VEDANTA LIMITED.
The oil and gas sector is among the eight core industries in India and plays a major role in influencing decision making for all the other important sections of the economy. Vedanta Limited (Vedanta, VEDL), a subsidiary of Vedanta Resources Limited, is one of the world’s leading natural resources company with significant operations in oil & gas, zinc, lead, silver, copper, iron Ore, steel, and aluminium & power, across India, South Africa, Namibia, and Australia.
Vedanta Ltd. is the largest natural resources company in India. It’s the world’s largest fully integrated zinc-lead producer. It holds 77% market share in India’s primary zinc market. It is also the 6th largest silver producer in the world. It has a large-scale, diversified asset portfolio, with an attractive cost position.
Here are some recent developments about Vedanta Ltd,
The Company acquired the Sindhudurg unit of Global Coke Limited, which was under liquidation in the Bankruptcy Code. The acquisition will provide backward integration opportunity for it’s Pig Iron facility at Amona. They also acquired Electrosteel Steels Limited (ESL), a company listed on BSE Limited and National Stock Exchange of India Limited engaged in the business of manufacturing of steel. With the potential to generate significant efficiencies, the acquisition of ESL complemented Vedanta’s existing Iron Ore Business as the vertical integration of steel manufacturing capabilities. Similarly, FACOR ( Ferro AlloysCorporation Limited) was acquired too, which complements Vedanta’s existing steel business as the vertical integration of ferro manufacturing capabilities has the potential to generate significant efficiencies and will help Vedanta to increase
its portfolio in steel business.
As per it’s quarter four results, EBITDA for Q4 FY2021 was at ₹ 9,107 crore, higher 18% Q-o-Q & 88% Y-o-Y, primarily due to higher volumes at Zinc India, Aluminium & Iron Ore business and higher commodity & oil prices in Q4 FY2021, partially offset by higher COP at Aluminium and steel business majorly due to input commodity inflation.
Revenue for Q4 FY2021 was at ₹ 27,874 crore, higher 24% Q-o-Q & 43% Y-o-Y, primarily due to higher volume at Aluminium business, Zinc India, Iron ore business, higher power sales at TSPL and improved commodity prices. Revenue for FY2021 was at ₹ 86,863 crore, higher 4%, mainly due to higher volume at Zinc India, Aluminium business, Iron ore & Steel business, higher commodity prices & rupee depreciation in FY2021.
Their gross debt was at ₹ 57,028 crore on 31st March 2021, decreased by ₹ 2,159 crore Y-o-Y. This was mainly due to repayment of debt at Aluminum and Zinc Business.
Overall the results of Vedanta Ltd for this quarter are stellar.
