Vedanta Ltd 'adjusted PAT' grows 13% to Rs 5,000 cr in Q1

New Delhi: Vedanta Ltd on Thursday posted a 13 per cent rise in consolidated "adjusted profit after tax" to Rs 5,000 crore in June quarter, driven by higher revenues.

The metals and mining company had recorded an adjusted PAT of Rs 4,433 crore in the April-June period of preceding 2024-25 financial year.

In a statement, Vedanta Ltd said its "adjusted PAT jumps 13 per cent year-on-year (y-o-y) to Rs 5,000 cr, while PAT stands at Rs 4,457crore".

The adjusted PAT accounts for the write-off for Cairn's exploration cost in OALP blocks.

OALP stands for open acreage licensing policy.

In the first quarter, the company's revenues increased to Rs 37,434 crore from Rs 35,239 core in the same period a year ago.

Expenses were at Rs 32,756 crore as against Rs 30,772 crore in the year ago period.

Anil Agarwal, Chairman, Vedanta said, "Our 1Q performance has set a strong foundation for the year ahead. Amidst global market volatility, we delivered the highest-ever first quarter EBITDA."

"Operationally, the company achieved the lowest hot metal cost (ex-alumina) in the last 16 quarters, lowest-ever 1Q Zinc India CoP, 74 per cent YoY increase in Gamsberg's production, 33 per cent QoQ surge in power sales, and 150 per cent QoQ jump in Ferro Chrome volumes."

The ramp-up of the Lanjigarh refinery to 587 kilo tonnes demonstrates company's progress towards delivering over 3 MnT of alumina in FY26, he said.

Looking ahead, the commissioning of Train II at Lanjigarh, 435-KT smelter capacity at Balco and 1,300 MW of new thermal power capacity, all in 2Q, "will enable us to deliver our full-year guidance. The start of operations at our Sijimali bauxite mine and Kuraloi coal mine in H2 is likely to boost our performance to a record high," Agarwal said.

Ajay Goel, CFO, Vedanta, said this quarter, the company has achieved the highest- ever first quarter EBITDA of Rs 10,746 crore, reflecting a 5 per cent YoY growth. The EBITDA margin expanded by 81 basis points to 35 per cent, which is the highest in last 13 quarters.

"This strong performance alongside corporate initiatives, such as the HZL stake sale which generated Rs 3,028 crore cash, has enabled Vedanta to deliver a net debt-to-EBITDA ratio of 1.3x," he said.

Goel said given the NCD issuance of Rs 5,000 crore and other refinancing, the cost of the company's debt has reduced by around 130 bps YoY to 9.2 per cent.

With capex spend of Rs 5,155 crore and consolidated dividend payout of Rs 4,280 crore, the net debt stands at Rs 58,220 crore, Vedanta Ltd said.

In power segment, total power sales increased 33 per cent QoQ. TSPL (Talwandi Sabo Power) achieved 90 per cent plant availability, while 650 MW of Meenakshi power plant capacity is now operational.

The company also commissioned unit 1 of 600 MW Athena Power Plant in July.

Mined metal production at Zinc International jumped 50 per cent YoY and 12 per cent QoQ to 57 kilo tonnes, while overall cost of production reduced 21 per cent on year to USD 1,269 per tonnes.

Gamsberg's first quarter production also jumped 74 per cent YoY and 13 per cent sequentially, driven by mining ramp up and improved ore availability, the company said.

Iron ore production at 1.8 Mnt was up 42 per cent YoY and pig iron production at 213 KT was up 4 per cent YoY, it said.