Vedanta Demerger: Anil Agarwal's Company Shares Update On Progress - Check Q2 Details

Vedanta Demerger Plans: Mining conglomerate Vedanta Ltd on Friday updated the stakeholders of the company that its demerger plans are on track and in its final final stages, according to the investor presentation shared by the company on the BSE. 

“Demerger on track and in its final stages, with shareholder and creditor meetings scheduled in the coming months,” company shared in the release. 

In the demerger, the company plans to set up its key businesses into separate listed entities by the end of the current financial year (FY2025). With the demerger, the company will have separate entities for aluminium, oil and gas, power, steel and ferrous materials, and base metals.

Vedanta swings to Black

Anil Agarwal-led mining major reported a consolidated net profit of Rs 4,352 crore for the September 2024 quarter, driven by reduced tax expenses. This marks a turnaround from the Rs 1,783 crore consolidated net loss recorded in the same quarter last year. 

The company's tax expenses fell sharply to Rs 2,030 crore from Rs 9,092 crore in the July-September period a year prior.

Vedanta's consolidated income for the quarter decreased slightly to Rs 38,934 crore, down from Rs 39,585 crore a year ago, according to regulatory filings. 

Latter Half of Year To Be Transformative: Misra

Vedanta Executive Director Arun Misra noted that the latter half of the year would be transformative, with major growth and integration projects starting and scaling up. “Through our structural interventions, we have significantly reduced production costs over the past 12-15 months, a trend we aim to continue in the coming quarters,” he added.

The company also stated that its planned demerger is progressing well, with shareholder and creditor meetings scheduled in the coming months.

Highest Ever First-half EBITDA 

Vedanta Ltd CFO Ajay Goel highlighted that the company achieved its highest-ever first-half EBITDA of Rs 20,639 crore, up 46 per cent year-on-year, with a strong EBITDA margin of 34 per cent and profit after tax (PAT) before exceptional items of Rs 4,467 crore, marking a 230 per cent increase year-on-year. 

This performance, he said, is attributed to cost efficiency, volume growth, and favourable commodity prices. Additionally, Vedanta raised $1.4 billion through a $1 billion Qualified Institutional Placement (QIP) and a $400 million Hindustan Zinc Ltd (HZL) Offer for Sale (OFS). 

With a $1.2 billion Vedanta Resources Ltd (VRL) bond issuance and ongoing debt reduction, the company has lowered holding company (Holdco) debt to $4.8 billion, its lowest level in a decade. “This positions us well to create lasting value for our stakeholders,” Goel stated.

As of 30 September 2024, Vedanta’s gross debt stood at Rs 78,654 crore.

(With PTI inputs)