Vedanta Reports Record Q4 Profit, Plans Significant Debt Reduction
Vedanta earns record profit in Q4, plans to reduce debt
The Economic TimesImage: The Economic Times
Vedanta, based in Mumbai, reported a record consolidated profit of ₹9,352 crore for the March quarter, an 89% increase year-on-year. The company plans to reduce its debt by $1.75 billion this fiscal year, aiming for a leverage ratio of 0.65 times. Additionally, Vedanta announced a dividend of ₹34 per share and plans a significant capital expenditure increase.
- 01Vedanta's consolidated profit reached ₹9,352 crore, up 89% YoY.
- 02Revenue rose 29% YoY to ₹51,524 crore, marking a record high.
- 03The company plans to reduce debt by $1.75 billion in FY27.
- 04Vedanta announced a dividend of ₹34 per share.
- 05Capital expenditure is set to increase by over 54% to ₹23,000 crore.
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Vedanta, a major player in the Indian mining and natural resources sector, reported a record consolidated profit of ₹9,352 crore for the March 2023 quarter, reflecting an 89% increase compared to the same period last year. Revenue also surged by 29% year-on-year to reach ₹51,524 crore, while earnings before interest, tax, depreciation, and amortisation (EBITDA) climbed 59% to ₹18,447 crore. The company has successfully reduced its debt by nearly $1.5 billion in FY26, bringing total debt down to ₹53,254 crore. Looking ahead, Vedanta plans to further decrease its debt by $1.75 billion in the current fiscal year, aiming for a leverage ratio of 0.65 times, down from 0.95 times. This financial strength will enable the company to invest in growth initiatives and continue rewarding shareholders, as evidenced by its recent announcement of a ₹34 per share dividend. Additionally, Vedanta is preparing for a demerger, effective May 1, which will lead to the establishment of four new companies, with plans to appoint new management and boards across all five entities.
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The reduction in debt and increased profitability may lead to more investments in local projects, benefiting employees and suppliers.
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