Vedanta Limited - Consolidated Results for the Fourth Quarter and Full Year Ended 31 March 2020

MUMBAI, India, June 6, 2020 /PRNewswire/ -- Vedanta Limited today announced its audited consolidated results for the fourth quarter (Q4) and full year ended 31 March 2020 (FY2020).

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Financial Highlights


                             Q4 FY2020                               
            
              FY2020

                      ---                                        ---

                                                                   EBITDA down 12% y-o-y, at ? 21,060
                                                                    crore
                                                                            Stable EBITDA margin(2) of 29%
                                                                             
              Att. PAT(1) at ? 3,993 crore

            
              EBITDA down 26% q-o-q to ? 4,844 crore
    EBITDA margin(2) of 28%





    ---                                        ---


            
              Other Financial Highlights FY2020

    ---

                        Interim dividend of ? 3.9 per share declared during FY2020
                           
              Cash & liquid investments of ? 37,914 crore
                                      
               Net Debt at ? 21,273 crores, decreased by ? 5,683
                                     crores compared to 31st March 2019
                         Contribution to the ex-chequer of c.? 32,400 crores

    ---


                     Operational Highlights FY2020

    ---

                     Zinc India

        - Mined metal production of
         917kt, down 2% y-o-y

        - Refined zinc-lead production
         of 870 kt, down 3% y-o-y

                     Zinc International:

        -Gamsberg production volume at
         108 kt in FY2020, up from 17kt
         in FY2019

        - Improved cost of production at
         $1,665/t, down 13% y-o-y

                     Oil & Gas:

        - Average gross production of
         174 kboepd for FY2020, down 8%
         y-o-y

        -9 rigs are currently deployed;
         136 wells drilled during FY2020

        -Early gas production facility
         fully commissioned to design
         capacity of 90 mmscfd

        -Production sharing contracts
         (PSC) signed for Ravva block
         extended for 10 years

        - FTG survey completed in Assam
         and Kutch basins; Seismic survey
         ongoing in OALP Blocks


       Aluminium & Power:

        -Aluminium production at 1,904
         kt

        - Record alumina production at
         1,811 kt, up 21% y-o-y

        -Alumina cost of production in
         Q4 FY2020 at $258/t

        - Record plant availability of
         91% at the 1,980MW TSPL plant in
         FY2020


       
                Iron Ore:

        -Continued engagement with the
         Government for resumption of Goa
         mining operations

        - Saleable ore production in
         Karnataka at 4.4 million tonnes,
         up 6% y-o-y

        - Iron ore sales in Karnataka at
         5.8 million tonnes, up 125% y-
         o-y

                     Steel:  Record annual steel
                      production at 1.23 million
                      tonnes for FY2020, up 3% y-o-y
                                           Copper India: Due legal process
                                            is being followed to achieve a
                                            sustainable restart of the
                                            Tuticorin operations



    ---

1. Att. PAT before exceptional items

2. Excludes custom smelting at Copper and Zinc India operations

Mr Sunil Duggal, Chief Executive Officer, Vedanta, said: "Vedanta has a rich legacy as India's only diversified natural resources group. We will continue to further strengthen it in the years to come. It is a company with a strong purpose of giving back for the greater good, a track record of achievement with an equally compelling sense of selflessness. The Covid pandemic has hit the world and us in the last quarter of the year. We have taken a pro-active approach to keep our assets and people safe while ensuring optimum operations during these difficult times. During these difficult times, our efforts are aligned to the singular vision of making our communities, the state and nation self-reliant and self-sufficient."


                            Consolidated Financial Performance

    ---

The consolidated financial performance of the company during the period is as under:

(In ? crore, except as stated)








                           
              
                Particulars                   Q4             %      Q3    
     
       FY
                                                                                      Change



                                                      FY2020                   FY2019        FY 2020  2020        2019   % change



     
      Net Sales/Income from operations                                       19,513          23,092  (16%)     21,126     83,545    90,901       (8%)


     
      Other Operating Income                                                    242             376     0%        234        902     1,147      (21%)


     
     
                
                   EBITDA                                      4,844           6,330  (23%)      6,530     21,060    24,012      (12%)


     
      EBITDA Margin(1)                                                          28%            31%              34%       29%      30%


     
      Finance cost                                                            1,064           1,401  (24%)      1,232      4,977     5,689      (13%)


     
      Investment Income                                                         611           1,598  (62%)        629      2,443     3,617      (32%)


     
      Exchange gain/(loss) - (Non operational)                                (274)          (167)                      (306)    (509)     (40%)


     
      Profit before Depreciation and Taxes                                    4,115           6,362  (35%)      5,929     18,220    21,432      (15%)


     
      Depreciation & Amortization                                             2,252           2,258   (0%)      2,291      9,093     8,192        11%


     
     
                
                   Profit before Exceptional items and tax     1,863           4,104  (55%)      3,638      9,127    13,240      (31%)


     
      Exceptional Items Credit/(Expense)(2)                                (17,132)            (0)              168   (17,386)      320


     
     
                
                   Profit Before Tax                        (15,269)          4,104             3,806    (8,259)   13,560


     
      Tax excluding exceptional items-Charge/(Credit)                         3,338             886             1,082      3,005     3,750      (20%)


     
      Tax on Exceptional items                                              (6,524)                              59    (6,521)      112


     
     
                
                   Profit After Taxes                       (12,083)          3,218             2,665    (4,743)    9,698


     
      Profit After Taxes before exceptional items                           (1,475)          3,218             2,556      6,122     9,490      (35%)


     
      Minority Interest                                                         438             603  (27%)        317      1,920     2,633      (27%)


     
     
                
                   Attributable PAT after exceptional items (12,521)          2,615             2,348    (6,664)    7,065


     
      Attributable PAT before exceptional items                             (1,914)          2,615             2,239      3,993     6,857      (42%)


     
      Basic Earnings per Share (?/share)                                    (33.82)           7.06              6.34    (18.00)    19.07


     
      Basic EPS before Exceptional items                                     (5.17)           7.06              6.05      10.78     18.50      (42%)


     
      Exchange rate (?/$) - Average                                           72.45           70.49     3%      71.06      70.86     69.89         1%


     
      Exchange rate (?/$) - Closing                                           74.81           69.17     8%      71.27      74.81     69.17         8%

1. Excludes custom smelting at Copper and Zinc India operations

2. Exceptional Items Gross of Tax

3. Previous period figures have been regrouped or re-arranged wherever necessary to conform to current period's presentation

Revenue

Revenue for Q4 FY2020 was at ? 19,513 crore, lower by 8% sequentially, primarily due to lower commodity prices further impacted by COVID-19, lower volume at Aluminium business and lower power sales at TSPL, past exploration cost recovery at Oil & Gas business in Q3 FY2020 partially offset by higher sales volume at Zinc & Iron Ore business and rupee depreciation.

Revenue for Q4 FY2020 was lower by 16% y-o-y, primarily due to lower commodity prices further impacted by COVID-19, lower volumes at Zinc, Oil & Gas, Steel business and lower power sales at TSPL partially offset by higher volume at Aluminium and Iron Ore business, and rupee depreciation.

Revenue for FY2020 was at ? 83,545 crore, lower by 8% y-o-y, mainly due to subdued commodity prices, lower volume at Oil & Gas, Zinc India and lower power sales at TSPL. This was partially offset by higher volume from Gamsberg operations, higher sales at Aluminium, Iron Ore and Steel business, past exploration cost recovery at Oil & Gas business and rupee depreciation.

EBITDA and EBITDA Margin

EBITDA for Q4 FY2020 was at ? 4,844 crore, lower by 26% sequentially, primarily due to lower commodity prices further impacted by COVID-19, past exploration cost recovery at Oil & Gas business and RPO reversal at Aluminium business in Q3 FY2020, partially offset by improved cost of production at Aluminium and Steel business, lower input commodity prices and rupee depreciation.

EBITDA for Q4 FY2020 was lower by 23% y-o-y, primarily due to lower commodity prices further impacted by COVID-19, lower volume Zinc, Oil & Gas and Steel business, partially offset by higher sales at Iron Ore business, improved cost of production at Aluminium & Steel business, lower input commodity prices and rupee depreciation.

EBITDA for the FY2020 was at ? 21,060 crore, lower by 12% y-o-y, mainly on account of lower commodity prices, lower volume and higher cost at Zinc India & Oil & Gas business partially offset by higher volume from Gamsberg operations, higher sales at Aluminium, Iron Ore and Steel business, improved cost of production at Aluminium business, lower input commodity prices, past exploration cost recovery at Oil & Gas business and rupee depreciation.

We had a robust EBITDA margin of 29% for the year amidst strong headwinds (FY 2019: 30%).

Depreciation & Amortization

Depreciation for Q4 FY2020 was at ? 2,252 crore, lower by 2% sequentially, primarily due to lower amortization charge at Zinc India due to increase in reserves estimates and lower amortization charge at Oil & Gas business due to lower production volumes.

Depreciation for Q4 FY2020 is flat y-o-y.

Depreciation and amortisation for FY2020 was at ? 9,093 crore, higher by 11% y-o-y, primarily on account of higher charge at Oil & Gas business due to capitalisation of new wells partially offset by lower production; higher depreciation charge at Zinc India on account of higher ore production& additional capitalisation; higher charge at Zinc international due to increased production from Gamsberg and acquisitions of Steel business in June'2018.

Finance Cost and Investment Income

Finance cost for Q4 FY2020 was at ? 1,064 crore, lower by 14% sequentially and 24% y-o-y, primarily due to lower average borrowing cost in line with market trends and repayment of debt at various businesses.

Finance cost for FY2020 was at ? 4,977 crore, lower by 13% y-o-y, mainly on account of deleveraging and lower average borrowing cost in line with market trends.

Investment Income for Q4 FY2020 was at ? 611 crore, lower by 3% sequentially, primarily due to mark to market (MTM) loss on investment and decline in investment corpus.

Investment Income is lower by 62% y-o-y, primarily due to mark to market gain on a structured investment in Q4 FY2019, partially offset by increase in income due to increase in average investment corpus.

Investment Income for FY2020 was at ? 2,443 crore, lower by 32% y-o-y, primarily due to mark to market gain on a structured investment in Q4 FY2019, partially offset by increase in income due to increase in average investment corpus.

Exceptional Items

Exceptional items for Q4 FY2020 was at ? 17,132 crores, primarily due to impairment of assets at Oil & Gas, Copper and Iron Ore business.

Exceptional loss for FY2020 was at ? 17,386 crores, mainly due to impairment of assets at Oil & Gas, triggered majorly due to significant fall in crude oil prices primarily consequent to the outbreak of COVID-19, partially offset by RPO liability true up at Aluminium, and interest accrued on power debtors at TSPL in line with positive Supreme Court order.

Taxes

Tax credit was at ? 3,516 crore (FY2019: Tax charge of ? 3,862 crores) during the year. The normalized ETR for FY2020 is at 34% compared to 28% in FY2019 due to change in profit mix amongst businesses.

As per Section 115BAA of the Income- tax Act, 1961 and based on the expected timing of exercising the option, the Group has re-measured its deferred tax balances leading to a deferred tax credit of Rs 1,774 crore being recognized during the year.

The above is largely offset with the tax recognized on distributable reserves of / dividend from subsidiary Rs 1,701 crore.

Tax (Exceptional Items) of ? 6,521 crore primarily includes tax credit on impairment recognised during the year.

Attributable Profit/Loss after Tax and Earnings per Share (EPS)

Attributable Loss after Tax before exceptional items for the quarter was at ?1,914 crores.

For FY2020, Attributable Profit after Tax (PAT) before exceptional items was at ? 3,993 crore, lower by 42% y-o-y.

EPS for the year before exceptional items and was at ? 10.78 per share compared to ? 18.50 per share in FY2019.


                            Balance Sheet

    ---

We have robust cash and liquid investments of ? 37,914 crore. The Company follows a Board-approved investment policy and invests in high quality debt instruments with mutual funds, bonds and fixed deposits with banks. The portfolio is rated by CRISIL, which has assigned a rating of "Tier-I" (implying Highest Safety) to our portfolio. Further, the Company has undrawn committed facilities of c. ? 5300 crore as on March 31, 2020.

Gross debt was at ? 59,187 crore on 31(st) March 2020, decreased by ? 7,038 crore y-o-y. This was mainly due to the repayment of debt at various businesses.

Net debt was at ? 21,273 crore on 31(st) March 2020, lower by ? 5,683 crore y-o-y, primarily due to the repayment of debt and unwinding of working capital partially offset by dividend payment by CIHL.

CRISIL changed the outlook on Company's rating (CFR) from 'AA/Positive' to 'AA/Negative' driven by subdued commodity prices. India ratings changed the outlook on Company's rating (CFR) from 'AA/Positive' to 'AA/Negative' driven by delay in deleveraging on account of fall in commodity prices and delay in volume ramp-up in zinc and oil business


                            Dividend

    ---

Given the current market dislocation and uncertainties caused by the coronavirus pandemic, it is important to maximise financial flexibility across the group. The board of Vedanta Limited will decide on the size and timing of any future dividend payments once there is greater clarity on the outlook for the economy and commodity markets. We believe this is the correct decision for all the stakeholders as we navigate through an unprecedented period of volatility for the global economy and our business.


                            Delisting Notice

    ---

On May 12, 2020, the Promoter expressed its intention to voluntarily delist the Equity Shares in accordance with Delisting Regulations and highlighted an Indicative Offer Price of INR 87.5 per Equity Share (determined in accordance with the Delisting Regulations). On May 18, 2020, the board of directors of Company approved the proposal and authorised the Company, amongst other things, to seek shareholders' approval with respect to the proposal. The details of the next steps for the proposed delisting can be accessed on the company website.

https://www.vedantalimited.com/MediaDocuments/VEDL%20Delisting%20process%20FAQs%20-%20Final.pdf

Key Recognitions

Vedanta has been consistently recognized through the receipt of various awards and accolades. During the past quarter, we received the following recognitions:

    --  Hindustan Zinc, the only Indian Metal & Mining company was featured in
        The Sustainability Yearbook 2020 by S & P Global in association with
        Robeco SAM for 3rd consecutive year as Sustainability Leaders (as
        Member) out of 79 Metal and Mining companies globally.
    --  Hindustan Zinc's Corporate Communication Team bagged the Udaipur Media
        Awards 2020 for their efforts as a corporate towards local and regional
        media of Rajasthan.
    --  Hindustan Zinc receives "Excellent Renewable Initiative under Platinum
        Category" for 22 MW Solar Power Project at Rampura Agucha Mine.
    --  Hindustan Zinc received recognition in the category of "Significant
        Achievement in HR Excellence Award" in the 10th CII National HR
        Excellence Award Confluence 2019-20.
    --  Cairn Oil & Gas Won Best Technology Implementation of the Year Award
        2020 under Oil &Gas for the project 'Next Generation Workplace - Office
        365' at the CIO Conclave Award 2020.
    --  Cairn Oil & Gas, Vedanta Ltd. was awarded for 'Good work on Road Safety'
        in Rajasthan at district and state level during the 31st National Road
        Safety Week celebrations by Ministry of Transport and Highways,
        Government of Rajasthan.
    --  Maru Samvad, a Cairn communication-led community engagement campaign,
        won gold for Best Regional Communication Campaign under the Practice
        Area Awards category; won bronze for Best Campaign in Energy (Power /
        Oil & Gas / Renewables) under the Industry Awards category at ET Brand
        Equity Kaleido Awards 2020.
    --  Jharsuguda was adjudged winner of CII-EHS Award 2019 at the 15th State
        Level Competition for Best Practices In Environment, Health & Safety
        (EHS).
    --  Balco won the Golden Peacock Award in Corporate Social Responsibility
    --  Balco received Significant Achievement HR Excellence Award organized by
        CII
    --  Sesa Goa's Value-Added Business won Social Impact Award by Indian
        Chamber of Commerce under Healthcare under Large Enterprise category
    --  Sesa Goa's Value-Added Business won IMC RBNQ Performance Excellence
        Trophy-2019' under manufacturing category
    --  Sterlite Copper Silvassa unit won Par Excellence Award for Kaizen
        Competition by Quality Circle Forum India at 6th National Conclave on 5S
    --  Sterlite Copper Silvassa unit Silver Award for Case study by Quality
        Circle Forum India at 33rd Annual chapter Convention on Quality Concepts
        CCQC-2019 at Mumbai
    --  Nand Ghar was awarded for 'Best CSR Practices' at ET Now World CSR
        Awards 2020.

Results Conference Call

Please note that the results presentation is available in the Investor Relations section of the company website http://www.vedantalimited.com/investor-relations/results-reports.aspx

Following the announcement, there will be a conference call at 6:00 PM (IST) on June 8, 2020, where senior management will discuss the company's results and performance. The dial-in numbers for the call are as below:


                     Event                                                                                                    
              
                Telephone Number

    ---

        Earnings
         conference
         call on June
         08, 2020                                         
     
     India - 6:00 PM (IST)                                           
              
                Universal access:

                                                                                                                                                                             
              +91 22 7115 8015

                                                                                                                                                                             
              +91 22 6280 1114



                                                                                                                              
              
                India:
                                                                                                                              Local Dial In: +91 7045671221

                                                                                                                              
              
                Toll free: 1800 120 1221, 1800 266 1221

    ---

                     Singapore - 8:30 PM (Singapore Time) 
     
     Toll free number: 800 101 2045

                                                          
     
     Toll number: 6531575746

    ---

                     Hong Kong - 8:30 PM (Hong Kong Time) 
     
     Toll free number 800 964 448

                                                          
     
     Toll number: 85230186877

    ---

                     UK - 12:30 PM (UK Time)              
     
     Toll free number 0 808 101 1573

                                                          
     
     Toll number: 442034785524

    ---

                     US - 7:30 AM (Eastern Time)          
     
     Toll free number 1 866 746 2133

                                                          
     
     Toll number: 13233868721

    ---

        Online                                                https://services.choruscall.in/
         Registration                                          DiamondPassRegistration/
                                                               register?confirmationNumber=119082&linkSecurityString=48b976fc

    ---

        Replay of
         Conference
         Call                                                                                                                 
              
                India

        (June 08, 2020
         to June 13,
         2020)                                                                                                                                                              
              +91 22 7194 5757;

                                                                                                                                                                              
              +91 22 66635757

                                                                                                                              
              
                Passcode: 63835#

    ---

About Vedanta Limited

Vedanta Limited, a subsidiary of Vedanta Resources Limited, is one of the world's leading Oil & Gas and Metals company with significant operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, and Aluminium & Power across India, South Africa, Namibia, and Australia. For two decades, Vedanta has been contributing to India's growth story, currently contributing 1 percent of India's GDP. The company is among the top private sector contributors to the exchequer with the highest ever contribution of INR 42,560 Crore in FY 2019.

Governance and sustainable development are at the core of Vedanta's strategy, with a strong focus on health, safety, and environment and on enhancing the lives of local communities. The company has been conferred the CII-ITC Sustainability Award, the FICCI CSR Award, Dun & Bradstreet Awards in Metals & Mining, and certified as a Great Place to Work. Vedanta Limited is listed on the Bombay Stock Exchange and the National Stock Exchange in India and has ADRs listed on the New York Stock Exchange.

For more information please visit www.vedantalimited.com

For more information please visit www.vedantalimited.com

Vedanta Limited
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai - 400 099
www.vedantalimited.com

Registered Office:
Regd. Office: 1st Floor, 'C' wing, Unit 103,
Corporate Avenue, Atul Projects,
Chakala, Andheri (East),
Mumbai - 400 093

CIN: L13209MH1965PLC291394

Disclaimer

This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

Logo: https://mma.prnewswire.com/media/661292/Vedanta_Limited_Logo.jpg

For further information, please contact:


                               Investor
                               Relations

                   James
                    Cartwright

        Head -
         Investor
         Relations                       
     Tel: +44 (0) 20 7659 4732

                                         
     Tel:  +91 124 476 4096

                                         
     
                vedantaltd.ir@vedanta.co.in

    ---

                    Suruchi
                    Daga

         Associate
         General
         Manager
         -
         Investor
         Relations



                   Raksha
                    Jain

         Manager
         -
         Investor
         Relations



                   Shweta
                    Arora

         Manager
         -
         Investor
         Relations

                                    Communications

                     Ms. Roma Balwani                         
     Tel: +91 11 4916 6250

                                    D
                irector,
                                     Communications and Brand 
     
                gc@vedanta.co.in



    ---

                     Mr. Abhinaba Das

        Head, Media Relations




                     Mr. Anirvan Bhattacharjee /
                      Lennon D'Souza                                              
              Tel: +91 22 67574444 / +91 11 40565100


       Adfactors PR                                          
     
                adfactorsvedanta@adfactorspr.com

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