Vedanta Ltd Q1FY25: Consolidated net profit 36.5% to Rs 3,606 cr

According to the company's filing on August 6, Vedanta's revenue from operations increased by 5.6 percent to Rs 35,239 crore in Q1FY25, up from Rs 33,342 crore in Q1FY24.

The rise in profit comes amid strong prices of zinc, lead, copper and nickel during the period under review.

"This (earnings) reflects strong business performance on cost and volume which is additionally supported by elevated commodity prices," said Chief Financial Officer Ajay Goel.

In the first quarter, EBITDA rose by 47 percent year-on-year due to structural cost-saving measures across its businesses, reduced input commodity inflation, and favourable output commodity prices.

The company reported an EBITDA margin of 34 percent for the quarter, up from 24 percent in the same quarter last year.

The aluminium business saw the most significant growth in core earnings, which surged by 144 percent to Rs 4,441 crore.

Alumina production at the Lanjigarh refinery reached 539 kt, marking an 11 percent increase quarter-on-quarter and a 36 percent increase year-on-year, driven by new capacity.

Earnings from Zinc, silver and lead business rose 17.8 percent to Rs 3,903 crore.

As of June 30, 2024, the company's net debt stood at Rs 61,324 crore, an increase of Rs 4,986 crore from Rs 56,338 crore on March 31. The net debt to EBITDA ratio was 1.5x in Q1FY25, consistent with the previous quarter but down from 1.9x in Q1FY24.

In July, the company raised Rs 8,500 crore through a Qualified Institutions Placement (QIP) at Rs 440 per share, which commenced on July 15.

The company reported a "robust" free cash flow (pre-capex) of Rs 4,371 crore, a 41 percent year-on-year increase.

Additionally, the company's demerger proposal received approval from 75 percent of its secured creditors.

It will now seek clearance from the stock exchanges and file its demerger plan with the National Company Law Tribunal (NCLT).