VEDL - Earnings call transcript Q1 2023

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Operator

Ladies and gentlemen, good day, and welcome to Vedanta Limited Q1 FY '23 Earnings Conference Call.

As a reminder, all participant lines will be in the 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. Sandep Agrawal, Head, Investor Relations Vedanta Limited. to over and you, you, sir. Thank

Sandep Agrawal

year Nirav, Once again, you, our results of and XX. on today hello, Agrawal. Sandep financial fiscal quarter first am I for that thanks discuss ended June everyone. to Thank XXXX for us joining

We Sunil our Mr. today Group Mr. CFO. Goel, Group us have CEO; with Duggal, Ajay

Rahul We Arun Deputy Zinc Mr. of Prachur Sah, Deputy Misra, CEO business; joined Oil Sharma, business. leaders Gas our from by also Aluminium. CEO are key Mr. and of businesses, CEO, Mr. and

We with of and cautionary questions-and-answers. the will start presentation. the the we update will discussion of on by X for our financial will statements key and operational Please floor then, entire covered highlights note disclaimers today's performance. mentioned And be Page open on

to to Duggal. you, us to would further Duggal Mr. I take Mr. Over Now without through ado, presentation. hand over the like to

Sunil Duggal

is ‘XX COVID high recent quarter Thank call. commodity banks lockdowns. Currently, you, in Limited by zero hikes confidence Vedanta Sandeep. slackening economy led has This first net volatility softening prices. to central Good consumer everyone. and conference earnings potential Welcome rate facing China among policy FY evening, global to inflation, mixed

see inflation above below by on industrial RBI's to remain growth. export manufacturing ongoing government's that continues expects commodity 'XX to Indian Crude announced X% RBI However, we suppress to and This demand, Indian further restrictions. supplies expected are has energy expenditure oil is resilience supported concern. started fall support in level has prices. quarter. the has March also to higher. and and competitiveness ease increased economies relative crisis, is credit stimulus non-food costs especially China price Europe, level band, Amidst reflected lockdown although supply production, tolerance inflation in potential to is capital strong support

ability demonstrated well challenges. these 'XX During again the have we to June our execute quarter, all through

to continue key growth. model. recorded crores, and performance, first We best asset deliver underpinned quarter first financial EBITDA, class at We Y-o-Y by business businesses FY ever EBITDA with 'XX strong started X% world INRXX,XXX strong into quarter have as operational and translates which quality

We proactive Goa ore July and risk price operation for we In and unprecedented plant, volatility. 'XX, commodity cobalt mine. commenced Liberia have started management, nickel dynamic hedging amidst iron

Our value. well and capital dividend and allocation articulated to policies designed sustainable are create long-term

We have in next XX products, value-added further operational over efficiency backward projects across last capital over and are years, and equity we invested our than $X alone more and market, $XX more billion FY integration, volume, make years without growth predictable. raising the $X from digitization. billion investing sustainable These of 'XX businesses billion two businesses will

the We yield best among are dividend one peers. of

per XX We INRXX.X last first of of translates a with INRXX.X INRXX,XXX very into more attractive we share, than per have paid share years. dividend crores dividend dividend of yield the on In basis. quarter YTD declared interim of July XX.X% interim another in one, over This dividend 'XX.

has with deliver deleveraged deliver billion track by highest the in one quarter to impeccable commitment billion in VRL next three by in capital have the $X all by our line commitments record We meeting to years, market of We billion Atmanirbhar to exchequer. this one contributor in path national end. is of Vedanta and further believe is Group Bharat, on $X.X month $X

an decades for unique a and uplifting carbon remain lower attractive are to case investment to opportunity We come. life. transition grow contribute also committed towards to to This a world people's offers

now program execution moved Our phase. to ESG phase planning has from

we June In progress 'XX will net hear commitment. You year. during the quarter, our zero on achieved more

We have assessment, climate completed risk. both physical risk and transitional

committed year mine target. Scope in battery is HZL’s introduced mine. earlier our inventorization chain completed supply also X underground Zawar than at electric of our two We first that India's emissions, emissions, vehicle

bodies, decision-making diversity workforce. on practices women our community that in among the of is have part Vedanta actively We are people transgender members Indian industry-leading as recruited continuing inclusion from also and companies few XX% with

a zero-harm the one our of from FY at are to learning effort, before. business working saddened are workplace mishaps Zinc. best We of through loss In ensure we partner life 'XX June with in 'XX employees Hindustan quarter, despite and

We are initiatives focus various including drive management save risk work taking culture, activities to at on reduce hazardous to critical site.

across best across to We ensure launched practices have audit businesses, safety the group.

Y-o-Y. also due pressure. to was XXkt. of Aishwariya Ghaamsberg XXXkt ramp increased production margin XXXkt per Cost particularly supported tonne despite XX% Alumina barrel, cost MIC Bhagyam from to commodity OpEx of to recorded with production Quarterly turn At ever injection $XX metal verticals. highest volumes achieved around primarily COP quarterly increase production on In of gas volume and at quarterly improved by up. input by was XX% in up line by was volumes X% by quarter-over-quarter and power by fields. and India lower oil in which per Jassipura Silver June natural refined $X.X our cost. production record I At annualized in business partially impacted highest grew with Zinc if offset business, inflationary polymer grew aluminum per wells It business, a prices growth. better also was declines our hedging. quarterly polymer Aluminum production International, higher additional Q-o-Q $X,XXX prices. Now, in by infill 'XX. barrel X% and achieved Y-o-Y production production by headwinds, Zinc EBITDA Y-o-Y. commodity recovery,

on drilling volumes and to decline. We rest maximize near-term well natural are focusing infill

from production 'XX. field We commence September expect from and Hazarigaon Jaya

pilot 'XX, additional special of shale September started the on on has From also Our (ph) levy duty crude track X, oil. government excise for in spud India is 'XX quarter. the July

one on saleable this and at shutdown PSC as production the the favorable with RSE our over with of are basis government Pig hopeful furnace. iron the rainfall Karnatka on business on engaging quite black Y-o-Y the was and In heavy framework ore, line are ore of lower iron was outcome. within production We handily. lower impacted planned in business

by tonne. $XXX improved However, margin XXX% Q-o-Q per to

saleable production X step the first during free a to on growth. hot key impacted and and consequently towards and our expansion million We X% grew to deleverage. deliver commodity We In blast capacity shutdown lines, margins, risk. price X% to positioned annum per integration This export from FY FACOR be by by sustainable price to production. tonne Quarterly flow with driven EBITDA aluminum production Y-o-Y proactively on prices. decline manage have highest our material hedging since coal Y-o-Y priority in was and remain XX% majorly furnace. steel quarter execution ever margin one acquisition of impacted 'XX, debottlenecking duty focus achieved ore quarterly Vedanta high cash to generation steel completed ferrochrome production imposition, We'll of of value. coking volatility decrease to business. improve is uniquely projects increase volume XXkt. timely dynamic our reduction deliver and cost committed will committed production

asset of an world-class transition. low cost producing and long-life vital have global outstanding for We foundation decarbonization commodities

strategy, balance future Our sheet to now, for growth. hand my us this would assets, high-quality to for colleague, strong like over position CFO, With and I financial performance. capability Goel well Ajay

Ajay Goel

evening, good everyone. and you, Thank

and we that assets, financial outstanding first year headwinds, which future So strong I'm as to for performance. fiscal despite foundation have share macro inflationary us balance positions commenced and along of a quarter our with with the monetary growth. environment said, well Sunil best sheet, pleased high-quality we an ever

talk XX.X%. highest QX which crores. is the INRXX crores, quarter. interim strategic The in of in numbers, I hedging the an dividend you risk crores. realized dividend I and about achieved commodities Proactive to to protect INRXXX INRXX,XXX hedging translates We walk of This XX.X of major quarter returns yield first QX QP to accomplishments of INRX,XXX for first dividend Increasing is paid wish in gain second Before INRXX,XXX share to crores, in through ever July. shareholder which was total through management EBITDA share margins. XX.XX attractive

has increased continuously path and working four committed X.X%. We to borrowing maturities the And are the our on we around management lower progressing deleveraging. towards years well liabilities to of profile dynamic cost are average lastly, and

Vedanta noted three Operationally, zinc 'XX. to $X in That This strong. four holding Gamsberg billion YTD line highest may release first be volumes is FACOR the and by next debt the deleveraging the in quarterly and July is aluminum while our delivered continues Limited of commitment of our You have over reduction $X.X with production, years. companies billion in Resources months.

We gives which also each, successfully energy acquired long-term megawatt XXX Athena having and X power units of security certainty. cost plant

to turning few a financial of the quarter. Now of highlights the key

INRXX,XXX quarterly group at employed stands demonstrates quarter by year-on-year, almost points profit XX%, tax Our Y-o-Y moderating operational revenue stands with X% and pressures about cost up Y-o-Y, financial higher PAT, year's margin despite INRX,XXX is ROCE, performance. crores, X% it after up last Y-o-Y, is crores, ever that of on by prices. which XX% a XXX inflationary EBITDA highest of crores, XX%. strong EBITDA return capital driven performance, commodities at first higher a strong XX%, basis from by and at INRXX,XXX

also net in is with the as X.X We the times, lowest at X% INRXX,XXX debt EBITDA, cash maintain times is last our of crores, And and year equivalents to up to and in leverage crores, INRXX,XXX peers. quarter-on-quarter. continue which Indian debt the cash amongst net ratio put perspective at healthy X.X finally, same

which up gas, down in overall up We in in for the and to to And crores, of increase presentation. over higher majorly line in rate X% by average and at want at India. QX charge for volumes depletion Zinc more account just also INRXXX XX% borrowings, oil I have investment updates. of a INRX,XXX offset share investment up the Income XX% has Depreciation quarter-on-quarter, from mark-to-market. cost QX crores, couple in average The reduced and on at statement at a was due charges due the of mix of detailed QX income to higher crores, at borrowings. been XX%, INRX,XXX finance with change Y-o-Y

lead You the will change. but to that accounting, have to maturity reported hikes not may mark-to-mark two that noted added recent

for pretax want it well. investment that. income of right be I of recognition at basis, Y-o-Y X% which underscore last to crores and of ETR, the that at bridge. XX%, of average year XX% same is look crores. XX%, which it, range The temporary. X.X% ETR lower as within to guidance is basis, full as at on INRXXX EBITDA tax So alternate way account for rate we the the I to INRXXX is is up to a asset quarter. minimum the full tax EBITDA which on is The move yearly will normalized now MAT, impact less QX onetime a or the on foresee more yearly stood

for positively strategic our and hedging As strong higher key impacted commodities, our our from improved businesses. in recoveries performance bridge, supported benefited and operational demand CapEx by EBITDA, and by and all of the strong prices also evidenced have gas We’ve oil portfolio. OpEx

by offset partly cost of production been to has this due higher However, inflation. commodities input

on, requirements Vedanta cyclical investment, of INRXX,XXX nature, page, softening net debt, next flow sheet. working generation cash you Net we on prices, see, which and can believe as as that growth crores, journey, in will in stands be the CapEx and group. impacted deleverage meet year is CapEx quick this its debt. committed at the Moving XX balance still free capital as a well, short requirements will as of on as the we term. Despite June to by and have A continue word sufficient

Our proactive long-term in management. remains focus grade

X.X% fourth in the further maturities to have average from QX, years lower we last to X.X the quarter, have to of in years while increased from During average able four borrowings quarter. cost been X.X% we the

So quarter-on-quarter, funding. cost XX lower bps of

rating and with AA CRISIL. Our by outlook credit Rating both India maintained stable a is at

while finally, on the focusing chain, higher integration of our targeting across businesses and vertical on are capacity. growth to Now want grow We efficiencies value each cost journey.

priority any at go level. plan Overall, of to without in well-positioned is to create you. direction the the CapEx for we around for group to key all portfolio, resilient aimed is And on and line increasingly over with capital deleveraging across years are deliver Q&A. operators our back the able I value growth performance cycles compromising Thank allocation strong Our with two and in stakeholders. our billion $X same policy of

Operator

much. very you Thank

request now will is Amit, I Instructions] line side the the from questions, of unmute question through line the We from you and session. your First Please go are May Amit your please. begin to to we unable go Edelweiss. hear question-and-answer from ahead. [Operator you.

Amit Dixit

unmuted. It’s

Operator

voice your breaking. sorry, Amit, is

Amit Dixit

me hear now? you Can

Operator

Yes.

Now, we hear can you.

Amit Dixit

Yeah.

questions. an So a set a I everyone. opportunity of good good congratulations for the have for of Thanks numbers. evening, couple d

further now? on aluminum do hedging first is and in oil positioned terms And one first division. and right in The is was we any did used has is much That been the gas How the of what in the outstanding -- OpEx three in and it question. volume QX months?

Ajay Goel

Amit. Yeah. Sure,

So let me up for. take it

XX% the of the I hedging the hedging aluminum, our of $X,XXX and is QX per covers portfolio large volumes of about in the tonne. if speak So rate

is If So quite QX. net-net for of aluminum is the again speak hedged one-fifth of which volume in I zinc critical. ever

XX% one-third, quarter But XX%. are Oil aside almost one-third hedged. for Again, interest almost the I So volumes first are leave working hedged. the share and of the effectively, our gas, volumes government. of if almost

So XX% one-third across and zinc oil gas. net-net, and in and aluminum almost

As I realized of mentioned, got our is matured, Amit, terms the in about the crores. positions, gain gain which INRXXX

in realized, also gain third me will quarter which the depending bit little quarter November, Right that what hedging about is a basically second on and the second the forward, prices. for the a quantities, only take and Let as word times X we the October it unwind are already current for in now, of forward but unrealized in of quarter. quarter,

Amit Dixit

comprehensive Thanks Okay. the Great. for answer.

is on coal how was you quarter -- for question movement the [indiscernible] is EBITDA? separately cost. Q-o-Q? What in and possible And essentially second to get will The this what guide much the it

Sunil Duggal

cost, for which aluminum coal asking asking. are In business are you you or

Amit Dixit

specified should aluminum, I for Coal have this. sorry, cost

Sunil Duggal

Okay. Yes.

And per So this of for Tranche And very a GCV to This per have. international coal is month. prices auction parts and $X,XXX linkage flowing the that, the landed I about came INRX.XX of energy coal aluminum apart was through tonne. average some coal of V also think back go realization, the the coal prices because will of and And the they coal depending cost usage healthy portion on, is softening power now. soften linkage. also imported cost, the business country, which this, in the softening overall the getting now in the the cost. some from the This price on leverage the with cost looking sizable is coal was

and So on want coal quarter the you anything, add quarter Rahul, one? to cost for the the current

Rahul Sharma

No.

limit Mr. touch QX basically total think requirement terms per because at coal as was have I said, in I have -- cost was that this we XX% to metalization. will Duggal and moving growing of have of the great looking INRX.X a by we things personalization to we And of million which $X.X was we we that things (ph). improvement start But see are going coming the in challenge so in I forward. had a quarter, (ph). quarter And XXX% -- the QX, Last security, the think and are things, quarter, almost kind XX% close GCV. always is a plus

Sunil Duggal

There's one want to... point I

Rahul Sharma

or also month. opening Jamkhani of us great a that including and mine, mine, because for the for be the next see round starting Also also point early I we we all the another a quarter which will got coal we vision its Jamkhani I mentioned got have mine think And last it be we'll coal, of mention, wherein -- as have we us. to bring (ph), forget some

Amit Dixit

Okay.

XX% said sinkage right, materialization in or XX%? QX, you Just

Rahul Sharma

of looking we an total as XX% for overall quarter and bucket this consumption. my was XX% QX are

Amit Dixit

Okay.

to So of a possible QX? we is get might all quantify measures. -- I in mean that benefit it as these total result the

Sunil Duggal

as We quarter least. on it fall the at looks give any -- cannot level this. broadly, to what least at of like guidance such that But four it should

Amit Dixit

all Wonderful. and the helpful. you Okay. That’s best. Thank

Sunil Duggal

you. Thank

Rahul Sharma

Thank you.

Operator

Thank you.

Parekh go Pinakin of from line ahead. is from question Next the JPMorgan. Please

Pinakin Parekh

of company production? sir. of aluminum, what you, over production given look question to at roughly Thank think in the that first around Sir, on you $X,XXX, and that $X,XXX Yeah. was at cut would is first LME cost time my quarter do the is point the

Sunil Duggal

is cut there the production. plan to no So

could by the $XXX, power for The going LME cost INRX,XXX INR last processing costs. LME about in is the average power we and the because because but lying could because between around say is to $XXX, another Alumina related month with not out also $XXX cost. we cost of the X,XXX of cost quarter, current somewhere the the in powering are And balance down only up. as and premium. that March, cost, processing the soften $XXX, the have fact, alumina In and said cost the of soften in

current So good will is a the a remaining it ramping good even the prices, and business the why, from we LME given you makes are make that for us. up. at margin, Line And EBITDA part X,

Pinakin Parekh

So to just clarify, LME what are is sir, saying at aluminum be you aluminum that correct? that prices, current Vedanta's even Is would profitable. business

Sunil Duggal

at it margin I'm prices. what saying, EBITDA This even a current good Absolutely. is make the will

Pinakin Parekh

Thank Sure. Sir, business. second oil sir. you, question is my the on

The another terms latest oil business? the OpEx. removed segment in when Now India's even create stress which of XX.XX% of disappointed consistently terms for And a this tax production, government was lower. is this earlier in the of has prices burden went never essentially

the is headwind investments which Given looking headwind given given generate has Is OpEx. to increasing the what not of the the good because and terms business, in oil taxes and increasing in policy the stop policy returns, given strong this company clearly, are -- OpEx. can a

which So is, CapEx stress 'XX, plan, as company would the given the original if sales announced the CapEx? oil oil the for look it to was F cut

Sunil Duggal

to us one important the No, we security with partner for want energy the government. the the thing country, for of and

intention are of in in shale IOTA drilling infill are project, we So an on energy on ASP oil, line were moving [indiscernible] have shale exploration the think to same our project. project, in what direction, projects, gas that earlier, the oil our we projects pilot given ASP ahead talking. everywhere our you processing the what no with assets, project All

energy want we So want everywhere, or current country. results to our the and we level. are of our quadruple to the the partner triple ultimately, on, security efforts with And from

the whenever always partner duty been the on they projects as and viable. at looking the In concerned. far the projects country how government to supportive have with us help make to us background, talked where is has excise it help of As we can and the new original the special can

As is have tax excise far concerned, are the could quite Government various levels. already placed is as the this, it PSC, quite specific the to at and get duty the to on and hopeful built we government is that the special represented windfall for we believe the retracted. that favorably this in government we

Pinakin Parekh

Brent or realization So in we there was translate more was this kind the on of keep would and would test tax available? new into when EBITDA if the because Vedanta's test? Vedanta quarter this getting impact? one realization XXX a $XX simpler, just been $XX was if to to negative the What average Is what clarify new the straight for make realization XXX. question, impact Are or trade-offs (ph) it have $XX the just there it

Sunil Duggal

No.

number. You see what talking last talking. keep you are will They depending the that they average have they on are of that crude to revising prices on understand fortnight the

number this are very like remain at conceived at All price will our $XX. projects much a dynamic. we So projects lesser all evaluate and our evaluated our

question, is to able So sell government even our impact into this we it $XX, up between to this and the IRR. And make does nomination not at $XX goes government. the they special from the flow quite suppose and much back is is it windfall government. us not can case, XX% $XX, the contract. government $XXX, the broadly auction in built contract, putting thinks -- operation have healthy duty why is case, the But the differentiate margins to saying the to how into at been and $XX beyond any But And to this the at that in that. favorably any of this directly broader built a is excise the back look beyond government impact we I'm If is question of blocks. the blocks $XX our does placed the which the and let look to which that

Pinakin Parekh

the auction So, blocks from is official block. far, in the nomination there government just so to on no the directive clarify,

represented have you is while there official So the confirmation. to government, no

given should agree, context is oil sir, the not this, of does we the meaningful number to legal because very government the expect if a challenge So EBITDA. segment $XX

Sunil Duggal

jump [Technical to does the not want is we are of stakeholders. very hopeful is which the that and not and don't that any think Difficulty], of I See, interest it, best something in

Pinakin Parekh

very you Thank much. Understood.

Operator

question Kejriwal. Thank next you. ahead. line is The of Please go the Ashish from

Ashish Kejriwal

currently one is And on the or second is That’s cost. have cost again costs, coal. we is in of production Sir, my our on my question have got? expensive purchase question. we the between thing coal cost difference purchased well of as much is coal and how alumina there any in Cost increase entire both alumina aluminum One limit? to is of quarter terms the due electricity power which in as

Sunil Duggal

a cost. of combination. It's It's the coal and purchase the combination bit power of a a

While the I will on request Rahul answer to give this.

alumina alumina prices. even concerned, of is prices, on $XXX as $XXX tonne say, depending a and and to a is far there imported As differential the the our LME around -- our

So or detail to add any the want more to Rahul, this? more color you

Rahul Sharma

to $XX No, it it [indiscernible] But to remains was maybe data when point that EBITDA imported go between revenue $XX was the think in of $XX generally, for alumina view. in -- QX, I around we of the versus $XXX. sure,

Ashish Kejriwal

And in So sir, like production cost $XXX we I your in $XXX quarter. price. is decrease alumina when know, don't first of about, spoke something alumina

to it's difference the a seeing $XX you that even $XX? decrease of between So are after

Rahul Sharma

what versus domestic. your That's again. saying, between come I'm Sorry, imported arbitrage the

Ashish Kejriwal

Okay.

So is $XX, there. $XX still

Rahul Sharma

Yes.

Ashish Kejriwal

Okay.

hedging is, sir, only. question aluminum Second

around XX% first the You've XX% remember year of And that quarter fourth hedged. for -- mentioned of said in correctly, XX%, volume if volume the I full was was first about we hedged. quarter,

be So will the is it if volumes at would the around is case, what be it now, be the across will in entire $X,XXX? difference quarters? hedged the that quarter And front-ended volume, second which or

Ajay Goel

Right.

in correction is this the work. calibrate environment, in bit very feel But context, warranted. quite cannot us you we to terms hindsight, (ph) know, hedging, you in the line the So given And want realize policy right? a has LME volume historically, been of the I third current average of good was mean toward If quarter in it volume cost as ending give sir, it the Vedanta a front I of the won't volatile, or I with month the mean, our you production. step. was we also of to that second

if speak hedged second per $X,XXX aluminum, and hedging volumes the our planned almost the off second for tonne. I XX% price against about So quarter, volume for are quarter is

more Same volumes second oil for for quarter than for second So off, are almost if and volumes of way, hedged. one-fourth same hedging. XX% think planned are we second zinc and quarter in Net-net, speak net-net gas. terms also the almost I I number, XX% volumes, hedged are decently covered quarter

Ashish Kejriwal

great. we to month. sir, lastly, are going That's operate our mine next And Jamkhani

possible which So next cost some mine? avail the from benefit is it to share down can six this maybe line months we month, not

Sunil Duggal

that three INRX.XX we I'll give cost these from idea ranging some to three between INRX.XX. somewhere you projected mines mines. is The have

And cost between between somewhere Jamkhani the to So And to Radhikapur is INRX.XX. INRX.XX INRX.XX be to INRX.XX could will INRX.XX INRX.XX. be somewhere [indiscernible] around

INRX.XX could out, the is around quarter. work INRX.XX incurred can this you to first average which INRX.XX, weighted the range. And be versus in So we

Ajay Goel

Correct.

Ashish Kejriwal

sir. and all Thank Thank the you, you best.

Sunil Duggal

Thank you.

Operator

Next question the line to please? your and your I Motilal ahead. of go the with Please may request question, you unmute Vishal, go is side Vishal from line ahead Chandak from Oswal. from

Vishal Chandak

Yes. audible I Am now?

Operator

are. you Yes, sir,

Vishal Chandak

business? kind for or that of how IRR does businesses? a IRR been run improve From and what question even trying compare talking Sir, target What the for do understand, to regard with a we I gas do to how -- mean been oil gas kind also. and evaluate production rates. capital we we again. oil have it rates, targets allocation And run improving about disappointment to time was been business of has my various the zinc across do production but again, business project and have we to today our

Sunil Duggal

if will Prachur? So question take and can on you the then I oil gas and to Prachur, add about try zinc.

Prachur Sah

targeted oil we you up yeah. that that's at at So $XX IRR projects a to of the all projects. an hear the a threshold me, oil price, IRR XX%, and that and we projects typically Sure, at for the looking been price sir? $XX so targeting a are far take have case and XX% gas, as oil on the Can

Sunil Duggal

back and be policy least minimum of I would IRR capital of XX%. oil [indiscernible] Vishal, we our I that supplement you If as heard at may business in to committed for allocation kind our with pricing, the again our group average. In gas again, the any Prachur, project of will is barrel CapEx we go from our group, case group and gas, oil pricing. assume numbers, internal higher and of per IRR Even that than on $XX

Vishal Chandak

the proportion So probably than the a and we are lower still should steeper far zinc somewhere saying in [indiscernible]? that share down? there business gas be is the IRR higher a its origin share gives what IRR the because IRR business means the generates and over oil you highest Would overall or of EBITDA, that that be correct and

Sunil Duggal

No.

than the structure more business. and line. gas the then duty, sets back profit of goes the it bottom different because the entire Zinc XX% oil not gas flows much But price to and attracts up the is contribution zinc. LME business, to goes and of that increased any oil is like such the calculate in cannot And that structure You the petroleum. than

Vishal Chandak

on gains I other I especially and businesses return with question declining. that write-down, fairly for loans. the with and our to on investment Why possibility further in the aluminum higher like the opening continue own returns, spaces kind are that to required. windfall trying the There of was was up, think tax propel important the a continuously where Sales gas to this still we an IRR higher probability zinc other mines not do government. there want coal investment better try investment? this is business, from is is oil a Why where compared are and

Ajay Goel

keep And That our very is we we number an our eggs one to into portfolio basket. don't call want internal put all diversified that one.

security that discovered it to partner the domestic a of want the by the the for contribute a energy country new in want And and actually we OLAP, we we we resources, player is the we that country role are who want with And coal in other country the The only is XX% fields, play methane, India's about important, very important excited methane. where that. production. to small evaluate private to remain very

of India So there. And ASP you participating made of how apart that have reducing new come at policy the the more the to the with book what these we favorably to the be And mindset viable. projects project, in can a import. even as country most projects projects will and gas the because to up table open remain and be quite is look for suffers the of done they from oil the project But that to to the the of putting up that, also our because partner on to is the see project, with across make why government make open that viable to keep even cash see this viable. other with placed needs they us to have

Sunil Duggal

I want allocation also to more just a to of See, capital move and of IRR points and here. also two is add function resulting the CapEx opportunities.

portfolio or, necessarily is it say, between not to other. either one So

$X at If guidance our current you look year's billion. CapEx, almost on

as oil in I net-net, capacity and appreciate, XXXkt. at $XXX almost million in the outlook. discovery in CapEx And one maybe [indiscernible] past. forward-looking example, investing nature the XXX a billion of pay terms almost should back XXXkt look of as we aluminum also rolled $X smelter in production the in business perhaps it gas so mean, to would half is Balco, pm. terms of will the are for finally, as Same production example, fact, expansion you in So of that, well. And one

a bit got cycles. and And there in be that might can downturn. case, to invest So net-net, In resilient of we our market the becomes portfolio a all it is businesses. we the deliver the a across in businesses, where

Vishal Chandak

very helpful, That’s much. sir. Thank you

Sunil Duggal

Thank you.

Operator

Thank you.

Next Rahul from line is from Systematics. question ahead. the of Jain Please go

Rahul Jain

Yeah. Hi. that about there we Thanks is a plans What have? to do hearing year? taking keep next commitment -- the one firstly question. Sir, on are press months for my one your in six question. actually business. we any my we in semiconductor first And the That's lot doing -- capital

Sunil Duggal

government made has this the the semiconductor very policy where the for they that is strategic how it. government is is deployed make they why country concerned, So the given the moment excited each business country, the the and also And India quite is a policy. the can this as inclined far quite state support of of sector is new in as work have sector where about to the state that government,

are to currently, make ready all we the So and in project viable. And are with the to state shops to make they governments. us available engagement exciting various

location, us are we you as So final we will hear the evaluating and will progress. from

Rahul Jain

the exit. likely so And on Thanks Yeah. will government Zinc, Hindustan that. for sir, also

what going the So stance are and is our stake increase we participate in our exit this? government or to on

Sunil Duggal

So government is its doing process.

consider. definitely offer, of X% beyond We at point any whether cannot are any sale And us than limit, time. acquisition year But will now. would legal given will in stake or we if we appointing more acquire the in in any they of we banker case, government the on will request Depending XX% the to the evaluate. participate

Rahul Jain

And any lines? similar color an you on Balco, on have if

Sunil Duggal

information No, Balco neither forward of government we as of any the way for far made grows. have has as our plan as no now,

Rahul Jain

Thanks much. Okay. so

Operator

you. Thank

the of is Ritesh go Shah Next Please from from Capital. question line Investec ahead.

Ritesh Shah

of my billion which parent, fiscal, the around you Thank million. [indiscernible] the included for to color Sir, sir. for $X.X for it and pertaining question of my around some the interest first able to be provide on more that? million $XXX cost $XXX around Hi, would understanding, ICL profile you the opportunity. was To

quite I will you The be road to that ask a so is could payout much. fiscal. the full If on for you the Thank I'm also reason, help quarterly over trying here, understand useful. map this

Ajay Goel

I'll Yeah. brief this kind a be of on one. Sure.

in terms being Vedanta for fiscal the Just almost billion, the current one $X.X of $X is the for billion maturities Out interest Resources, number looks of including $X right, ICL Vedanta $X.X HX. fiscal billion, -- which debt. are cost $X.X for in which, full call, you're and billion, at know, yearly of roughly basis. leaves all total billion combination but terms Limited as due we that is of a the external falling in is -- out VRL, of

$X.X of So second in billion, HX billion $X.X the in of half. billion out and the $X balance

receipt is about given Vedanta the Vedanta the at dividends You $X.X by seen, recent interim Resources may Limited, have billion. two

interim first of dividend. out the roughly from second $X.X and billion the $X So billion dividend

And bankers Roughly a Resources, dividend. Vedanta got is billion $XXX also, $X.X of fee. Indian billion. including we brand So recently is couple PUC million lending finally, it It $X.X makes to SBI.

billion all So roughly all $X.X secured. that, of with -- the is already of and $X.X billion

maturities. with quite of until terms meeting the care that, reminder And at those of So Vedanta are comfortable amount, X.X%, November, in feel Resources. early we December, taken we X.X%, fully

either or refinance them? So repay them we we

Ritesh Shah

useful. Thank this. This is you super useful. Extremely for

understand if I India question, at the to which and pledges of are level, wanted encumbrances, another Vedanta possible. extent it's there Just

Ajay Goel

See, you of that our statutory one might of are recent seen Limited, pledged. Vedanta Vedanta for have Limited filings shares none

minority. cannot borrowing, which while there means promoters is non-disposal under Of undertaking course, one go the

Now shares. is in to is of legal it second pledged, have as loans If we of that but encumbered. not I requirements Limited part as Zinc come no for is the shares. Net-net, CB Vedanta and also per reported terms there it, by XX% Vedanta Hindustan pledged pledged

you zinc So one XX.X% loan, stake will remember, was X.XX% for number, SBI. pledged of that with is roughly

come So to XX.X% down has X.XX%.

Ritesh Shah

you question so here Thank our any be for Sir, earlier one indicated Thank BPCL, updates had you much. And we would for [indiscernible] specific that we submitted had that Videocon useful, over ji. so Duggal sir? in [Indiscernible] calls much. and

Sunil Duggal

Videocon government -- this doing think far the going legal is the the is as we when has time. process concerned, is come, No. BPCL to point on. process will that And of been And as will process. at

Ritesh Shah

so you This Thank is sir. Sure, much. helpful.

Ajay Goel

Thank you.

Operator

Thank you.

Kumar of question ahead. Capital. from Please Prashanth from is Next Dolat the line go

Prashanth Kumar

good Sir, evening thanks opportunity. for and the

amount? pay the for -- parent. FY to And is the our So just of what are that 'XX, expected we the where 'XX, Sir, sir? at we royalties to understand where is that what and wanted FY that was latest

Ajay Goel

so In was fiscal mean royalty has of rate you as Right, be last the broad in or current as same year. current We almost the $XXX got will the entities pegged the know, FY last same, $XXX (ph) remains Prashanth. think this number agreement, not the million. million you year, the revenue. number of I royalty million remains coverage, for $XXX years, 'XX, in couple know, largely almost The it the is as terms terms that of changed. in the and of

Prashanth Kumar

knowledge FMCG, industry aspect. cetera. our pharma, practice. sir, et in one metals is questions where example, or a is Royalties just an of is is two on to Sir, entity, that kind there widely a combining the patented this. prevalent. given and this being generally, in But Super, for industries That Sir, IP setup, sectors auto brand is very and Indian very not well-established and then,

Second, by to what raises add that dividend $XXX then Anywhere instead valuation let you add parent. rest assume of XX% you'd immediately it the does the us XX% let's million, the say, to the comes to back giving But minority. pool owned back a billion. The this back pool. anyways royalty, $XX it goes billion Out dividend that of to by you your added immediately, is, $X is parent.

benefit So get is it. That's billion market lose a in $X.X they value million. what net $XX

On have the would otherwise -- otherwise directly cash, that gone as that come have them. to would

investors overall some a is Two, be would -- overhang. as is very be see in this the the one. may good it that company So that because multiple there and feedback. also an our getting rerating be This wouldn't the it yields in

share on also Just please please welcome insight kindly and sir? your your thoughts are clearly this,

Sunil Duggal

input Thank approval gone that the by viewpoint could and the convinced gone legal Board and process you It and is a after the fee. viewpoint. through expressing. stakeholders parent, But substantial you. there the have the members through. required and and royalty the the done value which Thanks is that your personal Board that addition, And the is has be all all are are approvals for this the

So that is what my broader point.

Prashanth Kumar

to This that April. move, back one the it, based question never on saving sir, et out Sir, a think, hedged did generally, you a is This your couple on in the extend has was cetera. Vedanta thousand turned in sir. that I or about fantastic be Understood, turned forward. we It based what crores sir. decided Okay, has company. when for cetera, my March of the et is, thought CFO, hindsight pricing, second the is then market, their to volumes process

to you what you If to call your you as could share process made this thought together. kindly take team your and

Sunil Duggal

which No, expert board. done expert we the who desk up this and global by was set hedging internally hedging set the And on was have a also has up come internal done the the on based valuation, headed based advice. on

It was benchmarking call and the which on depending took point time. a strategic that that very valuation we So was a and call at of taken.

Prashanth Kumar

Great.

Ajay Goel

which, management very -- never the It mentioned as take tumultuous to has quite Typically, You dynamic into volatile. must earlier, must be hedged. a you environment, has current Vedanta, risk that I appreciate right, process. account is are

But me and course time to this to margins. hedging you're that was correction. a the the expertise hindsight, in fine of the lies remainder, the capture month to within the given are I mining. for on down, very a step. had terms production. if that We is the we right to uncovered protect again, the think going in right, the of make But XX% losses, hedging. LME not which far, extent, And also a But have Vedanta But to to good add way hedging to been the at Vedanta's far that significant make than decided don't we glad look in and tool means short metals right, Hedging again, the pricing [indiscernible] is money. we frame let protect we our is average was. you're that it with pricing where that up could would margins. and one-fifth covered the portfolio, the it Imagine, are higher volumes

Prashanth Kumar

barrel? of level, on EBITDA it participant. what government $XX the it more, taking Perfect. et be follow-up much sir. per away Sir, the the will the or all At less sets new Is after contributions, accrual, previous one from the XX-XX on all EBITDA the, sir, on And is or cetera? how

Sunil Duggal

calculation, that Prachur? have You

Prachur Sah

explain I can I Yes. little that bit. a mean,

out government So us at hit our in government PC the EBITDA our trillion. EBITDA barrel part $XX of $XX, almost level, the barrel because as share, directly actually profit doesn't of a at because on pays $XX $XX

this at to around net so is barrel. everything and the have $XX effect So it $X could to thing realize that a At on you price is was price, $XXX, be $XX. and $X scheduled post EBITDA a cost

at $X it's about that So price, [indiscernible].

Prashanth Kumar

Great, sir. sir all sir. Okay, Thanks, best. the wish sir. you Understood, and

Operator

Kotak Nevatia Thank line the Securities. the Please from gentlemen, you. go Sumangal last and Ladies ahead. we'll question take from of

Sumangal Nevatia

should that Thank look at possible at record how almost has pay we an XX% My time here agreement, this for other Batubara business to availability is unit and is about to on is division. if you The it and a was And just power, because INRX.XX PSPL business? understanding the a XX%. can of my chance. the earnings our per Yeah. the between or it explain for breakout least PSPL you been of load take kind question first margin is the share Power

kind rate EBITDA modeling were of we [indiscernible] is underscore annual expectations. around basically So run our INRX,XXX which an of crores basis, on but

So requested? just expansion some on is that

Sunil Duggal

than not. In the is first have the depending unit one goal shutdown, paid major is that the annual a passed the in give shutdown of over this we that availability availability exact contract be you quarter-to-quarter belief you tell this the that availability. availability. due construct the that The of are could more quarter, But whether an quarter on year, the but me taken. on through. while construct we availability that In we shutdown The of on basis. the calculation, let our this annual the our will vary need The contractual certain is is contract. or is based will And

Ajay Goel

in interested power the number IR There are across you're entire also wind Page if XX, PSPL power. covers Balco, more breakups our P&L presentation, it's Jharsuguda, zinc which and

Agrawal, our you IR want Sandep Thank of write information, Mr. you. refer to If paper. this do or more please Head

Sumangal Nevatia

right. the mutual commentary. And on Okay. as follow-up and our All one coal mix just

with mean coming quarters? of share you you I and this is repeat explain If are just our the how what we mix reaction increasing? linkage And some the mix changing? chain? supply could So is the is replacing in linkage imports some can or if just whole

Sunil Duggal

mix No, purchase, quarter local e-auction of coal, spot a the purchase. linkage, and the was last import

we and linkage quarter, a of be believe will combination it e-auction. This

XX%. that Rahul auction between between vary around XX% friend, and somewhere As somewhere to the XX% said could the could my be linkage

Sumangal Nevatia

inventory we peak, Okay. And and sort what the many and inventory, of can the at what linkage days peak of do carry? mix be our how

Sunil Duggal

Rahul?

Rahul Sharma

last question talking there question, is five from we quarter days be are previous the just which would me has inventory the we inventory, six another about answered. what And already let than better So the side. Sunil what have to answer

will depends In terms but we ideally, XX%. be on of my But linkages, of I almost it contribution, have [indiscernible]. XX%

also is hope is XX% to there that is I XX% a play one growth will getting from a have So both answered some bit started now. questions. that (ph) from XX% moving [indiscernible] I and we a and XX% captive role of said as your

Sumangal Nevatia

and you best, Thank all sir. the Yeah.

Sunil Duggal

much. very you Thank

Operator

I much. you now Agrawal Thank Mr. the conference Sandep very for to closing hand comments. over

Sandep Agrawal

you for Nirav. feel us. case earnings questions, call. to reach further today's Thank This call. for questions. out next to you quarter most of Thank hope, reconnecting able you. concludes Thank you, all time answer look In out your have We we taking join to please forward to you were us. I

Operator

Thank you joining Vedanta behalf Thank for conference. On concludes very Limited, us. this of that much. you

You may now you. disconnect Thank lines. your

Vedanta (VEDL) 30 Jul 222023 Q1 Earnings call transcript