VEDL - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, good day, and welcome to the Vedanta Q3 FY '21 Earnings Declaration Conference Call.

As a reminder, all participant lines will be in a listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Arun Kumar, the Chief Financial Officer of Vedanta Limited. to over and you, you, sir. Thank

Arun Kumar

has my operator. participants in you, the three Vedanta. and Good the IR Mr. joined you. of proceedings. warm evening conduct the now the Vedanta. all quarter It's of call morning good earnings Head to today's Kapoor Mr. as call to Thank introduce the Varun and welcome Thank pleasure rest over call. to us to very who of A I Kapoor, hand introduce himself the

Varun Kapoor

and in you, Varun and XX I the now, been so as about Thank to primarily experience everyone. a company look Kapoor I've and good is Vedanta oil Arun for evening about well I fruitful I gas growth years in coming all overall the research. the through [indiscernible]. positioned quarters am and to [indiscernible] Group stakeholders deliver forward have engagement an with with [indiscernible]

Duggal request So the with will to I results. that, Mr. our to Mr. Over present you Sunil. Sunil CEO,

Sunil Duggal

gentlemen conference Good Limited 'XX FY Thank you, quarter third ladies earnings Vedanta to and evening, welcome call. Varun. and

Before with overall across perspective. at And is assets. we I into QX on up our being with projected entering with golden [indiscernible] commensurate XX% a broader higher a spot era commodity XX% ramping India sweet to like to commence growth update portfolio production would detailed provide performance, growth. diversified

XXXX tonnes Quarter contribution. four million ever ramped towards day. are achievement, looks trajectory. Cairn, barrels robust became projects going landmark for is highest row. quarterly achieved drive Dow Polymer EBITDA on. be third of ever ore, at production are, years. production Sustainability production performance Zinc through furnace. Hindustan of per capitalizing mining and in ramping Asia the a all of up Production Electrosteel, million X,XXX tonnes is the facility four. Goa. achieve facility ore for enhancing improvements guidance. International, to liquid X mined pulling cost quarter Gamsberg Zinc facility Aluminum iron to Gamsberg years. in to production. and past handling ore over XX%. largest commissioned. beating Some efficiency deliver a the $XXX quarter of two exit Surface ever better and sector feat more production ever in first year. XX%, poised stakeholders up Electrosteel, lowest day. EBITDA highest XX,XXX hot year last Hindustan inching Ghar operational. focus company. opportunities than value added the maximization metal a blast injection cost margin XXX up and Industry cost high X.X March tonne, INR of of with levers of XX% the the gas by metal the could more at X.X per of to highest of Pig best dollar top lower four in These remain Index in EBITDA of ever Iron margin margin Nand Zinc, highest Zinc, Hindustan the current tonnes, achievements sustained on highest barrels crores, in value the leading This new tonne, up kt. our Y-o-Y, and iron, potential in XX Pacific sustaining ranked quarterly per highest margin Jones of production in product, million by add XX,XXX on underground kt. per and full deck highest in silver Indian any ever ramp highest business

uniquely quarter. to in has would employees who hard strong challenging gratitude deliver tested work all is and to main their in This contribution to stronger. This testament adopt to extraordinary the and business, conditions my newly resilience work to quarter together ability operating like acquired have these of unchartered out business circumstances. deep safety our Vedanta Xx a been our of has worked four. has I Second, yet and emerged and and year the incredibly our strength express another dedication that EBITDA

by have We to base. deliver our able being in confidence talent on asset pool best our exemplary relying and

extended the on Chinese burn economy, our from Commodity vaccines. company the oil exciting iron augur year the production energy be A in grow commodities. to fiscal. is base to and union X.X% strengthening its the forward-looking likely and OPEC+ of efficiencies. particularly presence likely three, cheer ample India. cost sources of on of also Continued quarter of in by to focus multiyear discussed, [ph], prices, their made safety, HX positive vis-à-vis sector. growth base steel November transition, rest the Passenger base in final discipline well sales budget continued vehicle its expansion would by liquidity to at about silver, electricity government fundamentals. bullish. likely results the This consumption the remains an Crude expenditure, coming across The gains back in which sentiments by Festive to grow in Vedanta period of a to consumption the augmented of is quarter cuts coal on spending for incentivizing the and metal touching three. for cheap positive and infrastructure progressive environment us market uptake, around Y-o-Y this production transition extremely of strong generation, prices gains handsome and a November. fueled is focus exciting during on accelerate in all season October voluntary to financial Commitment start in core highs responsibility. and social that steel recovery industrial balance and HX, India back and over quarters. metal values of industrial see Finished in is XX% ore the would Prices is were and brought and a

quarter. the Now, turn key let of to us highlights the

X% integrated with three high cost its We performance production quarter of XX%. best the a the largest tonnes the Zinc of in a track $XXX remained cost Y-o-Y strong with to with maintaining margin per kilometers Our In lead with of our performance and quarter. while has International. on EBITDA and tonne development aluminum XX India, leadership of business ever Hindustan operational aluminum world's production cost become volume ore zinc, metal record in Zinc the XX% in supported silver hot zinc we sustained business down Zinc and down our at mine from X million producer, increased $XXXX Y-o-Y at continued from by highest strong

$XXX lowest the to cost underground. production at since at transition of nine-month are We

XXX soaring at on production silver XX% Our lead account production. tonnes is Y-o-Y of higher

XX gas share are We we are pleased per online, gas kt, up new to happy highest very the to XX,XXX in business. up also ramping we XX% Gamsberg Zinc ever at Y-o-Y that In our gas International production day. announce achieved of terminal our the barrels the oil business, that by and is production

have We ore business quarter. its significantly in considerable iron this increasing with EBITDA progress our made

We the have capitalized by Goa sales opportunity Xx to increase Y-o-Y.

by production our by per acquisition three Q-o-Q. added from margins the tonne with ever $XXX $XXX achieved have a in increased business, Electrosteel quarter to pig per Our since mix from in increase mass $XX product of crisis. highest of of global XX%, We value robust metal supported quarterly sharply tonne XX% tonne, per kt supported margin XXX iron

ratio the EBITDA indicating value track what back delivered strong still environment. and being are of net focus, allocation creating at is cash balance been maintained Attributable with XXXX position XX% be and crores. of aimed sheet. investment seen achieved INR plus margin crores, XX,XXX cash worth highest X.X projects Q-o-Q. growth up crores this strict Net on two, balance trend three at XX,XXX in crores key is of our low at is at EBITDA in quarter debt Q-o-Q, last up stakeholders. and our with capital quarter Our INR and more total XXXX level in years. INR Continuing fact in can challenging its debt as expansion that started sheet through with four Liquidity at a years than robust for It XX% liquid two EBITDA the with INR has highlighting a highest XX%,

would of the our safety environment. I Before operational give and to an details, health, with overview we start financial like

waste, assessment study risk our meeting on vision remains focus concerning management, environment this dashboard the an have In zero discharge. regards group initiated environment zero of and environment parameters. Our undertaken governance a have of improved we for

in to take have We Jones in across Index the certainly further implemented businesses. plastic-free us Sustainability encouraging steps right The three ranking direction. protocols improvement Dow

the Carbon carbon a other been are lives XXXXth has of pledge that in children. private with proud A initiated. along Nand of part new India's group and women of flagship to We has Ghar signed transforming milestone companies. project has announce Vedanta forums CSR tested as XX Neutrality Vedanta's

for chart challenges forum designed are change, We a CEO leading and bodies. for companies climate government which India is roadmap share the and to

are reduce We intensity by GHG 'XX XX% XXXX. and decarbonize by committed substantially operations FY to by emissions

in more fuel. sharing projects energy the and are low on developing process solutions, We focuses carbon and that of piloting

has Now in COVID-XX maintaining #X, continuity. foremost Administration. if you along employees, our begun health Health come pandemic, ensure with has program to worker been with our communities, Vedanta the for staff our COVID safety Slide to business partners, throughout business District priority partnership conducting vaccination of

Gamsberg and of at deeply the our are by saddened loss We three lives operations. TSPL

vision ensure safety. and to have taking We steps this taken to zero has to Our goal. are business strong harm further achieve aspire measures

the quarter, management During we our initiative last aluminum at business. critical risk launched pilot a

a from of training work. for review with are design initiated have improving Aligned fatalities. we [ph] group and ICAM wide the group We permit adequacy, learning to a wide doing local better the

We safety cross safety actions business dashboard closer, safety have for and initiated audits. a tracking

safety significant out fine having class roadmap practices. carry and our implementation are tune our programs aim to gains We safety further in to of best in

yet and team a part most Now quarter chains of first of to will per terms To expect you the quarter run refer #X, trends cost. to and production saw well tonne, business Aluminum Slide In continue. in to up we verticals, supply turning of we aluminum with quarter-on-quarter. XX% our $XXXX business, our alumina an on efforts continue and again supportive our looked and if aluminum aluminum. operations continue for three, up and good average

strongest of margin the witnessed years production XX% production down metal kilo and the aluminum run, X% down sequentially up also a quarter. quarter-on-quarter aluminum production trial at in production in $XXX availability last the of XXX Y-o-Y, of issues, XX% last $XXXX lowest kt, quarter tonnes, months per cost the at completion XXX cost The three at 'XX five with is equipment including nine EBITDA of tonne record Our tonne. $XXX tonne, Consequently, years. five per stood hot with for to per at we due FY

lower key strategic levers. refer its aluminum the down quarters, structural #X, you through brought to production if and power $XXXX tonne, premiums. source and logical e-auction regulatory reduction metal bauxite past production carbon local across the driven across Slide few the of In optimized in have hot benefited We Now prices of $XXXX our from progress tailwinds global operational our alumina significant excellence, and primarily changes commodity costs power of to by renewable its we in like made mix cost range lower journey per and segment coal obligation. lower

security, won bid coal coal Vedanta recently. the Radhikapur term block long For West and for had

currently, We block signed X block. Jharsuguda up is the quarter areas up one production. already run about respectively and Radhikapur key been will the commercial mine also with for stabilize of of coal our XXX coal focus and and The and undergoing show ktpa volumes Line key Government smelter of achieved. as ramp both production be leaders. coming operationalization in has we captive additional of rate X Jamkhani development India The have and agreement will now the at this

to We per volume to million annum both are million tonnes approvals. integration Lanjigarh Jharsuguda, annum X sustainable obtaining help will and government ramp focusing reduction us improving X at up vertical The in our subject approximately required tonnes cost per similarly journey. expand from to further

over the and bauxite operationalize our strategy, significantly $XXXX a we captive three to target mix, our reduce coal aluminum mix next local blocks per two and to years. to are As costs to focusing increase tonne our

consistently and Now, to of milestones despite coming you on achieved and to lead, our few quarter. volumes, key a our Slide time, silver if of X which has this delivering is Vedanta, challenging pillars and business, is the Zinc turn one zinc India

up kt, XXX while at X% metal was was up Y-o-Y production Y-o-Y, kt. MIC XXX X% Our production the

as $XXXX, well on are volume FY towards quarter below achieve to track to as keep off kt, XXX guided end metal the of the indicated expect of We XXX first to XXXX. well as of

in in to the near at on of and It maintain and Our levers our down term per among to digital to extraction, leverage cost nine initiatives XXXX, at for since months energy COP underground the of underground minor to transitioning by basket is structural date and we other $XXX, lowest aim tonne. XX% $XXX of target is volume level plan mines, Y-o-Y. metal transformation first decile optimization, We efficiencies efficiency productivity. further all

gives run to rate million tonnes from fiscal to current production eventually confidence us and deliver Our to near projects tonnes. $X.X million reach term X.X

not via operations, enhancing resources but recoveries partnerships. on only our mining labor setting new existing and are focusing and We working disciplined production increasing also technology, on towards zones from

being a Now to Slide business, similar in position zinc a to if to we turn global the leader get in and business. you our in lead shown #X, addition have silver

than years, three highest two three five in months top more silver this The silver and of We XXX production silver be have the the producers to globally next expect at and we integrated to nine of ever doubled volumes quarter, largest recorded completion producer tonnes. last the in years. among

plant mine target recovery We performances Production year, the have to with to silver at XX the XX% of higher Slide future. goal XXXX tonnes achieve a achieved, throughput, and Y-o-Y. QX failure, the assessment. mill per encouraging. January, Gamsberg very availability. but mining after up in Steps was a at this medium Gamsberg production avoid re-commenced early has mine Q-o-Q initiatives. several tonnes comprehensive in the Y-o-Y Zinc to demonstrated with are of performance are towards due #X, XX% suspended geotechnical was tonne of best International, recovery XXX occurrences of been likely the XX% including and recorded production taken to rate risk driven and XXX of monthly incidents and kg term future, by and planning the Turn We In the down moving of tonnes, mining $XXXX being in near such ever production highest at cost to were

MIC XX% ramp maintenance site, by four sustainability is open quarter with Mountain reliability remains plus, Black by cost aim ore, XXX design body to cost which exchange Zinc mine tonnes, blending and are and the transition production three, improvement improvement per geotechnical produced opportunities, with Overall appreciation. of of average of to quarter track costs. continued Recovery of production in XX% reach tonne, its at to down following Slide We up $XXXX the offset Significant refinery like along on the will the debottlenecking rate supported under #X. reduce ore We to due the to focus of and capacity identified lower target and care better instability Turn Y-o-Y X% recovery. pit. in plant. improve which kt recovery production an to soon. Q-o-Q. of recoveries, continuous an [indiscernible] control initiatives mine Skorpion XX Gamsberg exit daily increase initiatives underway measures,

quarter facility and as terminal up we project, per day. in increase Liquid built to share over volume decline are The up all speak. complete current in $X.X XXX drilled growth leading & work surface handling gas to barrels quarter, new Infill versus XXXX. All in is next are gross expected due are an to are the now day The of natural operating to MBA we reservoir exit in barrels are Our targets. current XXX, be $X This the per of day. volume volume is to injection XXX is completed XX be were per increasing per to XXX [ph] up-gradation production CHL are Barmer plan partially quarter This barrels wells Bhagyam of barrel in barrels as two ramping activities, barrel XX,XXX day drilled. XXXX being increase XXXX FY in that at increase and oil oil compared as and projects ramped is the Hills from shall currently barrels by the to & wells XXXX Gross supported Polymer is up. shall by XXX k to per online part quarter Aishwariya Polymer execution FY happy commenced project with wells wells a quarter barrels by due the in barrel two and gradually. projects. in up new the the to production per quarter, day. XX,XXX for was in growth gas increase mainly XXX in an quarter with production four exploration XXX,XXX business online, delay is gross day costs the per leading This barrels and during We The field. and loss per day. by two. a recovery per driven growth hooked in production new Aishwariya of gas at drilled factors,

increasing One for focus bring adoption and of of shall management enable digital improvement integrity driven and with following recoveries. modern opportunity, our can recovery digital wealth on stability. enablers data It significant and be platform the decision key early analytics transformation maintenance, and of of preventive can

action matter of quarter. granted exceptions, arbitration India the Moving Government OLAP subject challenged we entry the been well results on The recover to Assam In to drilled cohesive has of clocked model prices. Government a to mobilization to on and bring X, auditor online now XXX said and INR amount directed its we to India crores post our # of The not is to supported grade disputed further increase and Move is which ore iron XXX Tribunal business, respect In XX Court. will sales EBITDA has of to interim with first well exploration crores arbitration. on and XXXX. tones discovery the Cambay the the audit of million well the of wells indenture. exception, in tribunal significantly in stock Slide during take now. the with the of in ore has from beneficiation Rajasthan ore was the establish and the The Drilling expected it evaluating which notified modular potential, X.X the concept. Delhi begin tonnes to in are X.X moving have Court we was facilities. Goa, judgment Supreme tonnes an performed our we High X.X The million quarter. challenge global February, YTD before to sales iron listed low of million very through by rising business of sales taking is INR increasing this effect of

also Court in We mining the through. Further, tonnes iron government, with by of kt million these X.X the once in term, XXX was improvement. strategically $XX sourced of auction temporary the XXXX. for and The Goa, taken continuously statewide elevate efficiency support margins hope maintenance DMV engaging pig for activities XXth in adversely impacted near ban. we enhancement because the are [ph] the in $XX to Supreme We state of with to people resumption by central production and shutdown November are

down the to prices international XX% by down highest of Y-o-Y, temporary it at and #XX. million up to by FY Q-o-Q per 'XX. third X.X procurement sequentially production of logistic segment $XX ever ore benefited ore supported $XXX compared tonnes parties The Karnataka. tonne iron iron due prices. XX% steel Mainly, was million It highest greatly Slide in captive though of XX% at was tonnes, e-auction and added ore. aided sales issues. up value domestic through coal domestic margin in ever strategic greatly and Karnataka QX by tonne, Turn Our prices margin Y-o-Y Karnataka per iron achieved has were is to XX% consumption X.X

ferroalloys with The account mix production of versus with the metal Q-o-Q for of recorded this operationalized the in XX% of acquisition achieved improving business prices. hot The XXX capabilities in September was FACOR by The the Vedanta design FACOR steel tonne, vertical the value-added quarterly Electrosteel X.Xx quarter, efficiencies and the both XX% FY business sales around in quarter. ferrochrome X.X as margin two. macro of and acquisition plant. since post VAT production Since existing deliveries XX% of steel potential highest helping production quarter portfolio business, this acquisition on manufacturing At XXX at Y-o-Y Our The had the producing of at and of acquisition. kt the products factors steel margin has by and XX% a XXXX. kt integration rate per million run highest in have time a generate production $XXX robust significant Vedanta owned its in of the to is ever 'XX to has complemented improvement business. tonnes ferro XX% and in of were increased increase presence acquired a Vedanta’s acquisition, with quarter, metal higher X% three XXX%, by XX% increased quarter mines. businesses enhanced up we of at

currently domestic as using at now compared has The acquisition XXX% post of acquisition. XX% are We to utilization of time to ore the to XX% HX. three as quarter captive in increased compared market the XX% share

introduced of of improvement resulting also in e-auction the NSR We XX%. ferrochrome

reduced liberate opportunity of function. focuses the and near X% XX%. with and possibility have integrated improve term optimization on to tap medium true near We cost rises reduce production, it price to term NSR currently by cost integrated to The discovery term by potential. XXX% The the

our always the XX, are Vedanta business with performance. If With turn improve a game further approach you function focus at transformational believed we contributing strong in Slide initiative. pillars to the bolstering we of to our strengthen changing our have a to

One our to of function marketing enabling the commercial simplify efficiency. creating and and into unlocking organizations, expertise selling integrated buying greater ore evolving the structure, major category an shifts us have and been

in chain, across of digitization in be and through spent all businesses, of bringing spares act in majority for integrated key buying the market center and will commodities, and bringing group consolidated practices planning, be buying selling and captive restructuring. single development, commodities The function potential for services, a phase unlocking for and $X this as e-commerce. of will saving We across will while and have a in value responsible marketing vision billion of best contracting, globally will the automation, process function and e-commerce will for digitalization strongly help and sales scale technologies, through in working by SME buying our on featuring buying partners line MSMEs. be and new practices. like strategic opportunities our touchless focused of in class with opportunity The bringing and connecting further synergies increasing economies cross best aspects capital, driven benchmarked and group growth. optimizing development with processes, with supply The It operational market product charge improved selling with best

Now you to #XX. turn Slide

HR, cut of Project employee digitized have tangible cost harm Group predictive to form value power, et quality such improved experience and security, zero transformation a this group of compliance, a cetera. and and intangible and Group like as We and chain, productivity. making. and about Finance, digital have always is reaffirmed been data of leading safety and augmenting embedding The on visibility To value by driving focused bring DNA. based integrated marketing, decision Project we driven enabling zero objective of a [ph] manufacturing, priorities in wide logistics, area a Pratham a gas, and a across design that capabilities the transforming cetera. roadmap theft, technologies data digital accelerated from called our into et new coal, wide enhance and in in deliver cloud digital automation. adopter is now the our combination analytics an The volume, functions, digital for capability better truly group governance, zero functions impact is organization ER, digital security, Commercial supported launching gains platform first has Vedanta other et of by mining, the waste, predictive other with organization transformation, Disha Vedanta HS, created analytics focusing program across procurement, been an to SCQ, function oil to cetera. HSC, vision

We manufacturing, and integrated platform, ongoing and have smart Digital advanced Logistic Towers platform, HR Automation. Quality data decision projects also around unified and HSE Control control, process

startups businesses. Spark across Vedanta our we launched global In have also addition, incubating

Our will businesses Spark created pollination center This startup we businesses. on and transform to [indiscernible]. which drive increase change cross Innovation at constraints the our complex aims Vedanta and initiatives our the have at locations. and of other to platform across value provide global all debottleneck in helping initiative across cafes, all is governance mindset unlock cultural opportunities and The function businesses,

to Arun Now, hand my to over the like I would financials. friend for

Arun Kumar

and Good evening. Sunil you, Good everyone morning, again. thank Yes,

the the quarter the a benefits talked Snapshot, QX all cost of has financials performance about you’ll page predictability tough Financial and reductions, the price good On both about amidst reaping and see, sustaining on course last comeback that we been structural scenario in volumes favorable environment. a operating and of globally.

to both the its are higher than more We XX is crores Goa, near This XXXX not volume at double section any capital also are on increased help Attributable sharply. healthy gradual again change continued the completion items which responsibly. making rates we exceptional dividend moved and we a the on the have XX% to the future line, increase months and At four. higher tripling Last, including nearing No INR steel crores in started parameters. tonne. growth now upcycle. and capacity time doing production to its XX to fixed sustaining Margins grow and nearing quarter-on-quarter up guidance FACOR at be should weather around last at highest reap XX% XX% the as most current per all Aluminum Iron and last Collectively, the more of driving and nine all importantly, in tax margin business contribution costs about delivered from in would as short as benefits levels post of believe the growth our the grew quarters. in volume India, suggest volumes we ROC oil XXXX EBITDA start but projects cycles noticed INR PAT normal at operating it's XX% of the continues in commissioning quarter year. months four near be XX% highs, INR or XX% theme EBITDA, the while numbers globally. the average. as would all that close [Indiscernible] The versus year-on-year. and digits. about volumes the X,XXX Volumes last in you growth next about would allocating to business is ore before compared from cost significant higher port business businesses last and well takeover. will and least, organic period the We structures metal at crores the are line. in a quarter-on-quarter line hot guidance is quarter around speak. and development XXXX as Zinc that

As statement income appendix. a have we in usual the detailed

slide XX% Finance and some not key updates year-on-year statement Investment time oil. lower some average recovery guided due expected gas and due one majorly due Zinc to the from the tax with as zinc, change can about volume aluminum on primarily is quarter starting PBT or turn that rate earlier, the changed QX earlier the and as the compared impairment for guidance pretax X% due quarter will the is well for year. to line change so around to excluding XX%. in are year-on-year, XX% This higher par to on next last and interest the mix earnings as in be Underlying last in more the much sort like into guidance. number, quarter-on-quarter well of to tax to be but the as the marginally as in to be [ph] last and as debtors the depreciation in will dividend contribution Depreciation the income effective year quarter below. ramp income ETR oil with costs boring higher that's X.X% guided costs from quarter Normalized refunds. consolidated ETR, for XX%. against increased However, broadly that. Again of are about is quarter-on-quarter ups continue tax income down,

as the estimates, the On update in value the the And page. rate has a part have are the fair on of study. there loan, accounting been there to notes intercompany technically is that interest The external some arm's XX on passed only refer Reg annexure including credit reset entries loss been details based note, release. length

A, interest So sort double-digit the qualification. view Vedanta. augurs been based current of the X% an in would we compared B, reset is no external study, investor audit two low that be takeaways more on to And there has is well which from for level rate of had the point

Moving depreciating explanatory, the currency EBITDA and your costs on bridge the course, on here improved page. and deflation, Self to of benefits better we also favorable price. volumes, the read of

year. of is the the past did half of that bar other booking same oil last we quarter exploration business The of the just in of revenue the one

here So it's effect. a base

fact, number, growth that XX%. is EBITDA In nearly excluding the

to to costs EBITDA the continuing as banking next bridge. page, under continuing we well as of have the last continuity sequential On very while And LME better quarter. keep Again, it's volumes. fundamentally the deliver the a on control, simple, it's the well

Moving on INR to debt the net by walk, net the crores the compared last debt XX,XXX INR about reported XXXX December on about quarter. to higher crores XX

increases month crores last earnings flow of free call. loan, October cash as of during the due to updated including had shared we intercompany dividend the positive While as the XXXX well we the which already INR number made a outflow

So to the advance par tighter including collections tax, debtors, change fresh capital prepays working management, an sign significant a to typically in anywhere year this and program be free quarter the expected billion excellence four export of driving the there quarter. of general capital plus quarter be from $XXX With likely clear, from $XXX increase to flow is million $X at working in or should cash time from through with no our million.

to net volume had The EBITDA in quarter the which goes year no the we four growth, significantly that not in we've at the earlier the level of be guided net the any in and had held back at I though to that demonstrates in million And $XXX change versus a than to months fact of that the x at also debt So years shared is nine several mentioned couple INR Again, will numbers, that. number by time the results. should of which by last close quarter first volume growth of tight XX% cost two if allocation, X.X with one to around XXXX the crores. million. consistently years. CapEx YTD down be lower least come $XXX Full debt is about expected is growth guidance

Vedanta also cash by the and review only not went but growth have key seen maturities So in the that is in you upcoming to to Limited, for the continues well focus takes convert us side. at last any to would in short This Vedanta to refinancing maturities, Resources that summary balance page quarter use sheet. the just that the advance long the that term section term

operations, group this reiterate be engagement as agencies back the rating continue credit quarter the focus as the will on the environment. the done to the upwards robust price of thanks improved by Our structure, to with well strong peeping to parent,

Sunil for Not foundation that, of volume over we will easily continuing this, year to finish earnings growth and Thank positive the the With wrap it structure, And up ago. we'll for the at quarter you the whole in As one we up a really four the final his well. level quarter given quarter call only that This market in to talked S&P months. days comments. noticed, 'XX as good in group the I direction can while the parent we during of few benefiting up, and hope four. Indian rating I'm have the to changed EBITDA. given prices. see agencies sets in operational hand I at To gains momentum do the sum steady have next dead engagement the consider And have the next outlook and the a delivered have fiscal into sure fruitful this guidance direction a predictable a couple you. sustained again FY the all from strong least about,

Sunil Duggal

you, Thank Arun.

from floor continued will balance cost four, on reserve with Before of would drive and a leadership; to to for people the question our a safety license focus in answer, all social reiterate allocation and strategic and One, open that our two, and stakeholders. focus. manner; I and our in capital priorities value-added strict best expanding five, operate; value we like businesses; assets growth sheet health our ethics, delivering and all for our base the term resource long sustainable three, track record delivering of

the answers. the to Over open and for Now question declare floor operator. I

Operator

CLSA. First Please Thank go line you ahead. from very Indrajit from much. is question Instructions] [Operator of Agarwal

Indrajit Agarwal

and the of Hi, good my for side. evening. you questions couple questions Thank from

cost has of basis. production, sequential on X% First on improved it a aluminum by about X% to

our on? FY the and should at is what elements into the look outlook we So heading fourth quarter 'XX? here from How within

Sunil Duggal

that, the the block have the are block the manner. on the but we but we want question. the you also by whole you will bauxite mean the structural LME of cost linkage add. Ajay auctions, the cost where have drive cost. way EPA we we for have has costs also and that [ph] as will also in And over factor know but up Orissa, and curve this my be slightly forward, cost the Jamkhani from going we Radhikapur drives before sustainable local call, our we colleague measures you also, is depending a gone whatever pipeline the coal coal to to alumina structural I the as that you Ajay, in said we bauxite the securing in the I from it and Thank are it participating bought and a we and able to And that we the that in for that which as of coal. have, forward, call, But going coal index the on depends materialization apart on we auction aluminum said feel

Ajay Kapur

you thank Mr. Duggal. Yes,

think, in some was continue which or just you've the partners, also most the our business the itself in purchased in gives to On of mentioned also work next improvements. reiterate. it, this the auctions Structurally, more with by power our have I And undergone Mr. Duggal top coal for have cost main less plant operations costs. in added we already quarter, I elements. his will advantage quarter. been of class the best us opening that

on see that's you up. I the of imported see headwinds So aluminum don't side. because the the cost aluminum, coming reason coal And Yes, increase. major that has higher gone

our top I'm power plants, in improving are EBITDA the confident bauxite be per And measures We direction. in I local the of, working the on and on should positive mentioned mix. less ton cost also or more trajectory other that

Indrajit Agarwal

Thanks answers. I Sure. embarking mixed phase of sense beta for call most or aluminum we the projects, this a is, got are our growth of on from lot And the zinc.

higher specific guidance not year. we growth project So this next CapEx then I significantly will understand But is or than now. give year's CapEx

Ajay Kapur

you me overall let that. on Yes, give color

the of As you end cycle. reached CapEx its has see sector Zinc

really as oil So a to Zinc the and to speak coming it's delivering these up all X.X Gamsberg was are again, million India year the And projects about all we peak and to realizing at this fruition. performing now. ramp as peak

that can is good silver And a for always or the and maintained expansion And when expect needs come is refinery next volume EBITDA the will potential. small that So launched, the has [Indiscernible] which much talked sides. year very right that clear delivering about we've on in is aluminum and we time thing. both earlier, visibility be which huge project XX we to and that unless ASP apart one from that, something volume

So we And let's of the results. near apart the range always quarter And CapEx. will future. four from in had a this guidance to forward that the terms move the at in end of space give we've

beginning with the very below number. come is always Thanks. in will better And way we years, up in disciplined part the So guidance a five the we year, whatever of last delivered the guidance. that give we've

Sunil Duggal

have aluminum are which But APCs, marginal unfinished opportunities the different projects where furnaces, just could debottlenecking board than be are, done. parts a of on add, to maybe could improvement, near digitization, evaluating drawing term CapEx opportunities be through especially spent, we what the the efficiency

quick but next little for various a and So trying to evaluate. let the how opportunities to the as the return based come addition we quarter we ahead maybe or can evaluating to that ramp And the we CapEx the or of how it year. end IRR said spend opportunities quick up on, are are as Arun we that, in know next year, you are will we the back going volume by

Indrajit Agarwal

of kind so, or what for it look parenting CapEx books? if investments forward And the the Sure, can will Videocon or that? be on thanks. new And lastly our on on we acquisition, books

Arun Kumar

promoter level. See, the right parent Videocon by okay, now the done acquisition is the at

there we now company time. have update will Vedanta on or any any So don't of or Group then updates involvement we future is if any any Right any update at information. that in it

Indrajit Agarwal

the Sure, thanks and best. lot all a

Operator

the question from line The is Please Kotak from you. go of ahead. Sumangal Securities. Thank next Nevatia

Sumangal Nevatia

evening Thanks everyone. Hi, yes. Good for that.

passing in The have remaining dividend choose allocation two the a first And Hindustan avoidance, the thirds? follow to double of Zinc, our over tax we on the we've shield This defer capital any is, one question this year thoughts year? up the we next of to received we tax the in until on almost passed dividends. from third is on subsidiary to case do dividend when

Sunil Duggal

thanks. so Okay,

dividend the declare as has in dividend quarter yet flexibility policy, of decision in average. but to not dividend been policy to how raised the for Vedanta much enough terms I defer money at in This around of earnings in a Limited required, been sector call X% Limited. it the declare to And, an the dividend corporate sums last gives board or the trend, declaring with comfortable to companies of dividend of has the on same a rather time and yield Vedanta is would very one as as highest it reminder, retain the so a of five years the

for And losses you. or -- In way them optimizing this forward FY future at against what the it and utilizing ability for that year. tax outflows. update to are the a point of we is manner time, tax efficient that are offset will terms very we in we have tax, or on carried of the used Thank business certainly it And how available 'XX is losses available. deposition the the dividend it is adequately works in the

Sumangal Nevatia

measure INR sheet, as had besides net rationale crores next question just to also you EBITDA debt strong reducing. have is the The free odd balancing balance it. as had SBI raised Hindustan understand technical that Zinc is, I and our the around you fundraising why to wanted with to generating to and are good stake. cash we that and we Got to XX,XXX also shared, from

just you used wanted So [indiscernible]? to I understand the and have where the rationale

Sunil Duggal

first call, think I Again, address it thanks. call. we earnings the October Yes, quarter in did earnings

while same called, balance asset certain it be strong liability true, typically mismatches. is always is as think, will sheet there at I absolutely time, the

with If especially metals, capital the any the as long such impact fiscal was the the that inability there, markets, were at there there, what term in COVID need conditions you conditions as negotiated exposure short in of doubt I cycle as led down access term loans. if was the year, is point recollect early required. Those of the a to the well to time. And would that be lot

about answered In your fact, as by INR plan quarter. debt the I I question. net to mentioned earlier, the do hope reduce crores coming that XXXX we in

Sumangal Nevatia

All best. right, few I have Thanks the the all queue. and in a I'll more, but get back

Operator

line is The Please of from you. next Edelweiss. ahead. question the Thank go Amit Dixit from

Amit Dixit

of numbers. Yes, congratulations set opportunity good a hi, have and for two the questions. I for thanks

note The first if it credit loss more which we are accepting clarify is so, a giving this expected number confirmation, why to there in X one credit there loss, because is on if possibility money? you parent of our a can bit

Arun Kumar

sure. Yes,

accounting. the expected accounting is credit very technical absolutely loss a So,

learned also people. provision you to akin by we created that a an is something or a a it kind when And of general to of group bank lend NBFC

been have has So, transactions of some necessary. apparently provision financial committed and of thousands model kind this and been

get these reversed. that see I it repaying keeps parent the when and as However, entities should

the and entire way, when go January, reset the So, accounting interest the in away. rate by will reserve we

profitability, impact about on per at very all terms in no this to ECN. the for on XX small INR crores impact interest months the XX more the additional point time has line the offsetting six crores momentum net se. of interest is of EPS INR last other the it At than or positive, if than So

and There accounting. park background banking statistical as a that of loss is you apparently as are NBFC I'll for being it understand most So these moment very technical are no created. would provisions from you real the

Amit Dixit

enough. fair Okay,

that point have essentially for in CapEx have given robust to fairly on flow is that going this well free rounded and is a we we cash given quite guidance at The QX, second are our question also the time. cash flow

intend some this and your back repaying be So for do the to can towards money Will next year? flow debt we cash or you possibly expect shareholders? it how use to

Arun Kumar

the the I rightly very at look also as $XXX at quarter, billion just observed, Yes, cash mention broadly four, as you the if XXX minimum I be mentioned And dividend point to crores time. quarter have a we generating there it this to spectrum did it's point we pattern, million would true if that of And try at with dividends XXXX into a and are on $X of of net guide chance repay would hence, flow fall that decisions and any I translates end which board of driven mentioned, good is as difficult bottom will every decision. of of that XXXX you that a very free crores time, our is at in a debt. why plus,

Amit Dixit

Great. Thank the you and all best.

Operator

line question Vishal go Thank you. Emkay The next Chandak ahead. is Global. of the Please from from

Vishal Chandak

Yes, with to and was the to given thank change resetting you the promoters. respect [indiscernible] or the the interest for and my question so, loans rate

of of rate reset So should the interest? the and current happen at, going we is basis is it and going what to look the was how loan forward what how

Arun Kumar

X%, would and which don't low one the quarter quarter in to two in which we anymore. And And earnings that why and fix a now that our length, reasons at And huge auditors. number. exist the you're Vedanta is then give I the loans have And number, doesn't qualification auditors I earlier, as double there call. for certified starting happened when third agreed trend operations now will as two, exact exactly is certainly digits in exact have at quarter one comparable we commercial of is Yes, quite single noticed during current the an external aware, seen yields, balance quarter the interest and with study, you reset quarter the strength the think by have all but the as fourth lower reset than well it you has the earlier we as in through want will as well arm's it again that I And will what four, digits. party mentioned when it from next favorable quarter double presentations across be their number, existed the digit we mentioned. as be as as Resources group. signifying hence, to it share borrows reflect already in there in a low the the sheet, And as

Vishal Chandak

Sure. And my second with question respect was to the…

Arun Kumar

has to I'd only Maybe, the past an gained Vedanta had in situation this afterthought, just we've terms interest where like add, earnings. of in like Limited a

just was to that with available about earning what earnings XX what times reminder opportunity next a more question. So ahead than other Yes, sorry it's this your X% is opportunity. the quick go

Vishal Chandak

Yes, sure. That's helpful.

input we structural the in flattish to digitalization increase of expect aluminum a the expect coal the be second do Now of for offset we we the aluminum question cost and was it? look both structural optimization, because like costs to cost methods that plan the should How the or production and costs the So, respect with forward? of you do are production? input hardening so should same through the with also we at going mentioned alumina rising, a increase,

Arun Kumar

a as the we see HX that opportunity this can hand, and far quite I we how aluminum is lot. because you cost are have more the the in soon factor two have is in also the are also, we get a to soon plays secured as we it EPA the already have the forward, one wanted operationalize can this the and secured to reiterate to Now, that these But LME as address we role but have as of alumina why say, which as that a that. possible. new coal as said blocks, blocks going or blocks concerned, structurally and coal we and we cost what for is cost mean, said index the we quarter and offing our more with possible which

costs the our productivity Ajay also are forward. or structural as will the manner in going contracting this efficiency coal that, a that said such So and the bauxite. MMDR And capacity and X be, plant and in have power looking from and address million costs we Similarly eyeing the rate and that And the the consumption are increasing million scope to said local that heat in at our amendment the coming option sourcing of the you power seen tonnes we must the the bauxite X Lanjigarh is also competence aluminum want they and also, probably and the they future. government that in the said on that. bauxite and this they partners costs, near may that for auxiliary for option will bring tag coal together of to we be and

Vishal Chandak

I mean last so one regarding if block, coal Sure, timelines block? squeezing what question this Radhikapur for commissioning the are the expected just

Sunil Duggal

Ajay?

Ajay Kapur

better add biggest linked very I goes also the alumina, Yes, up, and on thing think as generally especially we and in it come And alumina, operations But up. is margin. the thanks the it goes, one the detailed, upside, can reflects cost is by which more cost local also in and have we alumina I the Most for of the LME. driver goes are costs, only then to Vishal bauxite, increasing side. when if that restructuring I'll domestic imported domestic LME

can will XX I pause I be in to but you in a how than will it tell options XX better fastest and position and on know you about Vedanta, to we government to try I'll allowed active But give the time. us in that. as you of timeline, speak So evaluation bring will far months we you do exact expedite. various obviously has not I months time. On Radhikapur,

our in bring as seen to the down. one already the we initiatives mentioned have you of have that cost If guidance,

Vishal Chandak

very Sure. sir. Thank you much

Operator

from Thank Investec. you. Please the go from ahead. Shah the take of We'll line question last Ritesh

Ritesh Shah

for couple sir. set great a opportunity the of Thanks for I of have Hi, questions. congratulations numbers. and a

just on you touch to on thoughts all? answers audible wanted did indicated understand understand now. not if And at give have the the guidance, on have Hello, - parent is we that that but would but [indiscernible]. job at fertilizer I might second sir, and technologies, you fact up plant, when on the it Firstly, thirdly, Videocon I'm the CapEx listed in one being level entity bearing any what I

Sunil Duggal

Yes, you’re audible.

Ritesh Shah

questions. couple Yes, I had a of

that. for Sorry

would just on that the allocation, thought question. the but have the I FX Zinc specifically plant, capital entity on Hindustan was on give it I did with you some numbers, first understand might bearing process [indiscernible], Videocon assets have for you First indicate smelter. any going not while about listed forward? wanted understand is And I what lastly, to fertilizer your That's

Sunil Duggal

as getting Arun, we you process would can as of and But as Gujarat I So to Videocon. far the and take how are we you that that when the report about doing primary clearances that, are feasibility our this. other on come and will feasibility and question. project, will going we complete smelter back say factors, and the we broadly, But in and the fertilizer Arun

Arun Kumar

Yes, thanks.

time, coming is into have it think that ASAP. play, announce I on information Vedanta at update point will come So I Videocon no if of this Group. play certainly one. we or Group into of are every Vedanta on then But the Companies have It outside of or

Ritesh Shah

my sir, hello, Sir policy side. audible? I’m Duggal question Great. second is on

Sunil Duggal

Yes. ahead. Go

Ritesh Shah

second has been one have It for My Duggal update second some Arun That's you. Hindustan time for on the Zinc lingering is quite Thank question more question any Sir. question Any Yes. on and and update I PSC? arbitration? for sir.

Sunil Duggal

the And the it to I hearing go. for I hearing last government think that the government, shares. the us the for government to So the few balance they disinvest in release is let and in But and the final they stay can I next decide Zinc Supreme is all want say itself, week see case, that wait think the, way on that. us the the days the next think vacated their they Court Hindustan which coming probability to let in and

far As of a my coercive and insist the that, arbitrator recovery as they established on stay action, is on that ESG as because concerned, the I not given in yet. the has are these should not said have directed as dues, they the government commentary the

the we the hearing detailed hearing on there, data hearing petroleum, place, hearing the the case. has some Yesterday I a also, Secondly, today, have asked believe is was there. Monday and feel strong is In court very our XX% probably the profit we taken gas, is and the again way earlier the tabled. additional PSC if gone because and has it PSC that the XX% case was not reason why at you the know petroleum we that produce profit written the is the we as will has terms. producing are we also we complied but been same I the up and that we but but have is and we a revised have government gas to more there our policy. and retrospective speak, policy, condition they will are a ramping gas The which feel stand are revision we the -- what near court is it have that The saying, they that also what case. opportunities merit, term strong the said have evaluate have we for like of volume get

Ritesh Shah

of indicated arbitration shares, mean no we as a as very Corporation just thing, act on this assets very useful sir, detailed. have full there's that you given balance control the does per the shareholders agreement? That's that the hurdle Metals disinvest the the Sir

Sunil Duggal

final hearing. stay vacated. government is is for the That and No, going the

Ritesh Shah

promoters how sir. Sir, are way Zinc indicated and at you flow And XX% on is I this we but Zinc Is if X% last shares, for the this net or encumbered level How is this question pledge a Thank earlier, am are couple you so understand Hindustan one even like or one has Hindustan to you Vedanta’s cash solid was reduction. Perfect. should fund Holdings the level? but offer? voluntary pledge to well can questions and the the looking out as one regarding at this should about the are one a the the entire of how fund debt pledges how company at sure, is it open not looking Vedanta as looks much. pledged both Arun with tangle? profile, look

Arun Kumar

Yes, in was sorry the out. voice and breaking

repeat to need will you think I question. the

Ritesh Shah

I’ll just repeat it.

pledges is Sorry is, level. a looks Sir for encumbered question that. question holding about X% also if at Zinc prior was Hindustan XX% Vedanta’s one and at pledged is there my

look flow Vedanta Given as that Zinc should variables Hindustan at level one is cash how at generation, level? well both a solid as these

Arun Kumar

Okay, you from doesn't is I will a of banks. Hindustan the to One, exist a think At maybe FY two Zinc rightly of break have quarter time, like. get set looking like the parts. deal out not situation with of point was agreed four easily be 'XX it what numbers set way. observed the all but That only pledge we've into delivered, of today, Right? and perhaps what as looking a

the we can I independent. release pledge is to or that substitute that And pledged release think they augurs so situation, want one borrowing to very point future how about or that well So think of in future, the at repay really perception why and time. that as the for you

levels, the levels the LME talked especially way, nine that went price huge part but with generate for shows QX that As call bond to by. mentioned of versus in of far going the in promoters at a the can to simply the out of in the flows of we in least create pledge, organically debts the being Vedanta Fundamentally, XX% X% and the think key offer issued Vedanta as Limited cycle in as to and restrict all is CapEx the way, did volume and getting cash the bond the the runway of on that Limited of the road we Vedanta we well to that the a December. broader I is sectors as end and if and also of I and about these it price one refinanced of it that we two delevered, observed terms we're Resources months open during growth voluntary activities strength the two-year we're earnings a part this performance, which should position its be at on comment not in trying

year. I the but numbers effort cetera. And say. time. et CapEx, it at good if CapEx were some you at the come And right for of beyond will time, at I know that lots So look But with we've bad guidance to never or there guidance, sustaining Vedanta of would set exceeded including the there dollars go trend, the tailwinds $X same questions will take on that, year billion we are

cash delivery level. generation organic lot is, line bottom So a in of will help at Resources Vedanta

about it's simply and on avoid itself portfolio, asset valuable comments. of to hold think group XX% a So one from I earlier bit, bars. your I also afterthought, add including coming for an want Videocon used about, any cheer an something [ph] as Vedanta holds Again, which on about is the perspective, rubber the [indiscernible] Videocon. very to sentence somewhere is into got Limited will question on to all analysis a thing of oil because gas that us purely XX% the And and steel the effect I

to So very somewhere a offers that that asset. fantastic opportunity promising very, consolidate

Vedanta So we that's hope an all, afterthought, know. right at will answered just isn't you you. let question. involved. your but same and I at Limited we now Thank time certainly the If announce

Operator

question. the comments. And Thank and Thank for last I'll gentlemen, over you, closing Kapoor conference that hand Ladies to was you. to and sir. Mr. Varun over the you,

Varun Kapoor

thank you my questions, myself us any this evening. In further to help. join here contact to you like Thank To not case hesitate you for of and again the or team very taking much would we you all have time do to conclude, operator.

to So I just wish to operator I'll everybody it and a close. very good back evening pass the

Operator

gentlemen, Thank you us your you Thank behalf disconnect Ladies may Limited, now all concludes joining very on that Vedanta this much. of lines. you conference. and and for

Vedanta (VEDL) 29 Jan 212021 Q3 Earnings call transcript