Vedanta (VEDL) Q1 24/25 earnings summary

Executive summary

• Achieved Q1 FY25 revenue of INR 35,239 crore, up 6% year-over-year, and EBITDA of INR 10,275 crore, up 47% year-over-year, driven by cost reductions and operational excellence.

• PAT surged 54% year-over-year to INR 5,095 crore, the highest in seven quarters.

• EBITDA margin improved to 34%, up 10 percentage points year-over-year; net debt/EBITDA improved to 1.5x from 1.9x.

• Strategic focus on sustainability, with progress in renewable energy sourcing and launch of low-carbon products.

• Demerger process filed with NCLT, with key NOCs secured from major creditors.

Financial highlights

• Revenue increased 6% year-over-year to INR 35,239 crore; total income for Q1 FY25 was INR 36,698 crore.

• EBITDA rose 47% year-over-year to INR 10,275 crore; PAT up 54% to INR 5,095 crore; OCF before CapEx up 41% to INR 4,371 crore.

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

• Net debt to EBITDA improved to 1.5x as of June 30, 2024; liquidity at INR 16,692 crore.

• QIP raised INR 8,500 crore in July to deleverage, expected to reduce interest cost by over INR 1,000 crore annually.

Outlook and guidance

• On track to achieve $10 billion EBITDA and $30 billion annual revenue in the near term.

• Full-year guidance reaffirmed, with cost optimization and growth projects expected to drive record FY25 performance.

• Major expansions in aluminum, zinc, oil & gas, and steel are progressing, with key projects targeted for completion in FY25 and FY26.