VEDANTA RESOURCES Patto, Panaji, Goa - 403001.
www.vedantalimited.com CIN: L13209GA1965PLC000044
28 January 2016
Financial Highlights
Q3 FY2016 Revenues at Rs. 14,801 crore
Robust EBITDA of Rs. 3,212 crore and 26% EBITDA margin1, despite weak commodity prices
Attributable PAT at Rs. 18 crore, primarily driven by lower oil and metal prices
Generated free cash flow at Rs. 609 crore before growth capex
Actively managing balance sheet, with a focus on optimising opex and capex to maximize free cash flow; refinancing and terming out maturing debt; and simplifying the group structure
o Strong financial position with total cash & cash equivalents of Rs. 50,685 crore and undrawn committed facilities of c. Rs. 4,800 crore
Operational Highlights
Zinc-India: Strong refined metal production; record refined silver production of 116 tonnes
Oil & Gas: Stable Q3 production with 19 kbopd contribution from Mangala EOR; Rajasthan water flood operating costs continue to improve
Aluminium: Record metal production; 7% lower cost of production q-o-q driven by cost optimisation initiatives; received approval for conversion of 3 units of 2,400 MW Jharsuguda IPP to CPP
Copper-India: 89% utilisation, affected by floods and unplanned shutdowns
Power: Second 660 MW unit of 1,980 MW Talwandi Sabo commissioned; 85% availability for both units
Iron ore: Stable operations in Karnataka; slower ramp up in Goa due to transportation issues
1. Excludes custom smelting at Copper India and Zinc India operations
Tom Albanese, Chief Executive Officer, Vedanta Limited, said: "In the weak commodity price environment, we remain committed to optimising our operations, leveraging our high quality asset base, and proactively managing our balance sheet. I am encouraged to see the positive results of our cost reduction programme gaining momentum, and believe that this relentless focus on efficiency will not only make our business more resilient through the cycle but position us favourably for any future improvement in market conditions. Despite challenging market conditions, these efforts have allowed us to generate a robust EBITDA margin of 26%."
Consolidated Financial Performance
The consolidated financial performance of the company during the period is as under:
(In Rs. crore, except as stated)
FY' 15 | Particulars | Q3 | Q2 | Nine months | ||||
Actual | FY 2016 | FY 2015 | % Change | FY 2016 | FY 2016 | FY 2015 | % Change | |
73,364 | Net Sales/Income from operations | 14,801 | 19,128 | (23)% | 16,349 | 48,102 | 55,632 | (14)% |
22,226 | EBITDA | 3,212 | 6,234 | (48)% | 4,113 | 11,365 | 18,240 | (38)% |
41% | EBITDA Margin1 | 26% | 43% | 32% | 30% | 45% | ||
5,659 | Finance cost | 1,391 | 1,341 | 4% | 1,418 | 4,167 | 4,338 | (4)% |
2,367 | Other Income | 579 | 429 | 35% | 721 | 2,194 | 2,325 | (6)% |
(611) | Forex loss/ (gain) | (136) | (405) | (66)% | (494) | (885) | (795) | 11% |
19,363 | Profit before Depreciation and Taxes | 2,430 | 5,639 | (57)% | 3,797 | 10,009 | 16,813 | (40)% |
7,160 | Depreciation and Amortisation of goodwill | 1,770 | 2,328 | (24)% | 1,660 | 5,148 | 6,396 | (20)% |
12,204 | Profit before Exceptional items | 660 | 3,311 | (80)% | 2,137 | 4,861 | 10,417 | (53)% |
22,129 | Exceptional Items2 | - | - | 0% | - | - | 2,173 | |
1,448 | Taxes3 | 160 | 478 | (66)% | 204 | 717 | 899 | (20)% |
(11,373) | Profit After Taxes | 500 | 2,834 | (82)% | 1,933 | 4,144 | 7,345 | (44)% |
10,183 | Profit After Taxes before Exceptional items | 500 | 2,834 | (82)% | 1,933 | 4,144 | 9,010 | (54)% |
4,276 | Minority Interest | 482 | 1,246 | (61)% | 959 | 2,287 | 3,763 | (39)% |
50% | Minority Interest excl.Exceptional Items % | 96% | 44% | 50% | 55% | 49% | ||
(15,646) | Attributable PAT after exceptional items | 18 | 1,588 | (99)% | 974 | 1,858 | 3,582 | (48)% |
5,060 | Attributable PAT before exceptional items | 18 | 1,588 | (99)% | 974 | 1,858 | 4,569 | (59)% |
(52.77) | Basic Earnings per Share (Rs./share) | 0.06 | 5.35 | (99)% | 3.28 | 6.27 | 12.08 | (48)% |
17.07 | Basic EPS before Exceptional Items | 0.06 | 5.35 | (99)% | 3.28 | 6.27 | 15.41 | (59)% |
61.15 | Exchange rate (Rs./$) - Average | 65.93 | 62.00 | 6% | 64.91 | 64.78 | 60.77 | 7% |
62.59 | Exchange rate (Rs./$) - Closing | 66.33 | 63.33 | 5% | 65.74 | 66.33 | 63.33 | 5% |
Excludes custom smelting at Copper India and Zinc India operations
Exceptional Items Gross of Tax
Previous period figures have been regrouped / rearranged wherever necessary to conform to current period presentation
Revenues during the quarter at Rs 14,801 crore, were lower by 9% q-o-q due to softening of oil and metal prices, partially offset by improved volumes in the Power business.
Revenues for the quarter were 23% lower y-o-y, on account of the fall in oil and metal prices, partially offset by higher volumes at Zinc India and Power.
EBITDA at Rs. 3,212 crore was 22% lower q-o-q, due to the fall in metal and oil prices, partially offset by cost savings initiatives and due to a one-time benefit of Rs. 216 crore at Copper India and Zinc India, regarding an export incentive scheme based on a Supreme Court judgement in October 2015.
EBITDA was down 48% y-o-y primarily due to weak commodity prices.
We were able to maintain an EBITDA margin of 26% in the weaker commodity price environment, driven by strong optimisation of operating costs.
Depreciation and amortisation at Rs.1,770 crore, was higher by Rs. 110 crore q-o-q on account of assets capitalized in Q3 FY2016 at Aluminium and Power, and a one-time depreciation charge at Lisheen post closure.
Depreciation and amortisation was lower y-o-y, largely on account of lower amortisation following the impairment of goodwill taken at the end of FY2015, primarily in the Oil & Gas business. Depreciation was also lower driven by a change in the useful life of our metals and mining assets, effected at the end of the last financial year. This was partially offset by the capitalisation of new capacities at Oil & Gas, Aluminium and Power business, over the last year.
Finance cost at Rs. 1,391 crore was marginally lower q-o-q due to the benefits of lower cost of refinancing partly offset by capitalisation of the power units.
However finance costs were higher by Rs.50 crore y-o-y, primarily driven by capitalisation of power units, forex impact on dollar denominated borrowings, partially offset by benefits of lower cost of refinancing.
Other income at Rs.579 crore decreased by Rs.142 crore sequentially due to timing differences, where income earned on certain investments are recognised at maturity due to partial adoption of AS-30.
During the quarter, rupee depreciation of 1% led to a forex gain of Rs. 136 crore on dollar- denominated investments, advances and trade debtors.
Vedanta Resources plc issued this content on 28 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 January 2016 09:26:17 UTC
Original Document: http://www.vedantaresources.com/media/194109/ved_ltd_press_release_q3_fy2016.pdf
