BackVedanta Q1 results: PAT jumps 5% to ₹4,421 cr, margin declines
Consolidated revenue came in at ₹38,251 crore in Q1FY23 rising by 36.10% yoy, supported by higher sales volume across businesses, commodity prices, and strategic hedging gains.
PremiumVedanta announced a consolidated net profit of ₹4,421 crore to owners for the quarter ending June 30, 2022 (Q1FY23), rising by 4.66% from ₹4,224 crore in the same quarter last year. Q1 PAT, however, declined by 23.76% from ₹5,799 crore in the preceding quarter. Consolidated revenue came in at ₹38,251 crore in Q1FY23 rising by 36.10% yoy, supported by higher sales volume across businesses, commodity prices, and strategic hedging gains.
In Q1FY23, EBITDA stood at ₹10,741 crore up by 7% from ₹10,032 crore of Q1FY22, however, down by 22% from ₹13,768 crore of Q4FY22. On year-on-year, EBITDA increased in line with improved operational performance, commodity prices, and strategic hedging gains were partially offset by higher cost of production amidst input commodity inflation. EBITDA margins were at 32% in Q1 versus 41% in Q1FY22 and 39% in Q4 of the previous fiscal.
During the quarter, the company's investment income decreased 20% yoy to ₹583 crore, mainly due to Mark to Market movement. It was up 12% sequentially due to a change in the Investment mix.
Sunil Duggal, Chief Executive Officer, Vedanta, said “This year, our key priorities will be delivery on committed volumes, timely execution of projects for growth, value addition, vertical integration & cost reduction across our key businesses, and proactive commodity price risk management. We are continuing work on our renewed ESG purpose of “Transforming for Good". We have increased the number of women in decision-making bodies to 29% and are also among the few Indian companies that have actively recruited members from the transgender community as part of our workforce."
Gross debt increased by ₹8,031 crore in 1QFY23 to ₹61,140 crore as on 30th June 2022. Net debt climbed by ₹5,820 crore in 1QFY23 to ₹26,799 crore on 30th June 2022.
Further, the cash and cash equivalents position remains strong at ₹34,342 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.
Duggal added, " I am also happy to inform that we will start reporting our Scope 3 emission from FY22 Sustainability report, three years before our stated timeline. We strongly believe in ‘Atmanirbhar Bharat Abhiyan’ to make India self-reliant. We are one of the highest contributors to the national exchequer. We are the only domestic private player contributing 25% of India’s Oil & Gas production."
On BSE, Vedanta shares settled at ₹245.50 apiece up by 0.80%. The company's market cap is around ₹91,257.18 crore.
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