Vedanta Aluminium Metal Ltd (VAML) announced a significant financial upturn for the September quarter, with its adjusted net profit more than doubling to Rs 5,167 crore. This marks a substantial 118% increase compared to Rs 2,373 crore recorded in the same quarter last year.
The company's revenue for the quarter also saw a robust rise, growing 41% year-on-year to Rs 22,066 crore, up from Rs 15,670 crore a year ago. VAML attributed this growth to higher sales volumes and an improved marketing mix.
Strong Operational Performance Drives Growth
Despite softening London Metal Exchange (LME) prices, Vedanta Aluminium's operational efficiency remained strong, with its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reaching Rs 10,192 crore. This represents an 83% year-on-year increase and an impressive EBITDA margin of 46%. It was the second consecutive quarter where EBITDA exceeded Rs 10,000 crore.
Operationally, VAML achieved its highest-ever quarterly aluminium production of 649 kilotonnes (KT), a 3% sequential rise and a 5% increase year-on-year. The production of value-added products also reached a record 432 KT, soaring 31% year-on-year. Furthermore, alumina production hit a new quarterly high of 895 KT, up 37% year-on-year.
Debt Reduction and Strategic Outlook
Anup Agarwal, CFO of Vedanta Aluminium, highlighted the company's disciplined cash generation and capital management strategies, which enabled a reduction of Rs 3,090 crore in net debt during the quarter. This improved the net debt to EBITDA ratio to 0.7 times. Agarwal stated,
“The ratings upgrade and reaffirmations further strengthens our financial profile. With a healthy balance sheet and continued progress across our growth and integration projects, we remain well positioned to fund our strategic priorities while maintaining financial discipline.”
Rajesh Kumar, Whole-Time Director & CEO, emphasized the operationalization of BALCO’s second zone expansion and progress in securing bauxite resources as key factors reinforcing the company’s integrated value chain. He added,
“As we scale our operations, our focus remains on disciplined execution, cost competitiveness and an expanding portfolio of value-added products.”