Vedanta Limited Q3 FY2022 Research Tear Sheet

Vedanta Limited is an Indian multinational mining company. The company is headquartered in Mumbai. It is incorporated in the year 1979. The founder is D.P.Agarwal. The products include  Zinc, Crude oil, Iron ore, Steel, Aluminium, Copper and Electric power. The vision of Vedanta is to be  the world’s largest and most admired Zinc-Lead & Silver Company. The company thrives to “Enhance stakeholder value through exploration, innovation, operational excellence, safety and sustainability. Be a globally lowest cost producer and  Maintain market leadership and customer delight. Its has its  operations in India South Africa Namibia Ireland and Australia. Vedanta Limited is the Indian subsidiary of London listed Vedanta Resources Plc. Vedanta is an industrial giant in the mining sector. Its current market capitalisation stands at Rs 118169.76 Cr.Vedanta Limited is a subsidiary of Vedanta Resources Limited which is the framework of ESG leader in the natural resources sector.

Key Financial Highlights

₹ in Crore	Q3 FY 2022	Q3 FY 2021
Total Income	21,227	15,676
Total expenses	14,017	8,573
Profit before tax	7,186	7,103
Net profit after tax	6,473	5,720
Basic and diluted	17.4	15.38

Consolidated quarterly Revenue of ₹ 33,697 crore, grew  50% Y-o-Y

Quarterly EBITDA grew 42% Y-O-Y  to ₹ 10,938 crore.

PAT (before exceptional items) is  ₹ 4,189 crore increased  27% Y-o-Y .

Nine months Revenue is ₹ 91,850 crore increased by  56%.

Nine months EBITDA is ₹ 31,551 crore, grew 73%.

Cash/ Debt Position

The company has strong cash flow. Gross debt is Rs. 50,738 crores with cash and cash equivalents of Rs. 25,207 crores this signify that the company has a healthy liquidity position. Net debt is 27,576 crores, declined  by 22% YOY. Net debt-to-EBITDA ratio is 0.7X.  Net debt has reduced by Rs. 7781 crores, on Y-o-Y basis and  more than $1 billion which is deleveraging.

Conference Call Highlights

Management Updates

Quarterly aluminium production grew 16% y-o-y and 2% q-o-q.

Mine metal production increased by 3% y-o-y and 2% q-o-q.

Income from investment in Q3 was Rs. 516 crores, declined by  33% YOY, majorly on account of MTM movement.

EPS for the quarter was at ₹ 11.24 per share, compared to ₹ 8.91 per share in Q3 FY2021.

Business Updates

Interim Dividend paid in Q3 FY 2022 is ₹ 5,019 crore (₹13.5 per share)

Record YTD dividend of ₹ 32.0 per share; dividend yield of ~10. Vedanta withdraws cases against government to reconcile retro tax dispute