Exhibit 99.1
Vedanta Limited CIN no. L13209MH1965PLC291394 |
Regd. Office: Vedanta Limited, 1st Floor, ‘C’ wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East),
Mumbai–400093, Maharashtra
STATEMENT OF UNAUDITED CONSOLIDATED RESULTS FOR THE QUARTER ENDED 30 JUNE 2022
(₹ in Crore, except as stated)
Quarter ended | ||||||||||||||||||
S. No. | Particulars | 30.06.2022 (Unaudited) | 31.03.2022 (Audited) (Refer note 2) | 30.06.2021 (Unaudited) | 31.03.2022 (Audited) | |||||||||||||
1 | Revenue from operations | 38,251 | 39,342 | 28,105 | 131,192 | |||||||||||||
2 | Other operating income | 371 | 480 | 307 | 1,540 | |||||||||||||
3 | Other income | 733 | 611 | 739 | 2,600 | |||||||||||||
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Total income | 39,355 | 40,433 | 29,151 | 135,332 | ||||||||||||||
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4 | Expenses | |||||||||||||||||
a) | Cost of materials consumed | 10,774 | 11,235 | 8,207 | 37,172 | |||||||||||||
b) | Purchases of stock-in-trade | 12 | 35 | 88 | 133 | |||||||||||||
c) | Changes in inventories of finished goods, work-in-progress and stock-in-trade | (813 | ) | (643 | ) | (766 | ) | (2,049 | ) | |||||||||
d) | Power and fuel charges | 8,953 | 6,333 | 3,918 | 21,164 | |||||||||||||
e) | Employee benefits expense | 780 | 720 | 683 | 2,811 | |||||||||||||
f) | Finance costs | 1,206 | 1,333 | 1,182 | 4,797 | |||||||||||||
g) | Depreciation, depletion and amortization expense | 2,464 | 2,379 | 2,124 | 8,895 | |||||||||||||
h) | Other expenses | 8,719 | 8,509 | 6,315 | 28,677 | |||||||||||||
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5 | Total expenses | 32,095 | 29,901 | 21,751 | 101,600 | |||||||||||||
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6 | Profit before exceptional items and tax | 7,260 | 10,532 | 7,400 | 33,732 | |||||||||||||
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7 | Net exceptional loss (Refer note 4) | — | (336 | ) | (230 | ) | (768 | ) | ||||||||||
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8 | Profit before tax | 7,260 | 10,196 | 7,170 | 32,964 | |||||||||||||
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9 | Tax expense/ (benefit) | |||||||||||||||||
On other than exceptional items | ||||||||||||||||||
a) | Net current tax expense | 1,516 | 1,949 | 1,430 | 6,889 | |||||||||||||
b) | Net deferred tax expense, net of tax credits | 152 | 1,014 | 539 | 2,544 | |||||||||||||
On exceptional items | ||||||||||||||||||
c) | Net tax benefit on exceptional items (Refer note 4) | — | (28 | ) | (81 | ) | (178 | ) | ||||||||||
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Net tax expense (a+b+c) | 1,668 | 2,935 | 1,888 | 9,255 | ||||||||||||||
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10 | Profit after tax before share in profit of jointly controlled entities and associates | 5,592 | 7,261 | 5,282 | 23,709 | |||||||||||||
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11 | Add: Share in profit of jointly controlled entities and associates | 1 | 0 | 1 | 1 | |||||||||||||
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12 | Profit after share in profit of jointly controlled entities and associates (a) | 5,593 | 7,261 | 5,283 | 23,710 | |||||||||||||
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(₹ in Crore, except as stated)
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S. No. | Particulars | 30.06.2022 (Unaudited) | 31.03.2022 (Audited) (Refer note 2) | 30.06.2021 (Unaudited) | 31.03.2022 (Audited) | |||||||||||||
13 | Other Comprehensive Income/ (Loss) | |||||||||||||||||
i. | (a) Items that will not be reclassified to profit or loss | (38 | ) | (49 | ) | 32 | (3 | ) | ||||||||||
(b) Tax benefit on items that will not be reclassified to profit or loss | 1 | 3 | 0 | 1 | ||||||||||||||
ii. | (a) Items that will be reclassified to profit or loss | 2,763 | 841 | 371 | 893 | |||||||||||||
(b) Tax (expense)/ benefit on items that will be reclassified to profit or loss | (757 | ) | (5 | ) | 15 | (28 | ) | |||||||||||
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Total Other Comprehensive Income (b) | 1,969 | 790 | 418 | 863 | ||||||||||||||
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14 | Total Comprehensive Income (a + b) | 7,562 | 8,051 | 5,701 | 24,573 | |||||||||||||
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15 | Profit attributable to: | |||||||||||||||||
a) | Owners of Vedanta Limited | 4,421 | 5,799 | 4,224 | 18,802 | |||||||||||||
b) | Non-controlling interests | 1,172 | 1,462 | 1,059 | 4,908 | |||||||||||||
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16 | Other Comprehensive Income attributable to: | |||||||||||||||||
a) | Owners of Vedanta Limited | 1,754 | 725 | 393 | 823 | |||||||||||||
b) | Non-controlling interests | 215 | 65 | 25 | 40 | |||||||||||||
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17 | Total Comprehensive Income attributable to: | |||||||||||||||||
a) | Owners of Vedanta Limited | 6,175 | 6,524 | 4,617 | 19,625 | |||||||||||||
b) | Non-controlling interests | 1,387 | 1,527 | 1,084 | 4,948 | |||||||||||||
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18 | Net Profit after taxes, non-controlling interests and share in profit of jointly controlled entities and associates but before exceptional items | 4,421 | 6,027 | 4,342 | 19,279 | |||||||||||||
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19 | Paid-up equity share capital (Face value of ₹ 1 each) | 372 | 372 | 372 | 372 | |||||||||||||
20 | Reserves excluding revaluation reserves as per balance sheet | 65,011 | ||||||||||||||||
21 | Earnings per share (₹) | |||||||||||||||||
-Basic | 11.92 | * | 15.66 | * | 11.40 | * | 50.73 | |||||||||||
-Diluted | 11.84 | * | 15.56 | * | 11.31 | * | 50.38 | |||||||||||
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(₹ in Crore)
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S. No. | Segment information | 30.06.2022 (Unaudited) | 31.03.2022 (Audited) (Refer note 2) | 30.06.2021 (Unaudited) | 31.03.2022 (Audited) | |||||||||||||
1 | Segment Revenue | |||||||||||||||||
a) | Zinc, Lead and Silver | |||||||||||||||||
(i) Zinc & Lead - India | 8,066 | 7,551 | 5,217 | 24,418 | ||||||||||||||
(ii) Silver - India | 1,109 | 1,036 | 1,106 | 4,206 | ||||||||||||||
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Total | 9,175 | 8,587 | 6,323 | 28,624 | ||||||||||||||
b) | Zinc - International | 1,459 | 1,242 | 1,119 | 4,484 | |||||||||||||
c) | Oil & Gas | 4,083 | 3,940 | 2,485 | 12,430 | |||||||||||||
d) | Aluminium | 14,644 | 15,475 | 10,263 | 50,881 | |||||||||||||
e) | Copper | 4,215 | 4,351 | 3,499 | 15,151 | |||||||||||||
f) | Iron Ore | 1,367 | 1,866 | 1,576 | 6,350 | |||||||||||||
g) | Power | 1,770 | 1,687 | 1,225 | 5,826 | |||||||||||||
h) | Others | 1,856 | 2,556 | 1,641 | 7,972 | |||||||||||||
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Total | 38,569 | 39,704 | 28,131 | 131,718 | ||||||||||||||
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Less: | Inter Segment Revenue | 318 | 362 | 26 | 526 | |||||||||||||
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Revenue from operations | 38,251 | 39,342 | 28,105 | 131,192 | ||||||||||||||
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2 | Segment Results (EBITDA) i | |||||||||||||||||
a) | Zinc, Lead and Silver | 5,230 | 4,988 | 3,510 | 16,161 | |||||||||||||
b) | Zinc - International | 589 | 467 | 401 | 1,533 | |||||||||||||
c) | Oil & Gas | 2,081 | 2,053 | 1,063 | 5,992 | |||||||||||||
d) | Aluminium | 2,251 | 5,218 | 3,725 | 17,337 | |||||||||||||
e) | Copper | (14 | ) | 15 | (106 | ) | (115 | ) | ||||||||||
f) | Iron Ore | 363 | 548 | 762 | 2,280 | |||||||||||||
g) | Power | 81 | 188 | 346 | 1,082 | |||||||||||||
h) | Others | 160 | 291 | 331 | 1,049 | |||||||||||||
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Total Segment results (EBITDA) | 10,741 | 13,768 | 10,032 | 45,319 | ||||||||||||||
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Less: | Depreciation, depletion and amortization expense | 2,464 | 2,379 | 2,124 | 8,895 | |||||||||||||
Add: | Other income, net of expenses ii | 3 | * | 63 | 60 | 245 | ||||||||||||
Less: | Finance costs | 1,206 | 1,333 | 1,182 | 4,797 | |||||||||||||
Add: | Other unallocable income, net of expenses | 186 | 413 | 614 | 1,860 | |||||||||||||
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Profit before exceptional items and tax | 7,260 | 10,532 | 7,400 | 33,732 | ||||||||||||||
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Add: | Net exceptional loss (Refer note 4) | — | (336 | ) | (230 | ) | (768 | ) | ||||||||||
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Profit before tax | 7,260 | 10,196 | 7,170 | 32,964 | ||||||||||||||
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3 | Segment assets | |||||||||||||||||
a) | Zinc, Lead and Silver - India | 24,452 | 22,822 | 21,001 | 22,822 | |||||||||||||
b) | Zinc - International | 6,859 | 6,984 | 6,495 | 6,984 | |||||||||||||
c) | Oil & Gas | 26,983 | 24,149 | 20,270 | 24,149 | |||||||||||||
d) | Aluminium | 65,340 | 60,407 | 56,358 | 60,407 | |||||||||||||
e) | Copper | 5,898 | 5,912 | 6,323 | 5,912 | |||||||||||||
f) | Iron Ore | 5,182 | 4,156 | 3,302 | 4,156 | |||||||||||||
g) | Power | 17,296 | 17,195 | 17,526 | 17,195 | |||||||||||||
h) | Others | 9,823 | 9,197 | 8,163 | 9,197 | |||||||||||||
i) | Unallocated | 47,826 | 47,778 | 47,215 | 47,778 | |||||||||||||
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Total | 209,659 | 198,600 | 186,653 | 198,600 | ||||||||||||||
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i) Earnings before interest, depreciation, tax and exceptional items (‘EBITDA’) is a non- GAAP measure.
ii) Includes amortisation of duty benefits relating to assets recognised as government grant.
* Includes cost of exploration wells written off of ₹ 62 Crore in Oil & Gas segment.
(₹ in Crore)
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S. No. | Segment information | 30.06.2022 (Unaudited) | 31.03.2022 (Audited) (Refer note 2) | 30.06.2021 (Unaudited) | 31.03.2022 (Audited) | |||||||||||||
4 | Segment liabilities | |||||||||||||||||
a) | Zinc, Lead and Silver—India | 6,537 | 6,229 | 4,951 | 6,229 | |||||||||||||
b) | Zinc—International | 1,163 | 1,159 | 1,034 | 1,159 | |||||||||||||
c) | Oil & Gas | 19,140 | 16,138 | 12,551 | 16,138 | |||||||||||||
d) | Aluminium | 21,983 | 20,231 | 18,579 | 20,231 | |||||||||||||
e) | Copper | 5,186 | 5,028 | 4,103 | 5,028 | |||||||||||||
f) | Iron Ore | 3,123 | 2,601 | 1,463 | 2,601 | |||||||||||||
g) | Power | 2,390 | 1,976 | 1,889 | 1,976 | |||||||||||||
h) | Others | 2,861 | 2,694 | 1,985 | 2,694 | |||||||||||||
i) | Unallocated | 68,586 | 59,840 | 56,965 | 59,840 | |||||||||||||
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Total | 130,969 | 115,896 | 103,520 | 115,896 | ||||||||||||||
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The main business segments are:
(a) Zinc, Lead and Silver - India, which consists of mining of ore, manufacturing of zinc and lead ingots and silver, both from own mining and purchased concentrate. Additional intra segment information of revenues for the Zinc & Lead and Silver segment have been provided to enhance understanding of segment business;
(b) Zinc - International, which consists of exploration, mining, treatment and production of zinc, lead, copper and associated mineral concentrates for sale;
(c) Oil & Gas, which consists of exploration, development and production of oil and gas;
(d) Aluminium, which consist of mining of bauxite and manufacturing of alumina and various aluminium products;
(e) Copper, which consist of mining of copper concentrate, manufacturing of copper cathode, continuous cast copper rod, anode slime from purchased concentrate and manufacturing of precious metal from anode slime, sulphuric acid and phosphoric acid (Refer note 7);
(f) Iron ore, which consists of mining of ore and manufacturing of pig iron and metallurgical coke;
(g) Power, excluding captive power but including power facilities predominantly engaged in generation and sale of commercial power; and
(h) Other business segment comprises port/berth, glass substrate, steel, ferroy alloys and cement. The assets and liabilities that cannot be allocated between the segments are shown as unallocated assets and liabilities, respectively.
Notes:- | ||
1 | The above consolidated results of Vedanta Limited (“the Company”) and its subsidiaries (“the Group”), jointly controlled entities, and associates for the quarter ended 30 June 2022 have been reviewed by the Audit and Risk Management Committee at its meeting held on 27 July 2022 and approved by the Board of Directors at its meeting held on 28 July 2022. The statutory auditors have carried out a limited review on these results and issued an unmodified conclusion. | |
2 | The figures for the quarter ended 31 March 2022 are the balancing figures between audited figures for the full financial year ended 31 March 2022 and unaudited figures for the nine months ended 31 December 2021. | |
3 | During the quarter ended 30 June 2022, the Board of Directors of the Company at its meeting held on 28 April 2022, approved the first interim dividend of ₹ 31.50 per equity share, i.e., 3,150% on face value of ₹ 1/- per equity share for the year ended 31 March 2023.
Subsequent to the quarter ended 30 June 2022, the Board of Directors of the Company at its meeting held on 19 July 2022, approved the second interim dividend of ₹ 19.50 per equity share, i.e., 1,950% on face value of ₹ 1/- per equity share for the year ended 31 March 2023. With this, the total dividend declared for FY 2022-23 currently stands at ₹ 51 per equity share of ₹ 1/- each. | |
4 | Net exceptional loss comprise the following: |
(₹ in Crore)
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Particulars | Quarter ended | |||||||||||||||||
30.06.2022 (Unaudited) | 31.03.2022 (Audited) (Refer note 2) | 30.06.2021 (Unaudited) | 31.03.2022 (Audited) | |||||||||||||||
Property, plant and equipment, exploration intangible assets under development, capital work-in-progress and other assets (impaired)/ reversal or (written off)/ written back in: | ||||||||||||||||||
- Oil & Gas | ||||||||||||||||||
a) Exploration cost written off | — | (2,403 | ) | (96 | ) | (2,618 | ) | |||||||||||
b) Reversal of previously recorded impairment | — | 2,697 | — | 2,697 | ||||||||||||||
- Aluminium | — | (125 | ) | — | (125 | ) | ||||||||||||
- Others | — | — | — | (52 | ) | |||||||||||||
- Unallocated | — | — | — | (24 | ) | |||||||||||||
Provision for legal disputes (including change in law), force majeure and similar incidences in: | ||||||||||||||||||
- Aluminium | — | (288 | ) | — | (288 | ) | ||||||||||||
- Copper | — | (217 | ) | — | (217 | ) | ||||||||||||
- Zinc, Lead and Silver - India | — | — | (134 | ) | (134 | ) | ||||||||||||
- Others | — | — | — | (7 | ) | |||||||||||||
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Net exceptional loss | — | (336 | ) | (230 | ) | (768 | ) | |||||||||||
Current tax benefit on above | — | 496 | 64 | 580 | ||||||||||||||
Net deferred tax (expense)/ benefit on above | — | (468 | ) | 17 | (402 | ) | ||||||||||||
Non-controlling interests on above | — | 80 | 31 | 113 | ||||||||||||||
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Net exceptional loss, net of tax and non-controlling interests | — | (228 | ) | (118 | ) | (477 | ) | |||||||||||
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5 | The Company operates an oil and gas production facility in Rajasthan under a Production Sharing Contract (“PSC”). The management is of the opinion that the Company is eligible for extension of the PSC for Rajasthan (“RJ”) block on same terms w.e.f. 15 May 2020, a matter which was being adjudicated at the Delhi High Court. The Division Bench of the Delhi High Court in March 2021 set aside the single judge order of May 2018 which allowed extension of PSC on same terms and conditions. The Company has appealed this order in the Supreme Court. In parallel, the Government of India (“GoI”), accorded its approval for extension of the PSC, under the Pre-NELP Extension policy as per notification dated 07 April 2017 (“Pre-NELP Policy”), for RJ block by a period of 10 years, w.e.f. 15 May 2020 vide its letter dated 26 October 2018, subject to fulfilment of certain conditions. |
One of the conditions for extension relates to notification of certain audit exceptions raised for FY 2016-17 as per PSC provisions and provides for payment of amounts, if such audit exceptions result into any creation of liability. In connection with the said audit exceptions, a demand of ₹ 2,870 Crore (US$ 364 million) has been raised by Directorate General of Hydrocarbons (“DGH”) on 12 May 2020, relating to the share of the Company and one of its subsidiaries. This amount was subsequently revised to ₹ 3,613 Crore (US$ 458 million) till March 2018 vide DGH letter dated 24 December 2020.
On 28 April 2022, DGH has notified audit exceptions for the period upto 14 May 2020 and included an additional amount of ₹ 2,038 Crore (US$ 259 million) for aforementioned matters.
The Company has disputed the aforesaid demand and the other audit exceptions, notified till date, as in the Company’s view the audit notings are not in accordance with the PSC and are entirely unsustainable. Further, as per PSC provisions, disputed notings do not prevail and accordingly do not result in creation of any liability. The Company believes it has reasonable grounds to defend itself which are supported by independent legal opinions. In accordance with PSC terms, the Company has also commenced arbitration proceedings. The arbitration tribunal (“the Tribunal”) stands constituted and the Company also filed its application for interim relief. The interim relief application was heard by the Tribunal on 15 December 2020 wherein it was directed that GoI should not take any coercive action to recover the disputed amount of audit exceptions which is presently in arbitration and that during the arbitration period, GoI should continue to extend the tenure of the Rajasthan Block PSC on terms of current extension. The GoI has challenged the said order before the Delhi High Court which is scheduled for hearing in due course.
Further, on 23 September 2020, the GoI had filed an application for interim relief before Delhi High Court seeking payment of all disputed dues. This matter is also scheduled for hearing in due course. In view of extenuating circumstances surrounding COVID-19 and pending signing of the PSC addendum for extension after complying with all stipulated conditions, the GoI has been granting permission to the Company to continue Petroleum operations in the RJ block. The latest permission is valid upto 14 August 2022 or signing of the PSC addendum, whichever is earlier. For reasons aforesaid, the Company is not expecting any material liability to devolve on account of these matters or any disruptions in its petroleum operations. The Company is also pursuing with the GoI for executing the RJ PSC addendum at the earliest.
6 | In our oil and gas business, the GoI, vide its notification no. 05/2022 dated 30 June 2022 had levied Special Additional Excise Duty (“SAED”) of ₹ 23,250 per tonne (approximately equivalent to US$ 40/ barrel) on crude oil with effect from 01 July 2022, which has been revised to ₹ 17,000 per tonne (approximately equivalent to US$ 30/ barrel) with effect from 20 July 2022. The SAED rate is expected to be revised every fortnight. This is in the nature of cess on windfall gain triggered by increase in crude oil prices in recent months. |
The Company is engaging with the GoI on this levy, within the framework of contractual agreements of PSC and Revenue Sharing Contracts (“RSC”) executed with the GoI.
The Company has performed sensitivity analysis to assess the impact of the above SAED on the recoverable value of assets in the oil and gas business, which is determined basis the consensus of analyst recommendations of long-term prices, discount rates, production quantity etc. Based on the results of such analysis, Management believes that no adjustment to the carrying value of the asset is required at this stage.
7 | The Company has a copper smelter plant in Tuticorin. The Company’s application for renewal of Consent to Operate (“CTO”) for the plant was rejected by the Tamil Nadu Pollution Control Board (“TNPCB”) in April 2018. Subsequently, the Government of Tamil Nadu issued directions to close and seal the existing copper smelter plant permanently. The Principal Bench of National Green Tribunal (“NGT”) ruled in favour of the Company but its order was set aside by the Supreme Court vide its judgment dated 18 February 2019, on the sole basis of maintainability. The Company had filed a writ petition before the Madras High Court challenging various orders passed against the Company. On 18 August 2020, the Madras High Court dismissed the writ petitions filed by the Company, which has been challenged by the Company in the Supreme Court while also seeking interim relief to access the plant for care and maintenance. The hearing on care and maintenance could not be listed at the Supreme Court. Instead, the matter is now being heard on merits. |
The Company was also in the process of expanding its capacities at an adjacent site (“Expansion Project”). The High Court of Madras, in a Public Interest Litigation, held that the application for renewal of the Environmental Clearance (“EC”) for the Expansion Project shall be processed after a mandatory public hearing and in the interim, ordered the Company to cease construction and all other activities on the site with immediate effect. In the meanwhile, State Industries Promotion Corporation of Tamil Nadu (“SIPCOT”) cancelled the land allotted for the Expansion Project, which was later stayed by the Madras High Court. Further, TNPCB issued an order directing the withdrawal of the Consent to Establish (“CTE”) which was valid till 31 March 2023. The Company has also appealed this action before the TNPCB Appellate Authority and the matter is pending for adjudication and the matter is now being heard on merits. As per the Company’s assessment, it is in compliance with the applicable regulations and hence there is no impact on the carrying value of the assets.
8 | Subsequent to the quarter ended 30 June 2022, the Company acquired controlling stake in Athena Chhattisgarh Power Limited (“ACPL”) under the liquidation proceedings of the Insolvency and Bankruptcy Code, 2016 for a consideration of ₹ 565 Crore. ACPL is building a 1,200 MW (600 MW X 2) coal-based power plant located at Jhanjgir Champa district, Chhattisgarh. The plant is expected to fulfill the power requirements for the Company’s aluminium business. |
9 | Previous period/ year figures have been re-grouped/ rearranged, wherever necessary. |
By Order of the Board | ||||||||
Sunil Duggal | ||||||||
Dated: 28 July 2022 Place: New Delhi | Whole - Time Director and Group Chief Executive Officer |
Vedanta Limited
CIN no. L13209MH1965PLC291394
Regd. Office: Vedanta Limited, 1st Floor, ‘C’ wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East),
Mumbai–400093, Maharashtra
STATEMENT OF UNAUDITED STANDALONE RESULTS FOR THE QUARTER ENDED 30 JUNE 2022
(₹ in Crore, except as stated)
Quarter ended | Year ended | |||||||||||||||||
S. No. | Particulars | 30.06.2022 (Unaudited) | 31.03.2022 (Audited) (Refer Note 2) | 30.06.2021 (Unaudited) | 31.03.2022 (Audited) | |||||||||||||
1 | Revenue from operations | 17,779 | 18,841 | 12,883 | 62,801 | |||||||||||||
2 | Other operating income | 134 | 168 | 75 | 476 | |||||||||||||
3 | Other income (Refer note 9) | 174 | 1,218 | 1,399 | 8,347 | |||||||||||||
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Total Income | 18,087 | 20,227 | 14,357 | 71,624 | ||||||||||||||
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4 | Expenses | |||||||||||||||||
a) | Cost of materials consumed | 6,593 | 7,378 | 4,950 | 23,751 | |||||||||||||
b) | Purchases of stock-in-trade | 47 | 54 | 162 | 228 | |||||||||||||
c) | Changes in inventories of finished goods, work-in-progress | (480 | ) | (470 | ) | (546 | ) | (1,172 | ) | |||||||||
d) | Power and fuel charges | 5,375 | 3,621 | 2,056 | 11,874 | |||||||||||||
e) | Employee benefits expense | 231 | 233 | 198 | 867 | |||||||||||||
f) | Finance costs | 858 | 868 | 722 | 3,146 | |||||||||||||
g) | Depreciation, depletion and amortization expense | 873 | 742 | 704 | 2,945 | |||||||||||||
h) | Other expenses | 3,250 | 2,953 | 2,274 | 10,051 | |||||||||||||
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|
|
|
|
|
|
| |||||||||||
Total expenses | 16,747 | 15,379 | 10,520 | 51,690 | ||||||||||||||
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|
|
|
|
|
|
| |||||||||||
5 | Profit before exceptional items and tax | 1,340 | 4,848 | 3,837 | 19,934 | |||||||||||||
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|
|
|
|
|
| |||||||||||
6 | Net exceptional loss (Refer note 4) | — | (96 | ) | (96 | ) | (318 | ) | ||||||||||
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|
|
|
|
|
|
| |||||||||||
7 | Profit before tax | 1,340 | 4,752 | 3,741 | 19,616 | |||||||||||||
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|
|
|
|
|
|
| |||||||||||
8 | Tax (benefit)/ expense on other than exceptional items: | |||||||||||||||||
a) | Net current tax expense | 218 | 850 | 678 | 3,505 | |||||||||||||
b) | Net deferred tax benefit, including tax credits | (552 | ) | (221 | ) | (239 | ) | (1,023 | ) | |||||||||
Net tax benefit on exceptional items: | ||||||||||||||||||
c) | Net tax benefit on exceptional items (Refer note 4) | — | (34 | ) | (34 | ) | (111 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net tax (benefit)/ expense (a+b+c) | (334 | ) | 595 | 405 | 2,371 | |||||||||||||
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|
|
|
|
|
|
| |||||||||||
9 | Net profit after tax (A) | 1,674 | 4,157 | 3,336 | 17,245 | |||||||||||||
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|
|
|
|
|
| |||||||||||
10 | Net profit after tax before exceptional items (net of tax) | 1,674 | 4,219 | 3,398 | 17,452 | |||||||||||||
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|
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|
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|
| |||||||||||
11 | Other Comprehensive Income/ (Loss) | |||||||||||||||||
a) | (i) Items that will not be reclassified to profit or loss | (35 | ) | (34 | ) | 36 | (8 | ) | ||||||||||
(ii) Tax benefit/ (expense) on items that will not be reclassified to profit or loss | 0 | 2 | (1 | ) | 8 | |||||||||||||
b) | (i) Items that will be reclassified to profit or loss | 1,547 | 277 | 51 | 407 | |||||||||||||
(ii) Tax (expense)/ benefit on items that will be reclassified to profit or loss | (456 | ) | (58 | ) | 11 | (74 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Other Comprehensive Income (B) | 1,056 | 187 | 97 | 333 | ||||||||||||||
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|
|
|
|
|
| |||||||||||
12 | Total Comprehensive Income (A+B) | 2,730 | 4,344 | 3,433 | 17,578 | |||||||||||||
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|
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| |||||||||||
13 | Paid-up equity share capital (Face value of ₹ 1 each) | 372 | 372 | 372 | 372 | |||||||||||||
14 | Reserves excluding revaluation reserves as per balance sheet | 77,277 | ||||||||||||||||
15 | Earnings per share (₹) (*not annualised) | |||||||||||||||||
- Basic and diluted | 4.50 | * | 11.17 | * | 8.97 | * | 46.36 | |||||||||||
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|
|
|
|
|
(₹ in Crore) | ||||||||||||||||||
Quarter ended | Year ended | |||||||||||||||||
S. No. | Segment information | 30.06.2022 (Unaudited) | 31.03.2022 (Audited) (Refer Note 2) | 30.06.2021 (Unaudited) | 31.03.2022 (Audited) | |||||||||||||
1 | Segment revenue | |||||||||||||||||
a) | Oil & Gas | 2,122 | 2,067 | 1,339 | 6,622 | |||||||||||||
b) | Aluminium | 11,171 | 11,766 | 7,617 | 38,371 | |||||||||||||
c) | Copper | 3,040 | 3,286 | 2,206 | 11,096 | |||||||||||||
d) | Iron Ore | 1,214 | 1,714 | 1,576 | 6,143 | |||||||||||||
e) | Power | 232 | 226 | 145 | 787 | |||||||||||||
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|
|
|
|
|
|
| |||||||||||
Total | 17,779 | 19,059 | 12,883 | 63,019 | ||||||||||||||
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|
|
|
|
|
|
| |||||||||||
Less: | Inter segment revenue | — | 218 | — | 218 | |||||||||||||
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|
|
|
|
|
|
| |||||||||||
Revenue from operations | 17,779 | 18,841 | 12,883 | 62,801 | ||||||||||||||
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|
|
|
|
|
| |||||||||||
2 | Segment Results (EBITDA) i | |||||||||||||||||
a) | Oil & Gas | 1,043 | 1,042 | 568 | 3,137 | |||||||||||||
b) | Aluminium | 1,890 | 3,896 | 2,759 | 13,024 | |||||||||||||
c) | Copper | (3 | ) | 30 | (86 | ) | (150 | ) | ||||||||||
d) | Iron Ore | 287 | 514 | 688 | 2,187 | |||||||||||||
e) | Power | (97 | ) | (135 | ) | (9 | ) | (172 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Segment results (EBITDA) | 3,120 | 5,347 | 3,920 | 18,026 | ||||||||||||||
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|
|
|
|
|
|
| |||||||||||
Less: | Depreciation, depletion and amortization expense | 873 | 742 | 704 | 2,945 | |||||||||||||
Add: | Other income, net of expenses ii | (30 | )* | 20 | 19 | 78 | ||||||||||||
Less: | Finance costs | 858 | 868 | 722 | 3,146 | |||||||||||||
Add: | Other unallocable income, net of expenses (Refer note 9) | (19 | ) | 1,091 | 1,324 | 7,921 | ||||||||||||
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|
|
|
|
|
|
| |||||||||||
Profit before exceptional items and tax | 1,340 | 4,848 | 3,837 | 19,934 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Add: | Net exceptional loss (Refer note 4) | — | (96 | ) | (96 | ) | (318 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Profit before tax | 1,340 | 4,752 | 3,741 | 19,616 | ||||||||||||||
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|
|
|
|
|
| |||||||||||
3 | Segment assets | |||||||||||||||||
a) | Oil & Gas | 16,870 | 16,420 | 14,119 | 16,420 | |||||||||||||
b) | Aluminium | 51,773 | 47,307 | 43,784 | 47,307 | |||||||||||||
c) | Copper | 5,310 | 5,383 | 5,394 | 5,383 | |||||||||||||
d) | Iron Ore | 4,597 | 3,590 | 2,889 | 3,590 | |||||||||||||
e) | Power | 2,973 | 3,044 | 3,228 | 3,044 | |||||||||||||
f) | Unallocated | 71,405 | 73,215 | 68,029 | 73,215 | |||||||||||||
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|
|
|
|
|
|
| |||||||||||
Total | 152,928 | 148,959 | 137,443 | 148,959 | ||||||||||||||
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|
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|
|
| |||||||||||
4 | Segment liabilities | |||||||||||||||||
a) | Oil & Gas | 12,290 | 10,178 | 8,194 | 10,178 | |||||||||||||
b) | Aluminium | 17,706 | 15,848 | 13,415 | 15,848 | |||||||||||||
c) | Copper | 4,767 | 4,638 | 3,698 | 4,638 | |||||||||||||
d) | Iron Ore | 2,908 | 2,321 | 2,235 | 2,321 | |||||||||||||
e) | Power | 217 | 152 | 165 | 152 | |||||||||||||
f) | Unallocated | 46,296 | 38,173 | 29,500 | 38,173 | |||||||||||||
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|
|
|
|
|
|
| |||||||||||
Total | 84,184 | 71,310 | 57,207 | 71,310 | ||||||||||||||
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|
|
The main business segments are:
(a) Oil & Gas, which consists of exploration, development and production of oil and gas;
(b) Aluminium, which consists of manufacturing of alumina and various aluminium products;
(c) Copper, which consists of manufacturing of copper cathode, continuous cast copper rod, anode slime from purchased concentrate and manufacturing of sulphuric acid, phosphoric acid (Refer note 5);
(d) Iron ore, which consists of mining of ore and manufacturing of pig iron and metallurgical coke; and
(e) Power, excluding captive power but including power facilities predominantly engaged in generation and sale of commercial power.
The assets and liabilities that cannot be allocated between the segments are shown as unallocated assets and liabilities, respectively.
i) Earnings before interest, tax, depreciation and amortisation (“EBITDA”) is a non-GAAP measure.
ii) Includes amortisation of duty benefits relating to assets recognised as government grant.
* Includes cost of exploration wells written off of ₹ 50 Crore in Oil & Gas segment.
Notes:- | ||
1 | The above results of Vedanta Limited (“the Company”), for the quarter ended 30 June 2022 have been reviewed by the Audit and Risk Management Committee at its meeting held on 27 July 2022 and approved by the Board of Directors at its meeting held on 28 July 2022. The statutory auditors have carried out a limited review on these results and issued an unmodified conclusion. | |
2 | The figures for the quarter ended 31 March 2022 are the balancing figures between audited figures for the full financial year ended 31 March 2022 and unaudited figures for the nine months ended 31 December 2021. | |
3 | During the quarter ended 30 June 2022, the Board of Directors of the Company at its meeting held on 28 April 2022, approved the first interim dividend of ₹ 31.50 per equity share, i.e., 3,150% on face value of ₹ 1/- per equity share for the year ended 31 March 2023.
Subsequent to the quarter ended 30 June 2022, the Board of Directors of the Company at its meeting held on 19 July 2022, approved the second interim dividend of ₹ 19.50 per equity share, i.e., 1,950% on face value of ₹ 1/- per equity share for the year ended 31 March 2023. With this, the total dividend declared for FY 2022-23 currently stands at ₹ 51 per equity share of ₹ 1/- each. | |
4 | Net exceptional loss comprise the following: |
(₹ in Crore) | ||||||||||||||||||
Particulars | Quarter ended | Year ended | ||||||||||||||||
30.06.2022 (Unaudited) | 31.03.2022 (Audited) (Refer Note 2) | 30.06.2021 (Unaudited) | 31.03.2022 (Audited) | |||||||||||||||
Property, plant and equipment, exploration intangible assets under development, capital work-in-progress and other assets (impaired)/ reversal or (written off)/ written back in: | ||||||||||||||||||
- Oil & Gas | ||||||||||||||||||
a) Exploration wells written off | — | (1,214 | ) | (96 | ) | (1,412 | ) | |||||||||||
b) Reversal of previously recorded impairment | — | 1,370 | — | 1,370 | ||||||||||||||
- Aluminium | — | (125 | ) | — | (125 | ) | ||||||||||||
- Unallocated | — | — | — | (24 | ) | |||||||||||||
Provision for legal disputes (including change in law), force majeure and similar incidences in: | ||||||||||||||||||
- Aluminium | — | (73 | ) | — | (73 | ) | ||||||||||||
- Copper | — | (54 | ) | — | (54 | ) | ||||||||||||
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|
|
|
|
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| |||||||||||
Net exceptional loss | — | (96 | ) | (96 | ) | (318 | ) | |||||||||||
Current tax benefit on above | — | 247 | 17 | 281 | ||||||||||||||
Net deferred tax (expense)/ benefit on above | — | (213 | ) | 17 | (170 | ) | ||||||||||||
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|
|
|
|
|
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| |||||||||||
Net Exceptional loss (net of tax) | — | (62 | ) | (62 | ) | (207 | ) | |||||||||||
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|
5 | The Company has a copper smelter plant in Tuticorin. The Company’s application for renewal of Consent to Operate (“CTO”) for the plant was rejected by the Tamil Nadu Pollution Control Board (“TNPCB”) in April 2018. Subsequently, the Government of Tamil Nadu issued directions to close and seal the existing copper smelter plant permanently. The Principal Bench of National Green Tribunal (“NGT”) ruled in favour of the Company but its order was set aside by the Supreme Court vide its judgment dated 18 February 2019, on the sole basis of maintainability. The Company had filed a writ petition before the Madras High Court challenging various orders passed against the Company. On 18 August 2020, the Madras High Court dismissed the writ petitions filed by the Company, which has been challenged by the Company in the Supreme Court while also seeking interim relief to access the plant for care and maintenance. The hearing on care and maintenance could not be listed at the Supreme Court. Instead, the matter is now being heard on merits. | |
The Company was also in the process of expanding its capacities at an adjacent site (“Expansion Project”). The High Court of Madras, in a Public Interest Litigation, held that the application for renewal of the Environmental Clearance (“EC”) for the Expansion Project shall be processed after a mandatory public hearing and in the interim, ordered the Company to cease construction and all other activities on the site with immediate effect. In the meanwhile, State Industries Promotion Corporation of Tamil Nadu (“SIPCOT”) cancelled the land allotted for the Expansion Project, which was later stayed by the Madras High Court. Further, TNPCB issued an order directing the withdrawal of the Consent to Establish (“CTE”) which was valid till 31 March 2023. The Company has also appealed this action before the TNPCB Appellate Authority and the matter is pending for adjudication and the matter is now being heard on merits. As per the Company’s assessment, it is in compliance with the applicable regulations and hence there is no impact on the carrying value of the assets. | ||
6 | The Company operates an oil and gas production facility in Rajasthan under a Production Sharing Contract (“PSC”). The management is of the opinion that the Company is eligible for extension of the PSC for Rajasthan (“RJ”) block on same terms w.e.f. 15 May 2020, a matter which was being adjudicated at the Delhi High Court. The Division Bench of the Delhi High Court in March 2021 set aside the single judge order of May 2018 which allowed extension of PSC on same terms and conditions. The Company has appealed this order in the Supreme Court. In parallel, the Government of India (“GoI”), accorded its approval for extension of the PSC, under the Pre-NELP Extension policy as per notification dated 07 April 2017 (“Pre-NELP Policy”), for RJ block by a period of 10 years, w.e.f. 15 May 2020 vide its letter dated 26 October 2018, subject to fulfilment of certain conditions. | |
One of the conditions for extension relates to notification of certain audit exceptions raised for FY 2016-17 as per PSC provisions and provides for payment of amounts, if such audit exceptions result into any creation of liability. In connection with the said audit exceptions, a demand of ₹ 2,870 Crore (US$ 364 million) has been raised by Directorate General of Hydrocarbons (“DGH”) on 12 May 2020, relating to the share of the Company and one of its subsidiaries. This amount was subsequently revised to ₹ 3,613 Crore (US$ 458 million) till March 2018 vide DGH letter dated 24 December 2020. | ||
On 28 April 2022, DGH has notified audit exceptions for the period upto 14 May 2020 and included an additional amount of ₹ 2,038 Crore (US$ 259 million) for aforementioned matters. | ||
The Company has disputed the aforesaid demand and the other audit exceptions, notified till date, as in the Company’s view the audit notings are not in accordance with the PSC and are entirely unsustainable. Further, as per PSC provisions, disputed notings do not prevail and accordingly do not result in creation of any liability. The Company believes it has reasonable grounds to defend itself which are supported by independent legal opinions. In accordance with PSC terms, the Company has also commenced arbitration proceedings. The arbitration tribunal (“the Tribunal”) stands constituted and the Company also filed its application for interim relief. The interim relief application was heard by the Tribunal on 15 December 2020 wherein it was directed that GoI should not take any coercive action to recover the disputed amount of audit exceptions which is presently in arbitration and that during the arbitration period, GoI should continue to extend the tenure of the Rajasthan Block PSC on terms of current extension. The GoI has challenged the said order before the Delhi High Court which is scheduled for hearing in due course. Further, on 23 September 2020, the GoI had filed an application for interim relief before Delhi High Court seeking payment of all disputed dues. This matter is also scheduled for hearing in due course. | ||
In view of extenuating circumstances surrounding COVID-19 and pending signing of the PSC addendum for extension after complying with all stipulated conditions, the GoI has been granting permission to the Company to continue Petroleum operations in the RJ block. The latest permission is valid upto 14 August 2022 or signing of the PSC addendum, whichever is earlier. For reasons aforesaid, the Company is not expecting any material liability to devolve on account of these matters or any disruptions in its petroleum operations. The Company is also pursuing with the GoI for executing the RJ PSC addendum at the earliest. | ||
7 | In our oil and gas business, the GoI, vide its notification no. 05/2022 dated 30 June 2022 had levied Special Additional Excise Duty (“SAED”) of ₹ 23,250 per tonne (approximately equivalent to US$ 40/ barrel) on crude oil with effect from 01 July 2022, which has been revised to ₹ 17,000 per tonne (approximately equivalent to US$ 30/ barrel) with effect from 20 July 2022. The SAED rate is expected to be revised every fortnight. This is in the nature of cess on windfall gain triggered by increase in crude oil prices in recent months.
The Company is engaging with the GoI on this levy, within the framework of contractual agreements of PSC and Revenue Sharing Contracts (“RSC”) executed with the GoI.
The Company has performed sensitivity analysis to assess the impact of the above SAED on the recoverable value of assets in the oil and gas business, which is determined basis the consensus of analyst recommendations of long-term prices, discount rates, production quantity etc. Based on the results of such analysis, Management believes that no adjustment to the carrying value of the asset is required at this stage. | |
8 | Subsequent to the quarter ended 30 June 2022, the Company acquired controlling stake in Athena Chhattisgarh Power Limited (“ACPL”) under the liquidation proceedings of the Insolvency and Bankruptcy Code, 2016 for a consideration of ₹ 565 Crore. ACPL is building a 1,200 MW (600 MW X 2) coal-based power plant located at Jhanjgir Champa district, Chhattisgarh. The plant is expected to fulfill the power requirements for the Company’s aluminium business. |
9 | Other income includes dividend income from subsidiaries of ₹ Nil Crore, ₹ 1,062 Crore, ₹ 1,316 Crore and ₹ 7,828 Crore for the quarter ended 30 June 2022, 31 March 2022, 30 June 2021 and year ended 31 March 2022 respectively. | |
10 | Additional disclosures as per Regulation 52(4) of the Securities and Exchange Board of India (Listing Obligations and Disclosures Requirement) Regulations, 2015: |
Quarter ended | Year ended | |||||||||||||||||
Particulars | 30.06.2022 (Unaudited) | 31.03.2022 (Audited) (Refer Note 2) | 30.06.2021 (Unaudited) | 31.03.2022 (Audited) | ||||||||||||||
a) | Debt-Equity Ratio (in times)* | 0.66 | 0.47 | 0.35 | 0.47 | |||||||||||||
b) | Debt Service Coverage Ratio (in times) (annualised) | 2.24 | 1.96 | 1.41 | 1.96 | |||||||||||||
c) | Interest Service Coverage Ratio (in times)* | 3.56 | 7.33 | 7.16 | 8.33 | |||||||||||||
d) | Current Ratio (in times)* | 0.71 | 0.80 | 0.77 | 0.80 | |||||||||||||
e) | Long term debt to working capital Ratio (in times)* | * | * | * | * | * | * | * | * | |||||||||
f) | Bad debts to Account receivable Ratio (in times)* | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||
g) | Current liability Ratio (in times)* | 0.54 | 0.52 | 0.45 | 0.52 | |||||||||||||
h) | Total debts to total assets Ratio (in times)* | 0.30 | 0.25 | 0.20 | 0.25 | |||||||||||||
i) | Debtors Turnover Ratio (in times)* | 5.32 | 5.31 | 4.35 | 20.81 | |||||||||||||
j) | Inventory Turnover Ratio (in times)* | 1.56 | 1.71 | 1.50 | 6.41 | |||||||||||||
k) | Operating-Profit Margin (%)* | 13 | % | 24 | % | 25 | % | 24 | % | |||||||||
l) | Net-Profit Margin (%)* | 9 | % | 22 | % | 26 | % | 28 | % | |||||||||
m) | Capital Redemption Reserve (₹ in Crore) | 3,125 | 3,125 | 3,125 | 3,125 | |||||||||||||
n) | Debenture Redemption Reserve (₹ in Crore) | — | — | 117 | — | |||||||||||||
o) | Net Worth (Total Equity) (₹ in Crore) | 68,745 | 77,649 | 80,234 | 77,649 |
* | Not annualised, except for the year ended 31 March 2022 |
** | Net working capital is negative |
Formulae for computation of ratios are as follows:
a) | Debt-Equity Ratio | Total Debt/ Total Equity | ||
b) | Debt Service Coverage Ratio | Income available for debt service/ (interest expense + repayments made during the period for long term loans), where income available for debt service = Profit before exceptional items and tax + Depreciation, depletion and amortization expense + Interest expense | ||
c) | Interest Service Coverage Ratio | Income available for debt service/ interest expense | ||
d) | Current Ratio | Current Assets/ Current Liabilities (excluding current maturities of long term borrowing) | ||
e) | Long term debt to working capital Ratio | Non-current borrowing (including current maturities of long term borrowing)/ Working capital (WC), where WC = Current Assets - Current Liabilities (excluding current maturities of long term borrowing) | ||
f) | Bad debts to Account receivable Ratio | Bad Debts written off/ Average Trade Receivables | ||
g) | Current liability Ratio | Current Liabilities (excluding current maturities of long term borrowing)/ Total Liabilities | ||
h) | Total debts to total assets Ratio | Total Debt/ Total Assets | ||
i) | Debtors Turnover Ratio | (Revenue from operations + Other operating income)/ Average Trade Receivables | ||
j) | Inventory Turnover Ratio | (Revenue from operations + Other operating income) less EBITDA/ Average Inventory | ||
k) | Operating-Profit Margin (%) | (EBITDA - Depreciation, depletion and amortization expense)/ (Revenue from operations + Other operating income) | ||
l) | Net-Profit Margin (%) | Net profit after tax before exceptional items (net of tax) / (Revenue from operations + Other operating income) | ||
m) | Capital Redemption Reserve includes Preference Share Redemption Reserve created on redemption of preference shares. |
11 | The listed secured Non-Convertible debentures (‘NCDs’) of the Company aggregating ₹ 7,836 Crore as on 30 June 2022 are secured by way of first Pari Passu mortgage/charge on certain movable fixed assets and freehold land of the Company. The Company has maintained asset cover of more than 125% and 100% for NCDs with face value of ₹ 6,089 Crore and ₹ 1,750 Crore respectively. | |||
12 | Previous period/ year figures have been re-grouped/ rearranged, wherever necessary. |
By Order of the Board | ||||||||
Place : New Delhi | Sunil Duggal | |||||||
Date : 28 July 2022 | Whole - Time Director and Group Chief Executive Officer |