Mining Giant's Best-Ever Year

The Vedanta group had the third highest profit growth among groups in the BT500 list. With a steep reduction in debt and the proposed demerger it may provide investors rich rewards

- BY AMIT MUDGILL

WHEN VEDANTA EXECUTIVE DIRECTOR Arun Misra addressed shareholders during the company's March quarter earnings call last summer, his message was bold and optimistic. He said financial year 2024-25 (FY25) had the potential to be the "best-ever" year for Vedanta, promising record-breaking performance across volumes, revenue, costs, and profits.

Fast forward 12 months, and the Anil Agarwal-led mining giant delivered on that ambitious forecast. Vedanta and its subsidiary Hindustan Zinc ranked third among the fastest-growing major groups in the BT500 list of India's Most Profitable Companies, doubling profits and capping a standout year for the metals and mining conglomerate.

Vedanta posted its highest-ever aluminium and zinc volumes in FY25. Consolidated net profit jumped 172% year-on-year (YoY) to *20,535 crore, while revenue climbed 6.4% to an all-time high of *1.52 lakh crore. Operating profit rose 22% to 46,018 crore-the secondhighest ever-with a margin of 30%, leading the sector. Its aluminium business achieved its highest-ever annual metal production of 2,422 kilotonne (kt), surpassing the volume guidance for FY25.

Misra, who also serves as MD & CEO of Hindustan Zinc Ltd (HZL), oversaw another milestone: HZL became the world's largest integrated zinc producer. It reported its highestever domestic zinc sales at 603 kt in FY25, capturing a 77% domestic market share. The contribution of valueadded products hit a new peak at 22%.

Financially, FY25 was HZL's second-best year. Zinc production cost fell to a four-year low of $1,052 per tonne and free cash flows stood at 10,857 crore. Together, Vedanta and HZL more than doubled their net profit to 30,888 crore. Combined revenue rose 8.26% to 1.86 lakh crore.