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Vedanta Ltd. announced exceptionally strong financial results for the third quarter of fiscal year 25 (Q3FY25), significantly exceeding expectations and demonstrating robust growth across its key operational segments. The company's net profit experienced a remarkable 77% year-on-year (YoY) increase, reaching Rs 3,547 crore compared to Rs 2,013 crore in the same period of the previous fiscal year. This substantial surge in profitability underscores the company's effective operational strategies and favorable market conditions. Furthermore, the revenue growth of 10% YoY, totaling Rs 38,526 crore, showcases sustained momentum across various business units. This impressive financial performance is a clear indication of Vedanta's resilience and ability to navigate a dynamic market landscape, capitalizing on opportunities to maximize returns and strengthen its market position.
A key highlight of Vedanta's Q3FY25 performance is the record-breaking EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Rs 11,284 crore, representing a significant 30% YoY growth. This exceptional performance is largely attributed to a combination of factors, including notable cost efficiencies implemented by the company, successful operational ramp-ups, and the prevailing favorable commodity prices. The impressive expansion of the EBITDA margin by 517 basis points to 34% further emphasizes the company's operational effectiveness and strategic decision-making. The Aluminium segment emerged as a significant contributor to this growth, exhibiting a remarkable 58% YoY increase in EBITDA. The Zinc India business also performed exceptionally well, showcasing a 28% YoY rise in EBITDA. This diverse and robust performance across key segments reinforces Vedanta's ability to generate value consistently across its varied portfolio.
Beyond the operational successes, Vedanta's Q3FY25 results also showcase a significant improvement in its balance sheet and financial standing. The company reported a net debt of Rs 57,358 crore, but importantly, the net debt-to-EBITDA ratio has improved to 1.4x from 1.7x in the previous year. This reduction reflects Vedanta's commitment to financial discipline and its efforts to optimize its capital structure. The positive impact of this improved financial health is evident in the recent credit rating upgrade from CRISIL. CRISIL raised Vedanta's long-term rating from AA- to AA with a developing outlook, signaling increased confidence in the company's long-term sustainability and financial stability. This upgrade is a strong testament to the company's robust financial performance and the positive outlook for its future growth prospects. The improved credit rating is expected to provide several advantages, including improved access to capital at more favorable terms and enhanced investor confidence.
Ajay Goel, CFO of Vedanta, expressed his satisfaction with the outstanding Q3 results, highlighting the achievement of the highest Q3 EBITDA and a PAT (Profit After Tax) of Rs 4,876 crore, reflecting a 70% YoY growth. Goel emphasized that the company's robust earnings and strong financial discipline have significantly strengthened its balance sheet. He further highlighted the recent credit rating upgrade as a powerful indicator of investor confidence in Vedanta's long-term strategic vision and execution capabilities. This underscores the company's commitment to transparent and responsible financial management and its efforts to build a sustainable and profitable business model. The management's optimism for continued outperformance in subsequent quarters is based on the implementation of further cost optimization strategies, planned production expansions, and effective strategic business integrations.
The planned demerger of Vedanta continues to progress according to schedule. The company has announced that the shareholders' and creditors' meeting is set for February 2025, marking a significant milestone in this restructuring process. This demerger aims to create more focused and independent entities for different business verticals, allowing for enhanced operational efficiency and improved strategic decision-making within each specific area. The successful completion of this demerger is anticipated to unlock further value for shareholders and optimize the overall organizational structure of Vedanta. This strategic restructuring initiative underscores the company's commitment to long-term growth and its determination to optimize its organizational structure for sustained profitability.
The strong Q3FY25 results were immediately reflected in Vedanta's share price, which rose by over 2% to Rs 441 on the BSE. This positive market reaction demonstrates investor confidence in the company's performance and its future prospects. The combination of improving financials, a significantly strengthened balance sheet, and a structured growth roadmap positions Vedanta favorably for sustained profitability and value creation in the years to come. The company's strategic focus on cost optimization, production expansion, and business integration suggests a proactive approach to maximizing returns and adapting to the evolving market dynamics. With its strong foundation and clear strategic direction, Vedanta appears well-positioned to continue delivering strong financial results and exceeding expectations in the future.
Source: Vedanta Q3FY25 Results: Net profit surges 77% to Rs 3,547 crore, EBITDA at record high