Vedanta Ltd.’s quarterly revenue and net profit rose faster than estimates in the third quarter of the current financial year.

Consolidated net profit rose 124% to Rs 7,807 crore in the October-December period, compared to Rs 3,479 crore in the previous quarter, according to a stock exchange filing on Thursday. Analysts’ consensus estimates compiled by Bloomberg projected Rs 5,582 crore.

Revenue surged to a record Rs 45,899 crore, driven by higher LME, volumes, premium, and forex gain.

Vedanta Q3 Results (Consolidated, QoQ)

• Revenue up 17% at Rs 45,899 crore vs Rs 39,218 crore (Estimate: Rs 43,802 crore)
• EBITDA up 31% at Rs 15,171 crore vs Rs 11,612 crore (Estimate: Rs 14,309 crore)
• Margin 41% vs 34% (Estimate: 33.27%)
• Net Profit up 124% at Rs 7,807 crore vs Rs 3,479 crore (Estimate: Rs 5,582 crore)

Vedanta reported record quarterly alumina production of 794 kilotonnes, marking a sharp increase of 57% year-on-year and 22% quarter-on-quarter. It also achieved its highest-ever third-quarter mined metal output at 276 kilotonnes, reflecting a rise of 4% from a year earlier and 7% from the previous quarter.

Mined zinc production rose significantly, jumping 28% YoY to 59 kilotonnes. Iron ore production at IOK stood at 1.2 million tonnes, registering a 3% increase on a yearly basis and a strong 25% sequential growth. Meanwhile, iron ore output at IOG reached 0.4 million tonnes, up 7% YoY..

Steel production for the quarter came in at 325 kilotonnes, representing a robust 19% quarter-on-quarter growth. Copper cathode production was reported at 45 kilotonnes, remaining flat on a year-on-year basis but showing a 12% improvement compared with the previous quarter.

Power sales rose sharply by 61% year on year, supported by the commissioning of the Athena and Meenakshi power plants.

The balance sheet also improved, with net debt-to-Ebitda ratio of 1.23x, compared to 1.40x in the same quarter last year. Net debt stood at Rs 60,624 crore as on December.

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Vedanta is planning to invest ₹13,226 crore over the next few years for this expansion. File

Vedanta Limited will also act as an incubator for new businesses, including Vedanta’s technology verticals. File
| Photo Credit: AP

“Vedanta Limited has received approval from its shareholders and creditors for its proposal to demerge the company into five independent, sector-specific companies,” according to a stock exchange filing by the company.

The demerger was approved by 99.99% of shareholders, 99.59% of the secured creditors, and 99.95% of unsecured creditors of Vedanta Limited who voted in favour of the demerger, as per the stock exchange filing made by the company.

Did not receive application from Vedanta for tungsten mining, says T.N. government

According to Vedanta’s demerger scheme, every Vedanta shareholder will receive one additional share in each of the four newly demerged companies on the completion of the demerger process.

The five companies are Vedanta Aluminium, one of the world’s largest producers of aluminium; Vedanta Oil & Gas, India’s largest private-sector crude oil producer; Vedanta Power, one of India’s largest generators of power; Vedanta Iron and Steel — a company with a highly scalable ferrous portfolio; and Vedanta Limited – which will include the world’s second largest integrated zinc producer & third largest silver producer – in Hindustan Zinc.

Vedanta Limited will also act as an incubator for new businesses, including Vedanta’s technology verticals.

As per Vedanta’s demerger scheme, the demerger will create five independent companies of a global scale focussed on the mining, production and/or supply of aluminium, iron-ore, copper, oil & gas, and on generation and distribution of power.

It will enable greater focus of the Vedanta management on the relevant businesses thereby allowing further streamlining of operations and more efficient usage of assets and leveraging of opportunities.

Similarly, the demerger scheme has emphasised that over time, each of the independent companies can attract different sets of investors, strategic partners, lenders and other stakeholders enabling deeper collaboration and expansion in these specific companies without committing the existing organisation in its entirety.

The demerger will enable investors to separately hold investments in businesses with different investment characteristics and market potential thereby allowing them to select investments which best suit their investment strategies and risk profiles.

As per Vedanta’s demerger scheme, it will also enable focussed and sharper capital market access (debt and equity), thereby unlocking the value of the demerged entities. Vedanta Limited currently operates a diversified portfolio with interests in metals, mining, oil and gas, power generation, and other emerging sectors.

As listed companies have to seek various approvals under relevant sectoral and capital market regulations, the proposed demerger scheme will remain subject to receipt of other applicable statutory, government and regulatory approvals, including inter alia from the National Company Law Tribunal.

Vedanta Resources. File
| Photo Credit: AP

Vedanta Resources, which postponed a planned sale of dollar bonds last week after the Adani group’s top officials were indicted by U.S. prosecutors, will now launch the issue on Monday (November 25, 2024), according to two sources.

The issue, which could raise as much as $500 million, is the first since the Adani crisis and will test global appetite for Indian high yield credit following the allegations against Adani.

Adani Group, led by billionaire Gautam Adani, has said the allegations made by the U.S. authorities are “baseless”.

“Since the Adani crisis has not blown out of proportion after the initial fears, the company deemed fit to go ahead with the issue,” a banker with knowledge of the Vedanta sale told Reuters.

A second source familiar with the company’s plans confirmed the sale would be going ahead.

The sources declined to be identified because they were not authorised to speak to the media.

Vedanta, which has interests ranging from oil and gas to mining and metals and is headquartered in the U.K., did not immediately respond to a request for comment.

The notes have two maturities – one for 3.5 years and the other for seven years, for which the company has set an initial price guidance of 10.375% and 11.375%, respectively, the sources said.

The notes also have call options.

In September, Vedanta Resources raised $900 million in its first dollar bond issue in more than two years at a coupon of 10.875%.

Vedanta will use the proceeds from the latest sale to refinance outstanding bonds due in 2028, one of the sources said.

Citigroup, Barclays, Deutsche Bank, JPMorgan, and Standard Chartered Bank are the joint global coordinators and lead managers for Vedanta’s dollar bond.

Citigroup, JPMorgan and Deutsche Bank declined to comment. Barclays and Standard Chartered Bank did not respond to requests for comment.

Vedanta Limited has announced plans to invest close to $500 million in its group company, AvanStrate Inc. (ASI), which is a display glass manufacturer. Earlier this year, Vedanta acquired 98% stake in ASI.

“This investment is aimed at driving innovation and expansion within ASI, strengthening its focus on R&D, as well as manufacturing capabilities and product offerings to cater to global demand for advanced display glass solutions,” the company said in a statement.

Vedanta Group slapped with environmental fine of ₹71.16 crore for unauthorised dumping of fly ash in Odisha

“With operations and R&D capabilities in Taiwan, South Korea and Japan, ASI is planning to accelerate the development of next-generation glass products designed for advanced packaging and potential applications in the semiconductor, biotechnology, automotive displays, and other high-growth sectors,” Vedanta said. 

“Additionally, ASI is exploring collaborative partnerships to accelerate its mission of developing technological advancement and enhanced market offerings,” it added.

Akarsh Hebbar, Global Managing Director, AvanStrate Inc., said, “This strategic investment from the Vedanta Group is reflective of our clear and definitive shift in focus toward significant growth-oriented projects.”

“We are confident that ASI’s cutting-edge R&D capabilities and world-class team of engineers are well placed to deliver a stream of future-ready solutions to our customers and partners propelling the company onto a path of positive industry disruption,” he added.

Charlie Lee, CEO, AvanStrate Inc., said, “The expertise and support from Vedanta places us in a strong position to expand our R&D, scale up production, and meet evolving market demands.”

“The global market for specialty glass applications is estimated to be $42 billion and is projected to reach $60 billion by 2030,” the company said. 

FILE PHOTO: A bird flies by the Vedanta office building in Mumbai August 16, 2010. REUTERS/Danish Siddiqui/File Photo
| Photo Credit: Reuters

March 12

Indian mining group Vedanta must pay $9.4 million) to Cairn UK Holdings for a delay in paying dividends, the Securities and Exchange Board of India (SEBI) said on March 12.

The order, which is on SEBI’s website, said that Vedanta must make the payment within 45 days or face further action.

SEBI also barred Vedanta directors including vice-chairman Navin Agarwal from India’s securities markets for two months.

The regulator in its order said that Vedanta, formerly known as Cairn India, had violated Indian law by withholding dividends that should have been paid to the British company between January 2014 and June 2017.

Vedanta did not immediately respond to a Reuters emailed query for comment.

The Indian company had said it failed to pay dividends because of asset restrictions related to a demand by the Income Tax department. However, the restrictions expired in March 2016.

Cairn UK lodged a complaint with SEBI in 2017 that, despite reminders and the lifting of the restrictions, the dividends were not paid until June 2017 and that Vedanta was liable to pay interest on the delayed dividends.

SEBI said interest should be paid to “compensate for the time value of money that … (Cairn UK) was unlawfully deprived of”.

New Delhi:

In a jolt to Vedanta Limited, the Supreme Court on Thursday dismissed its plea for reopening of its copper smelting plant in Tamil Nadu’s Thoothukudi, closed since May 2018 over pollution concerns, while underlining the importance of health and welfare of the local residents.

A bench headed by Chief Justice DY Chandrachud dismissed Vedanta’s Special Leave Petition (SLP) against the August 18, 2020, verdict of the Madras High Court which had rejected the mining giant’s plea for allowing the Sterlite Copper unit to reopen.

The verdict came days after the Supreme Court proposed to set up a panel of domain experts to inspect the unit and suggest further compliances and the way forward, saying shutting down a plant of “national importance” will not serve anybody’s purpose.

While observing that the closure of the plant was undoubtedly not a matter of first choice, the bench referred to the “repeated nature of breaches” coupled with “severity” of violations by the unit.

“The health and welfare of the residents of the area is again a matter of utmost concern and in the ultimate analysis, the state government is responsible for preserving and protecting their concerns,” said the bench, also comprising justices J B Pardiwala and Manoj Misra.

“We have heard these proceedings for several days and after careful evaluation of the factual and legal material, we have come to the conclusion that the Special Leave Petition (SLP) by the industrial unit shall not warrant interference under Article 136 of the Constitution. For the above reasons, the SLP shall stand dismissed,” it said.

The plant has been closed since May 2018 after 13 people were killed as police opened fire to quell a protest over the alleged pollution caused by it.

Reacting to the Supreme Court verdict, Tamil Nadu Chief Minister M K Stalin wrote on ‘X’: “The Supreme Court has delivered a historic verdict upholding the closure of Sterlite in Thoothukudi due to the strong arguments placed by our government which shattered all the contentions of the factory management”.

“This is a victory for the people who continuously opposed the toxic unit and the determined legal struggle of our government. We will protect people from any kind of danger,” he wrote.

The bench observed it was conscious that the unit had been contributing to the productive assets of the nation and generating employment, but the court has to be mindful of the well-settled principles including principles of sustainable development, the polluter-pays principle, and the public trust doctrine.

While referring to the history of the case in which the Supreme Court had passed orders earlier also, the bench noted that the hearing before the high court had spanned 42 days and it had rendered a verdict on all factual and legal aspects.

The bench noted it was of the view that the areas which are a matter of serious concern include the failure of the petitioner at the material time to remove the copper slag which was dumped indiscriminately at almost 11 sites in the vicinity, including private land adjoining a river.

“We are not inclined in the exercise of the jurisdiction under Article 136 of the Constitution to re-appreciate the findings of facts which have been arrived at by the high court,” it said.

Article 136 deals with the Supreme Court’s powers to grant special leave to appeal against any judgment, decree sentence or order in any matter passed by any court or tribunal across the country.

The bench also dismissed a separate plea filed by the Tamil Nadu Pollution Control Board (TNPCB) which was aggrieved by some observations made against it by the high court.

Tamil Nadu leaders including PMK founder S Ramadoss, MDMK leader Vaiko and the CPI (M) state unit also welcomed the verdict.

Thoothukudi, formerly known as Tuticorin, is an industrial city in Thoothukudi district of Tamil Nadu.

During the earlier arguments before the Supreme Court, senior advocate Shyam Divan, appearing for Vedanta, while suggesting the way forward, had said the court may appoint a committee of experts comprising representatives of the ministry of environment, forests and climate change, National Environmental Engineering Research Institute, Central Pollution Control Board, IIT, TNPCB, Vedanta and three independent experts.

At least 13 people were killed and many injured on May 22, 2018, when police opened fire on a huge crowd of people protesting against pollution allegedly caused by the copper smelting unit and its proposed expansion.

Subsequently, the Tamil Nadu government and the TNPCB ordered closure of the mining group’s plant over pollution concerns.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

A view of the logo of Vedanta installed on the facade of its headquarters, in Mumbai. File
| Photo Credit: Reuters

Vedanta on October 24 said Chief Financial Officer (CFO) Sonal Shrivastava has resigned, amid a major structural overhaul announced last month.

“Ajay Goel, currently incumbent CFO at Indian edutech start-up Byju’s, will return as Vedanta’s CFO effective from October 30,” the company said in a statement.

Billionaire Anil Agarwal-led Vedanta announced plans to carve the metals-to-oil conglomerate into six separate businesses last month, a move aimed at shoring up the group’s financial performance.

Shrivastava had joined Vedanta in June, and was the third person to hold the position since 2021 after GR Arun Kumar and Ajay Goel.

Goel had resigned from Vedanta in April to join Byju’s. (Reporting by Varun Vyas in Bengaluru; Editing by Varun H K)

File picture of the Vedanta logo outside its headquarters in Mumbai
| Photo Credit: Reuters

Mining and oil giant Vedanta ran a covert lobbying campaign to weaken key environmental regulations during the pandemic, OCCRP alleged in a new report.

The not-for-profit organisation said the Indian government approved the changes without public consultation and implemented them using “illegal methods”.

Vedanta spokesperson did not immediately offer any comments.

“In one case, Vedanta led a push to ensure mining companies could produce up to 50% more without new environmental approvals,” it said.

Vedanta’s oil business, Cairn India, also successfully lobbied to have public hearings scrapped for exploratory drilling in oil blocks it won in government auctions. Since then, six of Cairn’s controversial oil projects in Rajasthan have been approved despite local opposition, it claimed.

A man walks past the logo of Vedanta outside its headquarters in Mumbai. File
| Photo Credit: Reuters

Mining magnate Anil Agarwal’s Vedanta Ltd has won an arbitration against a demand for a higher payout from its prolific Rajasthan oil and gas fields after disallowance of ₹9,545 crore ($1.16 billion) in certain costs incurred, the company said.

The government has sought additional profit petroleum (or its share from the oil and gas fields) after it reallocated certain costs between the fields in the block and disallowed a portion of the cost incurred on laying a pipeline to evacuate oil produced from the Rajasthan block.

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As per the contract, companies are allowed to recover all costs incurred before splitting profit in a predetermined ratio with the government. If a certain portion of cost is disallowed, it would result in higher profits and a resultant higher share to the government. Vedanta had challenged such a demand before an arbitration tribunal.

“The company has received an arbitration award dated August 23, 2023… upholding the contention of the company that additional profit petroleum, on account of Director General of Hydrocarbon (DGH) audit exceptions in relation to allocation of common development costs across Development Areas and certain other matters, is not payable as per terms of the Production Sharing Contract for Rajasthan Block,” it said in a stock exchange filing.

It however did not give details of the arbitration award. “The company is in the process of reviewing the award in detail and evaluating its financial impact,” it said.

In its latest annual report, Vedanta had put the number at ₹9,545 crore.

“DGH, in September 2022, has trued up the earlier demand raised till 31 March 2018 up to 14 May 2020 for Government’s additional share of profit oil based on its computation of disallowance of cost incurred over retrospective re-allocation of certain common costs between Development Areas (DAs) of Rajasthan Block and certain other matters aggregating to ₹9,545 crore applicable interest thereon representing share of the company and its subsidiary,” it said.

The firm said it disputed the demand and the other audit exceptions as it believed these were not in accordance with the PSC and are entirely unsustainable.

“In accordance with PSC terms, the group had commenced arbitration proceedings. The final hearing and arguments were concluded in September 2022. Post hearing briefs were filed by both the parties and award is awaited,” the annual report released last month said.

The award has now come.

Sources said DGH, which is the upstream nodal agency of the Ministry of Petroleum and Natural Gas, had way back in May 2018 raised a demand for additional share of profit oil for the government after disallowing ₹1,508 crore out of the cost incurred on laying a heated-pipeline to transport Barmer crude and ₹2,723 crore in the reallocation of certain common costs.

The numbers were revised in subsequent years. These costs pertain to only Vedanta’s share in the Rajasthan block as state-owned Oil and Natural Gas Corporation (ONGC), which holds 30% interest in the block, had agreed to pay the government if these costs are disallowed.

It was not immediately known if the government will abide by the arbitration award. The government had previously challenged all arbitration awards it had lost.