Vedanta (VEDL) Q1 24/25 earnings summary

Executive summary

• Achieved robust Q1 FY25 results with EBITDA up 47% YoY to INR 10,275 crore and PAT up 54% YoY to INR 5,095 crore, driven by cost reductions, margin expansion, and operational excellence.

• Revenue rose 6% YoY to INR 35,239 crore, with EBITDA margin expanding by 10 percentage points to 34% YoY.

• Major QIP of INR 8,500 crore raised to accelerate deleveraging; S&P upgraded Vedanta Resources to 'B-'.

• Demerger scheme filed with NCLT, with key NOCs secured from major creditors and stock exchange approvals.

• Interim dividends totaling INR 15 per share declared for FY25.

Financial highlights

• EBITDA: INR 10,275 crore, up 47% YoY; PAT: INR 5,095 crore, up 54% YoY; Revenue: INR 35,239 crore, up 6% YoY.

• Free cash flow (pre-capex) increased 41% YoY to INR 4,371 crore; cash & equivalents at INR 16,692 crore, up 17% YoY.

• Net debt to EBITDA improved to 1.5x from 1.9x YoY; ROCE at ~25%, up 763 bps YoY.

• Basic EPS for the quarter was INR 9.72, up from INR 7.11 in Q1 FY24.

• Net exceptional loss of INR 201 crore recorded in Q1 FY25.

Outlook and guidance

• FY25 expected to be transformative, with disciplined growth, operational excellence, and value chain expansion.

• On track to deliver US$10 billion annual EBITDA in the near term; full-year guidance reaffirmed.

• Gamsberg Phase 2 and 700ktpa Magnetite Project targeted for completion in 2HFY25 and 3QFY25, respectively.

• Demerger scheme progressing, with regulatory and creditor approvals in place.