Vedanta Limited announces Q1 Results

Vedanta Limited (formerly known as Sesa Sterlite Ltd./Sesa Goa Ltd) today announced its unaudited consolidated results for the first quarter ended 30 June 2015. A summary of the results below:

Financial Highlights:

• Revenues at INR 16,952 crore
• EBITDA at INR 4,039 crore is flat sequentially; EBITDA margin1 at 31%, improvement sequentially from 28%
• Attributable PAT at INR 866 crore, 76% higher sequentially
• Strong balance sheet with Cash & Cash Equivalents of over INR 47, 000 crore
Aluminium section reports record quarterly aluminium production notwithstanding domestic and international weaker markets.

Mr. Tom Albanese, Chief Executive Officer, Vedanta Limited, said: "In Q1 we saw continued volatility in commodity prices, but Zinc has held up quite well in view of its strong fundamentals and is now the largest contributor to our EBITDA. We continue to focus on improving efficiency, costs, and enhancing production across our well-invested asset base. We have broken ground at the Gamsberg Zinc project in South Africa and remain on track to re-start iron ore production at Goa following the monsoons. Our diversified business model supported by strong operating strengths and structurally low cost assets will enable robust long term returns to stakeholders."

Revenues
Revenues in the quarter were largely flat at INR 16,952 crore. Decline in crude oil prices by 44% y-o-y impacted revenues by INR 1,856 crore and was largely offset by higher revenues from Copper India which had a maintenance shutdown during Q1 FY2015, higher volumes in Zinc India and startup of Unit I of TSPL.

Sequentially, revenues for the quarter were lower by 4%. Recovery in crude oil prices ($62 vs $54) was more than offset by lower premia in aluminium and lower sales volume in Zinc India as per the mine plan.

EBITDA and EBITDA Margin
EBITDA at INR 4,039 crore was lower by 29% due to a steep fall in crude oil prices and aluminium premia. EBITDA was also impacted by one-time expense related to Renewable Purchase Obligations (RPO) provision of INR 414 crore for the previous years (FY2013 to FY2015) for the Aluminium, Zinc India and Copper - India businesses. Sequentially, EBITDA margins excluding custom smelting increased by 300bps to 31% on the back of recovery in crude oil prices.