Vedanta : Results for FY2021 Q3 ended Dec 2020

Vedanta Limited

Regd. Office: Vedanta Limited 1st Floor, 'C' Wing,

Unit 103, Corporate Avenue, Atul Projects,

Chakala, Andheri (East),

Mumbai 400093, Maharashtra.

www.vedantalimited.com

CIN: L13209MH1965PLC291394

29th January 2021

Vedanta Limited Consolidated Results for the Third Quarter

ended 31st December 2020

EBITDA for Q3 FY2021 of ₹ 7,695 crores, up by 18% q-o-q and y-o-y, highest in last 11 quarters Attributable PAT (before exceptional items and tax on dividend) of ₹ 3,017 crores, up 51% q-o-q

Mumbai, India: Vedanta Limited today announced its unaudited consolidated results for the Third quarter (Q3) and Nine Months ended 31st December 2020.

Financial & Corporate Highlights

• Strong financial performance in Q3 FY2021

1. Revenues of ₹ 22,498 crores, up 8% q-o-q, primarily due to increase in commodity prices and higher sales at Aluminium, Iron ore and Steel business

1. Robust EBITDA margin1 of 39%, highest in last 4 years

1. EBITDA of ₹ 7,695 crores, up 18% q-o-q and y-o-y, highest quarterly performance for > 2 years

• 1. Attributable PAT (before exceptional items and tax on dividend) of ₹ 3,017 crores, up 51% q-o-q
• Strong Balance Sheet
• 1. Continuing double-digit Return on Capital Employed (ROCE) of c. 13%

1. Net Debt/EBITDA at 1.5x, maintained at low level

1. Liquidity position with total cash & cash equivalents at ₹ 27,055 crores

Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 1 of 10
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394

Sensitivity: Internal (C3)

Unaudited Results for the Third Quarter ended 31 December 2020

Operational Highlights

• Zinc India:

1. Highest ever quarterly ore production at 4.0 million tonnes, with highest ever mine development of 27 km

• 1. Mined metal production at 244 kt, up 2% q-o-q
• Zinc International:
• 1. Gamsberg highest ever production of 43kt in Q3 FY2021, up by 23% q-o-q
• Oil & Gas:
• 1. Average Daily Gross Operated Production at 160 kboepd, down 3% q-o-q

• 1. New gas facility commissioned; gas production being ramped up by ~15 kboepd
• Aluminium:
• 1. Aluminium volume 497kt, up by 5% q-o-q

• 1. Sustained lower cost of production at $ 1,387/t and EBITDA margin of 28%
• Iron Ore:
• 1. Capitalized opportunity to increase Goa sales to 0.6 Mnt

• 1. Karnataka sales of 1.2 Mnt
• Steel:
• 1. Highest ever hot metal production of 372 kt since acquisition
  1. Robust EBITDA margin at $111/t, up 18% q-o-q
  1. Value Added Product (VAP) mix increased to 85% in Q3 FY2021 from 71% in Q2 FY2021

1. Excludes custom smelting at Copper India and Zinc India operations

Mr. Sunil Duggal, Chief Executive Officer, Vedanta, said, "We continue to strengthen our position as one of the largest diversified natural resource businesses in the world with our strategy focused on value-added growth. Our businesses stayed resilient in the quarter amidst uncertain market environment as we continued with our winning streak reporting the highest EBITDA in last two years. We continue to ramp up across the Zinc and Iron & Steel verticals along with successful project delivery in the Oil & Gas vertical. Aluminium business has had yet another exemplary quarter as it continued the momentum of cost rationalisation from improved integration and systemic improvements. As we look forward to the year, we have in place the building blocks to enhance our performance in all our businesses as we continue to deliver for all our stakeholders".

Mr. GR Arun Kumar, Chief Financial Officer, Vedanta, said, "We are focussed on driving operations effectively in this conducive price environment to maximise earnings to cash conversion, allocate capital wisely while supporting high return organic growth projects across businesses and continue to drive costs down structurally to sustain these cash flows into future.

Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 2 of 10
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394

Sensitivity: Internal (C3)

Unaudited Results for the Third Quarter ended 31 December 2020

The Balance Sheet continues to remain strong with a consolidated Net Debt / EBITDA ratio of ~1.5X with improving debt maturity profile. Yet we target to reduce net debt by above Rs 5,000 crores in the coming quarter. ROCE at double digit levels of ~13% will thus leave enough on the table to ensure good shareholder returns. The guidance has remained constant or better through the year on volumes, costs, below EBITDA items as well as growth capex thus delivering a well- managed set of financials during the year".

Consolidated Financial Performance

The consolidated financial performance of the company during the period is as under:

(In Rs. crore, except as stated)

	FY2020			Particulars				Q3			%			Q2*			%				9M
					FY2021			FY2020			Change			FY2021			Change			FY2021			FY2020
83,545			Net Sales/Income from operations	22,498		21,126		6%		20,804		8%		58,989		64,032
902			Other Operating Income	237		234		2%		303		(22%)		826		660
21,060			EBITDA	7,695		6,531		18%		6,531		18%		18,234		16,216
29%			EBITDA Margin1	39%		34%		-		36%		-		35%		29%
4,977			Finance cost	1,321		1,231		7%		1,312		1%		3,885		3,913
2,443			Investment Income	771		629		23%		621		24%		2,409		1,832
(306)			Exchange gain/(loss) - (Non-operational)	177		(0)		-		30		-		200		(32)
18,220			Profit before Depreciation and Taxes	7,322		5,928		24%		5,870		25%		16,958		14,103
9,093			Depreciation & Amortization	1,912		2,291		(17%)		1,938		(1%)		5,583		6,841
9,127			Profit before Exceptional items	5,410		3,637		49%		3,932		38%		11,374		7,261
(17,386)			Exceptional Items Credit/(Expense)2	(0)		168		-		95		-		95		(254)
(8,259)			Profit Before Tax	5,410		3,805		42%		4,027		34%		11,469		7,008
3,078			Tax Charge/ (Credit)	1,468		1,082		36%		1,150		28%		3,032		2,169
(73)			One-time tax charge/ (Credit)3	(282)		0		-		1,187		-		1,001		(2,501)
(6,521)			Tax on Exceptional items/ (Credit)	0		58		-		33		-		33		2
(4,743)			Profit After Taxes	4,224		2,665		59%		1,657		155%		7,403		7,338
6,122			Profit After Taxes before exceptional items	4,224		2,555		65%		1,595		165%		7,341		7,594
6,049			Profit After Taxes before exceptional	3,942		2,555		54%		2,782		42%		8,342		5,093
		items & one-time tax
1,920			Minority Interest	925		317		192%		819		13%		2,233		1,481
(6,664)			Attributable PAT	3,299		2,347		41%		838		294%		5,170		5,856
3,993			Attributable PAT before exceptional items	3,299		2,238		47%		806		309%		5,138		5,906
4,066			Attributable PAT before exceptional items	3,017		2,238		35%		1,993		51%		6,139		3,405
		& one-time tax
(18.00)			Basic Earnings per Share (₹/share)	8.91		6.34		41%		2.26		294%		13.96		15.82
10.78			Basic EPS before Exceptional items	8.91		6.05		47%		2.18		309%		13.87		15.95
70.86			Exchange rate (₹/$) - Average	73.74		71.06		4%		74.24		(1%)		74.48		70.34
74.81			Exchange rate (₹/$) - Closing	73.02		71.27		2%		73.63		(1%)		73.02		71.27

• Q2 FY21 restated, refer note 7 of Vedanta Consolidated results
• 1. Excludes custom smelting at Copper India and Zinc India operations
  2. Exceptional Items Gross of Tax
  3. One-timetax charge/ (credit) includes tax on dividend and impact of change in ordinance
  4. Previous period figures have been regrouped or re-arranged wherever necessary to conform to current period's presentation

Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 3 of 10
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394

Sensitivity: Internal (C3)

Unaudited Results for the Third Quarter ended 31 December 2020

Revenues

Revenue in Q3 FY2021 was at ₹ 22,498 crores, higher by 8% q-o-q, primarily due to higher commodity prices, higher sales at Aluminium, Iron ore and Steel business, partially offset by lower sales at Zinc India, lower PLF at TSPL and rupee appreciation.

Revenue was up by 6% y-o-y, mainly on account of higher commodity prices, rupee depreciation and higher volumes at Zinc India and Iron Ore business, partially offset by lower volumes at Oil and Gas business, lower power sales in TSPL.

EBITDA and EBITDA Margins

EBITDA for Q3 FY2021 was at ₹ 7,695 crores, higher by 18% q-o-q, primarily due to higher commodity prices, higher sales at Aluminium, Iron ore, Steel business, partially offset by higher input commodity prices and rupee appreciation.

EBITDA for Q3 FY2021 was higher by 18% y-o-y, mainly on account of higher commodity prices, rupee depreciation and higher volumes at Zinc India and Iron Ore business, partially offset by one offs pertaining to past exploration cost recovery at Oil and Gas business in Q3 FY2020.

EBITDA margin1 for Q3 FY2021 was at 39%.

Depreciation & Amortization

Depreciation and amortization for Q3 FY2021 stood at ₹ 1,912 crores, flat q-o-q.

It was lower 17% y-o-y, primarily due to impairment of assets in Oil & Gas business in Q4 FY2020, and Skorpion mine put under care and maintenance since April 2020.

Finance Cost and Investment Income

Finance cost for Q3 FY2021 was at ₹ 1,321 crore, flat q-o-q.

Finance cost was higher by 7% y-o-y, mainly on account of increase in gross borrowings and lower capitalisation of interest cost.

Investment Income was at ₹ 771 crore, higher by 24% q-o-q and 23% y-o-y. This was primarily on account of one-off incomes in Q3 FY2021 pertaining to interest on power debtors and tax refund.

Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 4 of 10
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394

Sensitivity: Internal (C3)