MINING conglomerate Vedanta Ltd reported a 36.5 per cent increase in consolidated net profit, reaching ₹3,606 crore (£338.11 million) for the quarter ended June 30, 2024, driven by improved margins and significant cost reductions across its operations.
This marks a rise from the ₹2,640 crore (£247.53m) net profit recorded in the same period last year. The company's consolidated income for the April-June quarter grew to ₹36,698 crore (£3,440.87m), up from ₹34,279 crore (£3,214.06m) in the previous year, according to an exchange filing.
Vedanta also confirmed that its proposed demerger is progressing as planned, with the demerger scheme already filed with the National Company Law Tribunal (NCLT) following approval from secured creditors.
Vedanta's earlier announced to split into six independent listed companies, including oil and gas and aluminium.
Vedanta Ltd Executive Director Arun Misra said that the company has delivered a strong start to the year, with exceptional EBITDA improvement of 47 per cent and PAT improvement by 54 per cent year-over-year on the back of improved margins, and robust cost reduction across all operations.
"Our aluminium and zinc divisions continue to outperform industry benchmarks, consistently ranking in the top quartiles and deciles of the global cost curve. These achievements are a direct result of our strategic focus on cost, as reflected in a 20 per cent year-over-year reduction in overall cost," he said.
The company's growth projects are well on track and it remains committed to commission the majority of these projects in FY25.
"Moving ahead, our focus on operational efficiency, sustained expansion, and ESG excellence will guide our journey. With this dedication, we are confident in our ability to create substantial shareholder value in the year ahead," he added.
Last month, the mining conglomerate raised ₹8,500 crore (£79,69,7m) through Qualified Institutions Placement (QIP) of 19.31 crore equity shares at an issue price of ₹440 (£4.13) per share.
Company's CFO Ajay Goel said, "The overwhelming response to the Vedanta’s... QIP, one of the largest in the industry, underscores investor’s huge confidence. The proceeds from the QIP will be further instrumental in deleveraging the balance sheet and reduction of finance costs. We have received all the requisite approvals and have filed the demerger scheme with the National Company Law Tribunal (NCLT) taking our demerger a step closer to reality."
The company's gross debt stood at ₹78,016 crore (£7,31,49,2m) as on June 30, 2024.
Vedanta Ltd, a subsidiary of Vedanta Resources Ltd, is one of the world’s leading natural resources companies spanning across India, South Africa, Namibia, Liberia, UAE, Korea, Taiwan and Japan with significant operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminium, power and glass substrate. (PTI)
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