Vedanta Limited · NSE:VEDL
Vedanta — Q1 FY2025 Earnings Presentation
45 slides from Vedanta's earnings presentation, Aug 6, 2024
Slide 1: Outcome of Board Meeting cover letter to exchanges
VEDL/Sec./SE/24-25/124 August 06, 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 A
Slide 2: Results for the First Quarter ended 30th June 2024
Results for the First Quarter ended 30th June 2024 Vedanta Limited “Vedanta quarterly Profit After Tax (PAT) at ₹ 5,095 crore, surges 54% YoY” “Demerger scheme filed with NCLT; demerger is on track” “Net debt to EBITDA improved to industry best 1.5x from 1.9x” Mumbai, August 6, 2024: Vedanta Limited
Slide 3: Operational highlights and management commentary
Results for the First Quarter ended 30th June 2024 o Highest-ever mined metal production in first quarter at 263 kt, up 2% YoY. o Highest-ever refined metal production in first quarter at 262 kt, up 1% YoY. ▪ Zinc International o Mined metal production of Zinc International at 38 kt, up 13% QoQ beca
Slide 4: 1QFY25 ESG Highlights
Results for the First Quarter ended 30th June 2024 1QFY25 ESG Highlights ▪ Renewable Energy (RE): RE Power Delivery agreements (PDAs) of 1836 MW in place. Initiated utilization of renewable energy at HZL for its operations from RE-RTC projects. HZL already consumed c.8.5% RE power of total requireme
Slide 5: Consolidated Financial Performance
Results for the First Quarter ended 30th June 2024 o 1QFY25 EBITDA higher by 47% YoY on account of structural cost saving initiatives across businesses, easing of input commodity inflation, favorable output commodity prices. o EBITDA margin1 at 34% in 1QFY25, improved ~1000 bps YoY. ▪ Depreciation &
Slide 6: 1QFY25 Awards and Recognitions
Results for the First Quarter ended 30th June 2024 1QFY25 Awards and Recognitions - ▪ Risk Management: Double Sweep for Hindustan Zinc Limited at ICICI Lombard India Risk Management Awards - Best Risk Practice and Master of Risk in ESG ▪ Safety: Cairn India won RoSPA Gold Award 2023 for occupational
Slide 7: About Vedanta Limited
Results for the First Quarter ended 30th June 2024 About Vedanta Limited: Vedanta Limited (“Vedanta”), a subsidiary of Vedanta Resources Limited, is one of the world’s leading critical minerals, energy and technology companies spanning across India, South Africa, Namibia, Liberia, UAE, Saudi Arabia,
Slide 8: Earnings Presentation 1QFY25
EARNINGS PRESENTATION 1QFY25
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: Q1 Highlights
EBITDA PAT VEDL Capital Structure - QIP Q1 Highlights Increased 47% YoY 54% YoY Raised Rs. 8500 crore Increased A solid start to a through one of the largest QIP. & 124% QoQ transformative FY25 on the back of outstanding EBITDA at Rs 10,275 crore PAT at Rs 5,095 crore EBITDA and Margin Growth, and a
Slide 11: Business Performance
Business Performance Arun Misra Executive Director, Vedanta Limited Sensitivity: Internal (C3)
Slide 12: Our commitment to excellence – our path to leadership
ESG Our commitment to excellence – our path to leadership Transforming Communities Transforming Planet Transforming Workplace 2.04 million 835 MW RE RTC 22% Women in workforce, 33% ( 40% y-o-y) Families skilled Under Construction in enabling functions 0.7x 45 transgender 39 million Water Positivity
Slide 13: Empowering communities with focused actions
Empowering communities with focused actions Highlights 1.9 million ₹ 66 crore ~ 7000 Total Beneficiaries CSR Spend in Q1FY25 Nand Ghars Healthcare Drinking water > 1950 crore spent on CSR > 32 Initiatives and sanitation activities since 2020 > 12 Initiatives ₹ crore Community Children’s 454 438 Infr
Slide 14: Successfully initiated utilization of RE power from RE RTC project
Successfully initiated utilization of RE power from RE RTC project Update: Phase 1 of 900 MW: Aluminum: 450 MW & HZL: 450 MW • Initiated utilization of renewable energy at HZL for its operations from RE-RTC projects. • HZL already consumed 8.5% RE power of total requirement during Q1 FY’25 Key PDAs
Slide 15: Solid, future-ready product portfolio of low carbon brands
Solid, future-ready product portfolio of low carbon brands Hindustan Zinc Launches Asia’s 1st Low Carbon ‘Green’ Zinc Features Carbon footprint of EcoZen is about 75% lower than the global average. Global Eco-Friendly Exceptionally Low Whopping 8% of Certification Advantage Carbon Footprint Product
Slide 16: Update on Strategic Initiatives
Update on Strategic Initiatives Qualified Institutional Placement Demerger Successfully raised Rs. 8,500 crore through the Filed Demerger scheme of application with NCLT largest QIP in Indian Metals and Mining Industry • Successfully secured NOCs from secured lenders for • QIP witnessed strong deman
Slide 17: Q1FY25 Operational Highlights
Q1FY25 Operational Highlights Strategic Growth via Enhanced Volume, Cost Optimization, and Efficient Project Execution Aluminium Zinc Iron and Steel Other Highlights Cast house, Jharsuguda Dariba Smelting Complex, HZL Coke oven plant, ESL Steel Train-I Refinery, Lanjigarh Quarterly Production HZL Re
Slide 18: Aluminium Business
Aluminium Business Focused on growth and business integration Aluminium Production (kt) Key Highlights: +3% y-o-y ▪ Quarterly metal Production at 596kt, up by 3% y-o-y ▪ Quarterly aluminium CoP remained flat q-o-q 598 596 579 despite higher market linked Alumina cost ▪ Quarterly aluminium CoP lower
Slide 19: Zinc India
Zinc India Highest-ever Q1 mined and refined metal with an impressive ESG advancement ▪ Highest-ever first quarter mined metal and refined metal ▪ Shareholder returns of ₹ 387.35 per share including production at 263 kt and 262 kt, respectively dividend, with doubling the market cap at c.US$ 34 bill
Slide 20: Zinc International
Zinc International Improved mining performance & operational excellence delivers strong results Total MIC Production VZI to deliver 500+ KTPA MIC run rate within 3 years Gamsberg (Phase – 2) VZI Production (kt) Gamsberg (kt) BMM (kt) BMM Gamsberg +13% q-o-q $466 mn 500+ Approved Capex 450 12 11 12 4
Slide 21: Oil & Gas
Oil & Gas Investing strategically to sustain long-term value Gross Production (kboepd) Key highlights: ▪ 1QFY25 production at 112 kboepd, natural decline in the MBA 135 118 112 fields which has been partially offset by infill wells brought online in Mangala, Aishwariya and RDG fields. ▪ 1QFY25 per b
Slide 22: Iron and Steel
Iron and Steel Driving performance with consistent production growth, paving ways for future capacities Karnataka Iron Ore VAB Steel Ferrochrome Production (MnT) Production (KT) Saleable production (kt) Ferrochrome Production (kt) -4% y-o-y +4% q-o-q +10% y-o-y +189% y-o-y 1.7 213 28 198 205 343 356
Slide 23: Finance Update
Finance Update Ajay Goel Chief Financial Officer, Vedanta Limited Vedanta Limited 1QFY25 Investor Presentation
Slide 24: 1QFY25 financial snapshot
1QFY25 financial snapshot REVENUE EBITDA EBITDA Margin1 PAT ₹ 35,239 crore ₹ 10,275 crore 34% ₹ 5,095 crore 6% y-o-y 47% y-o-y ~1000 bps y-o-y 54% y-o-y Cash & Cash ROCE2 FCF (Pre-capex) Net Debt/EBITDA Equivalent c.25% ₹ 4,371 crore 1.54x ₹ 16,692 crore 763 bps y-o-y 41% y-o-y vs 1.88x
Slide 25: EBITDA Bridge (1QFY25 vs. 1QFY24)
EBITDA BRIDGE (1QFY25 vs. 1QFY24) (In ₹ crore) +47% vs 1QFY24 EBITDA Alum 1,347 Zinc 819 Market & Regulatory ₹3,013 crore 19 *LME/Brent/Premium includes SAED impact of Oil & Gas business. Ex rate: 1QFY25 83.42 vs 1QFY24 82.16 Vedanta Limited 1QFY25 Investor Presentation
Slide 26: EBITDA Bridge (1QFY25 vs. 4QFY24)
EBITDA BRIDGE (1QFY25 vs. 4QFY24) (In ₹ crore) +15% vs 4QFY24 EBITDA Alum 1,637 Zinc 921 Market & Regulatory ₹2,508 crore 20 *LME/Brent/Premium includes SAED impact of Oil & Gas business. Ex rate: 1QFY25 83.42 vs 4QFY24 83.04 Vedanta Limited 1QFY25 Investor Presentation
Slide 27: Net Debt Walk 1QFY25
Net Debt Walk 1QFY25 (In ₹ crore) FCF post Capex ₹1,355 crore 21 Vedanta Limited 1QFY25 Investor Presentation
Slide 28: Balance sheet and debt breakdown
Balance sheet and debt breakdown Net debt / EBITDA Debt breakdown Gross Debt In $bn In ₹ 000’ crores 1.9 1.6 1.7 Term debt 8.75 72.93 1.5 1.5 Working capital 0.14 1.19 Short term borrowing 0.47 3.90 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 Total consolidated debt 9.36 78.02 Cash and Cash Equivalents 2.00
Slide 29: Appendix
VEDANTA LIMITED EARNINGS PRESENTATION 1QFY25 Appendix
Slide 30: Summary of Income statement
Summary of Income statement 1Q 4Q 1Q In ₹ Crore FY25 FY24 FY24 ▪ Depreciation & Amortization Revenue from operations 35,239 34,937 33,342 o 1QFY25 remained flat QoQ o 1QFY25 increased by 7% YoY, mainly in Oil & Gas and Other operating income 525 572 391 increased capitalization at Zinc India EBITDA
Slide 31: Entity-wise Cash and Debt
Entity-wise Cash and Debt (In ₹ crore) Jun 30, 2024 Mar 31, 2024 Jun 30, 2023 Company Cash & Cash & Cash & Debt Net Debt Debt Net Debt Debt Net Debt Cash Eq Cash Eq Cash Eq Vedanta Limited Standalone 45,293 2,779 42,514 42,232 2,385 39,847 44,274 1,396 42,878 Cairn India Holdings Limited1 2,144 1,23
Slide 32: Funding sources and term debt maturities
Funding sources and term debt maturities Diversified Funding Sources for Long Term Debt of $8.7 Bn Long Term Debt Maturities : ₹ 72.9K crore ($8.7 bn) (as of Jun 30, 2024) (as of Jun 30, 2024) 0.1% Standalone Subsidiaries 18% 24% Bonds INR 20.2 20.6 In ₹ 000’ crore Term Loan INR 18.4 Term Loan Fx Bo
Slide 33: Segment Summary – Aluminium
Segment Summary – Aluminium Quarter Full year Production (In ’000 tonnes, or as stated) 1QFY25 1QFY24 % YoY 4QFY24 FY24 Alumina – Lanjigarh 539 395 36% 484 1,813 Total Aluminum Production 596 579 3% 598 2,370 Jharsuguda 450 433 4% 452 1,784 Balco 146 146 0% 146 586 Financials (In ₹ crore, or as stat
Slide 34: Aluminium profitability
Aluminium profitability $/t Hot metal cost 1QFY25 198 2,3 2,520 2,718 774 563 379 87 915 1,716 LME Premium Realisation Alumina Power Other hot metal Conversion & EBITDA other +53% vs 4QFY24 EBITDA margin 1,711 4QFY24 2,199 166 2,365 (688) (617) (406) (56) 598 28 Vedanta Limited 1QFY25 Investor Prese
Slide 35: Segment Summary – Zinc India
Segment Summary – Zinc India Quarter Full Year Production (In ’000 tonnes, or as stated) 1QFY25 1QFY24 % YoY 4QFY24 FY24 Mined metal content 263 257 2% 299 1,079 Saleable metal 262 260 1% 273 1,033 Refined Zinc1 211 209 1% 220 817 Refined Lead2 51 51 2% 53 216 Refined Saleable Silver - (in tonnes)3
Slide 36: Segment summary – Zinc International
Segment summary – Zinc International Quarter Full Year Production (In ’000 tonnes, or as stated) 1QFY25 1QFY24 % YoY 4QFY24 FY24 Mined metal content- BMM 11 19 (41%) 12 61 Mined metal content- Gamsberg 26 49 (46%) 21 147 Total 38 68 (45%) 33 208 Financials (In ₹ Crore, or as stated) Revenue 753 1,10
Slide 37: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Quarter Full Year Production (In kboepd, or as stated) 1QFY25 1QFY24 % YoY 4QFY24 FY24 Average Daily Gross Operated Production 112.4 134.9 (17%) 117.8 127.5 Rajasthan 92.7 111.9 (17%) 97.8 106.5 Ravva 11.3 11.7 (3%) 10.5 10.8 Cambay 4.8 11.0 (57%) 7.0 8.9 OALP 3.7 0.3 - 2
Slide 38: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Quarter Full Year Production (In kboepd, or as stated) 1QFY25 1QFY24 % YoY 4QFY24 FY24 Average Daily Production Gross operated 112.4 134.9 (17%) 117.8 127.5 Oil 89.7 111.0 (19%) 95.5 104.0 Gas (Mmscfd) 137 143 (5%) 134 141 Non-operated- Working interest 0.6 0.4 58% 0.6 0.
Slide 39: Segment Summary – Iron Ore and Steel
Segment Summary – Iron Ore and Steel Iron Ore Quarter Full Year Production (In million dry metric tonnes, or as stated) 1QFY25 1QFY24 % YoY 4QFY24 FY24 Production of Saleable Ore 1.3 1.2 6% 1.7 5.6 Goa 0.1 - 0.0 0.0 Karnataka 1.2 1.2 (4%) 1.7 5.6 Production (’000 tonnes) Pig Iron 205 213 (4%) 198 83
Slide 40: Segment Summary – Facor and Copper
Segment Summary – Facor and Copper Copper Quarter Full year Production (In ’000 tonnes, or as stated) 1QFY25 1QFY24 % YoY 4QFY24 FY24 Copper - Cathodes 20 31 (35%) 31 141 Financials (In ₹ crore, or as stated) Revenue 4,734 4,733 0% 5,015 19,730 EBITDA (57) (2) - (12) (69) Copper LME Price ($/MT) 9,7
Slide 41: Sales Summary – Zinc and Aluminium
Sales Summary – Zinc and Aluminium Quarter Full year Sales volume 1QFY25 1QFY24 %YoY 4QFY24 FY24 Zinc-India Sales Refined Zinc (kt) 211 208 1% 221 817 Refined Lead (kt) 51 50 2% 53 216 Total Zinc-Lead (kt) 262 259 1% 274 1033 Silver (tonnes) 167 179 (7%) 189 746 Zinc-International Sales Zinc Concent
Slide 42: Sales summary – Iron & Steel, FACOR and Power
Sales summary – Iron & Steel, FACOR and Power Quarter Full Year Sales volume Quarter Full year Sales volume 1QFY25 1QFY24 4QFY24 FY24 Power Sales (mu) 1QFY25 1QFY24 4QFY24 FY24 Iron ore sales Jharsuguda 825 618 931 2,771 Goa (mn dmt) 0.0 0.1 - 0.3 TSPL 2,990 2,830 2,187 10,278 Karnataka (mn dmt) 1.0
Slide 43: Group structure
Group structure As of 30-Jun-24 Listed entities Vedanta Resources Ltd Unlisted entities Divisions of Vedanta Limited ⚫ Sesa Iron Ore 59.32% ⚫ Sterlite Copper ⚫ Power (600 MW Jharsuguda) Vedanta Ltd ⚫ Aluminium (Odisha aluminium and power assets) ⚫ Cairn Oil & Gas* Subsidiaries of Vedanta Ltd ⚫ Athen
Slide 44: Awards and Accolades
Awards and Accolades Recognitions towards our commitment to excellence Cairn won BALCO- Best Best National Rated 5-star in RoSPA Gold Total Quality Water Efficient Unit GOLD Winner - Kalinga environment Award 2023 for Management in Co-generation TITAN International and energy Occupational (TQM) Powe
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 ~ ₹ 800 crore / year Commodity prices – Impact of a 10% increase in Commodity Prices 1QFY25 Impact on Commodity Average price EBITDA ($mn) Oil ($/bbl) 85 12 Zinc ($/t) 2,