Vedanta Ltd reported a manifold jump in consolidated net profit to ₹4,615 crore for the September 2021 quarter on Friday. The profit was due to steady volume performance across business segments and sustained margins benefitting from high commodity prices, news agency PTI reported.
Earlier in 2020, Vedanta posted a consolidated net profit of ₹838 crore, the company said in a filing to the Bombay Stock Exchange (BSE). The metal giant’s consolidated income during July-September 2021 period increased to ₹31,074 crore, compared with ₹21,758 crore in the year-ago period.
“The volume growth coming up from the aluminium sector, value-added business, steel and all across. So, the volume growth came. The company took the right call at some point in time to raise volumes from its aluminium business. I think we have been able to capitalise on the opportunity and the results are on the table but the story is not over yet,” Vedanta CEO Sunil Duggal was quoted as saying by news agency PTI.
“As we speak, you will see a better performance to the extent of 10-15%of volume going up in the current quarter (Q3) and as we speak, average commodity prices are better in October compared to the previous quarter. So, I think we are on a run,” he added.
The company said that its revenue for July-September 2021 stood at ₹30,048 crore, higher by seven per cent q-o-q, primarily supported by improved commodity prices, partially offset by lower sales volume at zinc and iron ore business. The revenue in the quarter was higher by 44% on a year-on-year basis.
“We witnessed steady volume performance across business segments, and sustained margins benefitting from high commodity prices despite a challenging cost environment. We continue to focus on prudent capital allocation and deleveraging. We reduced net debt by ₹7,232 crore y-o-y. We continue our commitment of rewarding shareholders with an interim dividend of ₹18.5 per share, entailing a payout of ₹6,855 crore,” he said
The company’s gross debt as on September 30 stood at ₹51,040 crore registering a decrease of ₹11,719 crore as against a year ago which the company said was mainly due to deleveraging in zinc and aluminium businesses.
Its net debt stood at ₹20,389 crore on September 30 registering a reduction of ₹7,232 crore y-o-y. The company said that it was driven by strong cash flow from operations after capital expenditure and dividend payout.
“We are making a declaration today that we want to be a net carbon-zero company by 2050 or sooner, and we have also decided to pledge USD 5 billion to accelerate this journey to carbon zero,” he said
Vedanta is also evaluating if it can hive off its hydrogen business or renewable business, through which it can support its businesses to become carbon-neutral as soon as possible. Vedanta’s board also approved the Scheme of Arrangement between the company and its shareholders.
“The scheme inter alia provides for capital reorganisation of the company, whereby it is proposed to transfer amounts standing to the credit of the general reserves… to the retained earnings… of the company with effect from the appointed date (as defined in the scheme),” he added.
The scheme is subject to the receipt of regulatory approvals/ clearances from the National Company Law Tribunal, Mumbai Bench, the Securities and Exchange Board of India (through BSE and National Stock Exchange) and such other approvals/ clearances as may be applicable, the company said.
Vedanta Ltd, a subsidiary of Vedanta Resources Ltd, is one of the world’s leading oil and gas and metals companies. It has significant operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa, Namibia, and Australia.
(with inputs from PTI)
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