Vedanta Q4 Results Review - Inline; Higher Tax Outgo Leads To Miss On APAT: Motilal Oswal

Motilal Oswal Report

Vedanta Ltd. reported consolidated net sales of Rs 355 billion, down 6% YoY, in line with our estimates. Vedanta’s consolidated Ebitda came in at Rs 87.7 billion (down 7 % YoY), in line with our estimate of Rs 85 billion. Ebitda was supported by higher volume and structural cost-saving initiatives across businesses, partially offset by muted revenue during the quarter.

In Q4 FY24, the Ebitda margin was lower by ~25 basis points YoY to 24.5% as compared to 24% in Q3 FY24. Adjusted profit after tax for the quarter stood at Rs 16 billion (down 50% YoY) and was 16% lower than our estimate of Rs 19 billion. Lower ‘other income’ and higher tax outgo adversely impacted APAT.

Vedanta’s net debt stood at ~Rs 563 billion (down from Rs 625 billion in Q3 FY24) and net debt/Ebitda stood at 1.5 times in Q4 FY24.

During FY24, revenues declined 6% YoY to Rs 1,390 billion, while Ebitda registered a decline of 12% YoY to Rs 304 billion. APAT during the year stood at Rs 49 billion, down 53% YoY.

The net sales of the aluminum segment came in at Rs 124 billion (YoY/QoQ: flat /+2%). The reported Ebitda stood at Rs 30 billion (YoY/QoQ: +61% / +4%) on account of sustained cost reduction for seventh consecutive quarter, reaching $1,711/tonne in Q4 FY24 (down ~$940/tonne in the last seven quarters).

Vedanta commissioned train-I Lanjigarh refinery of 1.5 million tonnes per annum, taking the total capacity to 3.5 mtpa as of Q4 FY24.

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