Weak commodity prices may dent Vedanta profits

Vedanta reported consolidated net sales of ₹40,500 crore, up 14 per cent year-on-year (Y-o-Y) and 3 per cent quarter-on-quarter (Q-o-Q).

- DEVANGSHU DATTA

Consolidated operating profit was ₹11,500 crore (up 31 per cent Y-o-Y and 3 per cent Q-o-Q), driven by higher volumes, despite input inflation.

The operating profit margin was 28.3 per cent, flat Q-o-Q and up 360 basis points Y-o-Y.

Adjusted net profit was ₹3,500 crore, up 122 per cent Y-o-Y and down 2 per cent Q-o-Q.

Vedanta has filed the second motion petition with the NCLT, seeking approval to proceed with the demerger.

The management anticipates that the process will be completed by September 2025.

Debt at Vedanta Resources (VRL), the parent and holding company of Vedanta, has decreased to $5 billion (the lowest in a decade) and leverage at group level is two times from 2.7 times a year ago.

The FY25 revenue was ₹1.53 trillion (up 10 per cent Y-o-Y), with operating profit at ₹42,300 crore (up 39 per cent Y-o-Y), and adjusted net profit at ₹13,600 crore (up 176 per cent Y-o-Y).

Net debt was at ₹53,300 crore, with net debt/operating profit held at 1.2 times end FY25 (1.4 times in Q3FY25).