Vedanta reports 35% higher consolidated net profit of INR 3,017 Cr. in Q3FY21; Net sales up by 6.4% YoY

Vedanta Limited, one of the world’s leading diversified natural resource companies, has reported consolidated net profit of INR 3,017 crore in the third quarter of FY2020-21 ending on December 31. The profit stood up by 35 per cent from the same period last year backed on higher revenues.

Net sales during the same period under review also increased 6.4 per cent year-on-year to INR 22,498 crore, buoyed by Vedanta’s robust aluminium and zinc business, higher commodity prices, rupee depreciation, and successful project delivery in the oil & gas vertical.

Sunil Duggal, chief executive officer at Vedanta, said: "Our businesses stayed resilient in the quarter amidst uncertain market environment reporting the highest EBITDA in last two years. We continue to ramp up across the Zinc and Iron & Steel verticals along with successful project delivery in the Oil & Gas vertical. Aluminium business has had yet another exemplary quarter as it continued the momentum of cost rationalisation from improved integration and systemic improvements."

Vedanta reported earnings before interest, taxes, depreciation and ammortisation (EBITDA) of INR 7,695 crore in the December quarter, up by 18 per cent from the same period last year. The EBITDA margin in the period under review hovered around 39 per cent as against 34 per cent on the year.

Vedanta’s finance cost for Q3 FY21 was at INR 1,321 crore, up 7 per cent Y-o-Y on account of higher gross borrowings and lower capitalisation of interest cost.

The company’s gross debt came in at INR 62,412 crore as on December 31, while net debt stood at INR 35,357 crore.

"Our balance sheet continues to remain strong with a consolidated Net Debt / EBITDA ratio of 1.5X with improving debt maturity profile. Yet we target to reduce net debt by above Rs 5,000 crore in the coming quarter," said G.R. Arun Kumar, chief financial officer at Vedanta.

For the current financial year, Vedanta planned a capex of about INR 600 crore, of which it already used INR 350 crore. The company expects to end the fiscal with capex spent at INR 500 crore.