MUMBAI, July 25, 2017 /PRNewswire/ -- Vedanta Limited
today announced its unaudited consolidated results for the first
quarter (Q1) ended 30 Jun 2017.
Financial
Highlights
- Solid financial performance
o
Attributable PAT more than doubles y-o-y to Rs 1,525 crore
o Revenues of Rs 18,203 crore up 27% y-o-y
o EBITDA of Rs. 4,965 crore at robust margin1 of 36%
o Achieved cost savings of $856 million over last 9
quarters
- Strong Balance
Sheet
o Gross
Debt2 reduced by c. Rs 9,000 crore in the last 4
months
o Net Debt/EBITDA at 0.8x – among the lowest across Indian and
global peers
o Strong financial position with total cash and liquid investments
of Rs 48,318 crore
Operational
Highlights
- Oil & Gas: Continued strong contribution from Mangala
EOR; improved costs despite higher EOR production
- Zinc India: Higher
zinc-lead and silver volumes
o Mined metal production at 233 kt, 84%
up y-o-y
o Integrated silver production 30% up y-o-y
- Aluminium: Exit
production run-rate of 1.4mtpa
- Zinc International:
Gamsberg project on track for mid-CY 2018 production
- TSPL: Plant
restarted in end June and running at availability of above
90%
|
1. Excludes custom smelting at Copper India and Zinc India
operations
|
2. Excluding change
in Zinc India temporary borrowings from Rs 7,908 crore in Q4 FY
2017 to Rs 6,959 crore and Preference shares of Rs 3,010 crore
issued pursuant to Cairn merger
|
Mr. Tom Albanese, Chief Executive
Officer, Vedanta Ltd, said: "We have started the year on a positive
note, with our Net Profit for Q1 doubling over last year. Our Zinc
and Oil & Gas businesses have delivered a strong quarter.
Vedanta is a world leader in Zinc, and Zinc prices have
strengthened since the quarter end on continued global supply
deficits. Our continued ramp-up in the Aluminium business has
helped us exit the quarter on a strong production run rate of 1.4
mtpa. We are realizing the true benefits of Vedanta's
diversified portfolio."
Consolidated
Financial Performance
|
The consolidated financial performance of the company during the
period is as under:
(In Rs. crore,
except as stated)
|
FY
2017
|
|
Q1
|
Q1
|
%
Change
|
Q4
|
%
Change
|
Actual
|
FY
2018
|
FY
2017
|
FY
2017
|
71,721
|
Net Sales/Income from
operations
|
18,203
|
14,365
|
27%
|
22,371
|
-19%
|
21,437
|
EBITDA
|
4,965
|
3,539
|
40%
|
7,275
|
-32%
|
39%
|
EBITDA
Margin1
|
36%
|
32%
|
|
44%
|
|
5,855
|
Finance
cost
|
1,592
|
1,393
|
14%
|
1,503
|
6%
|
4,581
|
Other
Income
|
1055
|
1,271
|
-17%
|
921
|
15%
|
20,058
|
Profit before
Depreciation and Taxes
|
4,337
|
3,320
|
31%
|
6,768
|
-36%
|
6,292
|
Depreciation &
Amortization
|
1,386
|
1,550
|
-11%
|
1,604
|
-14%
|
13,766
|
Profit before
Exceptional items
|
2,951
|
1,770
|
67%
|
5,164
|
-43%
|
114
|
Exceptional
Items2
|
-
|
-
|
-
|
114
|
|
2,103
|
Tax
|
681
|
403
|
69%
|
636
|
7%
|
196
|
Dividend Distribution
Tax (DDT)
|
-
|
9
|
-
|
154
|
|
34
|
Tax on Exceptional
items
|
-
|
-
|
-
|
34
|
|
11,319
|
Profit After
Taxes
|
2,270
|
1,358
|
67%
|
4,226
|
-46%
|
11,467
|
Profit After Taxes
before Exceptional items
|
2,270
|
1,358
|
67%
|
4,374
|
-48%
|
11,663
|
Profit After Taxes
before Exceptional items & DDT3
|
2,270
|
1,367
|
66%
|
4,528
|
-50%
|
4,358
|
Minority
Interest
|
745
|
604
|
23%
|
1,578
|
-53%
|
6,958
|
Attributable PAT
after exceptional items
|
1,525
|
754
|
2x
|
2,647
|
-42%
|
7,127
|
Attributable PAT
before exceptional items
|
1,525
|
754
|
2x
|
2,816
|
-46%
|
7,323
|
Attributable PAT
before exceptional items & DDT3
|
1,525
|
763
|
2x
|
2,970
|
-49%
|
23.47
|
Basic Earnings per
Share (Rs./share)
|
4.37
|
2.54
|
72%
|
8.94
|
-51%
|
24.04
|
Basic EPS before
Exceptional Items
|
4.37
|
2.54
|
72%
|
9.51
|
-54%
|
24.70
|
Basic EPS before
Exceptional Items & DDT3
|
4.37
|
2.57
|
70%
|
10.02
|
-56%
|
67.09
|
Exchange rate (Rs./$)
– Average
|
64.46
|
66.93
|
-3.7%
|
67.01
|
-3.8%
|
64.84
|
Exchange rate (Rs./$)
– Closing
|
64.74
|
67.62
|
-4.3%
|
64.84
|
-0.2%
|
1. Excludes custom
smelting at Copper India and Zinc India operations
|
2. Exceptional
Items Gross of Tax
|
3. In view of
clarification issued by Ind AS Transition Facilitation Group, the
Group has revised the accounting for dividend distribution tax
(DDT) on profits of subsidiaries. DDT on profits of subsidiaries
which is to be utilized against the equity dividend declared by the
Company, is recognised in statement of changes in equity as against
the previous policy of recognizing the same in the statement of
profit and loss. The financial results for the previous
periods/year have been restated to give effect of the
same
|
Revenues
Revenue in Q1 on y-o-y basis was higher by 27% due to
higher volume at Zinc India & ramp-up at Aluminium
business and higher commodity prices partially offset by currency
appreciation, lower volume at Copper India and Iron ore and pot
outages at 500Kt Jharsuguda-I smelter and TSPL fire
incident in April 17.
Revenues were 19% lower sequentially due to lower commodity
prices, currency appreciation, lower volume at Zinc India and
Copper India and lower availability at TSPL due to fire
incident.
EBITDA and EBITDA Margins
EBITDA for Q1 at Rs 4,965 crore
was up 40% on y-o-y basis on account of higher volumes at Zinc
India; ramp up of volumes at the Aluminium business, and higher
commodity prices. This was partially offset by currency
appreciation, input commodity inflation and lower plant
availability at TSPL.
In a q-o-q basis, EBITDA was lower due to lower commodity
prices, currency appreciation, lower volume at Zinc India as per
mine plan and Copper India, lower plant availability at TSPL and
higher COP at Aluminium business due to input commodity inflation,
currency appreciation & pot outages.
EBITDA margin1 was at 36%, higher on a y-o-y basis
(Q1 FY2017 at 32%) given increased volumes and cost efficiencies.
However, it was lower q-o-q on account of higher production at Zinc
India as per mine plans in Q4 FY 2017, lower commodity prices and
currency appreciation.
Depreciation & Amortization
Depreciation at Rs. 1,386 crore,
was lower on y-o-y basis by Rs. 164
crore driven by lower depreciation at Oil & Gas business
due to change in method of calculation of Unit of production (UOP)
charge to "Proved and Developed Oil and Gas Reserves" (1P) in
accordance with the Guidance Note on Accounting for Oil and Gas
Producing Activities which was effective April 1, 2017 instead of earlier approach of
"Proved and Probable Reserves" (2P). This was partially offset by
capitalization of aluminium pots & power units.
Depreciation was lower by Rs. 218
crore q-o-q mainly on account of lower charge at Zinc India
due to lower amortization of mining expenses owing to lower ore
production and lower charge at oil & gas business due to change
in method as explained above. This was partially offset by further
capitalization at aluminium business.
Finance Cost and Other Income
Finance cost during the quarter was Rs. 1,592 crore, higher by Rs. 199 crore on y-o-y basis on account of higher
temporary borrowing at Zinc India, capitalisation of Aluminium
& power capacities and interest on preference shares, partially
offset by lower interest rates.
Compared to previous quarter, it was 6% higher on account of
temporary borrowing at Zinc India and interest on preference
shares, partially offset by repayment of some term debt and lower
interest rates.
Other income was at Rs 1,055
crore, lower compared to Q1 FY 17 by Rs 216 crore mainly on lower investment corpus at
Zinc India given record dividend payout of Rs 27,157 crore (including DDT) during FY 17 and
lower MTM gain
However, it was higher q-o-q on account of MTM gain on
investments partially offset by lower investment corpus.
Taxes
Tax expense (before Exceptional items) was at Rs. 681 crore during the quarter, resulting in tax
rate of 23% compared to 15% tax rate in FY 17. Tax rate during the
quarter is higher on account of phasing out of investment allowance
claims allowed till FY 17 and lower tax charge in FY 17 on account
of currency appreciation gain resulting in deferred tax
movements.
Attributable Profit After Tax and Earnings Per Share
(EPS)
Attributable Profit After Tax (PAT) before exceptional items for
the quarter was Rs. 1,525 crore.
EPS for the quarter before exceptional items was at Rs. 4.37 per
share. Minority interest was at 33%.
Our financial position remains strong with cash and liquid
investments of Rs. 48,318 crore. The
Company follows a Board approved investment policy and invests in
high quality debt instruments with mutual funds, bonds and fixed
deposits with banks. The portfolio is rated by CRISIL which has
assigned a rating of "Very Good" (meaning Highest Safety) to our
portfolio. Further, the Company has undrawn committed facilities of
$1.1 bn as on June 30, 2017.
As on 30 June 2017, gross debt was
at Rs 67,342 crore including
temporary Short term borrowings of Rs 6,959
crore at Zinc India and Preference shares of Rs 3,010 crore issued pursuant to the Cairn
merger. Excluding Zinc India temporary borrowings & Preference
Shares, gross debt decreased by Rs. 6,288
crore. Post June 30, 2017,
gross debt was further reduced by c. Rs
2,500 Crore. Net debt was at Rs. 19,024 crore during the quarter, higher on
account of the large dividend payments in April.
Update on Cairn India merger
The merger of Cairn India Limited with Vedanta Limited was made
effective on 11 April 2017 and on
28th April 2017, the Company issued 1
equity share of face value Rs. 1 each and 4 Redeemable Preference
Shares (RPS) of face value Rs. 10 each to Cairn India minority
shareholders for each equity share of Cairn India held by them. The
Company also paid an interim dividend of Rs
17.70 per equity share to the Cairn India minority
shareholders, which had been declared by the Company earlier.
The new equity shares have been trading since May 16, 2017. The RPS have been credited to the
demat accounts of shareholders. The Company has submitted the
necessary application for listing of the RPS . The application is
currently pending before SEBI. Company awaits the final approval
from SEBI to complete the listing of the Redeemable Preference
Shares, and will make an announcement on receipt of listing
approval.
Key Recognitions
Vedanta has been consistently recognized through the receipt of
various awards and accolades. During the past quarter, we received
the following recognitions:
- Vedanta Limited was honored as the leading corporate in the
Mining and Metals category in the Dun & Bradstreet Corporate
Awards, while Hindustan Zinc Limited was recognized in the
Non-Ferrous & Precious Metals category
- Vedanta Limited was featured among the top 100 companies in the
Asia300 list released by Nikkei Asian Review, which
ranks the biggest and fastest-growing companies from 11 economies
across Asia
- Vedanta Limited is once again ranked among the top Indian
companies and one of the "Disclosure Champions" as per the
annual India Disclosure Index released by FTI Consulting
- Vedanta Limited has been recognized as an 'Honored Company' for
its Investor Relations program by Institutional Investor
magazine in its 2017 All-Asia (ex-Japan) Executive Team rankings. This accolade
is awarded only to 4.7% of the total 2,510 companies covered
- Bharat Aluminum Company Limited was among only seven companies
nationally to receive the prestigious '2Good' rating in the
Economic Times 2Good4Good Awards
- Cairn Oil & Gas was recognized for its CSR initiatives,
through the CSR Health Impact Awards and the Responsible Business
Awards. In addition, Cairn also received the Golden Peacock
Results Conference Call
Please note that the results presentation is available in the
Investor Relations section of the company website
www.vedantalimited.com -
http://www.vedantalimited.com/investor-relations/results-reports.aspx
Following the announcement, there will be a conference call at
6:00 PM (IST) on Tuesday,
25 July 2017, where senior management
will discuss the company's results and performance. The dial-in
numbers for the call are as below:
Event
|
|
Telephone
Number
|
Earnings conference
call on July 25, 2017
|
India – 6:00 PM
(IST)
|
Mumbai main
access
+91 22 3938
1017
Toll Free
number
1 800 120
1221
1 800 200
1221
|
Singapore – 8:30
PM (Singapore Time)
|
Toll free
number
800 101
2045
|
Hong Kong – 8:30
PM (Hong Kong Time)
|
Toll free
number
800 964
448
|
UK – 1:30 PM (UK
Time)
|
Toll free
number
0 808 101
1573
|
US – 8:30 AM
(Eastern Time)
|
Toll free
number
1 866 746
2133
|
For online
registration
|
http://services.choruscall.in/diamondpass/registration?confirmationNumber=5267915
|
Replay of Conference
Call
(25 July 2017 to 31
July 2017)
|
|
Mumbai
+91 22 3065
2322
Passcode:
63835#
|
For further information, please contact:
Communications
Roma
Balwani
President – Group Sustainability& CSR
Tel: +91-22-6646-1000
gc@vedanta.co.in
Investor Relations
Ashwin
Bajaj
Director – Investor Relations
Tel: +91-22-6646-1531
vedantaltd.ir@vedanta.co.in
Aarti Raghavan
VP –
Investor Relations
Vishesh
Pachnanda
Manager – Investor Relations
Sneha Tulsyan
Associate
Manager – Investor Relations
About Vedanta Limited
Vedanta Limited is a diversified natural resources company,
whose business primarily involves producing oil & gas, zinc -
lead - silver, copper, iron ore, aluminium and commercial power.
The company has a presence across India, South
Africa, Namibia,
Australia and Ireland.
Vedanta Limited is the Indian subsidiary of Vedanta Resources
Plc, a London-listed company.
Governance and Sustainable Development are at the core of Vedanta's
strategy, with a strong focus on health, safety and environment and
on enhancing the lives of local communities. The company is
conferred with the Confederation of Indian Industry (CII)
'Sustainable Plus Platinum label', ranking among the top 10 most
sustainable companies in India. To
access the Vedanta Sustainable Development Report 2016, please
visit
http://sustainabledevelopment.vedantaresources.com/content/dam/vedanta/corporate/documents/Otherdocuments/SDreport2015-16/Vedanta%20SDR%20FY%2015-16.pdf
Vedanta Limited is listed on the Bombay Stock Exchange and the
National Stock Exchange in India
and has ADRs listed on the New York Stock Exchange.
For more information please visit www.vedantalimited.com
Vedanta Limited
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai - 400
099
www.vedantalimited.com
Registered Office:
Regd. Office: 1st Floor, 'C' wing,
Unit 103,
Corporate Avenue, Atul Projects,
Chakala, Andheri (East),
Mumbai – 400 093
CIN: L13209MH1965PLC291394
Disclaimer
This press release contains "forward-looking statements" – that
is, statements related to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance, and often contain words
such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "should" or "will." Forward–looking statements by their
nature address matters that are, to different degrees, uncertain.
For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in
interest and or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other matters
of national, regional and global scale, including those of a
political, economic, business, competitive or regulatory nature.
These uncertainties may cause our actual future results to be
materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking
statements.