Vedanta Q2 Results: Vedanta announced its July-September quarter results for fiscal 2023-24 (Q2FY24) on Saturday, November 4, reporting a consolidated net loss of ₹915 crore, compared to a net profit of ₹2,690 crore in the corresponding period last year. The business swung to net loss on account of one-time exceptional item because of adoption of new tax rate.

The metals-to-mining conglomerate’s revenue from operations in the second quarter of current fiscal stood at ₹38,546 crore, registering a growth of 6.37 per cent, compared to ₹36,237 crore in the year-ago period. Vedanta said this was its highest-ever second quarter revenue growth.

‘’Revenue was driven by higher sales volume, favourable movement in exchange rate and favourable arbitration award, partially offset by lower commodity prices and strategic hedging gain in 2QFY23,” said Vedanta in a regulatory filing to the stock exchanges.

On the operating front, the Anil Agarwal-led company’s EBITDA or earnings before interest, taxes, depreciation, and amortization in the September quarter came in at ₹11,080 crore, recording a growth of 52.2 per cent, compared to ₹7,282 crore in the year-ago period.

Also Read: Vedanta Biz Restructuring: Vedanta to demerge biz into six listed entities; check shareholding pattern, other details

‘’Strong believer of expanding our portfolio, we are steadfast in our growth journey and are progressing well in all growth projects announced so far with capex worth ~8.4 Bn$. With this our revenue is estimated to uptick by $4bn and EBITDA by $1bn. We remain well positioned, with a rich diversified asset portfolio, strong balance sheet, and cost optimization levers, to withstand challenging macroeconomic environment,” said Arun Misra, Executive Director, Vedanta.

Segment Performance

Hindustan Zinc Ltd, its zinc subsidiary that makes for a big chunk of profits, reported a drop of 35 per cent in quarterly net income and missed estimates. The loss at Vedanta has come at a time when Agarwal is trying to overhaul his conglomerate and split the business in six listed units.

Investors are keenly watching how the company will generate cash to help its parent Vedanta Resources Ltd. pay debt. The recent rehiring of a former finance head is expected to benefit the miner’s restructuring efforts.

Vedanta’s aluminium business was poor amid weak demand and a fall in prices, as revenue declined by more than 11 per cent to ₹11,952 crore. The company achieved the highest ever first half mined metal production at 509 kt, on account of higher ore production at Rampura Agucha Mine supported by better overall metal grades.

The copper business reported a 15 per cent growth in revenue to ₹4,606 crore, and the oil & gas business revenue rose to ₹8,229 crore from ₹3,869 crore a year ago.

Earlier this year, Vedanta Limited approved the official demerger of its diversified business into six ‘separate’ listed companies, in a move to unlock value for its shareholders. The six independent listed entities consist of Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta base metals and Vedanta Ltd.

Vedanta Ltd, a subsidiary of Vedanta Resources Ltd, is a diversified global natural resources company with significant operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, aluminium and power across India, South Africa and Namibia.

On Friday, shares of Vedanta settled 1.66 per cent higher at ₹232.85 apiece on the BSE.