Anil Agarwal's Vedanta Shocks Market with 61 Percent Profit Surge

Mining giant Vedanta reported a massive 61% year-on-year increase in net profit to ₹5,710 crore for the third quarter, driven by strong operational performance and higher metal prices.

Vedanta Limited, led by billionaire Anil Agarwal, has reported a. Stellar performance for the third quarter of the current fiscal year. The mining and natural resources major saw its consolidated net profit skyrocket by 61% year-on-year to reach ₹5,710 crore, while this strong growth has been attributed to a combination of strategic cost management, higher production volumes, and favorable global metal prices.

Revenue and Financial Highlights

The company's consolidated revenue for the quarter stood at ₹23,369 crore, marking a significant 37% increase compared to the same period last year. The primary drivers for this revenue growth were higher LME prices, improved sales volumes across segments, and strong premiums. Also, foreign exchange gains contributed positively to the bottom line, showcasing the company's resilience in a volatile global market.

Record Breaking EBITDA Margins

One of the most striking aspects of Vedanta's Q3 results is its EBITDA performance. The company reported its highest-ever quarterly EBITDA of ₹15,171 crore, representing a 34% year-on-year growth, while the EBITDA margin expanded to 41%, an increase of 629 basis points annually. This margin is the second-highest in the company's history, reflecting superior operational efficiency and discipline in capital allocation.

Segmental Performance: Aluminum and Zinc

The Aluminum business delivered a record-breaking performance with alumina production reaching 794 kt, up 57% year-on-year. More importantly, the cost of production for aluminum decreased by 11%, Importantly boosting profitability. Zinc India also posted its strongest-ever third-quarter performance, with mined metal production rising to 276 kt. The cost of zinc production hit a five-year low for the third quarter at $940 per tonne, highlighting the company's focus on cost optimization.

Debt Reduction and Capital Efficiency

Vedanta has made significant strides in strengthening its balance sheet. The net debt of the company reduced to ₹60,624 crore, bringing the net debt-to-EBITDA ratio down to 1. 23x from 1. 40x a year ago. The Return on Capital Employed (ROCE) improved to 27%, up by 296 basis points, indicating highly efficient use of capital, while the company's focus on deleveraging while maintaining high growth continues to be a key theme for investors.

Oil, Gas, and Iron Ore Operations

The Oil and Gas vertical maintained steady operations with an average daily production of 84. 9 kboepd, while meanwhile, the Iron Ore business saw a volume recovery, with Karnataka operations producing 1. 2 million tonnes and Goa operations contributing 0. 4 million tonnes. These diversified revenue streams provide Vedanta with a balanced portfolio to navigate commodity cycles effectively.