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Vedanta Q2 Profit Falls 38% on Talwandi Sabo Write-Off, SEPCO Settlement

One-off legal charges tied to Talwandi Sabo drove the decline.

Overview

  • Consolidated PAT came in at Rs 3,479 crore after an exceptional charge of Rs 2,067 crore, including a Rs 1,407 crore write-off following an adverse Supreme Court ruling and a Rs 660 crore settlement with SEPCO.
  • Excluding one-offs, PAT rose 13% year on year to Rs 5,026 crore, with revenue at Rs 39,216 crore and EBITDA up 12% to Rs 11,612 crore, both ahead of estimates.
  • Talwandi Sabo Power has sought a Supreme Court review, yet the related receivable was treated as non-recoverable and written off in the quarter.
  • Gross debt stood at Rs 83,544 crore and net debt at Rs 62,063 crore, with net debt-to-EBITDA improving to 1.37x, and the board declared a Rs 16 per share dividend.
  • Operational progress included commissioning 1.3 GW of power capacity, first metal from BALCO’s new smelter, first alumina from the Lanjigarh expansion, and record quarterly alumina output of 653 kt.