Vedanta Q2 results: Net profit at ₹4,352 crore, tax expense down 78%

This comes after the company posted a 77.67% drop in its tax expenses from ₹9,092 crore in the second quarter of the previous fiscal to ₹2,030 crore in the quarter ended September of FY’25.

The mining conglomerate’s revenue from operations slumped 3.6%, declining to ₹37,171 crore in the second quarter of FY’25 from ₹38,546 crore in the same quarter in the previous year.

The second half of this year will be a transformative period with the company's major growth and integration projects coming online and ramping up, Vedanta Ltd. Executive Director Arun Misra said.

"Through our structural interventions and initiatives, we have significantly reduced our cost of production over the past 12-15 months, and we will continue this trend in the coming quarters," he said.

Further, the company said its demerger is on track and in its final stages, with shareholder and creditor meetings scheduled in the coming months.

"We delivered our highest-ever H1 EBITDA of ₹ 20,639 crore, up 46% Y-o-Y (year-on-year), with a robust 34% EBITDA margin and PAT (Profit After Tax) before exceptional items of ₹4,467 crore, a 230% Y-o-Y increase. This strong performance is driven by cost efficiency, volume growth and favourable commodity prices," said Ajay Goel, CFO of Vedanta Ltd.

Additionally, Goel said that the company raised $1.4 billion at Vedanta through a $1 billion QIP (Qualified institutional placements) and $400 million through Hindustan Zinc’s offer for sale (OFS).

"At the same time, with the $1.2 billion VRL bond issuance and ongoing deleveraging, we have reduced Holdco (holding company) debt to $4.8 billion, the lowest level in a decade. This positions us well to generate lasting value for our stakeholders, both now and in the years to come," Goel added.

The company said its gross debt stood at ₹78,654 crore as of September 30, 2024.

The board has approved the acquisition of 100% shares of Sterlite Iron and Steel Company Ltd (SISCOL) by Sesa Resources Ltd (SRL).

Accordingly, SISCOL will become a step-down subsidiary of Vedanta Ltd. The board has also approved ₹5,209 crore capital expenditure, which includes ₹565 crore of acquisition cost, for Athena Chhattisgarh Power Plant Project in Chhattisgarh.

In 2022, Vedanta Ltd acquired Athena Chhattisgarh Power Ltd to meet its captive power requirements.

The power plant consists of two 600 MW units. Its first unit is scheduled to go operational in the first quarter of 2025-26, while the second unit will become operational in the third quarter of FY26.

"Capex will be spread over upcoming financial years and financed through a combination of internally generated funds and borrowed capital," it said.

The plant benefits from a strategic location near water and coal resources.

Additionally, the board has approved the expansion of the smelter capacity of Bharat Aluminium Company Ltd (BALCO), a subsidiary of Vedanta, "by 435 KTPA (kilo tonne per annum) and rolled products by 130 KTPA".

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, the 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.