Vedanta Q2 Results: Profit Decline and Revenue Growth
Metal giant Vedanta has announced its Q2 results, revealing a significant 59% drop in consolidated net profit, totaling Rs 1,798 crore, down from Rs 4,352 crore in the same quarter last year. This decline primarily stems from an exceptional loss of Rs 2,067 crore compared to gains of Rs 1,868 crore in the previous year.
Key Financial Highlights
– Total Revenue: Rs 39,868 crore, a rise of 6% from Rs 37,634 crore in Q2 last year.
– Profit After Tax (PAT): Down 44% sequentially from Rs 3,185 crore in Q1FY26.
– EBITDA Growth: Achieved a record second-quarter EBITDA of Rs 11,612 crore, marking a 12% increase year-on-year.
Excluding exceptional items, Vedanta’s PAT saw a substantial increase of 13% YoY, reaching Rs 5,026 crore. Management remains optimistic, with Executive Director Arun Misra stating that the company’s performance reflects resilience despite commodity price fluctuations.
Operational Achievements
– Aluminium Production:
– Alumina production reached an all-time high of 653 kt, up by 31% YoY.
– Cast metal aluminium production rose to 617 kt, showing a 1% increase YoY.
– Zinc Production:
– Mined metal production in Zinc India hit 258 kt, the highest for a second quarter.
– Oil & Gas:
– Production was reported at 89.3 kboepd.
Financial Strength
Vedanta’s net debt-to-EBITDA ratio stands at 1.37, reflecting an ongoing commitment to financial discipline. The company successfully refinanced $550 million through a bond issue, resulting in a lower interest cost of 10% and increasing average debt maturity to 4.5 years.
In summary, despite the plunge in profit, Vedanta’s revenue growth and operational records indicate a robust position moving forward, with strategies aligned to capitalize on market conditions. The company remains well-positioned for further success in FY26, aiming for an EBITDA surpassing its historical peak.