Vedanta in Q3 FY20 recorded 14% growth in Profit after Taxes and 10% in EBITDA, driven by robust alumina production

Vedanta Limited, in its unaudited consolidated results for the third quarter of FY2019-20, ended on December 31, announced that it achieved year-on-year stronger financial performance despite market headwinds. The company's EBITDA rose 10 per cent over the year to INR 6,531 crore, and attributable PAT surged 49 per cent to INR 2,348 crore. As of Q3, the company had total cash and liquid investments of INR 35,205 crore.

Vedanta attributed its stronger performance to the highest ever quarterly alumina production of 476,000 tonnes in Lanjigarh refinery, up 16 per cent quarter-on-quarter. Also, continuous structural reduction in cost by about 9 per cent to $1,691 per tonne over the quarter was also a reason behind the company’s enhanced financial performance.

Mr. Srinivasan Venkatakrishnan, Chief Executive Officer of Vedanta, said: “Our Aluminium business continues to benefit from improved integration and systemic cost improvements. We look forward to an exciting fourth quarter and the year ahead.”

Vedanta’s net sales/income from operations in Q3 FY20, however, dropped 10 per cent from INR 23,435 crore in Q3 FY19 to INR 21,126 crore, primarily due to lower commodity prices and muted volumes in Zinc, Oil & Gas and Copper business, partially offset by exploration cost recovery in Oil & Gas. Year to date, the net sales stood at INR 64,032 crore, down 5.57 per cent from INR 67,809 crore.

But despite the drop in net sales, Vedanta made a 14 per cent higher profit after taxes in Q3. From INR 2,332 crore in the third quarter of FY19, the figure rose to INR 2,665 crore. The profit before tax grew 9 per cent year-on-year from INR 3,478 crore to INR 3,806 crore.

Finance cost for Q3 FY20 was at INR 1,232 crore, lower by 9 per cent year-on-year and 8 per cent quarter-on-quarter, primarily due to repayment of high-cost debt and fall in interest rates in line with the market trend.