Vedanta Limited reports 31% YOY growth in revenue in third quarter FY2017

Vedanta Limited today announced its unaudited consolidated results for the third quarter (Q3) ended 31 December 2016.

The company reported revenues of INR 19,320 crore, up 23% QoQ and up 31% YoY. The company also reports an EBITDA of INR. 6,002 crore, up 29% QoQ and up 83%, YoY.  The results show a solid EBITDA margin of 39%, driven by higher commodity prices and aluminium volume ramp-up.

Vedanta also reports a free cash flow of INR 1,801 crore, driven by strong operating performance and gross debt reduction of INR 1,828 crore and net debt reduction of INR. 447 crore during the quarter. The company reports a strong financial position with total cash and liquid investments of INR 53,452 crore.

The aluminium smelters continue the ramp-up operations and the third line of the 1.25 mtpa Jharsuguda-II smelter commenced ramp up in December 2016.

Commenting on the results, Tom Albanese, Chief Executive Officer, Vedanta Limited, said: "Volume ramp-up and cost efficiencies across our operations, aided by higher commodity prices, have significantly driven up EBITDA y-o-y. Our financial position remains robust and we continue to strengthen our balance sheet by maximising free cash flow and reducing debt. With our focus on simplifying the group structure, the Vedanta Limited and Cairn India merger is expected to be completed in the first quarter of CY 2017.”

Vedanta Limited published the production release for the third quarter and nine months ended 31st December 2016 in January 2017.

Aluminium production for Q3 FY2017 was 319,000 tonnes, which registered a growth of 37% YOY and an 8% growth from the last quarter.  The two running streams of the Lanjigarh refinery produced 328,000 tonnes in Q3 FY2017 registering a 12% growth from Q2 FY2017. The refinery currently has an annual debottlenecked capacity of 1.7 - 2.0 million tonnes.

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