Vedanta Q2 Results: Profit Plunges, Loss Soars
- Vedanta Limited announced a significant decrease in its consolidated net profit for the second quarter of fiscal year 2024, citing exceptional losses and a challenging economic surroundings.
- Vedanta Limited reported a consolidated net profit of ₹1,798 crore for the second quarter of fiscal year 2024, a significant 59% decrease compared to the ₹4,352 crore reported...
- The decline in profitability was primarily attributed to a net exceptional loss of ₹2,067 crore, a stark contrast to the ₹1,868 crore gain recorded in the year-ago quarter.
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Vedanta Reports 59% Decline in Q2 Net Profit to ₹1,798 Crore
Table of Contents
Vedanta Limited announced a significant decrease in its consolidated net profit for the second quarter of fiscal year 2024, citing exceptional losses and a challenging economic surroundings.
Financial Performance Overview
Vedanta Limited reported a consolidated net profit of ₹1,798 crore for the second quarter of fiscal year 2024, a significant 59% decrease compared to the ₹4,352 crore reported in the same period last year. Total revenue from operations reached ₹39,868 crore, representing a 5.9% increase from ₹37,634 crore in Q2 FY23.
The decline in profitability was primarily attributed to a net exceptional loss of ₹2,067 crore, a stark contrast to the ₹1,868 crore gain recorded in the year-ago quarter. Sequentially, profit after tax (PAT) fell 44% from ₹3,185 crore in Q1 FY24 to ₹1,798 crore, while revenue increased 5.4% from ₹37,824 crore.
Excluding exceptional items, Vedanta’s PAT increased by 13% year-on-year to ₹5,026 crore. The company also achieved a record second-quarter EBITDA of ₹11,612 crore, a 12% year-on-year increase, supported by a margin expansion of 69 basis points to 34%.
Key Financial Metrics
| Metric | Q2 FY24 | Q2 FY23 | change (%) |
|---|---|---|---|
| Net Profit (₹ crore) | 1,798 | 4,352 | -59% |
| Revenue (₹ crore) | 39,868 | 37,634 | +5.9% |
| EBITDA (₹ crore) | 11,612 | 10,353 | +12% |
| EBITDA Margin | 34% | 33.31% | +0.69% |
| Net Debt-to-EBITDA Ratio | 1.37x | N/A | N/A |
Exceptional Items and Their Impact
The significant exceptional loss of ₹2,067 crore played a crucial role in reducing Vedanta’s overall profitability. While the specific details of these exceptional items were not fully elaborated in the initial report, they represent a substantial reversal of fortune from the ₹1,868 crore gain experienced in the previous year’s corresponding quarter. Further investigation into the nature of these losses is warranted to fully understand their impact on the company’s financial health.
Debt and Credit Rating
Vedanta’s