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Vedanta Limited announced its stellar financial performance for the third quarter of fiscal year 2025 (Q3FY25), ending December 31, 2024. The company reported a remarkable 77% year-on-year (YoY) increase in net profit, reaching Rs 3,547 crore compared to Rs 2,013 crore in the same period of the previous year. This significant jump in profitability underscores Vedanta's strong operational efficiency and favorable market conditions. The impressive results were driven by a combination of factors, including strategic cost optimization measures, production ramp-ups across key business units, and robust commodity prices. The company's executive leadership highlighted the successful implementation of these strategies as instrumental in achieving these outstanding results.
A key driver of Vedanta's robust Q3 performance was the substantial increase in revenue. The company's total revenue rose by 10% YoY, reaching Rs 38,526 crore in Q3FY25 compared to Rs 34,968 crore in Q3FY24. This revenue growth reflects strong demand for Vedanta's products and its ability to capitalize on market opportunities. Further bolstering the positive financial picture was the considerable increase in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). Vedanta's consolidated EBITDA surged by 30% YoY, reaching Rs 11,284 crore in Q3FY25, representing the highest-ever third-quarter EBITDA in the company's history. This impressive figure demonstrates the company's ability to generate significant cash flow from its operations.
The impressive growth wasn't limited to overall figures; Vedanta's individual business units also contributed significantly to the positive results. The Aluminium business showed particularly strong performance, experiencing a remarkable 58% YoY jump in EBITDA. Similarly, the Zinc India business demonstrated robust growth, with a 28% YoY increase in EBITDA. These positive results highlight the strength and resilience of Vedanta's diversified business portfolio. The company's aluminum production also reached record levels, with the highest ever production of 613 kt in Q3FY25, marking a 2% YoY increase. This accomplishment underscores Vedanta's commitment to operational excellence and its capacity to meet growing market demand.
Vedanta's financial health is also reflected in its improved debt levels. The company's net debt stood at Rs 57,358 crore, with a net debt/EBITDA ratio of 1.4x, down from 1.7x in Q3FY24. This improvement highlights the company's commitment to fiscal responsibility and its ability to manage its financial leverage effectively. The improvement in the debt-to-EBITDA ratio demonstrates the company's financial strength and stability, which is likely to attract further investment and enhance market confidence. The recent upgrade in Vedanta's credit rating further underscores this positive financial outlook. Furthermore, the demerger process, aimed at streamlining operations and enhancing shareholder value, is progressing smoothly, with the shareholders' and creditors' meeting scheduled for February 2025.
Looking ahead, Vedanta executives expressed optimism about the company's future prospects. They anticipate continued outperformance in the coming quarters, driven by ongoing growth initiatives and business integration projects. This positive outlook is supported by the strong performance already seen in key business units and the company's commitment to operational efficiency and cost optimization. The successful execution of the demerger process will further contribute to enhancing operational efficiency and unlock greater value for shareholders. Overall, Vedanta's Q3FY25 results showcase strong financial performance across various metrics, indicating a healthy financial outlook and continued growth trajectory.
Source: Vedanta Q3 results: Net profit jumps 77% to Rs 3,547 crore