Vedanta Ltd posts Rs 7,570 cr PAT in the fourth quarter

Mining major Vedanta Ltd on Thursday reported a consolidated after-tax profit of Rs 7,570 crore for the January-March quarter 2021-22 on the back of higher sales volume, favorable commodity prices and operational efficiencies.

The company had recorded an after-tax profit of Rs 5,105 crore in the prior year period, Vedanta said in a statement.

Exceptional items of Rs 336 crore in the last quarter mainly relate to a gain of Rs 2,697 crore from reversal of impairment in oil and gas, which was partially offset by exploration costs written off at Cairn.

The company’s revenue from operations during the reporting period increased to Rs 39,342 crore from Rs 27,874 crore a year ago. Its expenditure amounted to Rs 29,901 crore in the quarter compared to Rs 22,549 crore a year ago.

“Reached highest ever consolidated EBITDA of Rs 13,768 crore in 4QFY22. This 51% year-over-year and 26% quarter-on-quarter (QoQ) growth was primarily due to higher sales volume, favorable raw material prices and operational efficiencies despite a cost of production higher amid commodity inflation,” Vedanta said.

Vedanta Limited, a subsidiary of Vedanta Resources Limited, is active in sectors such as oil and gas, zinc, lead, silver, copper, iron ore, steel and aluminum and electricity in India, South Africa and Namibia.

The company further said that its zinc production in India reached the highest ever mined metal production of 295 kilotonnes during the fourth quarter.

ESL Steel Limited began commercial production in March 2022 from two recently acquired iron ore mines in Orissa. The steel company has produced an annual hot metal record of 1,355 kilotonnes since the acquisition, he added.

For iron ore mining operations in Goa, which are currently at a standstill, Vedanta said it is “continuously engaging with state and central governments for a rapid resumption of mining mining”.

For the whole of 2021-22, the company posted a PAT of Rs 24,299 crore, which was Rs 12,446 in the previous financial year.

“Strong free cash flow of Rs 27,154 crore has allowed us to reinvest for growth, further strengthen our balance sheet and continue our attractive dividend payout,” said Sunil Duggal, CEO of Vedanta.

He further said: ”(In FY22), we achieved best historical EBITDA of Rs 45,319 crore and PAT (before exceptional and one-time tax credit) of Rs 24,299 crore. This reflects our continued focus on volume growth and operational efficiency, supported by structural integration and technology adoption.”

According to the company, its board of directors has approved the first interim dividend of Rs 31.5 per share on par value of Rs 1 per share for the financial year 2022-23, amounting to Rs 11,710 crore. The record date for the dividend payment is Monday, May 9, 2022.

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