Vedanta posts a fall in net profit by 53% in Q2, Board approves expansion plans
2 min read 28 Oct 2022, 05:23 PM ISTVedanta profit declines 53% to ₹2,690 Cr crore in Q2
PremiumVedanta on Friday reported a net profit of ₹2,690 Cr in Q2FY23 compared to ₹5,812 Cr recorded in Q2FY22 and ₹5,592 Cr in Q1FY23, representing a YoY fall of 53.71% and QoQ fall of 51.89%. The company reported net sales of ₹36,237 Cr in Q2FY23 compared to ₹30,048 Cr reported in Q2FY22 and ₹38,251 Cr recorded in Q1FY23, representing a YoY growth of 20.59% and QoQ fall of 5.26%.
The company reported a consolidated EBITDA of ₹8,038 crore with an EBITDA margin of 25% slipped from 40% in Q2FY22 and 32% in Q1FY23 despite macro challenges. The EBITDA was ₹10,582 Cr in Q2FY22 and ₹10,741 Cr in Q1FY23, representing a YoY fall of 24.04% and QoQ fall of 25.16%.
In Q2FY23, the company reported Profit Before Tax (PBT) of ₹4,364 Cr compared to ₹7,806 Cr recorded in the year-ago quarter and ₹7,260 Cr reported in Q1FY23, representing a YoY fall of 44.09% and QoQ fall of 39.88%.
Mr Sunil Duggal, Chief Executive Officer, Vedanta, said “I am pleased to share that we have generated strong free cash flow (pre capex) of ₹8,369 crore underpinned by robust operational and financial performance. I am also happy to inform that Vedanta has entered in the club of top 10 DJSI ranked global metals and mining companies; ranking 6th globally. Our growth and vertical integration projects, aimed to reduce market volatility impact and create shareholders’ value, are progressing well. We remain well positioned, with a rich diversified asset portfolio, strong balance sheet, and cost optimization levers, to withstand challenging macroeconomic environment."
The company has said in a stock exchange filing that “The Board of Directors of the Company at its meeting held today i.e. October 28, 2022 have further approved the following: Expansion of Rolled Product Capacity at Balco from existing 50 KTPA to 180 KTPA at a revised cost of ₹595 Crores. With the completion of this project, Balco will be placed in high premium product segment. Expansion of Balco smelter capacity from existing capacity of 580 KTPA to 994 KTPA by way of Expansion Project of 414 KTPA Smelter with improved VAP portfolio, at a revised cost of ₹8,094 Crores approx., subject to requisite Government approvals."
The shares of Vedanta Ltd closed today at ₹285.00 apiece, down by 1.16% from the previous close of ₹288.35.
