Vedanta Q2 Results: Profit Beats Estimates On Deferred Tax Boost

Vedanta Ltd.'s profit in the second quarter of financial year 2025 topped analysts' estimates on higher deferred tax.

The metal producer's net profit stood at Rs 5,603 crore in the quarter ended September 2024 as compared to a loss of Rs 915 crore in the year ago period, according to an exchange filing on Friday. That compared with Rs 2,378.2 crore estimate of analysts polled by Bloomberg. The profit for the second quarter included a deferred tax of Rs 1,868 crore.

Revenue growth was mainly impacted by a 60% annual drop in oil and gas revenue and a 30% drop in iron ore revenue. The company's consolidated earnings before interest, taxes, depreciation and amortisation was impacted by a 16% year-on-year uptick in the cost of materials consumed.

Vedanta Q2 FY25 Earnings Highlights (Consolidated, YoY)

• Revenue down 3.4% to Rs 37,634 crore versus Rs 38,945 crore. (Bloomberg estimate: Rs 34,942.9 crore).

• Ebitda down 14% to Rs 9,828 crore versus Rs 11,479 crore. (Bloomberg estimate: Rs 9,316.4 crore).

• Ebitda margin narrows to 26.1% versus 29.5%. (Bloomberg estimate: 26.7%).

• Net profit of Rs 5,603 crore versus a loss of Rs 915 crore. (Bloomberg estimate: Rs 2,378.2 crore)

Production & Cost Of Production

• Aluminium production up 3% to 609 kilotonnes. 

• Mined metal production up 1.6% to 256 kilotonnes

• Refined metal production up 8% to 262 kilotonnes.

• Saleable silver production down 1.7% to 184 million tonnes.

Vedanta also saw a contraction in the cost of production in its aluminium, refined metal and zinc international segments.

Segment-Wise Revenue

Vedanta's oil and gas segment was the worst performing one in the second quarter. The segment's revenue and volume fell 60% and 22% respectively on an annual basis.

Production fell due to a natural decline in the Mangala, Bhagyam and Aishwariya fields. The segment also saw a sharp 16% rise in operating expenses to $15 per barrel of oil equivalent. Iron ore revenue was impacted due to the weak pricing environment

Capex

As per the company's earnings presentation, Vedanta's consolidated approved long-term capital expenditure across its different segments stands at $8.26 billion. Out of this the company has yet to spend $3.85 billion.

Out of the unspent capex amount, maximum allocation will be for the company's coal and bauxite mines in its aluminium segment.

Debt

Vedanta Ltd.'s total debt as of Sept. 30 stands at Rs 78,654 crore, which is 5.6% higher than a year ago. The increase in debt is due to higher debt by Hindustan Zinc, Zinc International, and Bharat Aluminium Co.

The company's cash and cash equivalent stands at Rs 21,727 crore versus Rs 16,702 crore a year ago.