Vedanta's Q4 Earnings Spark 5% Surge In Shares, Revenue Remains Flat

Vedanta's share price surged by nearly 5 per cent after the company reported a minor increase in EBITDA figures, revenue remains flat

Vedanta's share price surged by nearly 5 per cent after the metals and mining company announced its earnings report for the quarter ending March. The company reported a consolidated net profit of Rs 2,273 crore for the January-March quarter. This marks a dip of 21 per cent from the previous quarter and a 27 per cent decrease compared to the same quarter last year.

While revenue figures remained majorly flat on a quarter-on-quarter basis at Rs 34,937 crore, EBITDA numbers painted a slightly optimistic picture. The consolidated EBITDA stood at Rs 8,969 crore, up by 3 per cent on QoQ basis.

At 01:40 pm, the shares of the metal and mining firm were trading at Rs 395.75 price level, up by 3.86 per cent on the National Stock Exchange.

Ajay Goel, Chief Financial Officer, Vedanta, said “Driven by operational excellence, Vedanta achieved outstanding financial results, marking the second highest annual revenue and EBITDA in our history, reaching Rs 1,41,793 crore and Rs 36,455 crore respectively. Through continued cost optimization, we achieved a remarkable EBITDA margin of 30 per cent in FY24 with ~240 basis points annual margin expansion, underscoring our efficiency and agility."

The company reported a double-digit return on capital employed, reaching about 23 per cent, an increase of around 240 basis points compared to the previous year. 

Vedanta boasted the highest dividend yield, averaging around 17 per cent annually over the past five years, which is ten times higher compared to Nifty 50 Companies. In FY24 alone, the company distributed dividends amounting to Rs 18,572 crore.

"Our net debt/EBITDA ratio improved to 1.5x from 1.7x in December 2023. At Holdco, we deleveraged by $1.6bn in FY24 & through successful liabilities management, Vedanta has a balanced capital structure, and will remain committed towards value creation” Goel added.

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