Vedanta Limited Achieves Record EBITDA Growth in Q3 FY24-25
Vedanta Limited Achieves Record EBITDA Growth in Q3 FY24-25
Vedanta Limited, a prominent player in the critical minerals and energy sector, announced impressive financial results for the third quarter of FY24-25, heralding a new era of financial accomplishment. The company has recorded its highest-ever third-quarter EBITDA of ?112.8 billion, reflecting a robust 30% increase compared to the previous year.
Strong Revenue Performance
Alongside its record EBITDA, Vedanta Limited reported consolidated revenue of ?385.3 billion for the quarter, marking a 10% year-on-year increase. The impressive Profit After Tax stood at ?48.8 billion, showcasing a remarkable growth of 70% compared to the same period last year.
Strategic Focus on Growth
Arun Misra, the Executive Director of Vedanta Limited, elaborated on the company's strategies in addressing the latest results. He stated, “We have delivered our highest-ever 3rd Quarter EBITDA, driven by our strategic initiatives in cost optimization and production enhancements. Our Aluminium sector notably experienced a 58% year-on-year increase in EBITDA, while our Zinc India operations saw a commendable 28% growth. We are optimistic that this upward trend will continue as we persist with growth initiatives and integrated business projects.”
Financial Resilience and Outlook
CFO Ajay Goel emphasized the stellar performance achieved in this quarter. “This quarter marks a stellar performance, delivering our highest Q3 EBITDA of ?112.8 billion, a remarkable 30% growth year-on-year, with a robust EBITDA margin of 34%. Our profit after tax reflected an exceptional 70% year-on-year growth. This success stems from our unwavering commitment to cost efficiencies, enhanced volume outputs, and favorable commodity pricing,” he explained.
Successful Debt Restructuring
Moreover, Vedanta's parent company, VRL, has made significant strides by restructuring $3.1 billion through bond issuances over the past four months, resulting in extended maturities of up to eight years and a noteworthy reduction in the average coupon rate by 250 basis points. These financial maneuvers reflect strong investor confidence, as evidenced by bond trading at a premium and notable credit rating upgrades.
Upcoming Demerger Plans
Vedanta Limited is moving ahead with a transformative plan involving one of India's largest demergers, which is now in its final stages. This strategic transition will pave the way for the establishment of five distinct listed companies, enhancing operational efficiency and focus within its varied business segments.
Contact Information
For further details about Vedanta Limited and its financial performance, please visit www.vedantalimited.com.
Frequently Asked Questions
What was Vedanta Limited's EBITDA for Q3 FY24-25?
Vedanta Limited reported its highest-ever EBITDA for Q3 FY24-25 of ?112.8 billion, reflecting a 30% growth year-on-year.
How much did Vedanta's revenue increase in the reported quarter?
The consolidated revenue for Vedanta in the third quarter increased by 10% year-on-year to ?385.3 billion.
What were the key drivers of Vedanta's financial performance?
Key drivers included strategic focus on cost optimization, production ramp-up, favorable commodity prices, and a robust performance in their Aluminium and Zinc India businesses.
What is the status of Vedanta's demerger plans?
Vedanta's demerger plans are progressing and are currently in their final stages, intending to create five separate listed companies.
What financial strategies has Vedanta recently undertaken?
Vedanta’s parent company, VRL, successfully restructured $3.1 billion in debt through bond issuances, resulting in significant long-term benefits for the company.
About The Author
Contact Ryan Hughes privately here. Or send an email with ATTN: Ryan Hughes as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.
