Vedanta Limited, an Indian multinational mining and metals company headquartered in Mumbai, is a key player in the country’s natural resources sector. With major operations across Goa, Karnataka, Rajasthan, and Odisha, Vedanta is actively involved in mining iron ore, gold, and aluminium. The company announced its Q4FY25 results today, delivering a strong performance marked by significant growth in profitability and operational efficiency, along with strategic clarity on its planned corporate demerger.
Financial Highlights:
- Revenue rose to ₹40,455 crore, reflecting a 3.4% increase quarter-on-quarter (QoQ).
- EBITDA came in at ₹11,466 crore, marking a 3.3% QoQ growth, while the year-on-year (YoY) growth was a robust 30%, with EBITDA reaching ₹11,618 crore.
- Net Profit grew 1.8% QoQ to ₹3,483 crore.
- Operating Profit Margin (OPM) stood at 28.3%, with a slight decline of 10 basis points QoQ.
- Notably, the company posted its highest EBITDA margin in 12 quarters at 35% in Q4FY25.
Corporate Development:
Vedanta has also confirmed that its planned corporate demerger is on track to be completed by September 2025. The restructuring aims to unlock value for shareholders by separating its diverse businesses into independent entities.
QIP Funds Utilization Update:
The company also shared an update on the ₹8,500 crore raised through its Qualified Institutional Placement (QIP):
- No deviations were reported from the stated use of proceeds.
- The majority of funds have been allocated to loan repayments and business operations, in line with the company's ongoing debt management strategy.
- ₹64.5 crore has been parked in a fixed deposit with SBI at an interest rate of 6.85%, reflecting prudent financial management.
Market Reaction:
Following the announcement of its Q4FY25 results, shares of Vedanta Limited traded 0.76% higher at ₹419.50, reflecting positive investor sentiment around the company’s strong financial performance and the clarity provided on the upcoming demerger.
Disclaimer:
The information provided in this blog post is for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any securities.
