Vedanta Limited · NSE:VEDL
Vedanta — Q2 FY2025 Earnings Presentation
49 slides from Vedanta's earnings presentation, Nov 8, 2024
Slide 1: Outcome of Board Meeting – Press Release and Investor Presentation
VEDL/Sec./SE/24-25/199 November 08, 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: Vedanta Limited Announces 2Q and 1H FY24-25 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 Announces 2Q and 1H FY24-25 Results • Quarterly EBITDA at ₹10,364 crore
Slide 3: 2QFY25 & 1HFY25 Operational Highlights
Results for the Second Quarter & Half year ended 30th Sep 2024 2QFY25 & 1HFY25 Operational Highlights Below are the key operational highlights across the Group during the Quarter & Half Year: All-time high first-half outputs across key businesses; new production benchmark while continuing to spearhe
Slide 4: Executive comments
Results for the Second Quarter & Half year ended 30th Sep 2024 Executive comments: Commenting on 2QFY25 results, Arun Misra, Executive Director Vedanta Limited said, “Vedanta is proud to report our highest-ever first-half EBITDA of ₹20,639 crore with 46% growth YoY1. The second half of this year wil
Slide 5: Consolidated Financial Performance
Results for the Second Quarter & Half year ended 30th Sep 2024 Consolidated Financial Performance – (In ₹ crore, except as stated) 2Q 2Q % Change 1Q 1H 1H Particulars FY2025 FY2024 YoY FY2025 FY2025 FY2024 Revenue from operations 37,171 33,7381 10% 35,239 72,410 67,0801 Other Operating Income 463 39
Slide 6: Taxes, PAT, exceptional items, leverage and liquidity
Results for the Second Quarter & Half year ended 30th Sep 2024 ▪ Taxes: Normalized ETR (excluding exceptional items) for 2QFY25 is 27% as compared to 26% in 1QFY25. Increase is mainly due to change in profit mix. ▪ PAT before Exceptional Items: 2QFY25 PAT before Exceptional Items at ₹4,467 crore, hi
Slide 7: Results Conference Call
Results for the Second Quarter & Half year ended 30th Sep 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 ann
Slide 8: Earnings Presentation 2QFY25
EARNINGS PRESENTATION 2QFY25
Slide 9: Highlights
2 vedanta Zi i. Highlights yd a 2QFY25
Slide 10: Q2 Highlights
EBITDA PAT (Pre – Exceptional) Revenue Q2 Highlights +44% YoY 1 +230% YoY 1 +10% YoY 1 Quarter marked by strong performance across key ₹ 10,364 crore ₹ 4,467 crore; ₹ 37,171 crore businesses and various PAT (Reported) at ₹ 5,603 crore strategic initiatives EBITDA Margin Net Debt/ EBITDA Capital Stru
Slide 11: H1 Highlights
EBITDA PAT (Before Exceptnl) Revenue H1 Highlights +46% YoY 1 +232% YoY 1 +8% YoY 1 Best-ever first half Performance ₹ 20,639 crore ₹ 9,562 crore; ₹ 72,410 crore supported by structural cost All time high first half EBITDA PAT at ₹ 10,698 crore reduction and other strategic initiatives FCF (Pre-Cape
Slide 12: 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 13: Business Performance
Business Performance 2QFY25
Slide 14: Aluminium Business
Aluminium Business Focused on growth and end-to-end integration Aluminium Production (kt) Key Highlights: 1,173 1,205 ▪ All-time high Quarterly metal Production at 609kt (+3% YoY) +3% y-o-y ▪ Best-ever Quarterly VAP sales at 314kt (+15% YoY) 594 596 609 ▪ Highest ever Half-Yearly Domestic Sales at 5
Slide 15: Zinc India
Zinc India Highest-ever 2Q 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 o
Slide 16: Zinc International
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 17: Oil & Gas
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 18: 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 19: Environment, Social & Governance
Environment, Social & Governance > VZI Sensitivity: Internal (C3)
Slide 20: 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 21: CSR - Empowering communities with focused actions
CSR - Empowering communities with focused actions Highlights ~3.5 million ₹ 141 crore ~ 6363 Total Beneficiaries in 1HFY25 CSR Spend in 1HFY25 Nand Ghars Healthcare Drinking water > 2000 crore spent on CSR > 38 Initiatives and sanitation activities since 2020 > 15 Initiatives ₹ crore Community Child
Slide 22: Finance Update
Finance Update 2QFY25 VZI Sensitivity: Internal (C3)
Slide 23: 2QFY25 financial snapshot
2QFY25 financial snapshot REVENUE EBITDA EBITDA Margin2 PAT before exceptional items ₹ 37,171 crore ₹ 10,364 crore 34% ₹ 4,467 crore 10% y-o-y1 44% y-o-y1 ~900 bps y-o-y1 230% y-o-y1 Cash & Cash ROCE3 FCF (Pre-capex) Net Debt/EBITDA Equivalent c.23% ₹ 8,525 crore 1.49x ₹ 21,727 crore 152 bp
Slide 24: EBITDA Bridge (2QFY25 vs. 2QFY24)
EBITDA BRIDGE (2QFY25 vs. 2QFY24) (In ₹ crore) +44% vs 2QFY24 EBITDA Alum 1,241 Zinc 947 Market & Regulatory ₹2,310 crore 17 1. Comparatives excludes One Time Cairn Arbitration Gain in 2QFY24 amounting to ₹ 4,637 crore. Reported EBITDA for 2QFY24 is ₹ 11,834 crore. Vedanta Limited 2. LME/Brent/Premi
Slide 25: EBITDA Bridge (2QFY25 vs. 1QFY25)
EBITDA BRIDGE (2QFY25 vs. 1QFY25) (In ₹ crore) 2nd consecutive quarter with delivery of 10K cr+ EBITDA Alum (660) Zinc (65) Market & Regulatory ₹(804) crore 18 1. LME/Brent/Premium includes SAED impact of Oil & Gas business. 2. Ex rate: 2QFY25 83.76 vs 1QFY25 83.42 Vedanta Limited 2QFY25 Investor Pr
Slide 26: Net Debt Walk 2QFY25
Net Debt Walk 2QFY25 (In ₹ crore) FCF post Capex ₹5,831 crore 19 Vedanta Limited 2QFY25 Investor Presentation
Slide 27: Balance sheet and debt breakdown
Balance sheet and debt breakdown Net debt / EBITDA Debt breakdown Gross Debt In $bn In ₹ 000’ crores 1.88 1.64 1.70 Term debt 8.30 69.55 1.55 1.54 1.49 Working capital 0.28 2.39 Short term borrowing 0.80 6.71 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 2QFY25 Total consolidated debt 9.38 78.65 Cash and Cash
Slide 28: Continued disciplined investment in value adding growth
Continued disciplined investment in value adding growth ($ Bn) FY growth Capex guidance 0.7 1.1 2.0 1.7 1.9 Growth Capex profile 1.9 0.3 Oil & Gas Zinc 1.4 Al & Power 1.2 0.1 Others 0.8 0.2 0.7 0.7 0.5 0.7 0.2 0.1 0.4 0.1 0.3 0.3 0.3 0.3 0.0 0.0 0.4 0.1 0.1 0.4 0.2 0.3 0.2 0.1 FY2021 FY2022 FY2023 F
Slide 29: Appendix
2 vedanta transforming for good Appendix
Slide 30: 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 Gamsberg 160 - 170 kt Mined Metal 1,100 - 1,125 kt BMM 50 – 60 kt Finished Metal 1,075 – 1,100
Slide 31: Summary of Income statement
Summary of Income statement 2Q 1Q 2Q In ₹ Crore FY25 FY25 FY24 ▪ Depreciation & Amortization Revenue from operations 37,171 35,239 33,7381 o 2QFY25 remained flat QoQ o 2QFY25 increased by 2% YoY, mainly in Oil & Gas and Other operating income 463 525 399 increased capitalization at Aluminium EBITDA
Slide 32: Project capex
Project capex Approved Spent up to Unspent4 as on 30th Capex in Progress (In $ mn) Spent in 1HFY25 Capex2 FY243 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 and oth
Slide 33: Entity-wise Cash and Debt
Entity-wise Cash and Debt (In ₹ crore) Sep 30, 2024 Jun 30, 2024 Sep 30, 2023 Company Cash & Cash & Cash & Debt Net Debt Debt Net Debt Debt Net Debt Cash Eq Cash Eq Cash Eq Vedanta Limited Standalone 40,661 9,324 31,337 45,293 2,779 42,514 42,494 1,959 40,535 Cairn India Holdings Limited1 2,135 1,54
Slide 34: 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 : ₹ 69.5K crore ($8.3 bn) (as of Sep 30, 2024) (as of Sep 30, 2024) 0.1% Standalone Subsidiaries 20% 24% 20.9 21.4 Bonds INR In ₹ 000’ crore Term Loan INR Term Loan Fx 16.9 Bo
Slide 35: Segment Summary – Aluminium
Segment Summary – Aluminium Production (In ’000 tonnes, or as Quarter Half year stated) 2QFY25 2QFY24 % YoY 1QFY25 1HFY25 1HFY24 % YoY Alumina – Lanjigarh 499 464 8% 539 1,039 859 21% Total Aluminum Production 609 594 3% 596 1,205 1,173 3% Jharsuguda 460 447 3% 450 910 880 3% Balco 149 147 2% 146 29
Slide 36: Aluminium profitability
Aluminium profitability $/t Hot metal cost 2QFY25 244 13 2,639 2,382 2,395 813 564 357 78 827 1,734 LME Strategic Premium Realisation Alumina Power Other hot Conversion & EBITDA hedging metal other 2x growth YoY 1,814 2QFY24 2,154 5 201 2,360 (697) (625) (493) (142) 403 29 Vedanta Limited 2QFY25 Inv
Slide 37: Segment Summary – Zinc India
Segment Summary – Zinc India Quarter Half year Production (In ’000 tonnes, or as stated) 2QFY25 2QFY24 % YoY 1QFY25 1HFY25 1HFY24 % YoY Mined metal content 256 252 2% 263 519 509 2% Saleable metal 262 241 8% 262 524 501 5% Refined Zinc1 198 185 7% 211 409 394 4% Refined Lead2 63 57 12% 51 115 107 7%
Slide 38: Segment summary – Zinc International
Segment summary – Zinc International Quarter Half year Production (In ’000 tonnes, or as stated) 2QFY25 2QFY24 % YoY 1QFY25 1HFY25 1HFY24 % YoY Mined metal content- BMM 12 18 (35%) 11 23 37 (38%) Mined metal content- Gamsberg 32 48 (34%) 26 58 97 (40%) Total 44 66 (34%) 38 81 134 (40%) Financials (I
Slide 39: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Quarter Half year Production (In kboepd, or as stated) 2QFY25 2QFY24 % YoY 1QFY25 1HFY25 1HFY24 % YoY Average Daily Gross Operated Production 104.9 134.1 (22%) 112.4 108.6 134.5 (19%) Rajasthan 85.1 112.2 (24%) 92.7 88.9 112.1 (21%) Ravva 11.0 10.9 1% 11.3 11.1 11.3 (1%)
Slide 40: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Quarter Half year Production (In kboepd, or as stated) 2QFY25 2QFY24 % YoY 1QFY25 1HFY25 1HFY24 % YoY Average Daily Production Gross operated 104.9 134.1 (22%) 112.4 108.6 134.5 (19%) Oil 82.5 109.1 (24%) 89.7 86.1 110.0 (22%) Gas (Mmscfd) 134 150 (11%) 137 135 147 (8%) N
Slide 41: Segment Summary – Iron Ore and Steel
Segment Summary – Iron Ore and Steel Iron Ore Production (In million dry metric tonnes, or Quarter Half year as stated) 2QFY25 2QFY24 % YoY 1QFY25 1HFY25 1HFY24 % YoY Production of Saleable Ore 1.3 1.2 7% 1.3 2.6 2.4 6% Goa 0.1 - - 0.1 0.2 - - Karnataka 1.3 1.2 2% 1.2 2.4 2.4 (1%) Production (’000 t
Slide 42: Segment Summary – Facor and Copper
Segment Summary – Facor and Copper Copper Quarter Half year Production (In ’000 tonnes, or as stated) 2QFY25 2QFY24 % YoY 1QFY25 1HFY25 1HFY24 % YoY Copper - Cathodes 41 35 16% 20 61 66 (8%) Financials (In ₹ crore, or as stated) Revenue 6,376 4,606 38% 4,734 11,110 9,339 19% EBITDA (10) (62) 84% (57
Slide 43: Sales Summary – Zinc and Aluminium
Sales Summary – Zinc and Aluminium Quarter Half year Sales volume 2QFY25 2QFY24 1QFY25 1HFY25 1HFY24 Zinc-India Sales Refined Zinc (kt) 198 185 211 408 393 Refined Lead (kt) 63 57 51 115 107 Total Zinc-Lead (kt) 261 242 262 523 501 Silver (tonnes) 184 181 167 350 360 Zinc-International Sales Zinc Co
Slide 44: Sales summary – Iron & Steel, FACOR and Power
Sales summary – Iron & Steel, FACOR and Power Quarter Half year Sales volume Quarter Half year Sales volume Power Sales (mu) 2QFY25 2QFY24 1QFY25 1HFY25 1HFY24 2QFY25 2QFY24 1QFY25 1HFY25 1HFY24 Iron ore sales Jharsuguda 709 506 825 1534 1,124 Goa (mn dmt) 0.0 0.0 0.0 0.0 0.1 TSPL 2,861 2795 2,990 5
Slide 45: 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 46: 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 H1FY25 Impact on Commodity Average price EBITDA ($mn) Oil ($/bbl) 83 28 Zinc ($/t) 2,
Slide 47: 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 48: Earnings Call Details
Earnings Call Details Event Telephone Number +91 22 6280 1114 Universal Dial-In +91 22 7115 8015 India National Toll Free 1 800 120 1221 Earnings conference call on November Canada 01180014243444 08, 2024, from 5:30 PM to 6:30 PM Hong Kong 800964448 (IST) Japan 00531161110 Netherlands 08000229808 In
Slide 49: 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