Vedanta : reports highest ever quarterly consolidated EBITDA of 13,768 crore; Net debt declines by ₹ 6,590 crore

Vedanta Limited

Regd. Office: Vedanta Limited 1stFloor, 'C' Wing,

Unit 103, Corporate Avenue, Atul Projects,

Chakala, Andheri (East),

Mumbai 400093, Maharashtra.

www.vedantalimited.com

CIN: L13209MH1965PLC291394

Vedanta Limited reports highest ever quarterly consolidated EBITDA of

• 13,768 crore; Net debt declines by ₹ 6,590 crore

Mumbai, April 28, 2022: Consolidated Results for the Fourth Quarter and Full Year ended 31st March 2022

Financial Highlights-

• 4QFY22:

• 1. Record consolidated quarterly revenue of ₹ 39,342 crore, up 41% YoY
  1. Highest ever quarterly EBITDA of ₹ 13,768 crore, up 51% YoY
  1. PAT (before exceptional andone-time tax credit) of ₹ 7,570 crore, up 48% YoY
  1. Net Debt at ₹ 20,979 crore, declined by ₹ 6,590 crore since 31stDec 2021
• FY22:
• 1. All time high consolidated revenue of ₹ 131,192 crore, up 51% YoY

1. Highest ever annual EBITDA of ₹ 45,319 crore, up 66% YoYoRobust Industry leading EBITDA margin1of 39%
   oPAT (before exceptional and one-time tax credit) of ₹ 24,299 crore, up 95% YoY oFree cash flow before capex ₹ 27,154 crore, up 69% YoY
   oStrong double-digit ROCE2at c.30%, ~1.6 times YoY
   oNet Debt/EBITDA at 0.5x lowest in 5 years; net debt to equity at 0.25x
   oStrong liquidity position with total cash and cash equivalent at ₹ 32,130 crore oRecord dividend payout of ₹ 45/share; ~14% dividend yield
   oCredit rating upgrade by both CRISIL and India Rating to AA with stable outlook

Shareholders value creation -

Vedanta has consistent track record of rewarding its shareholders with strong dividend pay- out. Last year we paid ₹45 per share amounting to ₹16,728 crore which translates into ~14% dividend yield one of the highest among peers in FY22 and had record total shareholder's return. The board, in its meeting held today 28thApril, has approved first interim dividend for FY23 of ₹31.5 per share amounting to ₹11,710 crore. This is line with our robust performance on profitability and cash flows. This will also help the Vedanta group in deleveraging, in line with latest capital allocation policy.

Registered Office: Vedanta Limited 1stFloor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 1 of 8
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394

Sensitivity: Internal (C3)

Results for the fourth quarter and full Year ended 31stMar 2022

Operational Highlights FY22-

• Record annual volume across key businesses with stable production from Oil and Gas
• Maintained 1stquartile cost curve positioning globally, across key segments
• Strong margins across key businesses despite increase in input commodity prices and power cost
• Aluminium:

• 1. Record Aluminium production at 2,268kt, up 15%YoY
  1. Highest ever Alumina production at 1,968kt, up 7%YoY
• Zinc India
• 1. Highest ever Mined metal production, crossed 1 million tonnes mark
  1. Best ever metal production of 967kt, up 4%YoY
• Zinc International:
• 1. Record mined metal production at Gamsberg of 170 kt, up 18%YoY
• Oil & Gas:
• 1. Sustained average gross operated production at 161 kboepd

• 1. Two new discoveries named Durga and Jaya in OALP block
• Iron Ore:
• 1. Highest ever sales of 5.7 million tonnes at Karnataka, up 30%YoY
  1. Record pig iron production of 790 kt, up 33%YoY
  1. Continued engagement with the stakeholders for resumption of Goa mining
• Steel:
• 1. Record Hot metal production of 1.36 million tonnes, up 5%YoY

1. Saleable Steel production at 1.26 million tonnes, up 6%YoY

• 1. Commenced commercial production from recently acquired two Iron ore mines in Orissa
• FACOR:
• 1. Record Ferro Chrome production of 75 kt

• 1. EBITDA margin increased by 3x to $534 per tonne
• Copper India:
• 1. Due legal process is being followed to achieve a sustainable restart of the operations

ESG Highlights-

• 3,200+ Nand Ghars created for women and child welfare, signed MoU with Government of Rajasthan for developing 25,000 Nand Ghars
• ₹ 359 crores Social Investment; improving the lives of 4.36 million people
• ₹ 54,104 crore contribution to the National Exchequer
• ~13.75 million tonnes GHG emissions avoided
• 31% water recycled

Registered Office: Vedanta Limited 1stFloor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 2 of 8
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394

Sensitivity: Internal (C3)

Results for the fourth quarter and full Year ended 31stMar 2022

• Electric mobility: Jharsuguda partners with GEAR India to supply 23e-forklifts; deployed 50+ electric vehicles at Hindustan Zinc and ESL steel together
• 10-yearMoU signed with TERI to develop implementation programs to further our ESG vision
• Signed Power Distribution Agreement for 580 MW renewable energy - a significant milestone towards 2.5 GW RE Round the Clock commitment
• Launched green Aluminium under the brands 'Restora' & 'Restora Ultra' to usher new era of green metals
• Collaboration withTUV-SUD to develop roadmap for our 'Net Water Positive' Initiative
• 1st fly ash rake from Jharsuguda dispatched toACC-Holcim
• Commenced Ash backfilling in one of the coal India's open cast mines in Mar'22
• Used 17kt biomass in Hindustan Zinc; committed to using 5% biomass in our thermal power plants

Mr Sunil Duggal, Chief Executive Officer, Vedanta, said "I am delighted to share record operational and financial performance for FY22. We have delivered historical best EBITDA of ₹45,319 crore and PAT (before exceptional andone-timetax credit) of ₹24,299 crore. This reflects our relentless focus on volume growth and operational efficiency, underpinned by structural integration and technology adoption. The strong free cash flow (pre capex) of ₹27,154 crore has allowed us to reinvest for growth, further strengthen our balance sheet and continue our attractive dividendpay-out.As a part of our ESG Journey, we have signed an agreement for 580 MW renewable power distribution which brings us one step closer towards becoming a Net Zero Carbon organization. As we leap forward, we are committed to make Vedanta stronger through growth, vertical integration, operational efficiencies and renewed ESG purpose."

__________________________________

1. Excluding custom smelting

2. Return on capital employed on LTM basis

Registered Office: Vedanta Limited 1stFloor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 3 of 8
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394

Sensitivity: Internal (C3)

Results for the fourth quarter and full Year ended 31stMar 2022

Consolidated Financial Performance-

(In ₹ crore, except as stated)

	Particulars	Q4		%	Q3	%	FY		%
	FY2022	FY2021	Change	FY2022	Change	FY2022	FY2021	Change
Net Sales/Income from operations		39,342	27,874	41%	33,697	17%	131,192	86,863	51%
Other Operating Income			480	332	45%	400	20%	1,541	1,158	33%
EBITDA				13,768	9,107	51%	10,938	26%	45,319	27,341	66%
EBITDA Margin	1			39%	38%	3%	37%	7%	39%	36%	8%
Finance cost				1,333	1,325	1%	1,216	10%	4,797	5,210	(8%)
Investment Income			520	860	(40%)	516	1%	2,341	3,269	(28%)
Exchange gain/(loss) - (Non operational)	(45)	(71)	(37%)	(67)	(33%)	(235)	129	-
Profit before Depreciation and Taxes	12,911	8,571	51%	10,171	27%	42,627	25,529	67%
Depreciation & Amortization			2,379	2,055	16%	2,274	5%	8,895	7,638	16%
Profit before Exceptional items		10,532	6,516	62%	7,897	33%	33,732	17,891	89%
Exceptional Items Credit/(Expense)	2	(336)	(773)	(56%)	(105)	-	(769)	(678)	13%
Profit Before Tax			10,195	5,743	78%	7,792	31%	32,964	17,213	92%
Tax Charge/ (Credit)			2,962	1,412	-	2,474	20%	9,433	5,445	73%
One-time tax charge/ (Credit)	3		-	(3,111)	-	0	-		(3,111)	-
Tax on Exceptional items/ (Credit)		(28)	(187)	(85%)	(35)	(19%)	(178)	(154)	16%
Profit After Taxes before exceptional and one time tax credit	7,570	5,105	48%	5,424	40%	24,299	12,446	95%
Profit After Taxes			7,261	7,629	(5%)	5,354	36%	23,709	15,033	58%
Minority Interest			1,463	1,196	22%	1,190	23%	4,908	3,430	43%
Basic Earnings per Share (₹/share)		15.66	17.37	(10%)	11.24	39%	50.73	31.32	62%
Basic EPS before Exceptional items		16.27	18.94	(14%)	11.42	42%	52.02	32.80	59%
Exchange rate (₹/$) - Average			75.17	72.95	3%	74.90	0%	74.46	74.11	0%
Exchange rate (₹/$) - Closing			75.59	73.30	3%	74.37	2%	75.59	73.30	3%

1. Excludes custom smelting at Copper business
2. Exceptional Items Gross of Tax
3. One time tax credit includes deferred tax asset on losses recognised in ESL

• Revenue:

1. Achieved record consolidated revenue of ₹39,342 crore in 4QFY22 with 41%YoY and 17%QoQ growth; supported by higher sale volumes and improved commodity prices.

• 1. FY22 consolidated revenue at ₹131,192 crore was also best ever with 51%YoY growth.
• EBITDA and EBITDA Margin:
• 1. Achieved highest ever consolidated EBITDA of ₹13,768 crore in 4QFY22. This 51%YoY and 26%QoQ growth was mainly due to higher sales volume, supportive commodity prices and operational efficiencies despite higher Cost of production amidst input commodity inflation.

• 1. FY22 consolidated EBITDA at ₹45,319 crore was also historically high with 66%YoY growth; EBITDA margin1stood robust at 39%.
• Depreciation & Amortization:
• 1. 4QFY22 Depreciation & amortisation increased by 16%YoY to ₹2,379 crore, mainly due to increase in amortisation with increased Ore production at Zinc Business. On QoQ basis, it was up by 5% as impact of increased in Ore production at Zinc Business was partially offset by decrease in overall working interest production at Oil & Gas business.

Registered Office: Vedanta Limited 1stFloor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 4 of 8
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394

Sensitivity: Internal (C3)

Results for the fourth quarter and full Year ended 31stMar 2022

• 1. FY22 Depreciation & amortisation increased by 16%YoY to ₹8,895 crore, mainly due to increase in amortisation because of increased - a) Ore production at Zinc Business, b) higher depletion at Oil & Gas business, and c) capitalisation at Aluminium business.
• Finance Cost:
• 1. 4QFY22 Finance cost increased 1%YoY to ₹1,333 crore asone-time charges paid on Vedanta Aluminium loan were broadly offset by lower average borrowings and decreased cost of borrowings. On QoQ basis, Finance cost was up by 10%, mainly due to increase in average borrowings and one time charges paid on Vedanta Aluminium loan after a partial offset from decreased cost of borrowings.

• 1. FY22 Finance cost decreased 8%YoY to ₹4,797 crore, mainly due to lower average borrowings and decreased cost of borrowings.
• Investment Income:
• 1. 4QFY22 Investment Income decreased 40%YoY to ₹520 crore, mainly due to Mark to Market movement and change in Investment mix.

• 1. FY22 Investment Income decreased 28%YoY to ₹2,341 crore, due to Mark to Market movement and change in Investment mix.
• Exceptional Items:
• 1. 4QFY22 Exceptional items at ₹(336) crore; primarily relates to ₹2,697 crore gain from impairment reversal in Oil & Gas which was partially offset by exploration cost written off in cairn ₹2,403 crore.

• 1. FY22 Exceptional items at ₹(769) crore; primarily relates to ₹2,697 crore gain on account of impairment reversal in Oil and Gas which was partially offset by exploration cost written off in cairn ₹2,618 crore, exceptional loss on account of provision against KCM receivables ₹217 crore, deposit write of ₹125 crore in Aluminium business, fly ash provision ₹288 crore, payment under amnesty scheme at Zinc India ₹134 crore.
• Taxes:
• 1. 4QFY22 normalized Effective tax rate (ETR) was 28% (excluding tax on exceptional items of ₹ 28 crore) comparedto 28% in 4QFY21 and 30% in 3QFY22 on account of higher benefit u/s 10AA and change in profit mix.

• 1. FY22 normalized ETR is 28% (excluding ₹ 178 crore tax on exceptional items) compared to 27% in FY21 (excluding ₹3,111 crore Deferred tax assets recognized on account of losses in steel business).
• Profit after Tax before exceptional andone-time tax credit and Earnings per Share (EPS):
• 1. 4QFY22 Profit after Tax (beforeexceptional item and one-time tax credit) was at ₹7,570 crore, up 48 % YoY.

1. For FY22, ProfitafterTax (before exceptional item and one-time tax credit) was at ₹24,299 crore, up 95%YoY.

1. EPS for FY22 before exceptional items was at ₹52.02 per share compared to ₹32.80 per share in FY21.

Registered Office: Vedanta Limited 1stFloor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 5 of 8
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394

Sensitivity: Internal (C3)