Vedanta Q1 net profit jumps 152% to ₹5,294 crore, revenue up 54%

Vedanta Ltd on Thursday reported a consolidated net profit of ₹5,294 crore for the April-June quarter, a 152% surge compared to ₹2,099 crore in the same period last year. The sharp rise was driven by higher commodity prices and strong operational performance across its key businesses.

Revenue from operations climbed 54% to ₹42,876 crore, up from ₹27,826 crore in the year-ago quarter. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) grew 72% to ₹12,300 crore, with margins expanding to 30%.

Aluminium and oil & gas lead the charge

Vedanta Aluminium Metal posted a 34% quarter-on-quarter rise in net profit at ₹5,629 crore, while revenue rose 12%. The segment benefited from higher aluminium prices on the London Metal Exchange and cost optimisation measures.

Vedanta Oil & Gas reported a net profit of ₹945 crore for the June quarter. The company attributed the performance to stable production and improved realisations from its Rajasthan fields.

The mining and metals conglomerate also appointed Arun Misra as its new chief executive officer. Misra, who previously led Vedanta's aluminium business, takes over at a time when the company is restructuring to unlock shareholder value.

Board clears real-estate demerger

In a key strategic move, the board approved the demerger of Vedanta's real-estate business into a separate listed entity. The company said the move would help sharpen focus on its core metals and mining operations.

The demerger is subject to shareholder and regulatory approvals. Vedanta did not disclose a timeline for completion but said it expects the process to conclude within the current fiscal year.

Vedanta shares closed 2.3% higher on the BSE at ₹487.55 ahead of the results announcement. The stock has gained about 18% in the past three months.

Cost control and commodity tailwinds

The company said it has maintained a tight lid on costs despite inflationary pressures. Energy costs, a major input for its aluminium and zinc operations, were kept in check through captive power plants and renewable energy tie-ups.

Analysts said Vedanta's results were broadly in line with expectations. The key trigger going forward will be the pace of the demerger and global commodity price trends, especially for aluminium and zinc.

Vedanta's net debt stood at ₹48,200 crore at the end of June, down marginally from the preceding quarter. The company said it remains focused on deleveraging its balance sheet.

With the management change and the demerger plan, Vedanta is positioning itself for a leaner structure. Investors will watch how the new CEO steers the company through volatile global markets in the coming quarters.