Any current/future new fundraising through debt or equity?

Vedanta Limited has about $1.2 billion debt maturing in the second half of FY'24 (Q3 and Q4), mainly INR9,500 to 9,600 crores, which they plan to repay or refinance. The company expects free cash flow in the second half post-capex to cover these maturities and is actively engaging multiple bankers and financial institutions for refinancing options. Ajay Goel expressed comfort and confidence in managing refinancing or repayment, indicating multiple options are available. Vedanta Resources has $1 billion bonds maturing in Q4 FY'24 and no intercompany loans due in the current fiscal; refinancing

Any current/future capex/capital investment/strategic investment?

Vedanta is investing in growing and debottlenecking its steel and iron ore mine business, including hiring experienced personnel. Capex for Oil & Gas to maintain production includes drilling 25-30 infill wells annually costing around $150-200 million. Board has approved capex of about INR2,650 crores for expanding FACOR's ferrochrome production from 150,000 tpa to 450,000 tpa, strengthening market position. Zinc International progressing with Gamsberg Phase 2 expansion. Iron ore mines expanding: Karnataka (6 to 7.2 to 10 million tons), Liberia (1.5 to 5 million tons), operationalizing

Future growth expectations in earnings/operating earnings/profits/EPS?

Vedanta Limited is on track with its long-term goals of vertical integration, operational excellence, and deleveraging, which supports growth in earnings. The company expects continued cost reductions and operational efficiencies, notably in the aluminum sector, zinc, and oil & gas, contributing to margin expansion. Arbitration awards and favorable government rulings are expected to positively impact EBITDA by around INR 20 million every quarter going forward. Ongoing expansion projects, such as the Ferrochrome capacity increase, Zinc International’s Gamsberg Phase 2, and growth in iron ore pr

Future growth expectations in sales/revenue/volumes?

Vedanta is at an inflection point accelerating volume growth across its portfolio. Aluminum sector: Expected first metal from the 435,000 tons per annum BALCO smelter by FY25; bauxite capacity to increase to 9 million tons per annum; coal mines capacity expansion from 3.6 to 34 million tons per annum. Zinc sector: Growth projects include a 150,000 tons per annum roster project and a 510,000 tons per annum fertilizer project; Zinc International progressing with Gamsberg Phase 2 expansion. Iron ore: Plans to expand Karnataka mine from 6 million tons to 10 million tons and Liberia mine from 1.5 m

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Vedanta LtdQ3 FY23Diversified Metals

Vedanta Ltd Q3 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹310P/E: 12.3Market Cap: ₹1.1L CrSector: Diversified Metals

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Vedanta is at an inflection point accelerating volume growth across its portfolio.
→Aluminum sector: Expected first metal from the 435,000 tons per annum BALCO smelter by FY25; bauxite capacity to increase to 9 million tons per annum; coal mines capacity expansion from 3.6 to 34 million tons per annum.
→Zinc sector: Growth projects include a 150,000 tons per annum roster project and a 510,000 tons per annum fertilizer project; Zinc International progressing with Gamsberg Phase 2 expansion.
→Iron ore: Plans to expand Karnataka mine from 6 million tons to 10 million tons and Liberia mine from 1.5 million tons to 5 million tons.
→Ferrochrome: Capacity expansion from 150,000 to 450,000 tons per annum with INR2,650 crore capex approved.
→Copper: Priority to restart Tuticorin operations.
→Port business under VGCB targeting volume rise to about 10 million tons.
→Overall, growth driven by project deliveries and anticipated commodity price improvements.

Margin guidance

Category 3

→Vedanta Limited is on track with its long-term goals of vertical integration, operational excellence, and deleveraging, which supports growth in earnings.
→The company expects continued cost reductions and operational efficiencies, notably in the aluminum sector, zinc, and oil & gas, contributing to margin expansion.
→Arbitration awards and favorable government rulings are expected to positively impact EBITDA by around INR 20 million every quarter going forward.
→Ongoing expansion projects, such as the Ferrochrome capacity increase, Zinc International’s Gamsberg Phase 2, and growth in iron ore production, are poised to boost revenues.
→Stable oil & gas production supported by capex on infill wells (~$150-200 million annually) helps maintain volumes and earnings.
→Vedanta plans to sustainably improve cash flow and profitability by leveraging improved cost structures and higher operational efficiencies.
→Overall, the outlook is balanced and the company remains committed to meeting fiscal ’24 production and cost guidance, suggesting stable to improving earnings and EPS.

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Fundraise plans

Yes

→Vedanta Limited has about $1.2 billion debt maturing in the second half of FY'24 (Q3 and Q4), mainly INR9,500 to 9,600 crores, which they plan to repay or refinance.
→The company expects free cash flow in the second half post-capex to cover these maturities and is actively engaging multiple bankers and financial institutions for refinancing options.
→Ajay Goel expressed comfort and confidence in managing refinancing or repayment, indicating multiple options are available.
→Vedanta Resources has $1 billion bonds maturing in Q4 FY'24 and no intercompany loans due in the current fiscal; refinancing is underway.
→No specific announcements of new equity fundraising were mentioned.
→Discussions on options like securitization of brand fees are ongoing but no concrete decisions or plans were shared yet.

Order book

The provided transcript and document pages from Vedanta Limited's Q2 FY24 earnings conference call do not mention any details related to the company's current or expected orderbook or pending orders. The discussion focuses on financial results, debt maturities, refinancing plans, operational updates, arbitration awards, cash flow, mining and production capacities, demerger plans, and strategic directions. There is no specific information regarding orderbook or pending orders presented in the material provided.

Capex plans

Yes

→Vedanta is investing in growing and debottlenecking its steel and iron ore mine business, including hiring experienced personnel.
→Capex for Oil & Gas to maintain production includes drilling 25-30 infill wells annually costing around $150-200 million.
→Board has approved capex of about INR2,650 crores for expanding FACOR's ferrochrome production from 150,000 tpa to 450,000 tpa, strengthening market position.
→Zinc International progressing with Gamsberg Phase 2 expansion.
→Iron ore mines expanding: Karnataka (6 to 7.2 to 10 million tons), Liberia (1.5 to 5 million tons), operationalizing Goa and Orissa mines.
→Aluminum mining projects and value-added product (VAP) expansions are progressing but have experienced minor delays.
→Vedanta's group company Serentica is developing thousands of MW of hybrid renewable power capacity (solar, wind, pumped hydro) to power energy-intensive projects like ferrochrome by 2024-2026.
→Overall, Vedanta continues capex focused on vertical integration, operational excellence, and growth.

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