Vedanta Ltd

The provided transcript/pages of Vedanta Limited's Q1 FY 2023-24 earnings call do not contain specific information regarding the current or expected order book or pending orders. The discussion primarily focuses on: - Financial performance and operational highlights - Strategic initiatives including semiconductor business entry - ESG commitments and sustainability goals - Debt structure and refinancing details - Production updates across business segments such as aluminum, oil & gas, iron ore, and steel - Evaluation and potential divestment of iron & steel business No explicit mention of order books, contracts, or pending orders is found in the content provided.

- Vedanta expects steady and progressive improvement over the next 9 months of FY '24, supported by key growth projects (Page 6). - Despite subdued metal prices, the company delivered a strong Q1 EBITDA of INR 6,975 crores and operating margin of 24%, with PAT increasing sequentially by 6% (Page 7). - Operational enhancements like completion of Gamsberg Phase 2, commissioning of Aluminum Train 1 & 2, and ramp-up in oil & gas production are key growth drivers (Pages 5-6). - Infilling wells and enhanced recovery projects aim to end the year with higher oil and gas output than at the start (Page 6). - Steel expansion to 3 million tonnes and increased mining footprint via new iron ore blocks support medium-term growth (Page 6). - Strategic diversification into semiconductors and display fab business is likely to add new earnings avenues (Page 3). - The steel and raw materials business is under strategic review for value maximization, which may impact future profitability (Pages 3 and 13).

- Vedanta Limited has recently refinanced THL Zinc Ventures with external debt of $850 million, substituting previous intercompany debt. - The company is managing its debt with an average maturity of 3 years and an average borrowing cost of 8.7%. - No explicit mention of upcoming equity fundraising was made in the call. - The company has instituted a strategic review of its iron and steel business, with a 3-6 months timeline, which may lead to potential divestment options to generate value. - There is no direct mention of new debt or equity fundraising plans announced presently. - The semiconductor business is under evaluation for capex and funding, with potential government subsidies (50% Capital subsidy from government of India + 40% subsidy from Gujarat government on the subsidy amount), details to be finalized after feasibility study. - Working capital instruments like buyer’s credit and advances from customers are ongoing rolling instruments with cost around 7-8%. In summary, no immediate new fundraising via debt or equity announced, but potential capital raising may come via strategic divestment and semiconductor business developments.

- Capex approved for operationalization of Sijimali bauxite mine in Odisha to bolster raw material security at Lanjigarh refinery (expanded capacity of 5 million tonnes per annum). - Train 1 (1.5 million tpa) at Lanjigarh on track for completion by Q3 FY24; Train 2 (1.5 million tpa) expected to commission by Q4 FY24, enhancing vertical integration. - Significant progress ramping up existing coal mines and operationalization of Kurloi and Radhikapur coal mines planned in next 9-12 months for coal security. - Expansion of steel capacity underway: Phase 1 to increase capacity to 3 million tonnes per annum. - Semiconductor and display fab business entry through acquisition of SPV from Twin Star Technologies; feasibility study underway with potential 70% capital subsidy (50% central + 20% Gujarat state). - Strategic review of iron and steel business with bankers initiated; timeline 3-6 months to decide on potential divestment.

Future growth expectations for Vedanta Limited in sales, revenue, and volumes are highlighted as follows: - Expect steady and progressive improvement over the next 9 months of FY24, supported by key growth projects (Page 6). - Aluminum production is on a strong trajectory with record volumes of 579 kt in Q1, driven by vertical integration projects (Page 5). - Completion of Gamsberg Phase 2 expansion targeted to start production in H2 FY24 (Page 6). - Oil & Gas to exit the year with higher production than the start, through infill wells and new projects (Page 6). - Steel capacity expansion from 1.7 MTPA to 3 MTPA in progress, enhancing production volumes (Page 6). - Strategic entry into semiconductor and display fab business envisaged to diversify portfolio and tap growing markets (Page 3). - Robust domestic demand in autos and infrastructure sectors underpinning volume growth despite global price pressures (Page 7).