Exhibit 99.3
Vedanta Limited
Regd. Office: Vedanta Limited 1st Floor, ‘C’ Wing,
Unit 103, Corporate Avenue, Atul Projects,
Chakala, Andheri (East),
Mumbai 400093, Maharashtra.
www.vedantalimited.com
CIN: L13209MH1965PLC291394
25 July 2017
Vedanta Limited
Consolidated Results for the first Quarter
ended 30 June 2017
Vedanta continues to execute on growth
Q1 PAT more than doublesy-o-y to Rs 1,525 crore
Q1 EBITDA up 40%y-o-y to Rs 4,965 crore
Mumbai, India:Vedanta Limited today announced its unaudited consolidated results for the first quarter (Q1) ended 30 Jun 2017.
Financial Highlights
| • | Solid financial performance |
| • | Attributable PAT more than doublesy-o-y to Rs 1,525 crore |
| • | Revenues of Rs 18,203 crore up 27%y-o-y |
| • | EBITDA of Rs. 4,965 crore at robust margin1 of 36% |
| • | Achieved cost savings of $856 million over last 9 quarters |
| • | Strong Balance Sheet |
| • | Gross Debt2 reduced by c. Rs 9,000 crore in the last 4 months |
| • | Net Debt/EBITDA at 0.8x – among the lowest across Indian and global peers |
| • | Strong financial position with total cash and liquid investments of Rs 48,318 crore |
Registered Office: Vedanta Limited 1st Floor, ‘C’ Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai 400093, Maharashtra, India. CIN: L13209MH1965PLC291394 | Page 1 of 8 |
Unaudited Results for the First Quarter Ended 30 June 2017
Operational Highlights
| • | Oil & Gas: Continued strong contribution from Mangala EOR; improved costs despite higher EOR production |
| • | Zinc India: Higherzinc-lead and silver volumes |
| • | Mined metal production at 233 kt, 84% upy-o-y |
| • | Integrated silver production 30% upy-o-y |
| • | Aluminium: Exit productionrun-rate of 1.4mtpa |
| • | Zinc International: Gamsberg project on track formid-CY 2018 production |
| • | TSPL: Plant restarted in end June and running at availability of above 90% |
| 1. | Excludes custom smelting at Copper India and Zinc India operations |
| 2. | Excluding change in Zinc India temporary borrowings from Rs 7,908 crore in Q4 FY 2017 to Rs 6,959 crore and Preference shares of Rs 3,010 crore issued pursuant to Cairn merger |
Mr. Tom Albanese, Chief Executive Officer, Vedanta Ltd, said: “We have started the year on a positive note, with our Net Profit for Q1 doubling over last year. Our Zinc and Oil & Gas businesses have delivered a strong quarter. Vedanta is a world leader in Zinc, and Zinc prices have strengthened since the quarter end on continued global supply deficits. Our continuedramp-up in the Aluminium business has helped us exit the quarter on a strong production run rate of 1.4 mtpa. We are realizing the true benefits of Vedanta’s diversified portfolio.”
Registered Office: Vedanta Limited 1st Floor, ‘C’ Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai 400093, Maharashtra, India. CIN: L13209MH1965PLC291394 | Page 2 of 8 |
Unaudited Results for the First Quarter Ended 30 June 2017
Consolidated Financial Performance
The consolidated financial performance of the company during the period is as under:
(In Rs. crore, except as stated)
FY 2017 | Q1 | Q1 | % Change | Q4 | % Change | |||||||||||||||||||
Actual | FY 2018 | FY 2017 | FY 2017 | |||||||||||||||||||||
| 71,721 | Net Sales/Income from operations | 18,203 | 14,365 | 27 | % | 22,371 | -19 | % | ||||||||||||||||
| 21,437 | EBITDA | 4,965 | 3,539 | 40 | % | 7,275 | -32 | % | ||||||||||||||||
| 39 | % | EBITDA Margin1 | 36 | % | 32 | % | 44 | % | ||||||||||||||||
| 5,855 | Finance cost | 1,592 | 1,393 | 14 | % | 1,503 | 6 | % | ||||||||||||||||
| 4,581 | Other Income | 1055 | 1,271 | -17 | % | 921 | 15 | % | ||||||||||||||||
| 20,058 | Profit before Depreciation and Taxes | 4,337 | 3,320 | 31 | % | 6,768 | -36 | % | ||||||||||||||||
| 6,292 | Depreciation & Amortization | 1,386 | 1,550 | -11 | % | 1,604 | -14 | % | ||||||||||||||||
| 13,766 | Profit before Exceptional items | 2,951 | 1,770 | 67 | % | 5,164 | -43 | % | ||||||||||||||||
| 114 | Exceptional Items2 | — | — | — | 114 | |||||||||||||||||||
| 2,103 | Tax | 681 | 403 | 69 | % | 636 | 7 | % | ||||||||||||||||
| 196 | Dividend Distribution Tax (DDT) | — | 9 | — | 154 | |||||||||||||||||||
| 34 | Tax on Exceptional items | — | — | — | 34 | |||||||||||||||||||
| 11,319 | Profit After Taxes | 2,270 | 1,358 | 67 | % | 4,226 | -46 | % | ||||||||||||||||
| 11,467 | Profit After Taxes before Exceptional items | 2,270 | 1,358 | 67 | % | 4,374 | -48 | % | ||||||||||||||||
| 11,663 | Profit After Taxes before Exceptional items & DDT3 | 2,270 | 1,367 | 66 | % | 4,528 | -50 | % | ||||||||||||||||
| 4,358 | Minority Interest | 745 | 604 | 23 | % | 1,578 | -53 | % | ||||||||||||||||
| 6,958 | Attributable PAT after exceptional items | 1,525 | 754 | 2 | x | 2,647 | -42 | % | ||||||||||||||||
| 7,127 | Attributable PAT before exceptional items | 1,525 | 754 | 2 | x | 2,816 | -46 | % | ||||||||||||||||
| 7,323 | Attributable PAT before exceptional items & DDT3 | 1,525 | 763 | 2 | x | 2,970 | -49 | % | ||||||||||||||||
| 23.47 | Basic Earnings per Share (Rs./share) | 4.37 | 2.54 | 72 | % | 8.94 | -51 | % | ||||||||||||||||
| 24.04 | Basic EPS before Exceptional Items | 4.37 | 2.54 | 72 | % | 9.51 | -54 | % | ||||||||||||||||
| 24.70 | Basic EPS before Exceptional Items & DDT3 | 4.37 | 2.57 | 70 | % | 10.02 | -56 | % | ||||||||||||||||
| 67.09 | Exchange rate (Rs./$) – Average | 64.46 | 66.93 | -3.7 | % | 67.01 | -3.8 | % | ||||||||||||||||
| 64.84 | Exchange rate (Rs./$) – Closing | 64.74 | 67.62 | -4.3 | % | 64.84 | -0.2 | % | ||||||||||||||||
| 1. | Excludes custom smelting at Copper India and Zinc India operations |
| 2. | Exceptional Items Gross of Tax |
| 3. | In view of clarification issued by Ind AS Transition Facilitation Group, the Group has revised the accounting for dividend distribution tax (DDT) on profits of subsidiaries. DDT on profits of subsidiaries which is to be utilized against the equity dividend declared by the Company, is recognised in statement of changes in equity as against the previous policy of recognizing the same in the statement of profit and loss. The financial results for the previous periods/year have been restated to give effect of the same |
Revenues
Revenue in Q1 ony-o-y basis was higher by 27% due to higher volume at Zinc India &ramp-up at Aluminium business and higher commodity prices partially offset by currency appreciation, lower volume at Copper India and Iron ore and pot outages at 500Kt Jharsuguda-I smelter and TSPL fire incident in April 17.
Registered Office: Vedanta Limited 1st Floor, ‘C’ Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai 400093, Maharashtra, India. CIN: L13209MH1965PLC291394 | Page 3 of 8 |
Unaudited Results for the First Quarter Ended 30 June 2017
Revenues were 19% lower sequentially due to lower commodity prices, currency appreciation, lower volume at Zinc India and Copper India and lower availability at TSPL due to fire incident.
EBITDA and EBITDA Margins
EBITDA for Q1 at Rs 4,965 crore was up 40% ony-o-y basis on account of higher volumes at Zinc India; ramp up of volumes at the Aluminium business, and higher commodity prices. This was partially offset by currency appreciation, input commodity inflation and lower plant availability at TSPL.
In aq-o-q basis, EBITDA was lower due to lower commodity prices, currency appreciation, lower volume at Zinc India as per mine plan and Copper India, lower plant availability at TSPL and higher COP at Aluminium business due to input commodity inflation, currency appreciation & pot outages.
EBITDA margin1 was at 36%, higher on ay-o-y basis (Q1 FY2017 at 32%) given increased volumes and cost efficiencies. However, it was lowerq-o-q on account of higher production at Zinc India as per mine plans in Q4 FY 2017, lower commodity prices and currency appreciation.
Depreciation & Amortization
Depreciation at Rs. 1,386 crore, was lower ony-o-y basis by Rs. 164 crore driven by lower depreciation at Oil & Gas business due to change in method of calculation of Unit of production (UOP) charge to “Proved and Developed Oil and Gas Reserves” (1P) in accordance with the Guidance Note on Accounting for Oil and Gas Producing Activities which was effective April 1, 2017 instead of earlier approach of “Proved and Probable Reserves” (2P). This was partially offset by capitalization of aluminium pots & power units.
Depreciation was lower by Rs. 218 croreq-o-q mainly on account of lower charge at Zinc India due to lower amortization of mining expenses owing to lower ore production and lower charge at oil & gas business due to change in method as explained above. This was partially offset by further capitalization at aluminium business.
Finance Cost and Other Income
Finance cost during the quarter was Rs. 1,592 crore, higher by Rs. 199 crore ony-o-y basis on account of higher temporary borrowing at Zinc India, capitalisation of Aluminium & power capacities and interest on preference shares, partially offset by lower interest rates.
Registered Office: Vedanta Limited 1st Floor, ‘C’ Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai 400093, Maharashtra, India. CIN: L13209MH1965PLC291394 | Page 4 of 8 |
Unaudited Results for the First Quarter Ended 30 June 2017
Compared to previous quarter, it was 6% higher on account of temporary borrowing at Zinc India and interest on preference shares, partially offset by repayment of some term debt and lower interest rates.
Other income was at Rs 1,055 crore, lower compared to Q1 FY 17 by Rs 216 crore mainly on lower investment corpus at Zinc India given record dividend payout of Rs 27,157 crore (including DDT) during FY 17 and lower MTM gain
However, it was higherq-o-q on account of MTM gain on investments partially offset by lower investment corpus.
Taxes
Tax expense (before Exceptional items) was at Rs. 681 crore during the quarter, resulting in tax rate of 23% compared to 15% tax rate in FY 17. Tax rate during the quarter is higher on account of phasing out of investment allowance claims allowed till FY 17 and lower tax charge in FY 17 on account of currency appreciation gain resulting in deferred tax movements.
Attributable Profit After Tax and Earnings Per Share (EPS)
Attributable Profit After Tax (PAT) before exceptional items for the quarter was Rs. 1,525 crore.
EPS for the quarter before exceptional items was at Rs. 4.37 per share. Minority interest was at 33%.
Balance Sheet
Our financial position remains strong with cash and liquid investments of Rs. 48,318 crore. The Company follows a Board approved investment policy and invests in high quality debt instruments with mutual funds, bonds and fixed deposits with banks. The portfolio is rated by CRISIL which has assigned a rating of “Very Good” (meaning Highest Safety) to our portfolio. Further, the Company has undrawn committed facilities of $1.1 bn as on June 30, 2017.
As on 30 June 2017, gross debt was at Rs 67,342 crore including temporary Short term borrowings of Rs 6,959 crore at Zinc India and Preference shares of Rs 3,010 crore issued pursuant to the Cairn merger. Excluding Zinc India temporary borrowings & Preference Shares, gross debt decreased by Rs. 6,288 crore. Post June 30, 2017, gross debt was further reduced by c. Rs 2,500 Crore. Net debt was at Rs. 19,024 crore during the quarter, higher on account of the large dividend payments in April.
Registered Office: Vedanta Limited 1st Floor, ‘C’ Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai 400093, Maharashtra, India. CIN: L13209MH1965PLC291394 | Page 5 of 8 |
Unaudited Results for the First Quarter Ended 30 June 2017
Corporate
Update on Cairn India merger
The merger of Cairn India Limited with Vedanta Limited was made effective on 11 April 2017 and on 28th April 2017, the Company issued 1 equity share of face value Rs. 1 each and 4 Redeemable Preference Shares (RPS) of face value Rs. 10 each to Cairn India minority shareholders for each equity share of Cairn India held by them. The Company also paid an interim dividend of Rs 17.70 per equity share to the Cairn India minority shareholders, which had been declared by the Company earlier.
The new equity shares have been trading since May 16, 2017. The RPS have been credited to the demat accounts of shareholders. The Company has submitted the necessary application for listing of the RPS . The application is currently pending before SEBI. Company awaits the final approval from SEBI to complete the listing of the Redeemable Preference Shares, and will make an announcement on receipt of listing approval.
Key Recognitions
Vedanta has been consistently recognized through the receipt of various awards and accolades. During the past quarter, we received the following recognitions:
| • | Vedanta Limited was honored as the leading corporate in the Mining and Metals category in theDun & Bradstreet Corporate Awards, while Hindustan Zinc Limited was recognized in theNon-Ferrous & Precious Metals category |
| • | Vedanta Limited was featured among the top 100 companies in theAsia300 listreleased by Nikkei Asian Review, which ranks the biggest and fastest-growing companies from 11 economies across Asia |
| • | Vedanta Limited is once again ranked among the top Indian companies and one of the “Disclosure Champions” as per the annual India Disclosure Index released by FTI Consulting |
| • | Vedanta Limited has been recognized as an ‘Honored Company’ for its Investor Relations program byInstitutional Investor magazine in its 2017All-Asia(ex-Japan) Executive Team rankings. This accolade is awarded only to 4.7% of the total 2,510 companies covered |
Registered Office: Vedanta Limited 1st Floor, ‘C’ Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai 400093, Maharashtra, India. CIN: L13209MH1965PLC291394 | Page 6 of 8 |
Unaudited Results for the First Quarter Ended 30 June 2017
| • | Bharat Aluminum Company Limited was among only seven companies nationally to receive the prestigious ‘2Good’ rating in theEconomic Times 2Good4Good Awards |
| • | Cairn Oil & Gas was recognized for its CSR initiatives, through the CSR Health Impact Awards and the Responsible Business Awards. In addition, Cairn also received the Golden Peacock |
Results Conference Call
Please note that the results presentation is available in the Investor Relations section of the company websitewww.vedantalimited.com -http://www.vedantalimited.com/investor-relations/results-reports.aspx
Following the announcement, there will be a conference call at 6:00 PM (IST) on Tuesday, 25 July 2017, where senior management will discuss the company’s results and performance. Thedial-in numbers for the call are as below:
Event | Telephone Number | |||
Earnings conference call on July 25, 2017 | India – 6:00 PM (IST) | Mumbai main access +91 22 3938 1017 Toll Free number 1 800 120 1221 1 800 200 1221 | ||
Singapore – 8:30 PM (Singapore Time) |
Toll free number 800 101 2045 | |||
Hong Kong – 8:30 PM (Hong Kong Time) |
Toll free number 800 964 448 | |||
UK – 1:30 PM (UK Time) |
Toll free number 0 808 101 1573 | |||
US – 8:30 AM (Eastern Time) |
Toll free number 1 866 746 2133 | |||
For online registration | http://services.choruscall.in/diamondpass/registration?confirmationNumber=5267915 | |||
Replay of Conference Call (25 July 2017 to 31 Jul 2017) | Mumbai +91 22 3065 2322 Passcode: 63835# | |||
Registered Office: Vedanta Limited 1st Floor, ‘C’ Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai 400093, Maharashtra, India. CIN: L13209MH1965PLC291394 | Page 7 of 8 |
Unaudited Results for the First Quarter Ended 30 June 2017
For further information, please contact:
Communications
Roma Balwani President – Group Sustainability& CSR | Tel: +91 22 6646 1000 gc@vedanta.co.in | |
Investor Relations
Ashwin Bajaj Director – Investor Relations | Tel: +91 22 6646 1531 vedantaltd.ir@vedanta.co.in | |
Aarti Raghavan
VP – Investor Relations
Vishesh Pachnanda
Manager – Investor Relations
Sneha Tulsyan
Associate Manager – Investor Relations
About Vedanta Limited
Vedanta Limited is a diversified natural resources company, whose business primarily involves producing oil & gas, zinc - lead - silver, copper, iron ore, aluminium and commercial power. The company has a presence across India, South Africa, Namibia, Australia and Ireland.
Vedanta Limited is the Indian subsidiary of Vedanta Resources Plc, a London-listed company. Governance and Sustainable Development are at the core of Vedanta’s strategy, with a strong focus on health, safety and environment and on enhancing the lives of local communities. The company is conferred with the Confederation of Indian Industry (CII) ‘Sustainable Plus Platinum label’, ranking among the top 10 most sustainable companies in India. To access the Vedanta Sustainable Development Report 2016, please visithttp://sustainabledevelopment.vedantaresources.com/content/dam/vedanta/corporate/documents/ Otherdocuments/SDreport2015-16/Vedanta%20SDR%20FY%2015-16.pdf |
Vedanta Limited is listed on the Bombay Stock Exchange and the National Stock Exchange in India and has ADRs listed on the New York Stock Exchange.
For more information please visitwww.vedantalimited.com
Vedanta Limited
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai – 400 099
www.vedantalimited.com
Registered Office:
Regd. Office: 1st Floor, ‘C’ wing, Unit 103,
Corporate Avenue, Atul Projects,
Chakala, Andheri (East),
Mumbai – 400 093
CIN: L13209MH1965PLC291394
Disclaimer
This press release contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should” or “will.” Forward–looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
Registered Office: Vedanta Limited 1st Floor, ‘C’ Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai 400093, Maharashtra, India. CIN: L13209MH1965PLC291394 | Page 8 of 8 |
