Profit for Vedanta drops 27% to Rs 1,369 crore

For the quarter ended March 31, 2024, Vedanta Ltd.’s net profit decreased by 27% to Rs 1,369 crore as a result of weakening metal prices, particularly those of zinc, copper, and aluminum, and growing financing expenses.

In Q4FY23, it declared a net profit of Rs 1,881 crore. During the quarter, its operating revenue decreased by 6% to Rs 34,937 crore. In Q4FY24, consolidated EBITDA decreased by 4% to <8,969 crore from the previous year. As of March 31, Vedanta’s net debt was Rs 56,338 crore, down Rs 6,155 crore from Q4FY23. The firm said that as of December 31, its net debt to EBITDA ratio has improved to around 1.5 times from 1.7 times.

“We achieved an EBITDA margin of 30% in FY24 with an annual margin expansion of Rs 240 basis points, highlighting our efficiency and agility,” said Ajay Goel, CFO of Vedanta, “through continued cost optimization.” In the midst of preparations to improve the balance sheet via increasing cash flows, it produced Rs 9,948 crore in free cash flow.