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Vedanta Limited • Dividend • Vedanta Resources: Vedanta Limited consolidated financial results

Vedanta Ltd. will pay 117.1 billion rupees ($1.5 billion) in dividends to shareholders even as its quarterly profit fell for…


Vedanta Ltd. will pay 117.1 billion rupees ($1.5 billion) in dividends to shareholders even as its quarterly profit fell for the first time in six quarters due to elevated raw material costs.Vedanta will pay a dividend of 31.50 rupees a share to investors, it said in an exchange filing Thursday. Meanwhile, group net income dropped nearly 10% from a year earlier to 58 billion rupees in the January to March period, billionaire Anil Agarwal’s company said.That would be the first year-on-year decline in earnings since the quarter ended September 2020. It also missed analysts’ estimate of 62.4 billion rupees.

Vedanta Limited is an Indian multinational mining company headquartered in Mumbai, India, with its main operations in iron ore, gold and aluminium mines in Goa, Karnataka, Rajasthan and Odisha.

Vedanta Ltd.’s quarterly profit rose on higher sales, led by its aluminium division.Net profit of the billionaire Anil Agarwal-controlled miner increased 39.3% sequentially to Rs 5,799 crore in the quarter ended March, according to its exchange filing. The profit, however, missed the Rs 6,243-crore consensus estimate of analysts tracked by Bloomberg. The company reported exceptional loss of Rs 330 crore (largely on aluminium and copper division).The company’s net sales rose 16.7% to Rs 39,822 crore, against the Rs 37,161.5-crore forecast.Operating profit rose 26.1% sequentially to Rs 13,633 crore, compared with the estimated Rs 13,107.5 crore.Ebitda margin stood at 34.3% against 31.7% in the preceding three months and 35.2% estimated.

Vedanta Limited
Type Public
BSE: 500295
NSE: VEDL
NYSE: VEDL
Industry Mining
Oil and Gas
Electric utility
Predecessor Sesa Goa
Sesa Sterlite
Founded 1979
Headquarters Mumbai, India
Key people
Anil Agarwal
(Non-Executive Chairman)
Sunil Duggal
(Interim CEO)
Products Zinc
Crude oil
Iron ore
Steel
Aluminium
Copper
Electric power
Revenue Increase₹91,442.00 crore (US$12 billion) (2021)
Operating income
Increase₹22,423.00 crore (US$2.9 billion) (2021)
Net income
Increase₹11,602.00 crore (US$1.5 billion) (2021)
Total assets Increase₹183,482.00 crore (US$24 billion) (2021)
Total equity Increase₹77,418.00 crore (US$10 billion) (2021)
Number of employees
76,752 (2019) 
Parent Vedanta Resources
Subsidiaries
  • Bharat Aluminium Company
  • Lanjigarh Alumina Refinery
  • Hindustan Zinc
  • Sterlite Copper
  • Cairn India
  • ESL Steels
  • Talwandi Sabo Power Limited
  • Sesa Goa Iron Ore
  • Gamsberg
  • Black Mountain Mining
  • Skorpion Zinc

Website www.vedantalimited.com

Vedanta’s aluminium division was the best performer even as cost of coal rose.

Segment-Wise Ebitda (QoQ)Zinc India registered 13.7% growth to Rs 4,988 crore.Zinc international rose 27.2% to Rs 467 crore.Oil and gas unit witnessed a 37.6% increase to Rs 2,053 crore.Aluminium unit witnessed a growth of 39.2% at Rs 5,218 crore.Power division’s operating profit stood at Rs 188 crore, down 33.5%.Iron ore segment rose 33.6% to Rs 548 crore.Copper India registered a stable operating profit of 15 crore.

Net Income Falls

Meanwhile, group net income dropped nearly 10% from a year earlier to 58 billion rupees in the January-to-March period, the Indian unit said. That would be the first year-on-year decline in profit since the quarter ended September 2020. It also missed analysts’ estimate.

Industries across the world have been grappling with higher energy and commodity costs that have been exacerbated by Russia’s war in Ukraine as supply chains get upended. Locally, Indian mills are finding it difficult to secure thermal coal supplies, especially aluminum producers, as the government diverts the fuel to the power sector.

Shares of Vedanta fell 0.2% in Mumbai on Thursday before the earnings were reported, paring the year’s gains to 21%. Analysts have 13 buy recommendations on the company, 3 holds and 2 sells, according to data compiled by Bloomberg.

KEY NUMBERS
  • Sales advanced 41% to 393.4 billion rupees, while expenses rose nearly 33%, with material and power costs rising more than 50% year-on-year.
  • The company’s net debt fell nearly 24% to 209.79 billion rupees as of March 31 from a quarter earlier.
  • Vedanta will spend $2 billion on projects across key businesses.
  • Vedanta’s aluminum output rose 8% from a year earlier during the quarter, and steel output increased by 3%, while oil and gas production fell 7% and power sales declined 16%.
  • Unit Hindustan Zinc Ltd. last week reported an 18% year-on-year growth in quarterly profit but missed estimates.