Vedanta Q2 Results 2024 Financial Analysis
Vedanta‘s remarkable turnaround in Q2 FY24 showcases the company’s resilience and strategic initiatives. Executive Director Arun Misra emphasizes that the second half of 2024 will be transformative, with major growth and integration projects coming online. The company continues to demonstrate strong financial management while positioning itself for future growth through strategic initiatives and operational excellence.
Table of Contents
Vedanta Q2 Results: Financial Management and Debt Reduction
CFO Ajay Goel highlights significant achievements:
- Successful $1.4 billion fundraising
- $1 billion through QIP
- $400 million via HZL OFS
- Holdco debt reduction to decade-low $4.8 billion
Operational Excellence
The company’s performance was driven by:
- Strategic cost efficiency measures
- Substantial volume growth
- Favorable commodity prices
- Structural cost-saving initiatives
- Enhanced premium realization across businesses
Segment-wise Performance
The diversified portfolio showed mixed results:
- Aluminum sector: Strong revenue growth
- Zinc, Lead, Silver: 21% revenue increase
- Oil & Gas: Faced challenges with 60% revenue decline
Future Outlook and Corporate Actions
Vedanta is positioning for future growth through:
- Advanced demerger plans
- Scheduled shareholder meetings
- Strategic debt management
- Operational optimization initiatives
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FAQs
Q1: What factors contributed to Vedanta’s profit turnaround in Q2 FY24?
The turnaround was driven by multiple factors:
Lower tax outgo
Operational cost optimization
Favorable commodity prices
Strategic debt management
Exceptional gain of Rs 1,136 crore from oil & gas business
Successful fundraising initiatives
Q2: How is Vedanta managing its debt situation?
Vedanta has implemented a comprehensive debt management strategy:
Reduced net debt by Rs 4,400 crore quarter-on-quarter
Maintained healthy net debt to EBITDA ratio of 1.49x
Increased cash reserves to Rs 21,727 crore
Successfully raised Rs 8,500 crore through QIP
Reduced holding company debt to lowest level in 10 years
