Indian metal & mining company Vedanta Ltd. reported a 6% rise YoY in consolidated net profits to INR 55.9bn ($700mn) for the quarter ended June. Revenue from operations rose 36% YoY to INR 382.5bn ($4.8bn) driven by higher sales volume, commodity prices, and strategic hedging gains. The company achieved the best-ever June quarter EBITDA of INR 107.4bn ($1.4bn), up 7% YoY. However, the EBITDA margin declined 900bp to 32% on the exclusion of custom smelting at its copper business. Depreciation and amortization have gone up by 16% YoY to INR 24.6bn ($310mn), due to a higher depletion charge in Oil & Gas and higher ore production at Zinc India, domestic operations of Hindustan Zinc. Gross debt increased by 15% to INR 611bn ($7.8bn) and net debt rose by 28% to INR 268bn ($3.4bn). Cash and equivalents were at INR 343bn ($4.4bn) as of June 30. Return on capital employed improved 780bp YoY to ~30% and Net Debt/EBITDA was at 0.6x. The company has declared a dividend of INR 31.50 per share in April 2022 and INR 19.50 per share in July 2022 helping parent VRL to reduce its dollar debt.
Vedanta’s dollar bonds were trading up with its 13.875% 2024s 0.37 points higher at 86.08, yielding 25.83%.