Vedanta Limited reports increased revenue and EBITDA for Q4 and FY 2017; aluminium production at record high

Vedanta Limited announced its audited consolidated results for the fourth quarter (Q4) and full year ended 31 March 2017 (FY 2017) on Monday May 16.  The results report record annual production at Aluminium, Power, Zinc India (Zinc and Silver) and at Copper-India and improved revenue and EBITDA QoQ and YoY.

Commenting on the results, Navin Agarwal, Chairman Vedanta Limited, said, "The completion of the Cairn India merger transforms Vedanta Ltd. into a diversified natural resources powerhouse, anchored in India. The combined entity truly reflects our strong, diversified, low-cost portfolio with industry-leading volume growth from our well-invested assets. "

Tom Albanese, Chief Executive Officer, Vedanta Ltd, said: "I am happy to report that Vedanta has posted strong financial and operational results in FY2016-17. Our strategic focus to ramp up production across the portfolio namely in Zinc, Aluminium, Power and Iron Ore businesses throughout the year, has supplemented revenue growth. In particular, record production levels at Zinc and Aluminium were well-timed in an environment of strong supply side pressures on both commodities. Our cost management initiatives have helped us deliver strong returns for all our shareholders."

Vedanta Revenue in Q4 was up 16% sequentially and 41% YoY, driven by Zinc India and supported by ramp-up at the Aluminium and Power business and higher metal & oil prices. Revenues for FY 17 were up 12% YoY to reach INR 71,721 crore. The increase was driven primarily by ramp-up of capacities at Aluminium & Power business and improved commodity market.

Q4 EBITDA stood at INR 7,275 crore, up 22% QoQ and up 109% YoY, driven by increased volumes from Iron Ore, Zinc India & Aluminium business, cost efficiencies and improved metal and oil prices. EBITDA margin was 44% in the current quarter, which is ~5% higher than Q3 driven by strong operational performance, cost saving initiatives and improved metal and oil prices. EBITDA for the FY 2017 was INR 21,437 crore up 41% driven by volume ramp-up at Aluminium & Power and the aforementioned positive factors.  

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Further, finance cost during FY 2017 was INR. 5,855 crore, which was higher by INR 77 crore YoY due to capitalization and increase in borrowings at the Aluminium and power businesses and a number of borrowing issues related to Jharsuguda-II smelter. It is now being capitalized as and when aluminium capacities are ramped up in the smelter. Vedanta reports a free cash flow of INR 13,312 crore for FY 2017.

The report also updates that the merger of Vedanta Limited with Cairn is now complete. The Cairn shares have been delisted from the Stock Exchanges and Vedanta Limited shares have been issued to Cairn shareholders.