VEDL - Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, good day and welcome to Vedanta Limited Q3 FY '22 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Varun Kapoor from Vedanta Limited. Thank you, and over to you, sir.

Varun Kapoor

you. Thank and Operator, evening, good you, everyone. Thank Varun is Kapoor, Head Relations. Investor of This it's you call. 'XX welcome pleasure our And to FY to my third quarter earnings

have Arun CFO; Mr. by Shah, team Deputy CEO; the hand & us Duggal of Prachur Ajay Sunil Gas; Oil Mr. Mr. Acting With Aluminium; CEO Duggal, Group of Mazumdar, CEO We headed Group Goel, take Zinc; CEO, with Misra, Hindustan today Mr. that, would the Mr. I and presentation. Mr. Mr. Rahul Sharma, Sauvick over like through us to & to Deputy management Steel. to CEO, Iron

Sunil Duggal

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

worsening economy inflation This cost. in the concern commodity monetary sign stance quarter, heightened variant been the disruption economy policy has Indian variant of volatility, and surpass the elevated recently. level. demand witnessed situation though forward. worse crisis, going The as impact supply by overrising market global energy momentum supply chain of mainly of new Change because losing stronger a COVID, and prices of expansionary in footing, by momentum the showed on pre-pandemic expected and pose relatively indicators pressure may some most central been commodity of on banks has slowing high-frequency of Omicron level, driven than

to reviving impact. by and of wave sector, the corporate pandemic limit likely spending, expenditure impact on credit stringent capital waves on material, and the people movement lateral infrastructure unlike curb sentiments the third less However, on government previous is push mixed of of availability, two

EBITDA, record performance. India zinc its highest macroeconomic performance a unbuilt demand and volume and cost momentum quarter, strong for We quarter aluminum nine and mineral, four. headwinds. input despite its quarterly in to resilient businesses remain in with delivering continued steady the seasonally and revenue reporting all We witnessed growth across this monthly Vedanta our quarterly metal and expect energy

have acquisition our nickel of complements India in the are portfolio. the We on All progressing become initiatives front which post NICOMET, existing of ESG sole producer our well.

to making and We strides decarbonization. commitment great made are renewable by stand energy on the

We of benefitting XX,XXX establishment and the Nandghar to are our children lakh women. X.XX plus proud announce X,XXX

the capacity of record and interim through liquidity net efficiencies of EBITDA robust INRX,XXX and to X.Xx, the second sheet committed YTD crore, balance with further shareholders targeted debt through we position a digitization, to expansion, operational continued INRXX technology With with of rewarding delivering consistent acquisitions. strong dividend have We and per track rupees with unlocking dividend record of pay-out share. taking growth

one, by our Workforce. by what quarter, and These tear and risk. the XXXX skillset, and Transforming under MSCI, five were same nutrition, the all to corporate safety to become Transforming pillars commit adhere and gender health business last global inclusivity, us we water quantifiable aspects of time, targets Transforming keep emerging to that to business core and and X.X announced Good carbon rating Community, a net supported and or material uplifting for track Communities diversity a As children innovating and and neutrality the have healthcare reformed us These that enhanced our of Planet families Transforming pillars: of community comprehensive are at a down by employees, Aim and ESG aim million education, empowering three Aim commit model. Vedanta's of steadfast business welfare. supported pillars us XXXX, commit with of sooner; XXX by nine Sustainalytics at to through four, greener our under Aim to The two Transforming standards welfare achieving indicative of our at specific after positivity nine future-ready seven, parity women arrived and to evaluated ensure tackle like ESG prioritizing net promote that CDP. are company for are current agencies decisions progress. Planet by vision eight aims the million commitment under best-in-class six and three governance. is Workplace

diversity Some of by XXX% to 'XX, are GHG and RTC targets our conserving deploy working mining by XXXX, XX% reduce XX% communities. electric at emission fleet LMV X.X of megawatt by 'XX, FY 'XX, biodiversity FY 'XX, fleet FY absolute gigawatt by FY by our forward for convert by XXX increasing workplace, of

projects environment BUs, months, last and the around governance. XXX XX% three the to our of X% improvement improve identified the are of all practice improve to across XX% practices, For more than been projects have social

renewable We are on energy making and to made commitment by decarbonization. stand the great strides

of leading are PXIL of We further IEX to renewable the have million is who tons billion procures more some process action our concrete of take equivalent units over and energy India and COX industrial consumer from renewable to renewable taken these targets. realize aluminum to On energy reduction. X in largest some X.XX in power, business

next of lakh Hindustan the absolute diesel such XXX few to electric the the nearly RE on in lithium-ion than with and how consumption for emission. Electrosteel e-scooter in all of emission India by for Substituting are RTC efforts in more going to reduce GHG to Motors passenger of approval battery of We is mining and Tata GHG annually, EV adoption has more ensuring us for Limited partnered with industrial fleet, of with replacing vehicles Similar green for e-bikes deploy to convert by and final into could Zinc entered mapping Normet business with planned effect local with forklifts forklift. fleet also XX% and XXXX. will there the aluminum powered the years. has by of underground plans Eveez the by in has prevented XXX there, adoption, be The LMVs megawatts liters Epiroc to our depending on tons RE. and will X.X businesses deploy market travel. EV business one The Coming stages thereby than for on GEAR our supply depending market diesel-fueled battery-powered fleets up equipments help of tied reduce carrier our fleet. EV success availability opportunity largest

We advancement emerging, moving fuels reduce will our emission of cleaner structurally GAIL technological VAL-Lanjigarh signed around intensity natural by towards the are fuel partnership a with XX%. has This switch are as into operation supply gas. to the alumina

CSIR-NML, et Further single habitat zinc and energy at opportunities cetera, working for a into solution and has trees us management, their steel better environmental is In initiatives Bombay gas, on for our with which day. by in also plant of so respective X.X research or IIT taken with out have Vedanta, hydrogen adopting institutes record a TERI, efficiency, plantation trees lakh our for like Worli, Vedanta We management. planted innovative such taken water, XXXX, target has partnering businesses like TERI an We, natural ton to for Jharsuguda HAJJ, evaluate tree are multiple a of far million operation. million XX exploring climate opportunities own implementation management. of looking fuels with for to clean XX,XXX concentrator, XX waste making process, the water targets.

to target become have taken a water by We XXXX. positive

up roadmap recycled. water high-volume across XX% low of We businesses, X% for last and waste positivity, water is our have our across XX% of recycled onboarded from agency toxicity is which our accounting an year, was operations

Lanjigarh underway two its annual to some fly-ash are to Ash off-taking mud. cement at management, rid usage utilize fully taken mines. at waste one tell I'm out also water old harvesting HZL, three XX% various next reuse of achieve to We that get have on XXX% BALCO like has a by discharged Cairn, have for Zero first engaged cement Similarly, at Discharge action fly-ash projects with target to specific locations red also players STP National water. could of partnered XX% to rainwater various those to has and Highway be the positivity. years' India dumped you pond aluminum, we in time dumped its Authority with of to fly-ash. means, the Liquid water our filling industry to of taken water has utilize happy

have inclusivity, and to and which and leadership We within organization in the & Equity oversee will independently a more women equity promote Council roles. and established Inclusion more Diversity, bring diversity bring work towards

XXXX from XXXX, to to have CDP upward We and increase percentile rating XX% to Vedanta glad our risk our XX% has MSCI from in target improved B lowered XX.X has to XXXX. ESG diversity Sustainayltics Change to us trend, for -- at XX level, more to post seen XX have B a DJSI position than an functions. diversity have level to ranking XX% With score is at CCC in share Vedanta's at rating corporate rating Climate has efforts, women years. been XX.X, leadership upgraded I'm in have to that percentile. in five B ESG our from

communicate We are all at shared lives sites deeply completed [indiscernible] across business aim of Safety all incident at a Stand-Down by the conducted senior loss learning three, our the deploying HZL Mining. employees, the with one Black have team. sites of our one was of leadership to investigation in outcomes quarter and to Mountain partners. investigations two are for the across by been -- saddened with two The immediately The site, Vedanta learning all our quarter

initiatives. our ensure safety being employees in audit with programs practices go breaking risk points HSC session on CEOs management, engagement and To implemented safe, mechanization of to for conducted critical of ICAM committee heads safety is blasting, prevention across a quality program, -- Management time-bound incidents at mines secondary activities an response, decided mining critic manner. To all standardization charging, avoid indicator cross-business as back that face such of like an been investigation have all also such Vedanta. As workflow home future, underground initiated. in the were in of has fatality and all like

XX% highest Aluminum at our power XXXkt, witnessed Q-o-Q going to was an to driver of schedule, Y-o-Y. quarter turning cost. our XX% input Lanjigarh down metal $X,XXX Now was Aluminum which exceptional COP annual at maintenance to commodity business up per production especially due headwinds, ton, aluminum with planned but Y-o-Y. X% refinery yet was production up verticals. The was again

quarter refinery global we be across in with sustainable ton saw will X This integrated million alumina which of Tier aluminum structural towards In top leaders entire among changes EBITDA vision up in to annum from bringing ramping The million XX%. cost our in of end-to-end focused move volatility. the value be per effort track, are us very X X margin chain. to is market-induced on vertically reducing to structure,

We completion expansion savings of and of growth project. cost post smelter are significant confident other

become of We to coal operational also in initiatives the which could two our operationalize taking are mines, next year. all

India. Zinc to Turning

taken stood shutdown production silver in quarter highest XX% mined of and XX% XXXkt, metal Y-o-Y, business of lead kt up The is line Q-o-Q WIP. partially operational cost ton, of due X% creation. This International Q-o-Q due the the coal efficiency. refined production up prices production volume nine-month down and depletion for Y-o-Y value metal marginally X% production quarter to inflation and in per maintenance higher up commodity Zinc at Integrated XXX $X,XXX was to long-term two. with lower input saw with of production well-positioned post highest and the higher offset Silver

will XX quarter a quarter Q-o-Q, hour MIC, project give This three, produced the XXX Gamsberg down commissioning production by us our of in which We but finished recovery. X.X quarter, per is zinc four. kt Y-o-Y key This to capability ton for X% will some enabler, processing to X% in due up of MIC. increasing successful which enhance lower headway kt debottlenecking

previous field YTD four continue the and infill shall by focus MIC also higher Q-o-Q gain due field. was in was cost work quarter. at OALP Rajasthan brought the drilling 'XX. kboepd. $XX.X X% to program -- FY OpEx injection oil, The quarter input the blocks, to tight per offset In on from realized to new The MBA Cambay underway MBA decline in blocks. was we is which decline. highest FY in across saw & PSC of DSF In four was in primarily polymer in taking COP natural production barrel are to volume production polymer rally, in volume three in the and in barrel to XXX production compared commodity per is with gross Gas Gamsberg. MIC target XXX and in X% start infill ESG oil up prices XX% OALP focus and average up Bhagyam quarter the online on increase kboepd, for the inflation gas Assam, owing price 'XX, to exploration down quarter increase nine-month continued wells looking in current monetization $X.X three production. Oil XXX At forward This been quarter from the we Y-o-Y maximizing line field to well to continue Aishwariya kt, We quarter due tight and business, largest fields, Mangala early has near-term in Cambay in natural

shared we sales which expect and in drilling Rajasthan Halliburton. was XX% on by Schlumberger Karnataka productivity partners, by supported two partnered went business Y-o-Y have basis In with addition, initiative. to Y-o-Y up commence XX% XX% up ore, production we for iron Q-o-Q. pilot In VAB improvement and

prices Q-o-Q margin VAB and XX% due iron Our high coking prices. was lower coal down to pig

begun acquired Cement commercial operation have We Plant. recently at

and Furnace. hot become saleable Y-o-Y XXX% production expenses up nickel margin Q-o-Q XX% sole plant stabilized Y-o-Y partly We with production producer are acquisition Blast is that commodity XX% and the India. Goa, down improved to XX%. Q-o-Q steel, higher VAB furnace metal and shutdown due and The in to by plant and the up also successful the proud increased to XX% up mix The nickel performance. prices, to of was to was Sinter plant Vedanta due announce of X% Q-o-Q, offset cobalt has owing at In

XX% sales was We initiatives. the XX digitization with X%. online of its enhancement we improvement FACOR. Chrome Ferro have enhancement journey, out for ordering, various productivity productivity by of production both our mines. turnaround automation, through continuing quarterly ore production operational other to upgrading through is FACOR further plant are e-commerce rolled highest achieved Coming The up facility Y-o-Y kt and

now, At reiterate that was Y-o-Y, the usher renewed last to most majorly our hand because and would margin on to Ajay confident in our leadership end, coke respected able the would our in performance Goel Over new focus EBITDA responsible, Mr. like CFO, value deliver continued financial vision, strategic world's you with long-term position Ajay. to prices. asset quarter companies. through of this Our you, we'll I of base. to Xx the among priorities know, unique like era resource high I impacted to ESG and Vedanta's and sustainability be I'm a be With the for over diversified commentary. to sustainable

Ajay Goel

good everyone. Sunil, evening, Thank and you,

have We continue the results and surpassed of momentum previous the outstanding superlative financial quarters. performance three of

QX being on account prices, This quarter growth EBITDA leverage our hybrid. being and ever by debt to revenue was sales Hindustan ore witnessed Operationally, highest benefited and record and and ever historical record low We net Zinc at performance production favorable delivered delivered lofty with aluminum ratio at and zinc and a also a ferrochrome realizations EBITDA. very metal Aluminum high FACOR. quarterly Y-o-Y. XX% and production highest XX% of

with time, continued same This deleveraging with payout balance of rewarding our and, dividend track quarter, consistent shareholders record at the our sheet. we

of quarter an on cash of by debt-to-EBITDA return being Indian X industry-leading of crores, the low financial level crores up which PAT year's X.Xx, quarterly with is is items double of XX% net INRX,XXX crores a XX.X%. employed, shows at debt at a financial a are number last than EBITDA of ROCE, XX% annualized position. with XX% and Y-o-Y Gross more very Net is liquidity versus ratio before the which higher debt crores, INRXX,XXX INRXX,XXX underlying equivalents which capital an XX%, billion at XX%, very highlights at strong Some maintained INRXX,XXX crores, a performance. INRX,XXX margin. almost key very any Y-o-Y, by strong with highest exceptional or deleveraging peers. of amongst down cash which margin INRXX,XXX of Attributable depicts ever at crore, underlying

higher the Depreciation utilization the for QX movement majorly booked INRXXX year-to-date quarter. couple interest want X.X%. charge The ASI have account Y-o-Y, stands XX% of and INRX,XXX Aluminum in of in YTD XX% majorly The which and to of a borrowings from is of bonds that excludes MTM with higher due highlight increased Income charge income investment QX The lower Zinc QX XX% XX%. Oil payment appendix. majorly in know, finance guidance for about for crores, gain buyback volumes working previous account change on to quarter-on-quarter, as The X%, to Quarter-on-quarter, any funds crores, areas dividend average of items on XX%, to business again statement the Rajasthan one-time MTM by quarter-on-quarter, range overall dividends. YTD were the crores, is I at and on line of tax investment from Gas, at due we pre-tax. ETR primarily at capitalization detailed of for higher up also income We businesses. cost and Income is sequentially. down and we a exceptional and which due due down in statement. Y-o-Y, XX% in was yearly depreciation from income X% at depletion magnitude INRX,XXX to was movement intra-group by in previous production year. ore ETR, cost Y-o-Y, QX. one-time XX% income on the normalized down on and to tax X.X% Normalized stood is &

Now I'll Bridge. move EBITDA to

Now Y-o-Y. may higher starting for Y-o-Y. you quarter, have with is EBITDA as Bridge by the XX% EBITDA seen,

year in more from Zinc As last with crores crores has higher to the TSPL crores year EBITDA to we factors last or XX% increase almost from volumes peers been market in year than see portion higher and summary, INRX,XXX driven, of on chart, of the INRX,XXX significant in business can at XX% pricing the this QX. INRXX,XXX year along current current at

quarter. at been and higher businesses. EBITDA year of the X.X is absolute by cost offset partly value this Zinc same However, Overall, have last Aluminum times

quarter-on-quarter. the for EBITDA quarter is sequentially. Bridge by EBITDA to X% on Moving higher

negatively gain commodity alone INRXXX of and sector. by INRX,XXX of inflation the is coal This the crores our impacted and offset IOB as alumina and crores at evident INRX,XXX from prices margin So regulatory and of showing also at market crores. by have aluminum is majorly forces bridge, ESL input with

front, and at On inflation different magnitudes. businesses, on was have partly higher and Both Overall, offset higher prices by quarter input volumes and metal the Oil both businesses. and [indiscernible] Aluminum, the the PSL year-on-year. Zinc cost price the Q-o-Q operations in zinc, iron remains for higher

which on with basis, in on line dividends has of payment XX Moving debt quarter-on-quarter basis a and feat. on crores, of quarter. a INRXX,XXX by this to Net more on want $X at by I stands quarter bridge. debt sheet That is the significant, deleveraged working as in is next the billion crores, is same think deleveraging. billion I increase net Y-o-Y think, current we showing an underscore on December this INRX,XXX growth page capital investment in billion. reduced than due group, to also partly the almost Net revenue we $X to that QX, which the $X in dividend. At quite point paid I balance time, debt as

very this, Q&A. With shareholders you, well the profitability with improvised been time, to very at has of With positioned it about peers. we YTD Moving the back overall, debt X.Xx, upward close on course sheet. of X.X%. X.X debt the previous India operator Vedanta. to the on and strong. management to we net a by at with rating, on balance years are with performance, amongst is an term cost focus balance the the staying positive summary, rewarding excellent Thank borrowing The handsome outlook for Indian any shown same we rating low a momentum QX. same at credit balance is Long-term The year average to the delivered quarter, dividends stronger in QX both for and and sheet priority and did maintain deleveraging, In CRISIL EBITDA maturity a level leaving sheet. key

Operator

The line Amit from Please Dixit go Instructions] first the [Operator question of from Edelweiss. ahead. is

Amit Dixit

and Yes for Thanks good a numbers. of two evening. congratulations for questions. I set good the opportunity have

What peers, they that low-carbon lot is had much kind of for one a of on aluminum. particularly The observed is a I initiative, portfolio them so in global and some your first the thanks of are articulating peers, detail. your building ESG

the plan for lines the derive the strategy question? second on NICOMET. that plan mines same how acquisition, the so of do what along The capacity is are same thinking and what is the from also And you nickel increase mean course, you rationale your to so, first that plant? the are - my roadmap there if that? is with acquiring while to is question do of for ultimate So since value associated no that, at you I

Sunil Duggal

basically, that of else I'll So, the all thank said GAIL. the the commentary tying maximum we to give up heard go that initiatives VORLI, industrial what with we have RE. amongst you. the purchased do. we We trying Maxim forklifts are complexes country, were the aluminum in major the like EV-driven quarter, one-by-one. collaborating said you And are forklifts, HAJJ, a and last up tying converting But On with ESG RE. there that And of to the in my certain are like also we the must to user you and world's comfort TERI. we CSIRO,

with we in partnering do, players, footprint said discussion of could players are businesses. technology be aluminum. with trying it's are we for we also we carbon example people, similar major power. Anode, - which are the So to and signing in where also could A as they the partnering reduced, that are is of round-the-clock - XXX-megawatt I stage renewable be are some our something working the all global is Green of that the work across the aluminum on we the are an to on But it, them. It PPA advanced in part them

three years, do So and trying trying rolling a XX which years, strategy years, that to we are five XX strategy, are to we is long-term net-net, years. is a a for make what

chain, XXXX carbon on net the operation our do and/or making to we on value to want about before. of complete promise zero go how As our

was I So your first that question. think

which NICOMET. ESG actually and journey one on The matches also. is acquired? and in our question of portfolio is with strategy second we area our Why have this our So

key steel usage the or apart nickel alloys. the from So metal the the coatings one or in of its is

is emerging the applications of One which is batteries. the

So direction, we here acquired the we'll on to be and this a we in commissioning half And asset have wanted time. months' foot that a and asset, ground. next the put one, this one in

XX of today capacity nickel With annum, being of nickel X material. this a which KT KT X of integrated. of looking requirement to requirement And the XX KT. for globally, for are the to X of As the for trying of up there is But capacity still, X requirement tie of our a nickel its per is now, at has be we ultimately, the - we build production. we objective which opportunities become operation are which to XXX% a raw this I that cannot scope divulge own this of up, time. intention But you information any the to KT. let point and - you consumption out of of to also imported. But But what a have starting that huge is India at a is we domestic to me is. will of tell around meeting - operation total XX,

Amit Dixit

Thanks sir. answer, for the elaborate

Just on years? I at is you say, capacity in the ultimate and we can returns looking are let are next mean, three what the what NICOMET, expect, us that

Sunil Duggal

now, to acquire is taken the able look to should have smelter be if it commission globally, on and our are asset XX%, at get margin. operations. we focusing of decision, least understand good as are other technology will the our we start how strategic we we and the a technology. of But on at just of the margins, hold and EBITDA XX% the sufficiently which the we some mining yes ground So Ultimately, which to businesses equivalent build

Operator

of is ahead. the Please Shah Investec. line next go The you. Thank question from from Ritesh

Ritesh Shah

of Thanks opportunity. couple questions. the have for I a

numbers. set question first First, to VRL. pertains Sir, good congratulations on a of

If position? you of we the debt half to second had we year. current And for certain indicated in the corresponding the net were repayments planning VRL this, the be what could is on from that highlight I look bonds the on March, loans? that's term should the say, maturity that's now first till interest question, how And sir? the outgo at one how much will think

Sunil Duggal

Ajay?

Ajay Goel

Yes, sure.

December you look as the that if we inter-corporate net at billion. position billion. almost is loan So the $X.X debt the VRL, additionally, And about have also $X.X on

billion the at to is you past, spoke additional second we the as and of the And $X.X about $X.X say billion VRL in in seen paying the have billion net half. billion $XX may the in the the deleveraging first So first for dividend after debt $X.X press statement, half VRL.

the base net-net, in billion a So $X.X is current comparable fiscal. on deleveraging the

Now so about, it mix I next as speak refinancing. XX and as next far $X.X maturity. normally I maturities speak be term if almost are both for months, of concerned, falling worth rolling are billion debts And of a of will repayments the

Now as to lower may you so I have down a have quarter our taping QX third mean, impact cash watch. quarter, year and in rate. market the interest you industry, and free you terms is concerned, far is But wait cost in at most flow. both company, sequentially, typically have may and the and the look seen the typically, on refinancing, our EBITDA Net-net, is given financials, our seen biggest current we'll of

challenge. VRL So should or a not VEDL be refinancing

Ritesh Shah

debt be it for Would had for it be much would second level. maturity you Right. to March $XXX quarter? of for million possible Sir VRL at to half indicated last how quarter, Jan you indicate

Ajay Goel

is Maybe one $X.X at that number. can the and as we send rolling, one we look to submission next you I billion mentioned quarter. Normally, the year by

Ritesh Shah

Okay.

Ajay Goel

March much be smaller quarter a will number.

Ritesh Shah

allocation Hindustan and and Duggalji. for lines, My you. a Hindustan Zinc what So basically one International, incremental basically and Hindustan third fourth is core Okay, should for basically look I go Zinc, and Sir, to Thank restructuring is at is you standpoint? put it? Zinc Videocon, divestment? for capital International Zinc structuring Would prefer second your is first would basically we Zinc think how into BPCL one - or fine. time from on status go question

Sunil Duggal

one-by-one end number maybe questions. so not answer on government Corporation. The BPCL to have asked I'll financial In of bid. one you voice, has Shipping and the try still invited

government are And So interested due should we'll financial now would they in as that we had And the now, of four. quarter both both the have assets. - participated be we the [UIs]. goes, the in as definitely the UIs. in I diligence. doing anytime the for it we bids And participated We invited UI in ask feel have

Second, on said you the disinvestment.

think So have after dislodge the decision everybody OFL government gave knows its that and approvals. And to share suit. allowed we - own approvals. the taking And any their OFL XX.X% should time loan to favorable court don't happen the I government a complete they is the the

to in We that. no play role have

is concerned, sought much is far being be regulatory decision ZI to Board I information the approvals know its thinking to else But you take the will just it's merit. divulge I'll on As Restructuring? not ZL regulatory on, and as through, let on think able the its internal will own approvals asked? matter, you that. as And come Board that the own and what a are based

Ritesh Shah

Restructuring timeline, sir.

Sunil Duggal

Yes. Ajay, you can.

Ajay Goel

different of covered So area one that maybe I unlock, details gas, the exist. more last lead unlock finance any is corporate value oil or subject of listed for for quarter, And whole deconglomeration in rationale we aluminum, remember. concept potential whole say, as iron demerger, of to sector or the value The conglomeration and restructuring which in the should in already just idea the should. - if of companies might and whole you of example, the time call

options. more whole many, study excise at So Board's last be was believe this guidance by current some is time than The end. We to March will finished and the role. current quite of many get that comprehensive, the should the look parts the

update be the So and for one you quarter, back the end by you among of this. first we'll Board. to fourth will know have go about And to the the more we'll tangibly

Operator

from of Motilal next Vishal Oswal line from question the is Chandak Please Financial The go you. ahead. Services. Thank

Vishal Chandak

taking for question, you Thank my sir.

to first with of regard So question production. my aluminum the cost was

last you But the look if in beyond So 'XX, of was in structural coal moment $X,XXX-odds to at about production have about costs close were over spiking $X,XXX. aluminum FY talking the cost to fell 'XX, up the jumped saw cost. prices and four $X,XXX-odd we a the three, we FY quarters, about reduction which

or - to we So forward? at going coal-driven? look can see how costs more would structural Or it some should we reduction forward? it be be the related Would going

Sunil Duggal

majorly coal for quarterly realization import going So that. purchase the up also the mitigate stock has linkage we some power was cost and even the on. some also keep operations from combination A some coal aggregators. last coal. the prices to position, agree of to our to the that thanks of And or up because e-auction had purchased gone I

protected. know So global in you LME happened, because the our crisis went energy global the also to has the energy as and margins a the one of crisis, thanks of combination - way up were and which that, which

built in stocks they to the the not up level be. should where IPPs So have

quarter, four already in in is the terms be rate terms prices now, I that So the is this on stocks. quarter IPP and of visible terms premiums and in of of global in of the of would more better this the like the reflection The the a realization, in should term cost auctions as situation. is the in concerned, And over. is we say the worst dynamic far off. - as power much

of be that, combination a the as we I think better much quarter. current in off should So

of API, far concerned, is cost will the the factor the the rise, LME the means API is API a as As - rise. aluminum will which also as

is that. are to a know this But trying do. we you factor So what of

take alumina steadily We from completion the take its alumina next million clinical concerned. ton, cost. year, as in are Also million And in mine reduce think enhancement is the X the shall mechanical as bauxite mines. and I in HX, be far building structurally insulated to we trying will to to the on is X of next is plant refinery purchase have Phase and place the the question as completion Phase to the bauxite. soon get will are will X get the of HX source capacity of get up possible. X the Then how EC Kodingamali as The efforts totally ton we'll commissioned we as the

our soon factors, mines is With come. as as possible. I concerned, insulation to these will as we two think operationalize Coal, some are as far coal trying

mines through have We Jamkhani, we've three Kurloi gone and auction, auction, which Radhikapur.

of year the we to market. the these next least trying volatilities insulate mines operationalize and ourselves of at are We to two want in the from

have would import trying on India, resolved can in is issues the advocacy, there there fourth and call. like of a get also the CP we will Rahul, a not as much market Anything and which we and but far the you add? the certain which what were Coke get regulatory will there see are we the to you not is may which the factor restriction story detail. on Pitch the CP by also as by concerned, government we and On of third control, work this to factor the issues how of putting these fundamentals. that resolved. is are As But is

Rahul Sharma

No, no.

because quarters from you think have Tranche I Only last talking this positive for is - couple one covered. development of V. that last quarter for the quarter last were we to fairly a the

I positive five million requirement, think of is development, ton Tranche that coal XX% years. is and V, has through is the XX.X for almost happened of which our which

Mr. for as a also of is a has happened Jamkhani in focus as XXX% which start, year. a mine, well and to positive have new And the this at development which QX. the in which forward next So said security linkage we terms Duggal us gives least that going

in that from I coal sure in pretty are we alumina And terms already we that, and has the side, and bauxite Mr. changes. side, expansion secure mine pretty of of Duggal apart structural think covered both. So then terms our are coal on

a cost plan surely from changes. the we XX% QX, of terms we in So of through structural are to have to reduction the point fact QX X% and for looking view

Vishal Chandak

launched second code they're have KCM the And says XXst mines December, Sir, that was for been a question done regard as my outstanding also which Right. still and to on new the also. conduct which with of simultaneously, INRXXX provisioning, crores. we the has

it complete of code write-off? for particular light has a new to time. in conduct, take So of this under all some quite been the possible is that understand liquidation company, KCM we Because

should is really receivable? we just evaluate to Or still that should write it we XX% So continue off?

Operator

not [Operator the give please just please. reconnect is would minute, [Technical the me believe question. Sir, We minute. reconnected. request the I management Sir, with have I'll question. Instructions] repeat just please difficulty] I your may a you you Allow Sir, management ahead go Excuse me. able me to a to hear them. us.

Vishal Chandak

while Sir, taken INRXXX mines, on have that crores Thanks. the for release, remains press we sure. about we in still the mentioned the of still KCM Yes, crores books. INRXXX a have provision

off? Now, government and at given should point the the Is question of fact that this this mines we some forward? company been several has to it we expect is really giving company has to quarters. not a the that. for obviously going look a just how recovered? this technical been Or Zambia on quite it in And writing of be interested still provisioning Because this under to liquidation or Vedanta, the time, for going linked just

new released code have a We conduct. of

So mentioned business the standards highest that at Vedanta. code conduct have of always the we you for of

are looking side. this code all So when Thanks. additional we we my from what releasing new be conduct? at That of would are

Ajay Goel

Sure.

So let of - them me both just address them.

KCM first, So starting with the point right. you're

one balance provision. amount recoverable. we lead backed 'XX think is as I evaluation of all, up balance on one-third fours. March. amount write-off in the outstanding fully another previous valuation there about on to The KCM the accounting crores one-third last is crores quarter. guess, provision, the December entire is F first this books, by no of in We the an books in So the is amount sheet provided balance Vedanta And for INRXXX-odd one-third on remainder, end. big only about That the by the and on on remainder Total one-third no and fiscal there's INRXXX-odd it's

Let fully much amount, one that the backed of, up believe, from third-party me by Vedanta fact, Limited add operational is in is VRL This we very side. ahead creator recoverable. opinion,

Sunil Duggal

stakeholders. talk the government we in active with also, are Otherwise, there and all

we should there, I the one. advocacy legal combination a a are get we this mine really to excited able to still support, copper has is in would the restoration be confidence number - lead is mine. And still world. source also future on, that are great going the have and two, us believe it of this mean, this of So Number we to the and efforts richest and of our a this one management because committed

Vishal Chandak

mine particular for the place which So is on in this now? arbitration right going

Sunil Duggal

going is arbitration on So in London.

Vishal Chandak

And we on expecting Okay. a are this? decision soon

Sunil Duggal

as going No, on the we speak. businesses are

Vishal Chandak

Sure.

the sir. on Just of code conduct,

Sunil Duggal

But in same with the there. the government engagement at we time, active are

Vishal Chandak

Sure.

Ajay Goel

some benchmarking embellished, Sure. have What are be being Indian best been field, be around engaged intervals. in law an example, have areas, this and added. Few the it the to age appreciate, more the I'll the of you what to may need asked GDPR governance. the on again of code the firms second or clearer documents, I That section of they been one privacy mean, some the areas, conduct, the the of for laws. areas Take as documents four has like we example, living conduct. move around at new or the changed? they the of consulting country you all, anti-bribery, has about UKB embellished. terms would in FCPA part, with Three, code the to First revised made been employees. laws

of equal opportunity that social renewing addition in on perhaps viewpoint conduct more been of are areas diversity and in is also terms we one an from around added. added. how guidelines one ourselves media has Last Vedanta's employees' the to commitment been and has inclusion Some important employer and

This think I or is par this, on at our be with current the evening best So morning. website COC the in late published will COC tomorrow country. with the the in

Operator

of from The you. the Thank go question Please is from JPMorgan. next line Pinakin ahead.

Pinakin Parakh

you sir. production got My cost very much, to Thank aluminum two of Yes. I've first the pertains questions. question target.

content again, consistently And XXX% coal. over missed and higher aluminum this has is Vedanta time, target. it cost Now years, of production the alumina based on the

'XX? to over on that F give more us next three What you the coal and company the Now requirement? how over can the is the sir, total plan does 'XX production achieve breakup granular clarity a 'XX, And years?

Sunil Duggal

want coal own complete we through mines. source to ultimately, our the So

So as of mines a least couple go operationalize at in year we the up to said as forward. next that and we want ramp we

ton X around of So I coal. to mean, of requires aluminum the XX tons XX

the through of met Rahul, So some it of part that? of say XX required like operationalization would these coal. ton million, major million if tell of you be it part will - - granular XX X.X million have you a A around XX more mines. details, to tons

Rahul Sharma

Yes.

kind five terms And initially, Jharsuguda. up which mine, Jamkhani and V, with to roadmap a events be Tranche And is I which building linkage Jamkhani, we of looking, want coal are of in our our of what to I V, move almost which million XXX% will view, these for which up And think will terms is we go then of mine. volume, in whole our of as take we basically, clear which plan. gives That's are years. five XXX% be be XX of that, requirement will years. point is Apart next that's around have one for XX% these [indiscernible] million, let's XX place. from Radhikapur mines, when would and mix So give is said, can potential Tranche which how in And year, our three West. - the we we the the to going Radhikapur ton. us And requirement that it three which if core our have Kurloi. gradually, I a mines captive And say, see for from be is has to West, that start almost also

Pinakin Parakh

longer period would actual is mines these XX coal much years, and a ton? up fair hence, production captive and the be tons just about So would would ramping the that to XX some than three lower million it coal coal the be say over million of next captive of be much the

Rahul Sharma

is total requirement maybe is XX with million. possible almost I'm if X.X mines, they three which you which like mine kind Jamkhani, is million, [indiscernible] XX these And has see million. a million which capacity apart double. really Basically, from on No. of And to government, is are million are each level, million. which is - talking PRC they XX XX that also million And increase, XX% talk, X XX

how the are So manage portfolio. to we that's in going overall

Pinakin Parakh

Understood.

Rahul Sharma

closest minus plant is Let's our look winter, at in which to also.

Pinakin Parakh

Sure. the also Chairman the demerger in about the now divisions, CapEx entities. And question commented into separate relates with the, my various second having to potential program

be on than will time, be and own, basically, XX% funded growth fact structure the CapEx via organization of its clear some this account because consolidated of able the more demerger, may there at point to those the aluminum zinc that given smaller for Now, stop of the fund would it then businesses the programs So programs on not is CapEx and till non-zinc borrowing non-aluminum a be to in is prudent entities? if EBITDA?

Sunil Duggal

aluminum detail, and granular examples a but let you couple that zinc. me what you which are done, of unfinished jobs project to have X opportunity. give capacity have give is a of million you XX% hardly not of a There cannot tell that We to is, be be Electrosteel. which give complete of around jobs would will the One done, I is us any and tonnes. this

there So low-hanging and is a very fruit. of a funding, is this question

furnace. is example NICOMET Another the

And produce have furnace. unfinished XX today. XX KT, We there capacity another is to which KT furnace ferrochrome is of a

started the balance engineering have discussion we furnace. completion speak, we this and for As doing the job

our faster Otherwise XX a to way take also us the even And go XX one gives from by capacity the the opportunity mines speed doing this raised and such the us to KT. of rich has at acquisition, which will have KT is beyond the dividends. the given drilling R&R opportunity this we KT. So in XXX

with the and the with XXX commissioning also able but are ahead itself - raising be then furnace. we So we mining KT, next in the to year clearance should go for this which going capacity environment

these a So of couple are examples.

of fruits which all could keep lot the of will individual I'm evaluating of businesses, to a the add given. be proposal also, it the have near we was where opportunities through We company. - formed which split we also Board, of member. are in there low-hanging in that will This entities. was the Otherwise EBITDA the the which the a our similarly, term, the So what subcommittee not

that what we the on the time. options working two various options Board up on the are at to the months' time, various to come that market various we to Depending the going. of We are options. in back and will decided on three point next will merits, based we we put And which way

Operator

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

Sumangal Nevatia

questions which royalty or in rate? you India And of And Vedanta any could if of changed just confirm the first, the consideration last any there years? this Vedanta for there is opportunity. - is has Yes, revision thank Resources? is what couple Couple of how in the royalty royalty any to you what pays this

Ajay Goel

Yes, sure Sumangal.

this documented element and So in impact XXXX. revised was royalty, got first in XXXX

next March. year sometime agreement the expire Feb, will So current in

the X%. of numbers royalty entire the on agreement been of quantum the advance for it benchmarked up rate million be know, the give large mostly current yearly If the is is couple and the Four. royalty quarter a Big our businesses stack by overall actually the I X.X% to amount of you has for fact, this around is fiscal This been about you And fourth as As actualized. paid in how an fiscal, will $XXX a has by basis. current for

length and So and falling there terms conditions, take it in the due year, be get se, And per revision Directors. this revision any is any Audit current will no and of will Committee Board when and as by approved be will obviously, upward next arm's revision is and externally place, year. benchmarked,

Sumangal Nevatia

Understood.

$XXX for the is that this So right? 'XX, million FY is payment

Ajay Goel

is, vary is this It number the the fourth quarter fiscal not will current XXXX. March, for is and in a is in the by the advance, fourth number. But significant for actualized which actual it It paid actual quarter. is the -

Sumangal Nevatia

understood. Understood,

of business. the us? excite organic opportunities various or are all is are the our growing to inorganic vision business? plans inorganic stages. the respect a acquisition And respect growth - with opportunities to in question in which What Second what are market There under with in couple the are steel and steel

Sunil Duggal

option market, in evaluating. have comes the you been know whatever the Vedanta, keep we evaluating that we So, and

the is commission us. will that, as see concerned, in for one going we evaluate that is possible in is and As are we X whatever market, the And there next what million beyond far year. opportunity to ESL tonnes the best

Operator

Excuse me, sir, does questions? that answer your

Sumangal Nevatia

mute. sorry, I on small sorry, was have Yes just one left. I'll clarification

which also of is Vedanta India outside is and or still Vedanta as there India or that is something entire India? which restructuring this under consideration into merging exercise, Vedanta Vedanta evaluation. entity mean, Group also of being it's of any a considered of a just So split I existing

Sunil Duggal

exploring options. various We are

Ajay Goel

our go I November if press XXth to Yes, in we quarter release. the Sumangal, and and spoke back maybe previous just what

look table, restructuring. Having and and now, is So we'll months' at the Gas in on go And business. & the intent last, couple entities, Limited Iron Vedanta with Aluminum, you and also, said potentially Oil options to was a I leave that, looking Ore around mandate guess, in of the was a to time. sometimes to I Board's I so was Right more the thinking all for November. large when comprehensive to spoke review, three are at management the Mumbai

clarity. quarter So current by have sometimes end, March end, we'll more the

Sumangal Nevatia

other Understood. big which Is the us it connections Group? and the India businesses educate possible - are, have Vedanta to with what strategic Vedanta Hello.

Operator

have connected, ahead. We Please difficulty] [technical line Instructions] go [Operator the sir.

Sumangal Nevatia

be Vedanta Group, details? which could in other to just related businesses it or I strategic asking so what was follow-up that Yes, are possible Vedanta Is to the a the share India?

Sunil Duggal

as it Steel. off. So last unless not Board, right to go By and possible. will time, setting was alignment now a & and Oil Sumangal, months' Aluminum, sorry, we which, point couple internal an as as be commission Iron a Yes, dropped spoke of we Allow this & I appropriate. will think have we again I soon mean at we appreciate, and be what it Gas sharing time us

Operator

was over conference Mr. I sir. question today. now Ladies closing last you, that very gentlemen, Varun like to over the and comments, to the you Thank would to for much. for hand Kapoor

Varun Kapoor

for evening. Thank you you very all Thank the this us join much, to taking operator, us to conclude. time

further And wish or to the it Investor the team. to a either like If happy pass you everybody have I would the feel please to any that, questions, Relation weekend. back with rest of reach me I'll operator.

Operator

conclude Limited, On very we for all you conference. much. Thank Thank you joining. Vedanta today's behalf of

may disconnect lines. your You now

Vedanta (VEDL) 28 Jan 222022 Q3 Earnings call transcript