Vedanta (VEDL) Q4 20/21 earnings summary

Executive summary

• FY2021 revenue rose 4% YoY and EBITDA rose 30%, with a 36% adjusted EBITDA margin; operations remained resilient through COVID-19 disruption.

• Attributable profit before exceptional items was ₹12,151 crore; post-capex free cash flow reached ₹13,821 crore, while net debt increased to ₹24,414 crore.

• Record output was achieved in aluminium, alumina and Zinc India ore; growth projects and cost reductions supported operating performance.

Financial highlights

• Revenue was ₹86,863 crore, up 4% YoY; higher commodity prices, volumes in Zinc India, copper, iron ore and aluminium, FACOR consolidation and rupee depreciation contributed.

• EBITDA was ₹27,341 crore, up 30% YoY; adjusted EBITDA margin rose to 36% from 29%.

• Profit after tax was ₹15,032 crore; attributable PAT was ₹12,151 crore before exceptional items and ₹11,602 crore after exceptional items.

• Post-capex FCF was ₹13,821 crore, up 94% YoY; cash and cash equivalents were ₹32,614 crore.

• Exceptional items were a net ₹678 crore expense, mainly CWIP losses, disputed receivable provisions, RPO revisions, environmental clearance costs and settlement of a structured investment.

Outlook and guidance

• FY2022 aluminium output guidance: 2.1–2.2 million tonnes; Lanjigarh alumina production guidance: 1.8–2.0 million tonnes; hot-metal cost guidance: US$1,475–1,575/tonne.

• Zinc India plans to ramp underground mines toward 1.2 mtpa design capacity and sustain zinc cost below US$1,000/tonne; Zinc International targeted Gamsberg design capacity in H1 FY2022.

• Oil & Gas priorities include commissioning the gas terminal, hooking up Aishwariya Barmer Hill wells, advancing infill projects and exploration, and generating post-capex FCF.

• FY2022 priorities include disciplined capex, improved credit ratings and working capital, alongside efforts to restart Goa iron ore and Tuticorin copper operations.