- Vedanta Ltd's Q1 net profit fell 18.3% year-on-year to Rs 5,473 crore
- Revenue from operations declined 1.7% to Rs 24,205 crore in the quarter
- EBITDA rose 12.5% to Rs 8,501 crore with margin expanding to 35.1%
Vedanta Ltd.'s consolidated net profit fell 18.3% year-on-year to Rs 5,473 crore in the quarter ended June, even as the mining conglomerate reported a sharp improvement in operating profitability.
Revenue from operations declined 1.7% to Rs 24,205 crore from Rs 24,609 crore a year earlier, according to the company's earnings statement.
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Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 12.5% to Rs 8,501 crore from Rs 7,559 crore in the corresponding quarter last year. EBITDA margin expanded to 35.1% from 30.7%, reflecting stronger cost efficiencies and an improved product mix despite a softer revenue performance.
The company said improved operating performance across key businesses, particularly aluminium and zinc, supported margin expansion during the quarter even as consolidated revenue remained under pressure.
"Despite a challenging macro environment, our businesses continued to deliver resilient operational performance, resulting in stronger EBITDA margins," the company said in its investor presentation.
Separately, Vedanta's board on Thursday approved the demerger of its real estate business into Vedanta Property Platforms Ltd. (VPPL), a move aimed at unlocking value from surplus land and property assets accumulated across the group. The proposed restructuring will be carried out through a scheme of arrangement, subject to regulatory and shareholder approvals.
Vedanta Chairman Anil Agarwal said the proposed separation follows the group's recent restructuring and is intended to create another "pure-play" business.
"After the recent success of the five-way demerger creating 'pure-play' entities across oil and gas, aluminium, power, and steel, we plan to demerge the surplus real estate assets into an independent 'pure-play' company to unlock significant value for the stakeholders," Agarwal said in the company's statement.
Under the proposed structure, shareholders will receive one equity share of VPPL for every 20 shares held in Vedanta, subject to approvals. The company expects to initiate the regulatory process, including stock exchange filings, in August.
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