Vedanta Q2 Results: Mining major posts net profit of ₹5,603 crore vs loss YoY

Vedanta Q2 Results: Mining major Vedanta Ltd on Friday reported a consolidated net profit for the fiscal's second quarter ended September (Q2FY25) to ₹5,603 crore as against a net loss of ₹915 crore in the year-ago period (Q2FY24). The firm's consolidated net profit (attributable to Owners of Vedanta Limited) stood at ₹4,352 crore versus net loss of ₹1,783 crore.

The mining conglomerate owned by Anil Agarwal reported a decrease of 3.6% in consolidated revenue from operations for the September quarter, totalling ₹37,171 crore compared to ₹38,546 crore in the same period last year.

EBITDA increased by 44% to ₹10,364 crore, attributed to favourable commodity prices, efforts in structural cost savings, and higher premiums across various business segments, according to the company.

The company, in its exchange filing, mentioned that in 2QFY25 it recorded an exceptional gain of ₹1,136 crore, primarily from the reversal of impairments in its Oil & Gas sector. It was partially countered by an impairment charge in ASI, as well as additional cess on mineral-bearing land and mining rights due to a Supreme Court ruling.

The firm secured ₹8,500 crore via a Qualified Institutions Placement (QIP) at a rate of ₹440 per share. As of the end of September, the company's net debt was recorded at ₹56,927 crore, with a net debt to EBITDA ratio of 1.49x, indicating the strongest position over the past six quarters.

“This has been an outstanding quarter, highlighted by significant progress in our corporate and strategic initiatives, strong financial results, and excellent operational performance. We delivered our highest-ever 1H EBITDA of ₹20,639 crore, up 46% YoY, with a robust 34% EBITDA margin and PAT before exceptional items of ₹4,467 crore, a 230% YoY increase. This strong performance is driven by cost efficiency, volume growth, and favourable commodity prices.

Additionally, we raised $1.4 billion at Vedanta through a $1 billion QIP and a $400 million HZL OFS. At the same time, with the $1.2 billion VRL bond issuance and ongoing deleveraging, we have reduced Holdco. 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,” said Ajay Goel, CFO, Vedanta.

Operational Highlights

In Q2FY25, India recorded its highest production levels of zinc metal and refined metal at 256 kt and 262 kt, marking increases of 2% and 8% YoY, respectively. In the oil and gas sector, the average daily gross operated production reached 104.9 kboepd, with natural decline being partially mitigated by the activation of infill wells in the Mangala and RDG fields.

During the second quarter, saleable iron ore production increased by 7% YoY to 1.3 million tonnes, whereas steel production was negatively affected due to the scheduled shutdown for the debottlenecking of the steel melting shop and maintenance of the oxygen plant.

Vedanta share price today

Vedanta share price today ended flat at ₹457.80 apiece on the BSE post Q2 results. Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One stated that the Vedanta share price has been trading in a range for the last couple of weeks, with resistance seen around ₹475 and support at ₹450. Post result, we have not seen any significant move, and the next leg of traction would be seen only on breakout from this range on either side. Above ₹475 prices can head towards ₹500, whereas below ₹450 further dips towards ₹430 can be expected in the coming week.

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