- Earnings call transcript Q2 2023

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Operator

Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY 2023 Earnings Conference Call of Vedanta Limited.

As a reminder, all participant lines will be inline 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. Sandeep Agrawal, Head, Investor Relations at Vedanta Limited. to over and you, you, sir. Thank

Sandeep Agrawal

our transcript Stephen, a pleasure you, FY earnings archive and made will to hello, It's Agrawal. XXXX and with Mr. website. on us, CFO. Duggal, Group audio financial CEO; An Mr. Sandeep I'm Goel, are call. The this leadership acting to our our press release, available XQ Sunil call From on presentation be everyone. Vedanta's Thank of welcome all you today, Ajay Group and statement, already website. we have our

statement leaders also joined Prachur presentation. the our are Oil Arun by today's We on Mr. Deputy will cautionary Mishra, - of by & slide Mr. from Business; two discussion key move Please covered entire Zinc of businesses, Gas. CEO, CEO be Sah the

with update for floor operational on open performance and questions-and-answers. will we and will We start then the financial

ado, further without the Duggal. hand to Mr. Now to would call I over like

Sunil Duggal

Sandeep. quarter Good everyone. you, for you Thank call. earnings Thank our second evening, joining

down global all food shortage, macroeconomic broadening on. shock, been aware energy You tightening banks are Ukraine-Russia pressure, central dollar inflationary economy that and the netting has from Most challenges, so appreciating facing have war, certain been recently near-term delivered macro tame of the during quarter. commodity to have businesses cost with key Despite and operational monetary policies prices optimization production the quarter. macro performance challenges, challenges the inflation. strong These during have weighed these we growth in

free This, CapEx INRX,XXX with us working of have streamlining of crores. generate investment, along to flow INRX,XXX free achieved -- EBITDA consolidated robust We helped capital structural cash crores. a our

helping us quality, asset of around digital to our excellence are potential of transformation, center designed Our capture full assets. optimization,

at projects integration reduced very are volatility vertical progressing market in growth impact aimed Our well.

first mines. annum the mines, take mines XX coal of These care to two six plus will entire won remain recently stronger Vedanta All which per of a which of we coal of peers. create distributed have yield have potential, structurally more INR be sufficient help cycles have XX.X%, financial into the make half share, along to we one translates levers contributor than XX with predictable performance year. welfare. first production In INR for worth tonnes million Vedanta across for committed child with and Now, create to people's half all In contribution these make pursuit per our dividend will of to value best and Ghars us of value. Nand and we the deliver it to of shareholders. business milestone one to our dividend and is Indian We of strong. sustainable crore aluminum Group the have reached in highest year, women amount stakeholder requirement exchequer XX,XXX life, the uplift X,XXX financial of

cancer drive in Balco Our Center MOU with care. also has Center Medical to Tata excellence Memorial signed

track to happy well. of Our globally pillar improvement. of XX Vedanta has are ESG global I'm achieve Xth that been strong score DJSO ranked planet, program entered exclusive club target. on very Under gigawatt we has to energy the share metals top progressing mining into transforming point the companies, and XX renewal with X.X ranked the

achieved for We iron additional our XXX-megawatt entirely positivity. renewable synergy. the run have procurement. HZL EOI business unit Cairn first issued Pantnagar to is ore now on have water assurance RE and for third-party

continuation who diversity CSO waste leaders women and have identified and practices to roles. utilization new are we our on R&D being also developed inclusion, progress for on industry-leading steady making In for We people are technologies. future XXX

for [ph], Shakti We women leadership quarter. development We a in are third programs launching

capacity million Now We the let tonne ramp-up X.X the move business. us annum. to per Jharsuguda business verticals. Aluminium to Coming first completed to

by X% to X% by per X,XXX Quarterly grew production quarter-over-quarter. Y-o-Y and reduced aluminium Our tonne. X% COP

to Chotia rationalize operation mine Coal started XXXX September in coal have We our cost.

XX% to from which to plant. from improved three mines coal We linkage the coal daily captive move a the XX% basis, or have also quarter. our rigs material in Our availability, on now materialization

production continue predictable now It focus production and its quarter production We volume all to to to XXXkt, overcome improved and focus projects and sustainably MIC annum a are higher availability. operational future. tonne highest efficiency. Y-o-Y is across driven near metal smelter million in of sustainable XX% on recorded Y-o-Y. second India. and achieved XX% Zinc Coming rate. of production best higher with improved annum cycles. ever per through XXkt XX% growth by integration run International. quarterly variation production million have increase also X potential recoveries. mined refined to at operations X.X per by Y-o-Y, this run plus Cost Gamsberg grew ever business quarterly achieve the Coming and next by metal ore better up tonne performance of vertical The rate Zinc zinc Silver to driven The

now and of and XXX boepd. production pa We operations about gas production X Zinc largest field. was current With gone the XXXkt decline infill Phase Natural plus our wells handle average the learning the oil XXX ktpa size to operations. was offset partially in in rate globally RDG will In operating and have Gamsberg X operated successfully expansion, business, MBX at by gross through run International difficult quarter. among at ore be curve

on projects. are focused delivery We of growth

QX, the in during increased up $X.X per quarter. and $XX.X activities. by to prices wells polymer per barrel, We due eight have barrel maintenance hooked increase OpEx

years. on another pleased shale framework with I'm within of our engage build to block and and with that We wells have To extended potential, PSC continue partnered Haliburton excise Schlumberger government to RSC. duty private establish for inform Barmer. the you in has PSC we to for special XX government Rajasthan

infill looking promising. campaign is Cambay Our

and to three barrel Discovered third methane iron well business in in XXXX has Coming regions. in block online round Small special helped to in online September bed production secured from came one The XX,XXX Fields and ore. The offshore coal round increase and across X CBM blocks X,XXX partly.

India of Pig among iron increased our duty. prices duty Y-o-Y, sequentially. margin sales government and Karnataka production pressure, fell know though because on of lower realization impacted export our to iron shutdown import was due XX% blast furnace. you Y-o-Y pig basis others. ore, iron of by Our X% This a the smaller The under of remain

FACOR, activities steel, have our export price impacted XXkt and quarter reduction planning started shipment operational efficiency, first July. XX% Y-o-Y grew saleable was debottlenecking depleted decline this production lower duty shared with on kt to current In three. and production by for from growth capacity We were shutdown quarter take materialization high-cost Y-o-Y in we quarter. our due inventory imposition, Further in with from margin by of of cost the lined driven However, our ore XX relining FACOR which the debottlenecking. a We're of XXXkt. CapEx furnace crores, key production coal in mines ktpa quarter. grew furnace successfully XXXX majorly and in it's high-priced commissioning XXX XX% total July. account inventory in December ore of two production to, Liberia XXX Y-o-Y; of taken in will up completion in to EBITDA ferrochrome at coking as steel INR XX%

some the Europe, may terms lead continued have cuts that in amidst metal provinces of been production supply. outlook, Chinese also Energy In shortage and is you of high aluminum, in zinc impacting costs. energy noted have

reflected We Indian competitiveness, events, global while fastest insulated strong to collection, as the fully also economy from it is X.X% boost the relatively a credit major not expect and industrial of warranty Indian continues projected robust government to Chinese government amongst Indian capital demand, at resilient production, stimulus is increased XXXX, tax effort economy in by nonfood growth. commodity to expenditure economies. support is global demand. export grow

restarted being with the lull, for strength Following our well largest market, in market consumer continued bodes construction monsoon now. well India and augurs is business activities This durable demand India. metal our for performance. have vibrant

set macroeconomic world-class and an transition. and Ajay from and and to have low-cost and for mega outstanding With to Shri rich commodities well our now, friend decarbonization energy We strong sheet, for With hand transition I over vital positioned foundation would colleague, this global withstand a to diversified remain of my assets performance decarbonization producing Goel balance financial benefit the microphone long-life CFO, challenging environment. portfolio of the the the we trends global like

Ajay Goel

good and though towards in many likely consumption, is has commodities economy and and which was of the to the environment softening been input position in The quite quarters. domestic indicators. is with Central The policies outlook quarter evening, better the in macro The coming tightening impact indexes is bring off by various inflation economic fiscal global Sunil, cooling to optimistic Indian positive monetary also of you, in changes. results India's are Thank operating The far Bank and prices, cases. several plateauing mixed everyone. evident compared policy monetary peers.

initiatives, and various in pricing input pursued softening have outlook This on quarter, we performance despite resulted side. strong inflation which

revenue by quarterly cash and strong cash by the us robust of flow driven in before coming initiatives number optimized we have working delivered continue capital reduced terms inventory and have XX% where very levels. CapEx, structurally of free days should quarter-on-quarter This to businesses benefit which Our is in quarters.

returns attractive shareholders, with highest on XX.X% yield. remains dividend to focus Our ever

we at billion Holdco, leverage I'm ROCE share next Our deleveraging of X best to well strong commitment that happy steel years. as XX%. which X.Xx are the at amongst peers is Indian three progressing over a on is

environment. very by $X.X the clearly first the results deleveraged in operating year Holdco have QX We the the half of of are The is reflection billion.

INR margin CapEx of for the of highlights quarterly more cash of flow crores, up key EBITDA of EBITDA. note XX% financial controlled XX%. Quarterly X,XXX revenue before of with Y-o-Y the flow INR that the crores you the strong some Free than EBITDA cash XX% and is INR quarter are And XX% Y-o-Y. X,XXX of of crores, free free would CapEx X,XXX quarter lower

we we interim ratio Indian payout India. by Xx maintain which number crores, past. in the equivalents maintained debt with first amounts paying leverage best of to total the of conversion paid of cash cash of improved INRXX.X is XX%, at INRXX,XXX peers. the per EBITDA, of cash to almost share, X% INRXX,XXX company second the dividend INRX,XXX crores, for to recent of to the amounting second ROCE business share dividend INRXX per almost levels finally, one XX%. to which net half in amongst at continue crores low higher X.Xx INRXX,XXX that of quarter, EBITDA the takes all If And and crores So last healthy ratio has of year's

our income against is various where profit mix line the an have to profit now in state and that by XX% appendix, I businesses. be page against amongst XX% information This change around full the movement account. you earlier. wish statement for loss We will more XX, can number find driven guidance each year ETR of in

Now I move to EBITDA bridge.

cost impact have the the also second quarter-on-quarter, of prices benefited through and driven as market also also off were several bridge, businesses We from impact in the of on some partly to is So better helped operational tumultuous set inflation, from extent by the EBITDA across the strategic tampering input clear if partially which factors the measures lowering volumes with cost been hedging, see macroeconomic major which performance market-driven from was Similarly, factors by pricing. and you strategic and bridge Y-o-Y to EBITDA led versus navigating impact hedging. last us year, environment in increased coming quarter. offset

debt on debt. the at on strong we Moving INRXX,XXX I initiatives, which mentioned cash free beginning September bridge, debt various in page net resulted about on quarter. net capital, improved to XXth working on due stands The group second at have crores. decisions. the as the quarter before as in Net through Again, amount to enabled in in QX which increase crores, sequentially in us dividends quarter-on-quarter INRX,XXX CapEx is invested to to CapEx second declare borrow through flows the net amounting in interim

balance the sheet to now. on Moving

debt our balance net for as Indian peers. remains growth. Our X.Xx, protection We within resilient, capital achieved allocation and optionality I and best to range sheet of well framework mentioned, providing the both among EBITDA,

borrowing with of Our average about X.X%. at X.X at years maintained maturity about average cost

credit at continues stable AA be both CRISIL. with Ratings to outlook, rating Our by and India a

both investing remain discipline. for term capital committed and terms while longer are allocation in the We future to of for themes, positioning portfolio demand value growth driven

as Our are track on CapEx planned. programs

Golden billion, first on billion. revising basis, growth year this, the in growth in Peacock outlay which we business We to guidance estimates, was the with for INR is CapEx. of INR growth recently On planned. from billion are have programs XXXX, spent to X.X year as the for billion line guidance all for a cash full Vedanta on remain X.X year X half CapEx X.X INR aluminum track INR share at CapEx stands full corporate growth With in have that Award now governance. excellence I aluminum Global awarded the

dividend. expertise and we for handsome to and invest continue delivering to an reiterate, long-term vital of a to portfolio carbon like I'd pay Lastly, outstanding have in assets low growth commodities future in

We goods operator various over I cycles. you. will the back across Q&A. ourselves this, challenge continue With and Thank deliver to hand for to mic

Operator

from very you Indrajit CLSA. go [Operator much, of first ahead. The Instructions] Please sir. from Agarwal the Thank question is line

Indrajit Agarwal

Thank Hi. Good you the questions. opportunity. for I evening. have two

a is two-part question. First

XX mentioned so about that blocks you First, million tonne of you capacity far. have coal won

of So of we if to savings there? you as what and term. near more cost some be is these from the production give us part kind Second can can what guidance will expect of

is You aluminum just quarter, have $XXX a convert lower cost for half, X,XXX the than about the to which X,XXX production second of current second quarter.

on linked And the drive Is coal it So coal question is this hold cost reduction? more last would what level. availability? my

side. the Thank for my If FY rest is effect? remind you. us also repayment That's XXXX of view what and from in you all can again the

Sunil Duggal

Thank question. you. first your take I'll

that allotted Kuraloi, attach to coal What we now So Radhikapur, you Ghogarpalli we rightly as Jharsuguda, blocks Barra. said Jamkhani, for [indiscernible] six Balco, and we us. at have

The speak land is regulatory the So to place. the feeding start from any commission in we our the hand and is XX% now. are clearances we day all production the to [indiscernible] now, as in in Jamkhani operator about are to put shovel today, XX%, ground. about Balco. All and and coal started

even moving to which forest mine start Kuraloi land, won substantial place So process that that, the feeding diversion, had which taking approval, for including Jharsuguda the plan clearance, coal there apart mine, we environment the Radhikapur very soon. negotiations will earlier, place But mine happened, you license it aware this taking progress, are mine is has for plant from and tonnes. reserve million has acquisition line to XX the Ghogarpalli billion a also have in And of around tonnes. land. a we tonnes XX Ghogarpalli has capacity for of you the the grow this of quarter, to know capacity and that But mine. X.X last million a minus won

very won. has data recent a it So the exploration Bara results more a around million is we an like is XXX tonne. It have, as have block, block. But geological which we of

So XX this can to XX tonnes million annum. per million produce easily

will a million very is from is capacity, So mines XX tonnes. million, XX capacity it million But in total, these it around conservative take tonnes. full XX the

is will operational. far there million, risk the out should And be year, the X.X take going are security what GCV. how the So, to tonnes, if how a have to able per even we million be make the that from these start INR mines from will is reduction, mines coal fined. say, much get XX XX or maybe long to which There From made INR going very current per place progressive we today. year. We risk the a it open is year-wise to the up to how not of have X.X plan at hitting and GCV road from,

today. the have cost of three quarter. This current X.XX, which X.XX, the from years we INR comes So is in than a we against out power of so we X.X, to to But had the in INR cost quarter. is between substantial there work $XXX maybe or in per reduction going INR be tonne the [ph] power cost it current the actually last somewhere more $X,XXX which cost against in at

the coming are plan of years. in to controlled be there So solid very how prices the going a fuel is

So what was the second question?

Indrajit Agarwal

cost near-term reduction dispose? aluminum in the On

Sunil Duggal

Yes.

guidance, we So had $XXX given you a reduction in must quarter that we cost a conservative have very have two. noticed

from And from now quarter top -- the the looking levers. power. with have The $XXX quarter tonne cost power say us. last total mentioned also reduction of in captive reduction the $XXX from $XXX, various we are We in of three I $XXX, track was coming rates the reduction that a three cost, the only at per available

we With the are captive rates, to of substantial to which three the are Batubara. coal us, with available move able quantity

logistics to cost. this help So more reduce get only will the not help coal, us also but to us linkage

we I city coal that that, of But also a to although which other cost to the the So because happened, much impact there by from are got the the going of this efficiency. quarter. controlled. has moving But a to we road city pitch, power option extent -- and the coke, reduction quarter the improved get XX%, linkage two, initiatives -- will not the of from think are prices the apart have operational higher XX%

We have -- we of into the certain will strategy depletion of brought high-cost and alumina available alumina where of cycle course, the have around be how these the getting down. prices current And prices. cycle at the

in have I $XXX of should quarter. So we current factors, that reduction a combination three $XXX, the cost these a of believe

Ajay Goel

question third loans, under we of we total including the can Indrajit liabilities, in debt. the look combination what HoldCo do, a at the the maybe can is On of interest cost. And terms which bonds,

current look mostly the may fiscal liabilities the cost. repaid have PSU the FXX at the are and at about through two X VRL Indian out total about you HX, $X.X and and of If the we here and maturities billion with bankers billion refinanced lower balance dividends go seen the longer-term which

get billion In in is HX debt have mentioned down from almost half, to second billion, first refinished. $X X.X% net-net, came is liabilities, the So billion, interest about half, and been $X.X as deleveraged. the including against which cost liabilities, $X the I In X.X%. initially, again VRL mostly

So, the X.X bonds, loans, a and almost overall, costs in fiscal, X-odd current interest is deleveraging. billion of billion, combination

plus billion costs. Now FXX, is bonds it interest more is loans same, again, liabilities, and or the X less

the maturities billion, to net-net, which stake, one $X and to billion VRL repaid that also in $X.X FXX, of and the for which loans which the $X from both FXX, unsecured and increasing did in from were debt the are years fiscal. Coming is mostly a wish maturity are second FXX. billion refinanced, most secured in half. $X current emanate the FXX in of bucket is So billion I point most the of taken just getting make deleveraging the easier

Indrajit Agarwal

Thank you for your elaborate answers. All the best.

Operator

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

Amit Dixit

challenging in everyone, a congratulations evening, set numbers and just couple very time. for a Good of Yeah. questions. have good of I

The first on guidance for the Balco increased essentially is CapEx one expansion.

because Balco the revise very increased could some Vedanta to on goods, unlike key first on has of cost question. if you so this could it elements light that throw throw CapEx the you the in of to key If led light elements expansion? That's is

one in would questions gas sharp to that these I guidance. production able think out second reduction oil FY Do are two Analyst the is the the was The number the you achieve and March? laid in on So Meet in you have. be that XXXX

Sunil Duggal

So of take the to and my there second Prachur who help also for friend, first question. your I'll on call answer the is the Sah. try And I'll question, colleague

So CapEx Balco the question cost project. first is about of revision the the

as – with So in would approved three We this of had that two, similar the remember got is you the parts. capacity project smelter production. we billet

are there is time, the things. the happened. bigger alloy this. from and be it the project, right which that, two, to get should portfolio some events place could has taken a value-added the has part it not the accepted increase, be There the be such CapEx market. we there, various was of could have market it that, some that, right So One or commodity by NEP be and there beyond the three are of from scheme right what product what cost foundry the product primary have seen things because the way the increases the But which should And of is prices majorly, happened.

capacity ktpa to we alloys. foundry add of primary planned have XX So a of

XXX to here products factor ktpa. now want XX was from the we ktpa that XXX this be And other earlier, to ktpa. the is capacity to increase capacity rolled The sanction

we rolled to this While of good executing that are product, project realized we capacity. is the it have

with XXX the product, ktpa will billet. our XXX PFA, of that, be So ktpa XXX smelter capacity rolled And capacity for original the final or kt capacity. along for XX

XXX%. So than this total to the more capacity will take WAAC

So, say, around XXX%.

market the this in enable will cost factors which premium and And the increase will on right that to four a So serve wider such happened. is portfolio. three, has why the as us -- also

Amit Dixit

gas production and Oil

Sunil Duggal

Yes.

as project So production, oil Cambay able and acceleration guidance and current Ravva. be in speak, the and And next by to well advantage month. -- success, on and happen. also infill. also seen come on And gas year to success the which intervention been we the actually RDG decline have back, the from But we come have from depending more we some may while will but some some production, ASP has doing majorly or

will explanation. going the Prachur, is over little this volume for to before to some course, detailed these time take for realize us. a projects But, Of more you

Prachur Sah

you, ji. Thank Duggal

change we some a So production Duggal a offshore in to And in one, had the which -- from is one, as are operating ongoing a the there of the offshore, had potentially from point breakthrough where deployed of to And a from was Halliburton for on view, second have success Cambay currently we we one NBFC third And and we QX, is production, our increase well strategy we XX,XXX. successful drilling first or line to had have have production mentioned, which impact ongoing the was from from that. polymer we success. is -- FBA the the impact primarily in chemical [ph]. Ravva but campaign, drilled we we slight our recover mechanical And the where where currently to of and overcome a in X,XXX offshore Schlumberger ji recovery are with have now. had

short the sudden bring labor will the back in So up. the production are term, that these

itself, we of an have in to uptick one. fact, close in X,XXX seen In this October

we have temporary was extension that which exploration which the back of unlock long you've And the does period. got In the program, kind of exploration will continue. as held terms the term, extension heard, during

bring go the that we volume on next growth the back year. the as should So robustness into

Amit Dixit

factors correct are nutshell, these in a now in So it Is because off table? the production temporary understanding? NBFC, the back, should the come

Prachur Sah

Yes.

would are decline to that -- offset the compared which more to moving mechanical natural measures workover basically, taking, that temporary is the the be workoever currently happening we a was chemical So decline there. the by

Amit Dixit

Thanks best. Okay. the all and Understood.

Sunil Duggal

you. Thank

Operator

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

Ritesh Shah

Hi, questions. sir. Two

question loan it First at of thing. sort three are is semiconductor investments rate. broadly What we Sir, allocation the looking company the capital first parts. just into first that clarification ESG. the level That's around business parent some advanced has the first, on Sir, question in new at level? versus

Secondly, we And power allocation. That's on And announcements Thank have where expansion. incremental to second three we debt ESG? parts Athena capital first do you. this upstream on we is Balco question. with at on the are process? and That's more manage How the third, second Hindustan Zinc, maturity OFS, VRL? question the profile on

Sunil Duggal

Okay.

hopefully asked in too Anyway, you many reply So two questions. questions we that.

on not I untie declared that be And [ph] for now. able that lie think underwear of that already to So comment entity, as that, have not this on does will call. I we semiconductor, in

as is we Although this hit possible. as And discussions project there going was and as ground one. are are to going hitted on the speak. soon This negotiations

that… said you second, The

Ritesh Shah

-- can Sir, entity, expansion just is so semiconductor I listed that under right? thing Vedanta Sir, won't fall

Sunil Duggal

now. Yes. That's declared have as what of we

Ritesh Shah

Okay. Perfect, sir. Yes.

sir. Sorry,

Sunil Duggal

Yes.

Athena. the there options And depending maintained written smelter equation power equation, far I based which which power call, -- to has actually on one carbon to increase -- concerned, Balco. through power is new as a to of the be we think for there is Athena Balco are We of footprint as is on this the will feed that. will going power because So don't study the

are you and tying network have not requirement and increase. other the you with given all the signed going have has of the transmission footprints in Centrica, -- of progressing which also part, XXX-megawatt is because set must from power, and XXX player, a the acquisition lot But may overall, of are not our of already in renewable progress have global of megawatt heard any there we another locations. way So of on land ordering to realized also power happened And panels. up LOI we EOI

our XXXX. megawatts X,XXX commitment by against more will So X.X this megawatt be of than

So power. two And on we a completely that have our like at you in moved is speed. of that, have apart years, heard renewable Pantnagar, quite from also some units must

year X billion in more from have current various purchased We the than already renewable power sources. of units

So any our ESG is commitment of question. above

a on jumped aims, is So, DJSI have by seen this are we globally. you committed, you must and XX seen and the points. is maximum has that on made why and the not all we any totally mining in And that substantial our rating RE, progress pillars all major global any mining only rating probably have the company have must jump

focus going on. Let's ESG a other on are lot which usage, there biomass are have full projects of the

in which was have We started capturing player, going the [indiscernible].

started have We generating power X.X megawatt out that. of

there large on of are number So ESG. projects going which are

from also trees, in X XXXX, have will committed have we period million We that in plant trees X the years. to million we XXXX two already planted the last

of million are planted. trees commitment X already a against XX-year, X So million

this in happening is space. which lot a is there So

Ritesh Shah

Sir, check? Sure, status the were Hindustan Zinc sir.

Sunil Duggal

you to good. because the answer, we the excited going hearing, also quite from the for is over are sell I'm into That a the as are are for road show, government to market, and what it for market hearing they

Ajay Goel

Ritesh, may answer. On if the last I point,

Ritesh Shah

total questions maturity. Sir, you one wanted I initial you And in that? to of FY in the on one of the think $X XXXX, sources $X in question plus was the refine half. indicate first on indicated know care taken three just did billion. I'll I the secondly, just billion for

any level get or are think with pledges wanted [ph], Vedanta already And sense funds you government creditors basically use looking NCLT those approval, can this? approval, one there to it fund And could presume we approval shareholder to are are be actually we nearly already is the at towards I if do you approvals get at payouts. to pledge tie to still XXX%. to up the two something a NCLT for Vedanta them other which RE got go income, variables, gives for I Just need to is And on pending? And level if how secondly, else? or GR

Ajay Goel

Yes.

I'll I Ritesh, briefly. those mean, cover one of So to try

you're So right.

source The in remains year, of terms So are X.X we the in almost dividend. current was mature billion. X HX of

You in second have quarter. the a and in paid quarter you seen the first the current first the dividend,

dividend, X.X is That a X.X brand makes So X.X refinancing. roughly X.X is is fee. and million,

refinancing Now current in including rate change done most a course, PSU longer year refinancings one cheaper at in remains of the significant that terms SBI, and of comes, through banks, which maturities. of the half Indian first is

So, fee see small. about HX, change. we and and as dividend mentioned, much in rather new X.X I don't brand billion, loans. is X X.X It's

of advanced with bankers We of couple PSU discussions various Indian are the a multinational stage in and banks. both

a is Finally, bonds, X Most bucket, as is challenge. the and on Right sub-surveyed are of yes, priorities will allocation XXXX the of capital remains coming about onwards loans And now, plan from three years cost. be X impact of billion is to GR all commenting and for this remains end again on lastly, I other Quickly mentioned. goal. XXXX conversion. almost of secured not Ritesh, X same refinancing over to billion number, billion deleveraging hence, our roughly RE maturities

seen You Citi last have may quarter. taken, from NSC approval until from was BSC, comment

one of vote as is so of meeting had, refunding was conversion for shareholders XX.X%. upheld court a that also convened it second monitored meeting, We a majority NCLT's last and with

is exemption lenders that from will one the are we Now any get from creators process secured step done, Once approval seeking the for released which finished. or last NCLT.

Ritesh Shah

hypothetically. quite helpful. That's the queue. quite That's Okay. in jump I'll

Arun Mishra

Thank you.

Operator

line Stock. Please The next of go Antique Agarwal from ahead. the is from question Pallav

Pallav Agarwal

Yeah. Good sir. evening

the this alumina cost So my for question quarter. was on

$XXX. of shows at in So look excess cost, the if it it's I

because the it lower So tonne prices be more make at actually per $XXX more for than to those third will sense would in alumina external buy quarter? least us

Arun Mishra

say, Lanjigarh No, of quarter, the I OMC around hot quarter. previous pattern some was for to one-time because higher, was quarter, approval And overall compared we of that think the last we the decreased also previous metal decreased -- additional shutdowns the and alumina by cost, taken the by alumina the quantity. And cost quarter. the during $XXX sale had

differential But alumina coming quarter, the current next because is in see there. the quarter, the will that up in the Lanjigarh. So production reduction cost of -- you from

Pallav Agarwal

sir. Okay,

okay. -- So

the sir, think, reported, thing other I The was, segment, positive a EBITDA. we've in copper

loss. were quarters, reporting So you earlier a

over So has this what to led improvement there?

Arun Mishra

the have material impurities -- changes material, through the some the have our material, that also. we addressed. structural started think is secondary of the or we overall blisters the here. have mastered process One And being art raw done I are modifying a few we the purchasing which

helped value, that goes to gives only some improve the cost, overall improved fishing ramped up, gives good to capacity the from up. the purifying this material solution the LME but nickel started not value recover has apart credit is of the this metal improve So us that, us which throughput, has the the like efficiency quality that current us

In are you quarter, the plant. which are actions Silver that. improved from for are pipeline. So there factors will even responsible coming performance the more in many see the There our

Pallav Agarwal

Okay. Yeah, sir. you thank

Arun Mishra

Thank you.

Operator

Thank the you. Wealth. ahead. go The next Nova Please [ph] question is of Kejriwal from line from Ashish

Unidentified Analyst

that is of my at for I'm in reduction the earlier aluminum my question. reduction also cost when Thanks question are have also, the Sir, that cost Good of even aluminum, looking in which evening. comment not Hi. last forward we does we power, Yeah. the the quarter, the taking reduction. kind again giving mentioned cost And in going if also. because on not seen satisfy in we power, kind guidance

have of come ingot I'm it question to cost quarter, cost of from to math it to this GDV to is When So cost, is has conversion come my are be comes X.X% And understand. we coal unable $XXX different per how around when then like talking X.XX, comes reduced at $XXX. reduction $XXX? I'm shooting $XXX to looking coal that related seen that and of also our question just per second like on aluminum captive to cost, production account this it be we up also tonne. So, about X.X% it's if

on rise. are seeing are premium And we So, thirdly, premiums also, side coming down. also are costs a still that on other

which is value this. So, are--? is down ingot we on coming elements addition premium it These three are or the which part,

Sunil Duggal

for and also. No. relevant question Thanks very your question

cost. So, could to come I first, if power the

plus. So, power around last quarter cost was $X,XXX

overall is X.X, X.X, current So, to falls to this of fall could for say, power overall the power down at number the was quarter. an that number you if coal average odd, the X.X, cost? out in coal say can $X,XXX work And the your down which or be cost what if cost the cost X.X% X.X%, of are X.XX% we to hoping

Unidentified Analyst

about you X.X% X.XX% versus or this else? were So sir, the something first quarter, in quarter talking

Sunil Duggal

yes. Yes,

to was cost coal it average X.X% quarter around around we in or hoping the so. quarter, three, stay first X.X%; are was quarter The two, and X.X%;

Unidentified Analyst

reason do kind we Okay. we cost. when our power reduction to guidance really in and that last And are level and power see in for earlier will not quarter, what couldn't in this Because about cost it was the our surprised quarter this, talking second. achieving to of mentioned fourth were come like we you the back which of $XXX about something clearly

Sunil Duggal

two, that. demand coal allotted extent and not captive movement was the for the that factors actually to in cost at stocks original taking two not up this allotted coal, these linkage But coal to move by realization have to Number extent. at cost what of did one. improved -- now hit which coal, from is we come and is larger XX% will IPPs the is core three coal which the means a through have would which of being the mobilized realization real lot rates, there have this rigs number had the from moment linkage the of the a we One was sense, lot a are reduced XX%, by of the when rail, apart coal through go coal the -- of There with railway. place is the power which had we and to even thought road

allocation and is But has there is a we speak, as a the So, movement stocks the the linkage happening. in substantial become much higher. quantity is -- IPPs which there

will two help a cost combination to down. things these us bring of So, the

I'm for factor, coal operationalization. cost, third have not when the the accounted telling Although Jamkhani the you block we

how expose it to further the will are us to So and the the cost. depending on that, stripping we reduce do able if to help able fast are we But do coal.

Unidentified Analyst

Understood.

from movement just of were we railway to of just still less XX%, materialization to movement because sir, railways, get clarification XX% able of So extent. to – from reduce cost certain to

assuming second surprised or rail be going from talking that we we rooted will again, third are are when XX% reduction, forward? through that to there could whatever or So linkage be all about quarter,

Sunil Duggal

still the relaxation, it road, we our not feel of costs Part the but will on will our will which the of combination that move allotment to total by reduce the provided to depend the rail. substantially. it will coal move own a No, that be and But we able railways. be also through rate railways, coal should brakes and

Unidentified Analyst

well conversion ingot question sir, as other on – is as cost. And sure. Sure, next premium

Sunil Duggal

Yes.

reduce the substantially majorly – the coke CP we have bring CT as and cost or to XX% down coke This prices Pitch the along by definitely on And high which the we on the portfolio to us out to processing demand and the of eased in had premium will And is dependent other the cost So able conversion so. the processing premium, that, and help the labs a the we geographies speak, product. Pitch. the CT the been has tweak and product with value-added cost. CP combination

NAV. product actually our So the market the out the of and in impacted it of the easing has in geographies portfolio, premium combination various

Unidentified Analyst

alumina? at sir, a a lastly, lower we on And Sure. are alumina, purchased than whether producing cost

Sunil Duggal

cost mean, that not and imported the on aluminum also the between not it abrasion lag So landed there quarter, cycle, in through the is the happen there going – a which happen. in does we usage. landed and I normally cost also depends is coming that, And which we It to quarter was two, depends landed the which cycle case are. hope an the

So usage. the cost on the is booked

is differential a with say, is $XXX. this the going and imported not happen. I logical So between the $XXX, around There always to cost think that, by,

maintained So that quarters coming differential in going the be is to also.

Unidentified Analyst

the so Thank best. reflect waiting numbers. you you to your Sir, for Thank in much. cost the eagerly initiatives Sure. reductions actually and all

Sunil Duggal

biggest now. our is as of motivation That

Sandeep Agrawal

Thank Ashish. you,

Operator

us. your you, today. as reconnecting take question to Sandeep conference questions, you, questions. In call. were And you taking Ladies to for We gentlemen, everyone. you. last Steven. call. of to answer and you time hand Thank for join we the I forward thank Over the closing you out case I earnings over have today's please comments. Thank for that for Thank to to Q&A now End Mr. reach sir. you, feel look the we further quarter Agrawal next concludes able us. out hope This to of most all

Operator

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

Vedanta (VEDL) 28 Oct 222023 Q2 Earnings call transcript