Vedanta Ltd, under the leadership of Anil Agarwal, has made headlines with its impressive fiscal fourth-quarter earnings. The company reported a staggering profit of ₹4,961 crore, reflecting a remarkable 118.07% year-on-year increase. This surpasses the previous fiscal year’s figure of ₹2,275 crore. Furthermore, Vedanta’s revenue from operations reached ₹40,455 crore, marking a 13.93% rise compared to the ₹35,509 crore reported in the same quarter of the last financial year.

Q4 Performance Exceeds Expectations

A recent poll conducted by CNBC TV18 had projected a profit of ₹4,056 crore for Vedanta’s Q4, with an estimated revenue of ₹38,888 crore. The actual results have clearly outstripped these expectations, showcasing the company’s robust financial health.

Record-Breaking Full-Year Results

For the entire fiscal year, Vedanta achieved its highest-ever consolidated revenue at ₹1,50,725 crore, representing a 10% increase year-on-year. The profit for this period soared by 172% YoY, reaching ₹20,535 crore, with an EBITDA of ₹43,541 crore.

Strategic Capital Investment

In line with its expansion goals, Vedanta invested ₹12,626 crore in capital expenditures throughout the year, focusing on enhancing volume and integrating its supply chain. Notably, the company’s Return on Capital Employed (ROCE) improved by 371 basis points year-on-year to 27%. Additionally, Vedanta’s net debt decreased to ₹53,251 crore, with a net debt-to-EBITDA ratio of 1.2x.

Insights from Leadership

Ajay Goel, CFO of Vedanta, highlighted the company’s outstanding performance this quarter, stating, "This period marks an unprecedented financial achievement for Vedanta, with our quarterly revenue hitting an all-time high of ₹39,789 crore. Our EBITDA surged to ₹11,618 crore, demonstrating a 30% growth year-on-year. This success underscores the resilience and strength of our operations. Additionally, we effectively reduced our net debt by approximately $500 million, enhancing our financial stability."

Segment Performance Highlights

• Aluminum: Vedanta produced 2,422 kt of aluminum, a 2% increase from the previous year, while alumina production soared by 9% due to a new train’s commissioning.

• Zinc India: The company reported annual production figures of 1,095 kt for mined metal and 1,052 kt for refined metal.

• Zinc International: In Q4, mined metal production reached 50 kt, up 52% YoY and 9% QoQ, culminating in an annual production total of 178 kt. The overall cost of production decreased by 13% YoY to $1,299/t.

• Iron Ore, Steel, and Others: Saleable ore production for the year increased to 6.2 MTPA, a 12% rise YoY. Steel production reached 1,337 kt, with Q4 production of 355 kt, growing 8% QoQ and 4% YoY. Additionally, copper cathode production was recorded at 149 kt, up 6% YoY.

Future Outlook

Arun Misra, Executive Director at Vedanta, expressed satisfaction with the Q4FY25 results, emphasizing the company’s commitment to operational excellence. "This quarter wraps up a year of exceptional achievements. We not only reached our highest annual volumes for aluminum and zinc but also significantly reduced production costs," he noted.

Looking ahead, Misra stated, "Our focus for FY26 is on growth and efficiency, with strategic projects like the Lanjigarh Expansion and Sijimali Bauxite Mine poised to enhance our cost structure. With several volume expansion initiatives set for completion next fiscal year, we are optimistic about delivering another successful year while remaining responsive to market trends and opportunities for long-term value creation."

For more insights on Vedanta’s performance and future strategies, visit their official website or follow related news on CNBC.