Vedanta : Earnings Release

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

Vedanta Limited

Profit after tax stands at ₹3,308 crore, up 6% q-o-q for Quarter ended

30th June 2023

Mumbai, 21st July 2023: Unaudited consolidated results for the first quarter ended 30th June 2023

Financial Highlights:

• Consolidated quarterly revenue of ₹33,342 crore
• Consolidated quarterly EBITDA of ₹6,975 crore with strong margin* of 24%
• Consolidated profit after tax grew 6% q-o-q to ₹3,308 crore
• Free cash flow (pre capex) of ₹3,098 crore
• Return on capital employed 17%
• Interim dividend of ₹ 18.5/share; 1QFY24 dividend yield at ~7%

Operational Highlights:

Key businesses continue to deliver strong operating performance:

• Aluminium

• 1. Aluminium production increased by 2% y-o-y to 579 kt
  1. Aluminium cost of production lower by 27% y-o-y
• Zinc India
• 1. Highest-evermined metal production in first quarter at 257 kt, up 2% y-o-y
  1. Refined metal production at 260 kt; stable y-o-y
  1. Saleable silver production was 179 tonnes, up 1% y-o-y

• 1. Zinc cost of production lower by 6% y-o-y; achieved ~100$/t cost improvement over last two consecutive quarter.
• Zinc International
• 1. Overall production increased 1% y-o-y and 9% q-o-q to 68kt, primarily driven by BMM

1. Black Mountain Mine production increased by 29% y-o-y to 19 kt driven by operational efficiencies.

• 1. Overall cost of production down by 19% y-o-y
• Oil and Gas
• 1. Average gross operated production was 134,867 boepd. The natural decline was partially

*Excludes custom smelting at copper business.

Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 1 of 6
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394

Sensitivity: Internal (C3)

Results for the first quarter ended 30th June 2023

offset by infill wells in Mangala, ABH and RDG fields

• Iron ore

1. Declared successful bidder for Cudnem mineral block in Goa. Estimated R&R of 8.3 mnt

1. Highest ever Pig Iron production at 213 kt, up 13% y-o-y on account of operational efficiency

• 1. Karnataka saleable ore production declined by 9% y-o-y to 1.2 million tonnes
• Steel
• 1. Saleable production increased 20% y-o-y to 324 kt on account of higher production capacity post debottlenecking carried out in FY23
• Facor
• 1. FACOR commissioned and stabilised new 33 MVA furnace

• 1. Ore production lower by 46% y-o-y and up 48% q-o-q in line with statutory mining limits applicable in each quarter
• Copper India:
• 1. Due legal process is being followed to achieve a sustainable restart of the operations

ESG Highlights:

• Signed Renewable Energy (RE) power delivery agreement (PDAs) of 1826 MW across the group as on 30th June 2023
• Expanded definition of diversity beyond gender by including 38 members from the transgender community in workforce
• Workplace gender diversity maintained at 14%
• Water Positivity at 0.62
• HVLT usage at 83%
• 5,500 Nand Ghars (women and childcare centre) operational (FY23: 4,533)
• Quarterly CSR spend of ₹114 crore
• 4.4 million people benefitted from CSR programmes
• Vedanta Aluminium received Environment Product Declaration (EPD) verification for its products
  Mr Sunil Duggal, Chief Executive Officer, Vedanta, said "Vedanta is on a transformational journey with significant growth across its businesses and diversification into future enabling, technology focused sectors. We remain committed to maximizing shareholder returns through best-in-classand low-costoperations, skill development and global experience leadership with sustainability at the forefront. We have delivered Rs 6,975 cr in EBITDA this quarter, with an operating margin of 24% and PAT of Rs3,308 cr, marking a 6% increase sequentially. As we continue to move forward, we remain committed to achieving operational excellence and enhancing our competitiveness in the market. We are determined to lead the charge towards a more sustainable and responsible tomorrow."

Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 2 of 6
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394

Sensitivity: Internal (C3)

Results for the first quarter ended 30th June 2023

Consolidated Financial Performance:

(In ₹ crore, except as stated)

	Particulars			1Q				Q4			FY
			FY2024			FY2023			FY2023			FY2023
	Net Sales/Income from operations	33,342			38,251		37,225			145,404
	Other Operating Income	391			371	705			1,904
	EBITDA	6,975			10,741		9,362			35,241
	EBITDA Margin1	24%			32%	29%			28%
	Finance cost	2,110			1,206		1,805			6,225
	Investment Income	506			583	958			2,851
	Exploration cost write off2	312			62	39			327
	Exchange gain/(loss) - (Non-operational)	(203)			(332)		(117)			(492)
	Depreciation & Amortization	2,550			2,464		2,765			10,555
	Exceptional Items Credit/(Expense)	1,780			-	(1,336)			(217)
	Profit Before Tax	4,086			7,260		4,258			20,276
	Tax Charge/ (Credit)	778			1,668		1,709			6,044
	Tax on Exceptional items/ (Credit)	-			-	(583)			(274)
	Profit After Taxes before exceptional items	1,528			5,592		3,885			14,449
	Profit After Taxes	3,308		5,592	3,132		14,506
	Exchange rate (₹/$) - Average	82.16			77.06		82.21			80.27
	Exchange rate (₹/$) - Closing	82.07			78.83		82.16			82.16

1. Excludes custom smelting at copper business.
2. Pertains to unsuccessful exploration wells write off at Cairn

• Revenue:

1. 1QFY24 Revenue is at ₹33,342 crore, compared to ₹38,251 crore in 1QFY23, the change is primarily on account of steep reduction in output commodity prices, partially offset by favourable movement in exchange rate

• 1. 1QFY24 Revenue lower q-o-q, primarily on account of moderation in output commodity prices and lower sales volumes, partially offset by higher premiums
• EBITDA and EBITDA Margin:
• 1. 1QFY24 EBITDA is at ₹6,975 crore as against ₹10,741 in 1QFY23 and ₹ 9,362 in 4QFY23, the difference is on account of lower output commodity prices and lower sales, partially offset by moderation of input commodity prices

• 1. EBITDA margin1 stood at 24% in 1QFY24
• Depreciation & Amortization:
• 1. Depreciation & amortisation for 1Q FY24 is at ₹2,550 crore, as against ₹2,464 crore in 1QFY23, mainly on account of capitalisation of assets at VAL and higher amortisation at

HZL

• 1. Depreciation & amortisation decreased q-o-q mainly due to decrease in amortization at HZL
• Finance Cost:
• 1. 1QFY24 finance cost is at ₹2,110 crore, as compared to ₹1,206 crore in 1QFY23 and ₹1,805 crore in 4QFY23, difference is mainly due to increase in blended cost of borrowings and average borrowings

Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 3 of 6
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394

Sensitivity: Internal (C3)

Results for the first quarter ended 30th June 2023

• Investment Income:

1. 1QFY24 Investment Income is at ₹506 crore, as against ₹583 crore in 1QFY23 mainly due to change in investment mix and mark to market movement

• 1. 1QFY24 Investment Income lower by q-o-q due to change in investment mix, mark to market movement and interest on income tax refund in Q4 FY23
• Taxes:
• 1. 1QFY24 normalized Effective Tax Rate (ETR) excluding exceptional item of ₹1,780 crore is 34%, compared to 23% in 1QFY23 and 31% in 4QFY23. The movement is largely on account of change in profit mix
• Leverage, liquidity, and credit rating:
• 1. Gross debt stood at ₹73,484 crore as on 30th June 2023

1. Net debt was of ₹59,192 crore as on 30th June 2023

1. Cash and cash equivalents position remains strong at ₹ 14,292 crore. The Company follows a Board-approved investment policy and invests in high quality debt instruments with mutual funds, bonds, and fixed deposits with banks.

1. The company has investment grade credit; rated 'AA' with negative outlook by both CRISIL and India Ratings

Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 4 of 6
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394

Sensitivity: Internal (C3)

Results for the first quarter ended 30th June 2023

Key Recognitions:

Vedanta has consistently received various awards & accolades. Few recognitions from 1QFY24 are:

• VAL - J awarded 21st Greentech Best Occupational Health Practices Award by Greentech Foundation
• VAL - L awarded with Excellence Award by Quality Circle Forum of India in Business Excellence Category
• BALCO awarded with National Award for Manufacturing Competitiveness by International Research Institute for Manufacturing (IRIM)
• VAL - J, BALCO, Cairn Oil and Gas, HZL and Sterlite Copper have been certified as Great Place to Work by Great Place to Work Organization for Excellence in Human Resource Management
• Cairn Oil and Gas awarded with International Safety Award by British Safety Council
• Cairn Oil and Gas received Future Ready Organization Award by Economic Times for Technology and Innovation Category
• HZL awarded with 'Energy Efficiency Platinum award by Apex India Green Leaf Foundation for Energy Efficiency

Results Conference Call:

Please note that the results presentation is available in the Investor Relations section of the company website https://www.vedantalimited.com/eng/investor-relations-overview.php#resultsReports

Following the announcement, a conference call is scheduled at 8:00 PM (IST) on July 21, 2023, where the senior management will discuss the company's results and performance. The dial-in numbers for the call are as below:

	Event	Telephone Number
	Earnings conference call on	Universal Dial-In	[phone]
	July 21, 2023, from 8:00 - 9:00	[phone]
	PM (IST)
	India National Toll	1 800 120 1221
		Free
			Canada	01180014243444
			Hong Kong	800964448
		International Toll	Japan	00531161110
		Netherlands	08000229808
		Free*
		Singapore	8001012045
			UK	08081011573
			USA	18667462133
	Online Registration Link	Click here - Registration Link
	Call Recording	Will be available on website July 22, 2023 onwards
*In case of dial-ins from any other country, please use the online registration link for relevant dial in numbers
Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 5 of 6

Andheri (East), Mumbai 400093, Maharashtra, India.

CIN: L13209MH1965PLC291394

Sensitivity: Internal (C3)