Mining conglomerate, Vedanta Ltd, released its Q4 2022-23 earnings results on Friday. The results reveal a 57% decline in net profit compared to the previous year, which stood at INR 7,261 crores. A stock exchange filing by the company indicates a consolidated net profit of INR 3,132 crore during the January-March period. The decline in commodity prices, including zinc, iron ore, oil and gas, copper, and aluminium, was cited as a reason for the dip in earnings. Meanwhile, the pre-tax earnings from the aluminium business fell 57.5%. The company’s revenue also decreased 5% from the previous year’s INR 39,342 crores to INR 37,225 crores.
Vedanta to Spend $296 million on Exploration of Oil and Gas
Vedanta Ltd’s board of directors have approved a $296 million capital expenditure for oil and gas exploration. In addition, the company reported gross debt had risen to INR 66,182 crore at the end of March 2023 compared to INR 51,109 crore in the previous year. Net debt was reported at INR 45,260 crore as on March 31, 2023, which was more than double compared to the INR 20,979 crore in the previous year. Vedanta also noted a significant reduction in cash in hand, which fell to INR 20,922 crore from INR 32,130 crore as on March 31, 2022. The majority of the increase in net debt was due to higher borrowings.
Vedanta CEO Reports Highest-ever Free Cash Flow
Vedanta CEO, Sunil Duggal, said the company has delivered the highest-ever free cash flow of INR 28,068 crore. Duggal mentioned that this would enable the company to reinvest in business growth and provide shareholders with attractive dividends. He also announced the finalisation of renewable power delivery agreements, which bring the company closer to becoming carbon neutral by 2050 or earlier. Vedanta also noted that the board had approved the reappointment of Navin Agarwal and Priya Agarwal as directors for five years. Navin is the brother of founder and chairman Anil Agarwal, while Priya is Anil’s daughter.
The Hindustan Herald Is Your Source For The Latest In Business, Entertainment, Lifestyle, Breaking News, And Other News. Please Follow Us On Facebook, Instagram, Twitter, And LinkedIn To Receive Instantaneous Updates. Also Don’t Forget To Subscribe Our Telegram Channel @hindustanherald