Vedanta Aluminium Reports 105% Profit Surge in Q2 FY24

Vedanta Aluminium has reported a remarkable 105% year-on-year increase in its consolidated net profit for the second quarter of FY24, reaching ₹6,187 crore. This surge, compared to ₹3,012 crore in the same quarter last year, is attributed to record production levels, enhanced sales volumes, and favorable pricing dynamics. The financial results were announced on Wednesday, showcasing the company's robust performance during the September quarter.

The company's revenue from operations saw a significant rise of 41%, climbing to ₹22,066 crore from ₹15,670 crore a year earlier. Additionally, the earnings before interest, taxes, depreciation, and amortization (EBITDA) soared by 83% to ₹10,192 crore, marking the second consecutive quarter where operating profit exceeded ₹10,000 crore. However, on a sequential basis, net profit dipped by 6% from ₹6,597 crore in the previous quarter, while revenue experienced a slight increase of 5%.

Vedanta Aluminium achieved its highest-ever quarterly aluminium production at 649,000 tonnes, reflecting a 5% increase from the previous year. The production at its Jharsuguda facility reached 470,000 tonnes, while BALCO's output rose by 19% year-on-year to 178,000 tonnes. The company also reported a record alumina production of 895,000 tonnes at its Lanjigarh refinery, marking a 37% increase from last year. The average aluminium price on the London Metal Exchange during the quarter was $3,226 per tonne, a notable rise from $2,618 a year earlier.

The company is actively pursuing expansion projects, including the operationalization of the second zone of BALCO's capacity expansion. Vedanta Aluminium has also received the necessary approvals for its Sijimali bauxite mine, which is crucial for securing domestic raw material supplies. The firm aims to increase its alumina production to over one million tonnes in the upcoming quarter, with plans to source over 90% of its raw materials domestically by FY27.

In terms of financial health, Vedanta Aluminium reported a reduction in consolidated net debt by ₹3,090 crore, bringing it down to ₹26,442 crore as of September 30. This improvement reflects the company's disciplined cash management and capital allocation strategies. CFO Anup Agarwal emphasized that these measures have allowed the company to reduce debt while continuing to invest in growth initiatives.