waste, Zero Discharge Safety Program Update Environment Update ▪ 11 Critical risks identified, with CEO ownership ▪ Digitalization of tailing dam at HZL completed ▪ Implementation of fatality learnings across Tailings ▪ Second assurance of tailing dams underway by C
Slide 10: Key Highlights
Key Highlights ▪ Continued strong momentum across all businesses ✓ Aluminium, highest ever production 549kt* and margin of 36%, won Kuraloi (A) North coal block ✓ Zinc India, sustained production, one of strongest Q1 performance ✓ Zinc International, Ever highest production at Gamsberg 46kt ✓ O&G, G
Slide 11: Key Highlights
Key Highlights ▪ Portfolio ✓ Sweet spot - production ramping up across all businesses ✓ Diversified product portfolio ✓ Best among peers with ferro chrome & Met coke recent additions ▪ Growth ✓ Continue ramp up in Oil & Gas, Zinc India, Zinc International, Steel and Aluminium ✓ Leveraging structural
Slide 12: Key Focus Areas For Value Delivery
Key Focus Areas For Value Delivery 1 ESG ▪ Disproportionate focus on sustainable ways of working 8 1 ▪ Upgraded sustainability board committee to ESG board committee 2 Centre of Excellence set up (R&D, Asset health, Innovation and Quality) 7 2 3 Digital transformation Key focus areas for value deliv
Slide 13: Aluminium: Success Continues; Growing Value in Dynamic World
Aluminium: Success Continues; Growing Value in Dynamic World Highest Ever Aluminium Production* Alumina Production & COP 549 476 496 482 531 469 1,526 1,433 246 258 1,268 218 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 Production (kt) COP ($/t) Production (kt) COP ($/T) ▪ Further pots ramp up go
Slide 14: Aluminium: Well Poised to be among Global Leaders
Aluminium: Well, Poised to be among Global Leaders 2.8 Capacity (Mtpa) Step towards Vertical Integration 2.2 1.9 Steps towards Vertical Integration ▪ Lanjigarh expansion by Q1 FY23 (Mobilization FY21 FY22 e 1-2 years on track) ▪ Lanjigarh ▪ Jharsuguda ▪ 100% JSG Ramp-up Debottlenecking (Projects on
Slide 15: Zinc India: Strong Foundation Driving Growth
Zinc India: Strong Foundation Driving Growth ▪ One of the strongest Q1 performance World class technologies for upgrading R&R to 550 million tonnes ▪ Post Integration, the shafts at Rampura Agucha Mine and Sindesar Khurd Mine are fully operational Advanced technology for upgrading R&R ▪ Metal Produc
Slide 16: Zinc International: Gamsberg Positioning for Long Term Value Creation
Zinc International: Gamsberg Positioning for Long Term Value Creation Consistently Achieved Better than Design Crusher Throughput (tph) Highest ever Quarterly Ore Mined 870kt 817 782 Highest ever Quarterly Ore Treatment of 1,056kt 684 684 Highest ever Quarterly Mill Utilization of 91% Design Q1 FY21
Slide 17: Zinc International: Accelerating Ramp Up at Gamsberg
Zinc International: Accelerating Ramp Up at Gamsberg On Track Of Achieving Guidance 145kt 46kt 190-210kt FY21 Q1 FY22 FY22e Q2 Key Priorities Mill recovery Increase Mill Enabling projects Mining ramp-up ramp up Throughput commissioning Enhancing mining Target to achieve Increase Mill Sag mill feed h
Slide 18: Oil & Gas: Steady Operations, Delivery Of Growth Projects on Track
Oil & Gas: Steady Operations, Delivery Of Growth Projects on Track Operations Growth Projects ▪ Production: 165 kboepd in Q1 FY22 vs 165 ▪ Raageshwari Deep Gas: kboepd in Q4 FY21. Gas volumes for Rajasthan ▪ New terminal fully operational; production were impacted by COVID ramped up to ~32 kboepd ▪
Slide 19: Oil & Gas: Upcoming Growth Projects
Oil & Gas: Upcoming Growth Projects New Growth projects with Capex of $350 mn progressing as per plan Capex of ~$200 million to monetize 40 mmboe of reserves ▪ Mangala: Drilling commenced Infill wells to add near term volume ▪ Aishwariya Barmer Hill: Drilling to commence in Q3 FY22 ▪ Raageshwari Dee
Slide 20: Iron ore: Resilient Results in Extraordinary Times
Iron ore: Resilient Results in Extraordinary Times Capitalised opportunity of increased Global prices Performance Update through Exports from Goa 0.8 ▪ Highest ever quarterly margin at VAB of $184/t, up 0.6 Sales (Mnt) 0.4 6x y-o-y and 20% q-o-q ▪ Highest ever quarterly Hot Metal production at Q1 FY
Slide 21: ESL Steel: Capacity Expansion Underway
ESL Steel: Capacity Expansion Underway Performance Update Doubling Hot Metal Capacity Activities Are On Track ▪ Saleable Production 289kt, up 8% y-o-y however down 9% q-o-q due to instabilities and hanging issues at blast furnace ▪ Sales 265kt, down 13% y-o-y and 18% q-o-q due to challenging domesti
Slide 22: FACOR: Delivering Stronger Growth
FACOR: Delivering Stronger Growth Turnaround Performance from Mines Stable Fe Chrome production by optimizing operations and better process control. Ore Production (kt) 123 56 38 Plant productivity increased by ~11% post completion of annual maintenance shutdown of 7 Q1 FY21 Q4 FY21 Q1 FY22 days in
Slide 23: Finance Update
VEDANTA LIMITED INVESTOR PRESENTATION Q1 FY2022 Finance Update Ajay Goel Deputy Chief Financial Officer Sensitivity: Internal (C3)
Slide 24: Financial snapshot
Financial snapshot Revenue EBITDA EBITDA Margin 1 Attributable PAT (before exceptional items) ₹ 28,105 cr ₹ 10,032 cr 41% ₹ 4,280cr Up 79% y-o-y Up 150% y-o-y Industry leading margin Up 314% y-o-y ROCE 2 Cash and Cash ND ND/EBITDA equivalents c.22% ₹ 31,318 cr ₹ 20,261cr 0.6x Up ~375 bps Q-o-Q Stron
Slide 25: EBITDA Bridge (Q1 FY2022 vs. Q1 FY2021)
EBITDA Bridge (Q1 FY2022 vs. Q1 FY2021) (In ₹ crore) Aluminum 3,820 Cairn (318) Zinc, Lead & Silver 2,047 Al 132 Oil & Gas 887 IOB 528 Facor, ASI 134 ESL 404 Copper (22) ZI (26) 7,686 933 471 10,042 455 339 248 126 10,032 Al (558) Cairn (48) HZL,ZI 249 IOB 36 4,008 HZL,ZI 257 IOB 119 Al 125 Market &
Slide 26: EBITDA Bridge (Q1 FY2022 vs. Q4 FY2021)
EBITDA Bridge (Q1 FY2022 vs. Q4 FY2021) (In ₹ crore) Aluminium 1258 Cairn (187) Zinc, Lead & Silver 315 Al 55 Cairn 200 Power 98 IOB 120 ZI 97 Facor, ASI 63 1,928 427 … 132 … 35 10,775 705 190 152 10,032 9,107 HZL (214) Al (112) IOB 40 Cairn 38 Market & Regulatory HZL (495) ₹ 1,668 crore IOB (154) E
Slide 27: Net Debt for Q1 FY2022
Net Debt for Q1 FY2022 (In ₹ crore) Inventory, Debtors & Others (2,960) Creditors/ Customers Advance (1,133) 24,414 8,942 2,082 1,496 109 20,261 4,093 FCF Post Capex ₹ 2,767 Cr CF from WC Capex Inter co. loan Translation Net Debt Net Debt Operations Movements Repayment & Others* 30th Jun’21 1st Apr’
Slide 28: Balance Sheet and Debt Breakdown
Balance Sheet and Debt Breakdown Net Debt / EBITDA – lowest in last 4 years Debt Breakdown (as of 30th Jun 2021) 1.1 1.0 Debt breakdown as of 0.9 0.9 (in $bn) (₹ in 000’ Cr) 0.6 30th Jun 2021 Term debt 6.6 49.2 Working capital 0.1 0.7 FY'18 FY'19 FY'20 FY'21 Q1 FY'22 Short term borrowing 0.2 1.7 ▪ L
Slide 29: Strategy to Enhance Long Term Value
Strategy to Enhance Long Term Value Continue Focus on World Class ESG Performance Augment Our Reserves & Resources Base Operational Excellence and Cost Leadership Optimise Capital Allocation & Maintain Strong Balance Sheet Delivering on Growth Opportunities VEDANTA LIMITED – Q1 FY2022 INVESTOR PRESE
Slide 30: Appendix
VEDANTA LIMITED INVESTOR PRESENTATION Q1 FY2022 Appendix Sensitivity: Internal (C3)
Slide 31: Income Statement
Income Statement Depreciation & Amortization In ₹ Crore Q1 Q1 Q4 FY’22 FY’21 FY’21 ▪ Higher majorly on account of project capitalization Revenue from operations 28,105 15,687 27,874 at Oil & Gas and higher ore production at Zinc Other operating income 307 286 332 business. EBITDA 10,032 4,008 9,107
Slide 32: Entity Wise Cash and Debt
Entity Wise Cash and Debt (In ₹ crore) Jun 30, 2021 Mar 31, 2021 Jun 30, 2020 Company Cash & Cash & Cash & Debt Net Debt4 Debt Net Debt Debt Net Debt5 Cash Eq4 Cash Eq Cash Eq5 Vedanta Limited Standalone 27,788 2,246 25,542 32,166 5,851 26,315 33,247 3,996 29,251 Cairn India Holdings 2,821 2,000 821
Slide 33: Funding Sources and Term Debt Maturities
Funding Sources and Term Debt Maturities Diversified Funding Sources for Term Debt of $6.6bn Term Debt Maturities : ₹ 49,164 Cr ($6.6bn) (as of 30th Jun 2021) (as at 30th Jun’21) 47% 1% 23.0 Term Loans-INR 10% Bonds-INR 20% 8.3 17% Term Loans- 23% 16% ₹ ‘000 Crore USD/Foreign Currency 8.5 9.8 Bonds-
Slide 34: Segment Summary – Zinc India
Segment Summary – Zinc India Q1 Q4 Full year Production (in ’000 tonnes, or as stated) FY 2022 FY 2021 % change YoY FY2021 FY 2021 Mined metal content 221 202 9% 288 972 Integrated metal 236 202 17% 256 930 Refined Zinc – Integrated 188 157 20% 195 715 1 Refined Lead – Integrated 48 44 9% 61 214 Ref
Slide 35: Segment Summary – Zinc International
Segment Summary – Zinc International Q1 Q4 Full year Production (in’000 tonnes, or as stated) FY 2022 FY 2021 % change YoY FY2021 FY 2021 Refined Zinc – Skorpion - 1 - - 1 Mined metal content- BMM 15 12 25% 14 58 Mined metal content- Gamsberg 46 25 84% 41 145 Total 61 38 61% 55 203 Financials (In ₹
Slide 36: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Q1 Q4 Full year OIL AND GAS (boepd) FY 2022 FY 2021 % change YoY FY2021 FY 2021 Average Daily Gross Operated Production 164,899 158,779 4% 165,000 162,104 (boepd) Rajasthan 139,798 127,937 9% 138,057 132,599 Ravva 14,662 22,037 (33)% 16,258 19,177 Cambay 10,440 8,805 19%
Slide 37: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Q1 Q4 Full year OIL AND GAS (boepd) FY 2022 FY 2021 % change YoY FY2021 FY 2021 Average Daily Production Gross operated 164,899 158,779 4% 165,000 162,104 Oil 139,978 142,772 (2)% 139,818 140,353 Gas (Mmscfd) 150 96 56% 151 131 Non-operated- Working interest 530 492 8% 55
Slide 38: Segment Summary – Aluminium
Segment Summary – Aluminium Q1 Q4 Full year Particulars (in’000 tonnes, or as stated) FY 2022 FY 2021 % change YoY FY2021 FY 2021 Alumina – Lanjigarh 482 476 1% 496 1,841 Total Aluminum Production* 549 469 17% 531 1,969 Jharsuguda-I 137 132 3% 137 533 Jharsuguda-II* 267 199 34% 250 867 245kt Korba-I
Slide 39: Aluminium profitability
Aluminium profitability $/t Q4 FY21 2,096 59 71 2,226 (616) (494) (323) (101) 692 (131) (298) 263 1,433 Q1 FY22 1,526 73 69 2,542 2,400 664 499 363 64 951 132 284 535 245 LME Ingot Value Other EBITDA Realisation Alumina Power Conversion Dep Int PBT Premium addition Hot & Others Metal VEDANTA LIMITED
Slide 40: Segment Summary – Power
Segment Summary – Power Q1 Q4 Full year Particulars (in million units) FY 2022 FY 2021 % change YoY FY2021 FY 2021 Total Power Sales 2,716 1,843 47% 3,352 11,261 Jharsuguda 545 685 (20)% 558 2,835 BALCO 409 403 1% 380 1,596 HZL Wind Power 134 112 20% 65 351 TSPL 1,628 643 - 2,349 6,479 Financials (i
Slide 41: Segment Summary – Iron Ore and Steel
Segment Summary – Iron Ore Particulars (in million dry metric tonnes, or Q1 Q4 Full year as stated) FY 2022 FY 2021 % change YoY FY2021 FY 2021 Sales 1.7 1.0 63% 2.2 6.5 Goa 0.4 0.6 (32)% 0.8 2.1 Karnataka 1.3 0.4 - 1.4 4.4 Production of Saleable Ore 1.4 0.9 53% 1.2 5.0 Goa - - - 0.0 0.0 Karnataka 1
Slide 42: Segment Summary – FACOR and Copper India
Segment Summary – FACOR* Q1 Q4 Full year Particulars (in ‘000 tonnes, or as stated) FY 2022 FY 2021 % change YoY FY2021 FY 2021 Total Production Ore Production 123 38 - 56 147 Ferrochrome Production 18 15 26% 18 68 Financials (In ₹ crore, except as stated) Revenue 170 109 56% 151 274 EBITDA 62 8 - 5
Slide 43: Sales Summary
Sales Summary Sales volume Q1 FY2022 Q1 FY2021 Q4 FY2021 FY2021 Zinc-India Sales Refined Zinc (kt) 187 163 198 724 Refined Lead (kt) 49 45 62 216 Total Zinc-Lead (kt) 236 208 260 940 Silver (tonnes) 160 146 203 735 Zinc-International Sales Zinc Refined (kt) 0 1 0 1 Zinc Concentrate (MIC) 53 28 51 17
Slide 44: Sales Summary
Sales Summary Q1 Q1 Q4 Sales volume Q1 Q1 Q4 Sales volume FY 2021 FY 2021 FY 2022 FY 2021 FY 2021 Power Sales (mu) FY 2022 FY 2021 FY 2021 Iron-Ore Sales Jharsuguda 545 685 558 2,835 Goa (Mn DMT) 0.4 0.6 0.8 2.1 TSPL 1,628 643 2,349 6,479 Karnataka (Mn DMT) 1.3 0.4 1.4 4.4 BALCO 409 403 380 1,596 To
Slide 45: Currency and Commodity Sensitivities
Currency and Commodity Sensitivities Foreign Currency - Impact of ₹ 1 depreciation in FX Rate Currency Increase in EBITDA INR/USD ~ ₹ 850 crore / year Commodity prices – Impact of a 10% increase in Commodity Prices Q1 FY 22 Impact on Commodity Average price EBITDA ($mn) Oil ($/bbl) 69 16 Zinc ($/t)
Slide 46: Results Conference Call Details
Results Conference Call Details Results conference call is scheduled at 6:00 PM (IST) on July 26, 2021. The dial-in numbers for the call are given below: Event Telephone Number Earnings conference call on July 26, 2021 India – 6:00 PM (IST) Local Dial-in +91 7045671221 Toll free: 1800 120 1221, 1800