Anil Agarwal promoted Vedanta reported a 36.6 per cent rise in net profit attributable to the owners of the company for the quarter ended June 24 (Q1FY25) on the back of lower expenses.
For the quarter under review, Vedanta reported a profit after tax (PAT) of Rs 3,606 crore, up from Rs 2,640 crore on a year-on-year (Y-o-Y) basis. Reported profit for the same period was at Rs 5,095 crore, up 54 per cent.
For the quarter under review, Vedanta reported a 5.5 per cent dip in total expenses from a year ago. Net sales in the same period were up 5.7 per cent to Rs 35,239 crore. The company in its statement said, “overall cost of production declined by approximately 20 per cent year-on-year on the back of structural changes and other initiatives.”
Sequentially, the company’s PAT was up 163 per cent and net sales were flat.
Arun Misra, executive director, Vedanta, said, “Vedanta has delivered a strong start to the year, with exceptional Ebitda improvement of 47 per cent and PAT improvement by 54 per cent year-over-year on the back of improved margins and robust cost reduction across all operations.” Ebitda is earnings before interest, taxation, depreciation, and amortisation.
The company’s other income was down 59.8 per cent to Rs 934 crore on a Y-o-Y basis.
On its proposed demerger of the company into six separate listed entities, the company said, all the requisite approvals secured, and the demerger scheme filed with the National Company Law Tribunal (NCLT) demerger is on track.
For its oil and gas segment, the company said, its average daily gross operated production of 112.4 kboepd, natural decline was partially offset by the infill wells brought online in Mangala and RDG fields.
In the iron ore segment, the company said, Karnataka saleable ore production was at 1.2 million tonnes, down 4 per cent Y-o-Y and 33 per cent sequentially due to temporary suspension of mine production during May 2024.
The company recently also raised Rs 8,500 crore through the qualified institutional placement (QIP) route. Ajay Goel, chief financial officer for Vedanta, said, “The proceeds from the QIP will be further instrumental in deleveraging the balance sheet and reduction of finance cost.” Net debt, the company said, was at Rs 61,324 crore and gross debt was at Rs 78,016 crore as of June.
First Published: Aug 06 2024 | 4:31 PM IST
