EBITDA for Q4 FY2020 at ₹ 4,844
Crore, down 23% y-o-y
MUMBAI, India, June 6, 2020 /PRNewswire/ -- Vedanta Limited
today announced its audited consolidated results for the fourth
quarter (Q4) and full year ended 31 March
2020 (FY2020).
Financial Highlights
Q4
FY2020
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FY2020
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- EBITDA down 26% q-o-q to ₹ 4,844
crore
- EBITDA margin2 of 28%
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- EBITDA down 12% y-o-y, at ₹ 21,060
crore
- Stable EBITDA margin2 of 29%
- Att. PAT1 at
₹ 3,993 crore
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Other Financial
Highlights FY2020
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- Interim dividend of ₹ 3.9 per share
declared during FY2020
- Cash & liquid investments of
₹ 37,914 crore
- Net Debt at ₹ 21,273 crores,
decreased by ₹ 5,683 crores compared to 31st
March 2019
- Contribution to the ex-chequer of
c.₹ 32,400 crores
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Operational
Highlights FY2020
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- Mined metal
production of 917kt, down 2% y-o-y
- Refined zinc-lead
production of 870 kt, down 3% y-o-y
- Gamsberg production
volume at 108 kt in FY2020, up from 17kt in FY2019
- Improved cost of
production at $1,665/t, down 13% y-o-y
- Average gross
production of 174 kboepd for FY2020, down 8% y-o-y
- 9 rigs are currently
deployed; 136 wells drilled during FY2020
- Early gas production
facility fully commissioned to design capacity of 90
mmscfd
- Production sharing
contracts (PSC) signed for Ravva block extended for 10
years
- FTG survey
completed in Assam and Kutch basins; Seismic survey ongoing in OALP
Blocks
- Aluminium production
at 1,904 kt
- Record alumina
production at 1,811 kt, up 21% y-o-y
- Alumina cost of
production in Q4 FY2020 at $258/t
- Record plant
availability of 91% at the 1,980MW TSPL plant in FY2020
- Continued engagement
with the Government for resumption of Goa mining
operations
- Saleable ore
production in Karnataka at 4.4 million tonnes, up 6%
y-o-y
- Iron ore sales in
Karnataka at 5.8 million tonnes, up 125% y-o-y
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1. Att. PAT before exceptional items
2. Excludes custom smelting at Copper and Zinc
India operations
Mr Sunil Duggal, Chief
Executive Officer, Vedanta, said: "Vedanta has a rich legacy as
India's only diversified natural
resources group. We will continue to further strengthen it in the
years to come. It is a company with a strong purpose of giving back
for the greater good, a track record of achievement with an equally
compelling sense of selflessness. The Covid pandemic has hit the
world and us in the last quarter of the year. We have taken a
pro-active approach to keep our assets and people safe while
ensuring optimum operations during these difficult times. During
these difficult times, our efforts are aligned to the singular
vision of making our communities, the state and nation self-reliant
and self-sufficient."
Consolidated
Financial Performance
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The consolidated financial performance of the company during the
period is as under:
(In ₹ crore, except as stated)
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Particulars
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Q4
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%
Change
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Q3
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FY
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FY2020
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FY2019
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FY
2020
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2020
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2019
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%
change
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Net
Sales/Income from operations
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19,513
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23,092
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(16%)
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21,126
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83,545
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90,901
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(8%)
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Other Operating
Income
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242
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376
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0%
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234
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902
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1,147
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(21%)
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EBITDA
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4,844
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6,330
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(23%)
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6,530
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21,060
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24,012
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(12%)
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EBITDA
Margin1
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28%
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31%
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-
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34%
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29%
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30%
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-
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Finance
cost
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1,064
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1,401
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(24%)
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1,232
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4,977
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5,689
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(13%)
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Investment
Income
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611
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1,598
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(62%)
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629
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2,443
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3,617
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(32%)
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Exchange
gain/(loss) - (Non operational)
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(274)
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(167)
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-
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-
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(306)
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(509)
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(40%)
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Profit before
Depreciation and Taxes
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4,115
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6,362
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(35%)
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5,929
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18,220
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21,432
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(15%)
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Depreciation
& Amortization
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2,252
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2,258
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(0%)
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2,291
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9,093
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8,192
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11%
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Profit
before Exceptional items and tax
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1,863
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4,104
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(55%)
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3,638
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9,127
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13,240
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(31%)
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Exceptional
Items Credit/(Expense)2
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(17,132)
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(0)
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-
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168
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(17,386)
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320
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-
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Profit
Before Tax
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(15,269)
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4,104
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-
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3,806
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(8,259)
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13,560
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-
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Tax excluding
exceptional items-Charge/(Credit)
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3,338
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886
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-
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1,082
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3,005
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3,750
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(20%)
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Tax on
Exceptional items
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(6,524)
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-
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-
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59
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(6,521)
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112
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-
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Profit After
Taxes
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(12,083)
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3,218
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-
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2,665
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(4,743)
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9,698
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-
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Profit After
Taxes before exceptional items
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(1,475)
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3,218
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-
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2,556
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6,122
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9,490
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(35%)
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Minority
Interest
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438
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603
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(27%)
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317
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1,920
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2,633
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(27%)
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Attributable
PAT after exceptional items
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(12,521)
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2,615
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-
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2,348
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(6,664)
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7,065
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-
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Attributable
PAT before exceptional items
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(1,914)
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2,615
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-
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2,239
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3,993
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6,857
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(42%)
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Basic Earnings
per Share (₹/share)
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(33.82)
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7.06
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-
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6.34
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(18.00)
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19.07
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-
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Basic EPS
before Exceptional items
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(5.17)
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7.06
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-
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6.05
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10.78
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18.50
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(42%)
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Exchange rate
(₹/$) - Average
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72.45
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70.49
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3%
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71.06
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70.86
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69.89
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1%
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Exchange rate
(₹/$) - Closing
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74.81
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69.17
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8%
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71.27
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74.81
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69.17
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8%
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1. Excludes custom smelting at Copper and Zinc
India operations
2. Exceptional Items Gross of Tax
3. Previous period figures have been regrouped
or re-arranged wherever necessary to conform to current period's
presentation
Revenue
Revenue for Q4 FY2020 was at ₹ 19,513 crore, lower by
8% sequentially, primarily due to lower commodity prices further
impacted by COVID-19, lower volume at Aluminium business and lower
power sales at TSPL, past exploration cost recovery at Oil &
Gas business in Q3 FY2020 partially offset by higher sales volume
at Zinc & Iron Ore business and rupee depreciation.
Revenue for Q4 FY2020 was lower by 16% y-o-y, primarily due to
lower commodity prices further impacted by COVID-19, lower volumes
at Zinc, Oil & Gas, Steel business and lower power sales at
TSPL partially offset by higher volume at Aluminium and Iron Ore
business, and rupee depreciation.
Revenue for FY2020 was at ₹ 83,545 crore, lower by 8%
y-o-y, mainly due to subdued commodity prices, lower volume at Oil
& Gas, Zinc India and lower power sales at TSPL. This was
partially offset by higher volume from Gamsberg operations, higher
sales at Aluminium, Iron Ore and Steel business, past exploration
cost recovery at Oil & Gas business and rupee depreciation.
EBITDA and EBITDA Margin
EBITDA for Q4 FY2020 was at ₹ 4,844 crore, lower by 26%
sequentially, primarily due to lower commodity prices further
impacted by COVID-19, past exploration cost recovery at Oil &
Gas business and RPO reversal at Aluminium business in Q3 FY2020,
partially offset by improved cost of production at Aluminium and
Steel business, lower input commodity prices and rupee
depreciation.
EBITDA for Q4 FY2020 was lower by 23% y-o-y, primarily due
to lower commodity prices further impacted by COVID-19, lower
volume Zinc, Oil & Gas and Steel business, partially offset by
higher sales at Iron Ore business, improved cost of production at
Aluminium & Steel business, lower input commodity prices and
rupee depreciation.
EBITDA for the FY2020 was at ₹ 21,060 crore, lower by 12%
y-o-y, mainly on account of lower commodity prices, lower
volume and higher cost at Zinc India & Oil & Gas business
partially offset by higher volume from Gamsberg operations, higher
sales at Aluminium, Iron Ore and Steel business, improved cost of
production at Aluminium business, lower input commodity prices,
past exploration cost recovery at Oil & Gas business and rupee
depreciation.
We had a robust EBITDA margin of 29% for the year amidst strong
headwinds (FY 2019: 30%).
Depreciation & Amortization
Depreciation for Q4 FY2020 was at ₹ 2,252 crore, lower by
2% sequentially, primarily due to lower amortization charge at Zinc
India due to increase in reserves estimates and lower amortization
charge at Oil & Gas business due to lower production
volumes.
Depreciation for Q4 FY2020 is flat y-o-y.
Depreciation and amortisation for FY2020 was at ₹ 9,093
crore, higher by 11% y-o-y, primarily on account of higher charge
at Oil & Gas business due to capitalisation of new wells
partially offset by lower production; higher depreciation charge at
Zinc India on account of higher ore production& additional
capitalisation; higher charge at Zinc international due to
increased production from Gamsberg and acquisitions of Steel
business in June'2018.
Finance Cost and Investment Income
Finance cost for Q4 FY2020 was at ₹ 1,064 crore, lower by
14% sequentially and 24% y-o-y, primarily due to lower average
borrowing cost in line with market trends and repayment of debt at
various businesses.
Finance cost for FY2020 was at ₹ 4,977 crore, lower by 13%
y-o-y, mainly on account of deleveraging and lower average
borrowing cost in line with market trends.
Investment Income for Q4 FY2020 was at ₹ 611 crore, lower
by 3% sequentially, primarily due to mark to market (MTM) loss
on investment and decline in investment corpus.
Investment Income is lower by 62% y-o-y, primarily due to mark
to market gain on a structured investment in Q4 FY2019, partially
offset by increase in income due to increase in average investment
corpus.
Investment Income for FY2020 was at ₹ 2,443 crore, lower by
32% y-o-y, primarily due to mark to market gain on a structured
investment in Q4 FY2019, partially offset by increase in income due
to increase in average investment corpus.
Exceptional Items
Exceptional items for Q4 FY2020 was at ₹ 17,132 crores,
primarily due to impairment of assets at Oil & Gas, Copper and
Iron Ore business.
Exceptional loss for FY2020 was at ₹ 17,386 crores, mainly
due to impairment of assets at Oil & Gas, triggered majorly due
to significant fall in crude oil prices primarily consequent to the
outbreak of COVID-19, partially offset by RPO liability true up at
Aluminium, and interest accrued on power debtors at TSPL in line
with positive Supreme Court order.
Taxes
Tax credit was at ₹ 3,516 crore (FY2019: Tax charge of
₹ 3,862 crores) during the year. The normalized ETR for FY2020
is at 34% compared to 28% in FY2019 due to change in profit mix
amongst businesses.
As per Section 115BAA of the Income- tax Act, 1961 and
based on the expected timing of exercising the option, the Group
has re-measured its deferred tax balances leading to a deferred tax
credit of Rs 1,774 crore being
recognized during the year.
The above is largely offset with the tax recognized on
distributable reserves of / dividend from subsidiary Rs 1,701 crore.
Tax (Exceptional Items) of ₹ 6,521 crore primarily
includes tax credit on impairment recognised during the year.
Attributable Profit/Loss after Tax and Earnings per Share
(EPS)
Attributable Loss after Tax before exceptional items for the
quarter was at ₹1,914 crores.
For FY2020, Attributable Profit after Tax (PAT) before
exceptional items was at ₹ 3,993 crore, lower by 42%
y-o-y.
EPS for the year before exceptional items and was at
₹ 10.78 per share compared to ₹ 18.50 per share in
FY2019.
We have robust cash and liquid investments of ₹ 37,914
crore. The Company follows a Board-approved investment policy and
invests in high quality debt instruments with mutual funds, bonds
and fixed deposits with banks. The portfolio is rated by CRISIL,
which has assigned a rating of "Tier-I" (implying Highest Safety)
to our portfolio. Further, the Company has undrawn committed
facilities of c. ₹ 5300 crore as on March 31, 2020.
Gross debt was at ₹ 59,187 crore on 31st
March 2020, decreased by ₹ 7,038
crore y-o-y. This was mainly due to the repayment of debt at
various businesses.
Net debt was at ₹ 21,273 crore on 31st
March 2020, lower by ₹ 5,683
crore y-o-y, primarily due to the repayment of debt and unwinding
of working capital partially offset by dividend payment by
CIHL.
CRISIL changed the outlook on Company's rating (CFR) from
'AA/Positive' to 'AA/Negative' driven by subdued commodity prices.
India ratings changed the outlook
on Company's rating (CFR) from 'AA/Positive' to 'AA/Negative'
driven by delay in deleveraging on account of fall in commodity
prices and delay in volume ramp-up in zinc and oil business
Given the current market dislocation and uncertainties caused by
the coronavirus pandemic, it is important to maximise financial
flexibility across the group. The board of Vedanta Limited will
decide on the size and timing of any future dividend payments once
there is greater clarity on the outlook for the economy and
commodity markets. We believe this is the correct decision for all
the stakeholders as we navigate through an unprecedented period of
volatility for the global economy and our business.
On May 12, 2020, the Promoter
expressed its intention to voluntarily delist the Equity Shares in
accordance with Delisting Regulations and highlighted an Indicative
Offer Price of INR 87.5 per Equity Share (determined in accordance
with the Delisting Regulations). On May 18,
2020, the board of directors of Company approved the
proposal and authorised the Company, amongst other things, to seek
shareholders' approval with respect to the proposal. The details of
the next steps for the proposed delisting can be accessed on the
company website.
https://www.vedantalimited.com/MediaDocuments/VEDL%20Delisting%20process%20FAQs%20-%20Final.pdf
Key Recognitions
Vedanta has been consistently recognized through the receipt of
various awards and accolades. During the past quarter, we received
the following recognitions:
- Hindustan Zinc, the only Indian Metal & Mining company was
featured in The Sustainability Yearbook 2020 by S & P Global in
association with Robeco SAM for 3rd consecutive year as
Sustainability Leaders (as Member) out of 79 Metal and Mining
companies globally.
- Hindustan Zinc's Corporate Communication Team bagged the
Udaipur Media Awards 2020 for their efforts as a corporate towards
local and regional media of Rajasthan.
- Hindustan Zinc receives "Excellent Renewable Initiative under
Platinum Category" for 22 MW Solar Power Project at Rampura Agucha
Mine.
- Hindustan Zinc received recognition in the category of
"Significant Achievement in HR Excellence Award" in the 10th CII
National HR Excellence Award Confluence 2019-20.
- Cairn Oil & Gas Won Best Technology Implementation of the
Year Award 2020 under Oil &Gas for the project 'Next Generation
Workplace – Office 365' at the CIO Conclave Award 2020.
- Cairn Oil & Gas, Vedanta Ltd. was awarded for 'Good work on
Road Safety' in Rajasthan at district and state level during the
31st National Road Safety Week celebrations by Ministry of
Transport and Highways, Government of Rajasthan.
- Maru Samvad, a Cairn communication-led community engagement
campaign, won gold for Best Regional Communication Campaign under
the Practice Area Awards category; won bronze for Best Campaign in
Energy (Power / Oil & Gas / Renewables) under the Industry
Awards category at ET Brand Equity Kaleido Awards 2020.
- Jharsuguda was adjudged winner of CII-EHS Award 2019 at the
15th State Level Competition for Best Practices In Environment,
Health & Safety (EHS).
- Balco won the Golden Peacock
Award in Corporate Social Responsibility
- Balco received Significant Achievement HR Excellence Award
organized by CII
- Sesa Goa's Value-Added Business won Social Impact Award by
Indian Chamber of Commerce under Healthcare under Large Enterprise
category
- Sesa Goa's Value-Added Business won IMC RBNQ Performance
Excellence Trophy-2019' under manufacturing category
- Sterlite Copper Silvassa unit won Par Excellence Award for
Kaizen Competition by Quality Circle Forum India at 6th National
Conclave on 5S
- Sterlite Copper Silvassa unit Silver Award for Case study by
Quality Circle Forum India at 33rd Annual chapter Convention on
Quality Concepts CCQC-2019 at Mumbai
- Nand Ghar was awarded for 'Best CSR Practices' at ET Now World
CSR Awards 2020.
Results Conference Call
Please note that the results presentation is available in the
Investor Relations section of the company website
http://www.vedantalimited.com/investor-relations/results-reports.aspx
Following the announcement, there will be a conference call at
6:00 PM (IST) on June 8, 2020, where senior management will
discuss the company's results and performance. The dial-in
numbers for the call are as below:
Event
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Telephone
Number
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Earnings conference
call on June 08, 2020
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India – 6:00 PM
(IST)
|
Universal
access:
+91 22 7115
8015
+91 22 6280
1114
India:
Local Dial In: +91 7045671221
Toll
free: 1800 120 1221, 1800 266 1221
|
Singapore – 8:30
PM (Singapore Time)
|
Toll free
number: 800 101 2045
Toll number:
6531575746
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Hong Kong – 8:30
PM (Hong Kong Time)
|
Toll free
number 800 964 448
Toll number:
85230186877
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UK – 12:30 PM (UK
Time)
|
Toll free
number 0 808 101 1573
Toll number:
442034785524
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US – 7:30 AM
(Eastern Time)
|
Toll free
number 1 866 746 2133
Toll number:
13233868721
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Online
Registration
|
https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=119082&linkSecurityString=48b976fc
|
Replay of Conference
Call
(June 08, 2020 to
June 13, 2020)
|
|
India
+91 22 7194
5757;
+91 22
66635757
Passcode: 63835#
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About Vedanta Limited
Vedanta Limited, a subsidiary of Vedanta Resources Limited, is
one of the world's leading Oil & Gas and Metals company with
significant operations in Oil & Gas, Zinc, Lead, Silver,
Copper, Iron Ore, Steel, and Aluminium & Power across
India, South Africa, Namibia, and Australia. For two decades, Vedanta has been
contributing to India's growth
story, currently contributing 1 percent of India's GDP. The company is among the top
private sector contributors to the exchequer with the highest ever
contribution of INR 42,560 Crore in
FY 2019.
Governance and sustainable development are at the core of
Vedanta's strategy, with a strong focus on health, safety, and
environment and on enhancing the lives of local communities. The
company has been conferred the CII-ITC Sustainability Award, the
FICCI CSR Award, Dun & Bradstreet Awards in Metals &
Mining, and certified as a Great Place to Work. Vedanta Limited is
listed on the Bombay Stock Exchange and the National Stock Exchange
in India and has ADRs listed on
the New York Stock Exchange.
For more information please visit www.vedantalimited.com
For more information please visit www.vedantalimited.com
Vedanta Limited
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai - 400
099
www.vedantalimited.com
Registered Office:
Regd. Office: 1st Floor, 'C' wing, Unit 103,
Corporate Avenue, Atul Projects,
Chakala, Andheri (East),
Mumbai – 400 093
CIN: L13209MH1965PLC291394
Disclaimer
This press release contains "forward-looking statements" – that
is, statements related to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance, and often contain words
such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "should" or "will." Forward–looking statements by their
nature address matters that are, to different degrees, uncertain.
For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in
interest and or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other matters
of national, regional and global scale, including those of a
political, economic, business, competitive or regulatory nature.
These uncertainties may cause our actual future results to be
materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking
statements.
Logo:
https://mma.prnewswire.com/media/661292/Vedanta_Limited_Logo.jpg
For further information, please contact:
Investor
Relations
James
Cartwright
Head – Investor
Relations
|
Tel: +44 (0) 20 7659
4732
Tel: +91 124
476 4096
vedantaltd.ir@vedanta.co.in
|
Suruchi
Daga
Associate General
Manager – Investor Relations
Raksha
Jain
Manager – Investor
Relations
Shweta
Arora
Manager – Investor
Relations
|
|
Communications
Ms. Roma
Balwani
Director,
Communications and Brand
|
Tel: +91 11 4916
6250
gc@vedanta.co.in
|
Mr. Abhinaba
Das
Head, Media
Relations
|
|
Mr. Anirvan
Bhattacharjee / Lennon D'Souza
Adfactors
PR
|
Tel: +91 22
67574444 / +91 11 40565100
adfactorsvedanta@adfactorspr.com
|
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