Vedanta (VEDL) 26 Jul 212022 Q1 Earnings call transcript

Ladies and gentlemen, good day, and welcome to Vedanta Q1 FY '22 Earnings Conference Call.

As a reminder, all participant lines will be in a listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Raksha Jain from Vedanta Limited, Investor Relations. to over and you, you. Thank

and Thank Thank quarter ladies 'XX. gentlemen. evening, for you, results joining FY first operator, you the us and discuss good today of to

year. and good Group Mr. our Mr. Prachur business Goel Sunil Deputy start a Mr. Arun operational Mazumdar Misra from Mr. and with held Goel Zinc; Mr. Group Sauvick CEO, Ore for and the been and the Gas; Shah Mr. has Hindustan will from be from quarter quarter, a to This leaders; Mr. the will Iron CFO, followed & Steel. The updates discussing Duggal; and Duggal by several call Oil by our for be Ajay of session. Q&A financial

invite results. present to Duggal I Duggal. Mr. would Over you, Mr. the like to Sunil to Now

Raksha. you, Thank

unlock India's businesses. So earnings continued another good first quarter momentum 'XX welcome evening, focus to and relying will to support digital-first deliver aluminum, and constraints demand will demand, announce are on on to Coming happy on thrust all on progressively talent gentlemen, strengthen energy. steel, while from were ladies focused Limited manufacturing lead, continued growth. Slide cost touching and Consumer pool, strong approach, like sustainable credit X. Infrastructure our to to and while FY green Vedanta asset-based, remain supported by our quarter is quick best come and We Vedanta, provide conference with in spending, able oil highs. by to I'm to copper, discipline at side call. to to our leading quarter core pandemic, our infrastructure fundamental. investment across momentum, easy supply two. global metal demand advanced on increase to value commodity likely in to back mobility. more set be demand strong Global GDP in economy, We demand commodity remain the zinc states as and of quarters commodities demand restrictions. with gain prices that strong post ESG, mobility is availability strong which Government gradual be multiyear for hopeful the economy, coming increase aluminum of incentivizing prices increasing commitment in number Oil and is recovery continued continued particularly

as of wave into second localized India The measures struck We help… and country undertook lockdowns. recovery hard [Technical Difficulty] economy impacted COVID-XX to several went

operator. line. we all stay Sir, Participants, Excuse hear we management's you please request me, we check to the the while line the this is you. can't on

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repeat a just I'll So of paragraphs. couple

and continued thrust on availability Incentivizing credit of spending. easy government infrastructure demand. commodity increase So will manufacturing

come restrictions, is quarter back to more X. demand states set progressively As unlock consumer in

struck plant of over number localized across wave communities. INRX,XXX by and measures giving hard out country. We rolled in economy and villages the to country people India initiative, to second recovery lockdowns several over for The X.X-lakh umbrella hospitals society impacted as the help to COVID-XX At went to group approximately. XXX at into undertook sanitizers. Supreme X,X to back the back XX of our supplied permission oxygen now. costs, oxygen Copper, has X,XXX to we by Coming being developer we entity believe by Anil PPE oxygen taking the Sterlite Vedanta, the providing medical location total Agarwal giving Vedanta's Foundation, around the ton equipment, medical Slide medicines kits, vaccines, in of tons choice and With free started test crores. has around from kits, which supplied X the Court, and the oxygen, X

corona-free grassroot on program focused level project village animal several and health across development, pandemic. combat in healthcare and a the child impact care, to states investment women nutrition, is for Social improving

part As conducting to among Abhiyaan people in have Gaon medical and X,XXX expected tackle other diagnostic started and oxygen supplying XX Slide wave, things. villages infrastructure, we to vaccination initiative drives, providing with Swasth XX-lakh aim of number across by about third and an states, of this X. touching lives Coming

world the getting continue situation business are to headed back normal, let to As we on slowly monitor our passports by Call centers the the determined guards down. ground. is CEOs not or to

We our in case unanticipated wave. internal are assist ecosystem of prepared to well any third

as site, ongoing support their with and and and are Testing tie-ups medical hospital speak. families have any of business deployed We infrastructure vaccination all our emergencies. partners for along all we employees, required at our

go communities. and welfare We to the to are mile ensure Coming number to X. Slide employees extra prepared of our

We are two at this lives saddened quarter. by the India Zinc loss of

in-depth from harm continues we completed training. units are incident everyone aim partners the The each safe have at end tracked at Achieving learnings being and for be and our learning ensure for business have and the by reviewed fatalities. Safety high-end ICAM as goes incident across mission, the that through and level. being day. our monitored zero program safety investigation to our employees home business to achieve We of are we focus ExCo fatality implementation

to also have to visible decarbonization. leadership. through our the inflection strength We leadership Coming improved way safety senior all level on

carbon includes developing XXXX concrete science-based in risk a road be This take a developing and action our next out plan six the months. to are next energy pricing mix. targets, assessment, revamping We rolled with map

on to result continue We a as operations a zero analyze aim our risk impact and achieve net and environment. to of environmental the monitor

achieve which We identifying areas Net scaled be program success, wherein within up. launch to each are also we business, can to Pilot plan Zero early

to XX XX. number and Turning Slide

highlights key the financial our and operational quarter. of to Turning

strong achieve all Aluminum, on with better mention focus Zinc we'll structural performance cost. deliver in and cost across focus continue with and continue lowering continued capital businesses, Special continued to where production new to production along of We FACOR, levels International reduction management. on to

by a with June last production robust quarter, EBITDA technology coke margin addition sheet. up across INRX,XXX all with portfolio product INRXX,XXX down crores resources across revenue ever shows recent of This portfolio the with debt our We our met we net from record which businesses, The balance our INRXX,XXX ramping and EBITDA us leverage of crores XX. highest further. puts closed remain and businesses strength diversified year, of at production performance enhancing potential XX%. has discipline. Coming and sweet come Vedanta's crores via from a achieving strengthening the Slide existing ferrochrome on focused spot to number of

value on updating to ESG Board each the We base. race, to to following and our areas, and We record to are we gender various value our employees drivers. strategically all provide core region, further In commitment are the Company. Committee management are being remain committee of leverage have Board focused Upholding equal reoriented aspects set of their Sustainability and strengthen unlock ESG, age, key driven into or Board-level for to to up these to asset initiatives as creed, of caste, technology regardless nationality, advice center foundation improve excellence of R&D opportunities ESG. with committed structure

value and all key We procurement efficiency our across task integrated digital verticals. will Exploration unlock risk is and focus initiatives and growth transformation establish marketing; businesses, analysis. area the force monitoring for reserve for through also including to improve

few where Extension Maharashtra couple expected forest brand weeks We Government million drill get examples: are through next partners working bore next of second, drilling Dubarpeth expected of in process onboarded of execution with to on a executing exploration permission block in post of block commencement drilling from greenfield with have total expected and in exploration. R&R A in Chhattisgarh, shortly, four based the various coal current projects. monsoon. Thanewasna of tons the QX forest to And BCL, copper XX.XX to start of received commenced expected on holes weeks XX Baghmara we of addition approval exploration stated quarter. has

work mining and assessing XX. Coming partnership to does to to towards Slide continue new We expanding R&R base. number and stand

highest Aluminum Turning and an we kt, cost hot production ton, was to business, cost ton; production, was Landing XXX per production Y-o-Y. up of input quarter, headwinds. at XX% of of $X,XXX to business commodity $XXX which our aluminum up per metal ever witnessed due verticals. of exceptional

of margin almost to at aluminum XX%, highest to the making This business group highest-ever our quarter equivalent saw EBITDA level. EBITDA contribution

the Jamkhani, cost XX%. areas We for blocks, coal have one the in potential our North coal be focus will for of with Orissa. successful operationalization XXX% will ensure bidder security The key the as Kuraloi a Kuraloi this priority the high and coal XX% emerged our to coal north in of down Radhikapur of business as bring by block almost around to

XXX projects, the of will The NEP. ramp-up We and annum X cement it up Mine audible? improvement. at ahead will the production X top a more be kt, on at the challenging up on initiatives towards at of track, and one up X total prices, XX% across per expansion total with the fully Turning XXX our one of million production with kt, million XX. We is of tons VAP cost of Hello? we slow the are digital ton Line move stronger per at mainly The which than In in metal our to of times. ton strongest in of alumina refinery and the to higher Slide stood aluminum X metal account first BALCO pillars XX. million ton, X.XX commodity stood volumes Zinc at Jharsuguda capacity to cost commissioned chain. to kt, undertaking look production BALCO at number integrated entire value maximizing, I sustainable to has production our us delivering global structural coal, On among XX% ton, XX%; smelter capacity effort efficiency per up Zinc Slide million quarter. consistently business, from take annum. key leaders Y-o-Y. its of on India, from Coming to the Am $X,XXX X.X not back to despite to structure, on vertically XXX vision delivered year be taking to X million ramping been number diesel. Tier X%,

can hear Sir, you. you are audible. We

audible you Sir, are

by the The projects, let digital fully shafts check. a focus of for We resources. efficiency are at to Khurd I base mine use This at operational. and Rampura Agucha grinding recoveries. fully year on SD upgrading initiatives are Sindesar increase look increased me purpose improve an our just is mills and Moreover, increased back RD at stronger of there of improvement. Okay. structural year, and thought, use reserve ahead commissioned process controller both to advanced

leveraging of target to achieve is with up more mine geophysical on International up to highest-ever than to Zinc way apart trajectory Gamsberg $X,XXX Gamsberg testing. MIC achieve XX It in performance Owing to with technology the of also building advanced and 'XX, kt in mill internal business, throughout, Y-o-Y, from records highest the We targets. which demonstrated per one COP and through several the design XX% effective kt, net and of for continue quarter like is and reduction from in new plant excellent setting are $X,XXX surface XX digital mill FY the treatment. initiatives, quarter, performances ton its efficiency maintenance improvement. ore four recovery utilization per ton monitoring, quarter Coal

achieving well one. of a mill million ton to towards to versus ton Gamsberg. additional business, with Gamsberg expansion per to per With producer. Phase line of new in X ton double undertaken, of projects, been has metal million million of XX being confident Gamsberg existing about zinc at developing ton first project ktpa Conversion record, capacity almost reduced between million of seen the rougher already this Vedanta at scalable to Phase also to additional magnetite. pilot of to sulfide per XX with hour. gross next ongoing and in first annum to are the achieve are 'XX X circuit quarter ore kt or MIC XXX number production ore. of tons enhancement Slide 'XX, R&R looking our X.X due produce the in It at quarter BMM Xx iron positioned Gas line Reagent Coming proven production kt. were up Skorpion and product impacted oil than million to hour sales step production at have by Gamsberg. gas and XXX demand remove on undertake and run X a in the kt been expansion from significant production of Advanced during expects iron million FY XXX produced a quarter growth, Gamsberg to exited partners phase a identified project now XX June, production is oil from mining X new driven XXX targets Zinc deep of We ramp project to X become from geophysics produce ore by started of Drilling FY million through to the with was to expansion Plan at Swartberg during XX. kboepd. technology. kboepd. started. and plant normalized magnetotelluric vision more ramped mining X X to recovery. project was four throughput mine XXX embarking business refinery ton target the drill project XX operational. Namibia have debottleneck to onboarded, the ton improve track to we ZI fine gas metal On operated robust terminal months. This and first up has during Gas the is has and commenced two XXX XXX fully ton

efficiency also the partner facility All been capacity. for wells drill to number us design gas to up. Aishwariya enable to The XX. Barmer addition. operational and and ramped R&R injection ramped on improve O&M polymer has onboarded Hill up been We Coming have volume the have to processing focus to manage Slide

drilling For investment of to gas intend plan We We results. with to been $XXX oil, commenced spend portfolio. has objective million around the to and spend tight year, sold-through monetize near-term two. to million CapEx Mangala. million planned in volumes resource a around Drilling current from XX and adding progressively exploration. offshore commence barrels shall Infill tight twofold have $XXX the grow quarter and we

and is wells drilling North-East. in have XX four drilling in currently, Our we And Cambay well ongoing program OALP, drilled already.

consistent XX% number business. due to production drilling the barriers. exploratory We ore current products and and value focused in and to Rajasthan while trade to during prices iron domestic was Ravva Y-o-Y. ore on by to supported highest-ever strength Slide the were iron year. block in Coming saw up value-added XX commence moving expect Sales Karnataka full through margin with, strong

resumption with we to we Y-o-Y. Goa state mining. of highest-ever of and margin mines, Xx ton, value-added improvement, metal For hot which are up improved for central At to due for government was kt segment, and per the production engaged quarterly XXX favorable ruling achieved productivity $XXX

X announce to XXX of million of very sales Y-o-Y making domestic were having with production in X.X margin XX%. tons The the country, coal Gujarat, quarter largest $XXX condition kt taking tons. amidst capacity also saleable to XXX are a happy per merchant recorded annum The of acquired in capacity coke Y-o-Y, of quarterly the wave ton. second more recently kt, million up down for XX. integration plant, the Vedanta at Steel We to X% per VAP mix a player quarter, COVID. decreased challenging of XX% due Coming Slide the our in than one to to business

in our FY achieve However, than to focus XX% remains 'XX. more

facilities other capacity Debottlenecking technology, the with hot Upgradation metal We in of time. productivity to million to and double are next capacity tracked existing enhancements. per are ongoing unfinished October. improvement furnace XX of for months' planned digitization is annum X to in tons blast XX automation,

story, number Slide turnaround in year. to comparison ore growth FACOR continuing is seen last has XX. to Turning in Xx production its

by production. In has this the productivity maintenance in quarter post Plant fact, witnessed April. XX% ore shutdown highest-ever annual increased

like friend, We to have production. further completed the of now, hand and Mr. productivity With colleague debottlenecking Goel, on this summary. furnace debottlenecking to technological initiatives I mic several Ajay. of for and you, the stable various like increasing my through efficiency would plan initiatives. ferrochrome the optimization Over financial over and We Ajay

Yes. and evening, Sunil, Thank good you, everyone.

start QX very has strong delivered quarter, an year, and We operationally outstanding of financially. the yet been both another and have

and quarterly This quarter witnessed debt-to-EBITDA performance net very low ratio. best-ever EBITDA our

digital CapEx this very also augmented projects, investments and society capabilities in people times. and well supported we various in futuristic tumultuous made quarter, This

Some This Page underlying capital to means lowest crores at peers. of debt months ratio highlights X.Xx quarter INRX,XXX can amongst XX% to equivalents net be return crores, stands employed, is at before Y-o-Y, an that of net balance position on repay of ending the of and sequentially. and at is and stands very basis the the INRXX,XXX sheet. key crores, XX%. ROCE, of XXX items, debt-to-EBITDA quarter points Gross being I margin with up crores INRXX,XXX debt versus from cash that balance sheet. with X.Xx, that EBITDA ratio continues Attributable are up Y-o-Y. underscore XXX% cash up industry-leading almost an crores INRX,XXX INRXX,XXX on of the last INRXX,XXX the XXX% the crores, seven XX want profitability Net margin. exceptional underlying highest-ever strong with quarterly entire XX% liquidity annualized with PAT, on of EBITDA we almost shows Y-o-Y, of debt down

seen and your at for in You INRXXX oil quarter stands average have down The interest higher crores, call X% capitalization we Finance account XX. the to and Y-o-Y rate, cost appendix for portfolio. at and primarily stands the higher numbers the to for versus of stands of INRX,XXX due XX% pretax previous have of to the the oil and our portfolio. quarter-on-quarter, marginally the change due normalized about was X% capitalization few on crores, a at lower ore and by at higher on Income mainly statement ETR, movement due investment at account of at XX% to change by with INRX,XXX businesses. International Zinc mark-to-market vital X.X%. that is especially in quarter-on-quarter, I XX% current numbers at costs and gas income from and for in crores, due the in ore is the within a Starting average average offset it XX% production in at couple Page by The benefit. our borrowings, business profit want it quarter mix down projects, capitalization and income Y-o-Y zinc mix gas tax The quarter volumes may XX% at aluminum in for partly primarily entities business. about detailed higher costs. The from XX% Y-o-Y, out QX major on charge to down higher of lower quarter on for effective investment X.X% quarter investments. quarter-on-quarter,

quarter our on move know, now crores I quarter. on tax onetime in from items, bridge. normalized deferred previous recognized fourth tax integration losses excludes almost we the of asset to and dividend EBITDA exceptional INRX,XXX tax you the ETR As previous any inter the that ESL from in

Now first, XX. starting last with year the EBITDA versus on bridge, Page Y-o-Y

can you for zinc, quite cost The the As see year which of of X.Xx, INRXX,XXX increase up increase mitigation quarter, INRX,XXX market. last again this absolute same at quarter the been ore crores volumes crores aluminum LME and marked offset partly and INRX,XXX by on and business driven, significant been think market portion Brent. iron in gone to vis-a-vis summary, I this quarter commendable. has same chart, has pricing both last or quarter, in EBITDA year crores aluminum EBITDA has to which from is Overall, is

on to higher XX for the the vis-a-vis quarter bridge EBITDA Page on quarter-on-quarter. Moving sequentially is previous the quarter. XX% by EBITDA

and INRX,XXX market crores. regulatory alone the As commodity the pricing impact factors majorly our This offset at EBITDA partly by have of or ESL. positive inflation gain commodity various evident is INRX,XXX input crores giving aluminum bridge, by on from and with LME

[Technical at Zinc On and… front, volumes Difficulty] lower the operational

line. the and Participants, Ladies is thank Excuse me, patiently Sir, ahead. operator. waiting. the check you gentlemen, stay please go you we The connected is line for management's reconnected. this may while

on is sequentially, was operator, EBITDA that. XX% Yes. for quarter XX. by for is the I Thank break Page higher you, which EBITDA at quarter-on-quarter.

the positively aluminum INRX,XXX the impacted see is ESM. a giving LME factors by and inflation, as almost EBITDA market partly This and gain crores. alone, can and the pricing from Now input crores bridge, at INRX,XXX our of by offset have we majorly

major steel pricing and the on EBITDA the front, Y-o-Y, crores. higher and business both On lower Brent input and and different Overall, things, managing. by inflation volumes impacted metal the and operation at iron has zinc both INRXXX the side been quarter-on-quarter has

of net debt crores June the INRX,XXX in Moving and of page shown Net XX [technical at year Page by versus a showing to difficulty] decrease INRX,XXX a last side on XX. deleveraging crores next almost stands crores, on sequentially on debt now net almost XX%. INRXX,XXX -- is as debt decrease

audible. I'm hope I recheck, to Just

Yes, sir. you're audible,

loans Okay. of continue. almost post is CapEx free receipt also repaid operational I a got a account Limited. INRXX,XXX INRX,XXX debt of to will performance; Vedanta result from flows crores net almost crores and we intercorporate decrease that in attributable The as Resources strong on positive secondly, cash of

the in Finally, managing term The cash to balance to and number EBITDA a a improvement I remain strong hand balance to margin. page, volumes on previous Sunil summary, sheet you. crores for of borrowing We X.X% performance cost very stronger when QX in excellent And efficiently three from that, position Thank terms and net structural with where the and has over in maturity Q&A. profitability at deliver to a amongst our the deleveraging focused begin. Overall, totaling and Indian balance an a This average INRXX,XXX has sets we X.Xx, delivered debt Ratings. plus. and with XX. as businesses, outlook highly long in sheet, to moving remained with on back investment The year across debt wrapping we years, believe quarter, lowest almost of in very Page quarter. last almost as constant end performance. we stable a is quarter the both us are we with India before rating average peers in for sheet at the by With strong

Thank you, Ajay.

one, growth base Number of and question on cost continue maintain and leadership; growth; optimal open value-added strengthen and like floor sheet enable focus organization; answer, the two, future; reiterate balance four, strong world-class capital for and our three, vision would reserve vision I businesses. to strong delivering excellence resource operational strategic ESG all to our in long-term our and five, our will we priorities that drive becoming Before value.

you, for open question and the floor answer. to declare I operator. Over Now,

first Ladies is will now you gentlemen, Edelweiss. question-and-answer ahead. go Instructions] the question Please from line of much, Amit very begin The [Operator we the sir. session. Dixit from Thank and

lot a of congratulations Thanks good a set for and the I questions. two have numbers. for opportunity

The first plan BALCO, your ktpa. one at XXX is expansion

Now this because ROIC primary while what capacity you of this from do expansion, ahead competitors you setting or in is expanding going are and aluminum one it. India ROE kind envisage diversity of -- doing your

So wanted understand the I it. just to behind process thought

go million No, first adding we million security, our green potential of grow XXX%, we ton bauxite X the product, ton. And to million X the our from value-added curve aluminum, almost and the structural X with wanted to with capacity, around I tons at ton raising to come X X we the which making going And demand growth ton demand to to region with think securing think the our to cost XXX% go to I think India. capacity million can measures up million I the is production. to of decile of a wanted to realize in and BALCO, also the infrastructure and focus is by metal

We are coal also for in MoEF then ton the from the of process blocks. of operationalization the and million approval X taking

all also from three excited XX%. compared at the Jharsuguda block, almost which capacity just the it and won. the the And in UCB previous have that the let XX% blocks, contributing I which those to capacity, this cost to expansion to of securing quarter value-added think we to is we our won, expansion. And XX% billion coal we to have could And security. XXX% declared adding to of the and potential cost on income already structural announce quite coal With place XXX% and BALCO. at coal par recent with capacity, the value-added gives kt. X coal know with which our existing aluminum us around The tons, this is you Just coal motivated XX% to million EBITDA have also, we business block, the we coal measures on are lay $X

on particular So ROE, have expansion? estimate any put understand just if wanted the ROIC this you for to

no, -- sure. Just

think I is Sunil of one be very this we heard that project club and you quite from the bulk extradition, entering MTPA soon. will

a you building of market CAGR, capacity as for this this the future. a Now X% entire the seed to generation. for is X% know, is showing It growth is next about so

project LME entire maybe financials. between will XX% very where at it healthy rest. that XX%, normally we If track, look depending the the metric with as and I has IRR a Now, key to is

is is, at XX% is Payback this IRR looking sure, set So while strong. of is quite another plus kind for project.

between X real on a is we We is project. scenarios, the Overall, a a scenarios So X.X going up, overrun. to multiple looking X.X if years payback. offer plus down, X, and project terms well years going multiple at this is of in payback stress-tested, XX% IRR

This work number, conservative But cost. a I on also cost IRR on. want very the which to add is existing is

MSR product, I to going the operationalization coal blocks and of $XXX With value-added level, the the of business. potential think contribution level, the structural measures, up, going potential the a remains LME we MSR at which around I have just said, up have current our this same oxide if security from additional from capacity langer the the $XXX

that further on is your chart number XX. waterfall question Slide And the second elaborate, is aluminum on Understood.

cost see except I if has elements, cost Q-o-Q, conversion increased Now everything the others. and

write-back is responsible the for decline? So that are there decline ton I to drivers RPO per some for is $XX? this from this obligation mean, $XXX Or what

No, cost. that's as write-back in There's RPO this such. no there is no

Okay.

factors efficiency in are the this? purely it's that integrated So,

Absolutely.

[Operator Ashish of is ahead. the Instructions] Please from The Kejriwal from next go line Broking. Centrum question

evening, good everyone. Hi, Yes.

the both for debt Hindustan has decline and ex -- you because on this fully see of company around in crores position out your net for what's declined Hindustan So, X,XXX crore quarter by two of ex EBITDA of X,XXX plan that is, debt X,XXX me. Zinc questions if One also, that XXX net our crore crore. Zinc, our

Are on we call? So,

Yes. Mr.

is question. Kejriwal, your with unmuted. your Please Ashish line proceed

Yes. Hello?

hear Yes, we you. can

Okay, fine good evening.

decline debt of The seeing are payment it crores net in the that a net parent So ICD INRX,XXX that, ex crores around by declined has question by company position And INRX,XXX we just out where Zinc, the fully is was Zinc. on my on ex Hindustan company. basis. Hindustan INRXXX debt of crore quarter-on-quarter

throughout And how net my out block. about coal debt see question one. terming year? question is, So the we talked That Hindustan Zinc ex the you is do secondly,

will So when do blocks, for coal much will cost CapEx CapEx all what's you we giving total you. the do? plan the Thank these three and as and start power that BALCO, well kind contributing of are expecting as how think coal advantage some in

all coal think blocks. I No, these three

are a board on We the these and blocks. of numbers all drawing for coal on working operationalization

crores is And we own have working with rights sense then or So land some potential INRX,XXX that model out parties AMD in for is spend taking my of around to rough discussion coal and of blocks. approvals and process we various will the the in that estimate are operationalization all vendors.

become yes, XX in next On time this to operational So with Hindustan of a could rough INRX,XXX net around months' debt crores. estimate sure. again, of Zinc, XX CapEx the

is almost different So on debt shows if entity. gone down and quarter on you is crores, number Page presentation, XX cash read that crores. maybe INRX,XXX by June, position look entities. and debt and our net net remainder The you contribution numbers by two between almost if charts INRX,XXX number XX position the our Page in the deleveraging, Zinc has by See, from at our March Hindustan the

half half. is and it So

ICD So that's INRX,XXX saying, just sir, or but the was crore by the parent. is half I what repayment

only. So Hindustan from operating reduce to of ex flows net debt by we able were INRXXX cash crores Zinc,

crores. The about number thereabout, I -- right. think about is you're INRXX-odd

right. You're

Yes.

how we that Hindustan year? do net down see ex debt throughout on the So my that Zinc question coming was

the give cash we the guidance you of one look net as the for or mean, fiscal. at terms flow But can in I know, don't numbers. debt

the Vedanta, company business quarter, and in industry in that the first in fourth are cash -- time entire typically, that the the our inventory and how is mean we and is Maybe in the is really flow historically, I the our in first cycle at the works. quarter generation, investment. at quarter. deleveraging look for QX, a recent how debtors first past, you If looking our cash the

the give quarter, than I quarter passing each quarter, the and up. go guidance, volume but to by think I higher in be should second need the first it need to don't

the for year, assuming flows. compression led current volume cash be fiscal to will quarter-on-quarter, and higher So than even EBITDA with that far continues, the higher cost the and LVs significant last

deleveraging we number, I is fiscal. now. for appreciate, hard provide looking be to exact the current it So significant The should at do in

sir, question Sure, for kt XXX expansion? the BALCO sure. And was that CapEx

crores. INRX,XXX So around

JPMorgan. line question ahead. is from the Pinakin The Please of next go from

much. you Thank very

So first question relates expansion. the BALCO to my

million terms if so, be And capacity would of there that tons the be? kind In X.X additional what would be power of aluminum up? capacity smelter, set any

from any current any think don't power don't good interest. be demand infrastructure. any additional capacity. to I or power is We sufficiency water to that plant need converting don't be IPP required. expected and enough best will advantage No, The CPP our our need We the meet thoughts

we of So seeing are power and as quarter, essentially, expect, smelter the units currently sales reduce that would sir, a online? XXX when BALCO the that at we should roughly million comes

Obviously. Obviously.

Okay. to Sir, question my relates oil second the segment.

off EBITDA So marginally the had XX% roughly And also slightly up COP, this and in around has come were we realizations but actually Q-on-Q. lower the volumes quarter. a oil flattish

look we So at how should that?

it Say it How come? did again?

oil as INRX,XXX EBITDA the oil is QX realization versus the on were crores the is higher fourth Q-on-Q is QX, versus flat. Sir, even segment production basis, quarter, actually $XX, is at around oil a $X lower

and list, with higher EBITDA flat even the price volumes, lower sir, is oil sequentially? why So

trend, XX% some the lower to our given impact on has So That has is EBITDA. on sequentially XX%. the account really increased EBITDA of PP which from

will And recurring? be sir, this

Yes.

So we with the for tranche It 'XX, now year the continue roughly at are and in XX% is FY that. we'll XX%.

gone to from has up agreement, this XX%. per As XX% the

XX%, be but the formula got it means a also spend. multiple, will minimum investment CapEx So has that

a could XX%. to of that, vary from As result XX% it

because at going which volume higher, could to result if a come could higher, and go PP a as of tranche down goes of But the are highest investment XX% forward. multiple. the the We investment

Understood, sir. sir. off of was And seen quarter. just there Historically, we expense to continue INRXX of an with in crores this oil, that kind oil have expense, this of not written being exploration wells other an

sheet get So forward? and exploration in the could sir, expensed off the sitting balance wells, the is which what inventory kind of P&L going of on is

No, these all see are wells. you

in not get success. every We that the exploration. you exploration And have will wells budgeted XX know for the that

So well the commercializing direction. we that, are through have found wells. the success but three which wells have drilled has one right, we four of Out given been

we drilling more we or this And wells, the wells. the wells find these process are dry We get in cost. write process, as off a to dry of when have

which very is a So, standard it followed. SOP, is

The from ahead. Please Ritesh next is from of go question line Shah the Investec.

allocation. to is question copper first on Sir, a divestment? I first at plant your on wanted Hindustan Zinc thoughts allocation. and question the lastly, hear capital smelter, That's refining on fertilizer and oil capital business, general

remain projects and for declared also more we we project the whatever states, which in I copper the all billion. our that included. coastal both in in budgeted should all $X you design. from are current issued which the part you complete the project coastal also, are were apart that, projects the process investment than design CapEx, talking, we sustaining But three that, And these we from Apart and So think grind not CapEx to investment states. is of the final the billion, got and we today have CapEx do But had could evaluating year, in this, at smelter the $X.X on the know all, come. from capital have that of And the allocation, interest board UI.

as we conceptualize We or we But finalized discussion will them. finalize are not conceptualized anything. have with or in anything

will will We back the time. announce we to at come you, and right

solicitation XXXX basically the guarantees understand question just July, Resources consent second but also from my On of bonds the terminated that respect Sir, two to holding. Sure. dividend is bond I on [indiscernible]. payout. XXXX. to VRL Resources not Vedanta was is the at only Vedanta looking from are XXth I with

it Vedanta consent parent? to have? this what should from payouts has given the understand, the got dividend relate is to reputation to one Or wanted could just the terminated, So how

Yes, sure.

if the two that bond of content. in you starting think part efforts the continuous We is the the the seeing of it's all first, our overall various terms a So bond And initiatives. stakeholders. for positive parts, is consent

specific this one attribute to can't we Now initiative. any

from to our interest in it called best Now stage, is not think we off has Vedanta And content. bond this looking at hence, at this bondholders, the the response hope for conference. this

second quite payment The to at the I look well. dividends, tracking are you know and of question is Vedanta

highest dividend the in has industry. the been amongst Our even

the fiscal is by the the look you a prices both the think a given. if free volumes flow Now I and with and resultant driven at profitability, higher cash EBITDA, current stronger

and in and think assume the first the the maybe almost Y-o-Y. of the to If balance future, X improvement crores, quarter remains in quarter, single and fair a last it strong wait might strengthening is proof I performance dividend the happening next, But is you an deleveraging have the our look near you the almost coal also in or the at the the watch. that sheet payment quarter quarter with that have Would situation, to seen, billion biggest priority. And option. be we INRX,XXX next

deleveraging dividend, be from also is of Vedanta even again, at at which may both flows operating kind at Vedanta priority. That, be Secondly, one payment Resources and will from of Limited. some leverage

current Vedanta So through your deleveraging dividend, Resources, option the it's payment of both at cash is in an future. through and operating free borrowing flow

the sheet X.XX. in CapEx net the one at look Sir, last balance debt versus should just to years how at ratios? we four EBITDA growth have is best the indicated continue with this, to Like

we CapEx growth are at sheet the versus dividend looking balance that ratios look one should payout? the at versus how So

for fiscal you guideline CapEx. may our I current seen CapEx the gross So almost mean, X.X have X.X, is

X.X X our billion. in billion of have so we Historically, exited X.X we for sustaining for X.X we CapEx putting overall is current are CapEx the rigorous almost conservative, quite to figures. or terms Additionally, and CapEx, billion CapEx are billion guidance; fiscal, almost quite never

think our the last to five far in debt-to-EBITDA, the in almost Xx. is of best by I X.XXx, Indian Right Now peers. net historically the years, typically, range X.X now,

X at If be fiscal, high. is X.X but I the again, current Unforeseen year-end, be about low, almost spot too including must X.XXx. you're huge asking the X.X in sustain? too that will it that of might think X.X to or

The from of you. go Kotak next the question Thank Nevatia Sumangal is Please Securities. line from ahead.

deadline on to the dividend, that dividend Zinc this flow, I get year? question Just understand received on we from the Hindustan previous is just cash continuing the income for the want for shield us the tax on what to for

Section fiscal, you may as typically, no income know, tax and as Well, dividend have Zinc Hindustan you there and current seen the XX is rate. for

to we So fiscal. from same our parent on within to have pass company the our the dividend subsidiary

So at whatever future, to the parent in amount fiscal. we is on we payment same the get happening, all, have to the that pass any if in near

credit, of or tax But understanding shield you call, was whatever Okay. we my in get tax the tax a fiscal. filing next

normally. the thought mean I November right? So is is that I deadline

the you that I discussed saying are think it was calls. for tax also rate dividend last is But year's lost. earlier in

that. So have we don't

Income?

Yes.

Sorry.

the is this me, Excuse operator.

connected. Yes, I am

all Ladies line we patiently The for we check Mr. line. and Participants, stay repeat we may management's request you while connected Nevatia, request reconnected. to please to the waiting. you your question, thank you gentlemen, please. is

clear or I repeat? Yes. is Again, question the should

no, hear I'm fully. heard you. No, sure can I not you if me

I to was saying the What sign think line dividend get before return. I line one in the up. is the time we month, is entire is the

on So pass October by entire dividend then November, the XXth news time we the XX. it's at must on

vote. to time have We

Or we because the did year of And COVID time COVID-XX-led this line extension situation? Okay. time year? any get of any last extension the this line expected of

We don't know.

respective what a we is possible might bought quite do, that will operations extend. but say now to they have hard time the Right with government it is But

That's clear. it. Got very it. Got

Second question downstream X And well? X.X is expansion the What or to million looking we are at? we tons. sort line with just steel, respect of secondly, to some to CapEx looking hotel are of and add million time as the

No, which were half-finished were when project. a half-finished this installed. actually, took project It's a CapEx, is which think of this is there we company, lot a a out I equipment

million take the equipments putting all what tons. value-added looking are existing to capacity balancing business. at to we and the our in similar of debottlenecking -- also this currencies But we have X the will completing balancing we're and done project So,

capacity to ton. all million capacity X million will capacity additional around the take the and of total That X.X to be adding X.X ton ton will existing million X.X So to this tons. million

So, X hot capacity. million be will ton the metal

XX% CapEx that capacity also million. $XXX a and We The adding the billet. are the means mill value-added plan steel the have value-added to and the investment around is overall product is product tower of

like to on would Anything line. you add you also in this? So Sauvick, are

Yes.

in only adding also segment, with the So pipe. are value-added we iron point one ductile the

So XXX,XXX tons. have got we presently, around

ductile iron this will almost So, total pipe tons. XXX,XXX up the to of capacity go

So add. I that Thank all is wanted you. to

XX%. of more rough are all, in we all So at looking the capacity

Duggal, Understood. XX%. just the in ask increase value Understood. one it Mr. the written will if is I question. BALCO may to expansion, that added respect presentation, the With And to more

is what adding? just So you're it you're the BALCO? Or there's adding? smelters Is at planned working downstream some contributions

It's a billet. capacity, converted be of capacity. a more downstream that addition. smelter well, billet XXX% than broad that is is adding this that of addition More and into are XXX% with capacity XXX% will We along than

Please the ahead. from from Chopra Citigroup. go is Raashi question next of line The

Thank you.

would Just billion, mention in -- BALCO earlier. the I the -- mean, number be changed CapEx $X.X be total on that has you which to expansion, billion $X not range will total the would the the from CapEx of

on Hindustan the for how Supreme we And expect on the is CapEx can when second, production any from the BALCO And stake? Court this one. So we apportion That's new announcement? this update should there smelter? Zinc ruling

Zinc million expansion, of will will flow happen. $X cash yet. But year, back the maybe date billion, the will fixed, debt we opening hearing. But the around XX on year could are BALCO So guidance courts depending could disinvestment, in the will remain overall what now the that been be be be the the fixed next current quarters. months' flow Hindustan completed be On coming will there next as in investment, year, cash not last CapEx we has believe and that on this XX giving And time. the for whenever for coming the this up, guidance the to be $XXX

DAM is from question ahead. line Chandak from of Vishal Please next the The go Capital.

the that mentioned. green metals My regards question was to you with

mines? green coming we a tons. be would expanding would of aluminum? [indiscernible] How by power coal our XXX,XXX bulk still translate into I that capacity saying Because would understand from that captive You're be

other we brand what we means power we for or every are want all business that we metal this to metal, our in the green measures That our power green being to The you as part pilot metal. through in are the know reading. and I where to want the steel, production operations the renewable aluminum, to green initiatives pilots don't a all of want of taking source all the metal. green take to convert

only So taking. have the it the to we will up project be a full this scale at And pilot pilot how to volume. we kept are is

we in So as and shall are ourselves strategy which our we our XXXX, all speak, are XXXX, few how convert that, declare to XXXX years. a traversing making be what the energies. taking But measures are journey will and the energies next beyond our we the how other in preparing renewable ESG we progress to for making operations strategy carbon-neutral and will or over the we

a declaration, public plan month complete a in So a we of will and October. making be

for That's quite Sir, my was BALCO an it. answer elaborate question second expansion. with again the to respect

the XXX% we that You VAP. than or more would be mentioned doing on that

or rods? products are something than further So would value-add be that? planning like at more extrusion products wire we stopping we Or

No, will we billet make only.

that billets XXX only? kt, would at In end it

will Yes, else. done by exclusion that's somebody right. The be

we now, of not on are of As experience billet. any talking

Ladies ahead. and line last Please the question Systematics. Jain Rahul gentlemen, the go of from take we from

taking Sir, priority want for for allocation. Yes, question. thank my capital to on take I your

cash year strong So we're very of going generation. a have to

is the Like priority. $X.X to read have parent? -- understand, said term you parent do So be as CapEx INRXX,XXX your to like first then you crores extent our would what is to around can I And you want upstream billion. cash total what that I

structure? how entire So look we capital at your should

have kind quarter-on-quarter. of So of you is will consistent, these our allocation quite and policy priorities on and not strategy capital change

an entire strategic done we strategy, priorities. three on So, have

foremost seen by of in remains look at part the almost we it, the deleveraging quarter, and if you billion X and as first have some Y-on-Y. numbers current deleveraging The

remains you the same billion of may is have Again, current year the And CapEx. bulk estimation. in announcement, growth seen the X.X year it today Second direction.

we do create value how Third is overall.

So these they and not are are necessarily either/or. the three priorities

and Limited Vedanta Now Vedanta deleveraging is both Resources. for

know, the billion. about of Vedanta as June is debt Resources you net XX.X at As

be Now at a Resources, Vedanta dividends. of payment significant will deleveraging portion parent, of through

parent profitability sources: higher two Vedanta flow even cash secondly, again, from, pricing; the free at dividend for and Limited at is come the by of volumes can deleveraging that and Now option. the led from payment leveraging an borrowing

the single biggest both in Limited current Vedanta is fiscal and So deleveraging VR our priority.

looking the is are line cross in we're So on kind debt net mean, not one number looking what you at that? that GAAP year, dividend two basis this a is when dividend? give at I three that of can we pay by time for years, years? And to a

current it me? in is happened. an may definitely. It a have the give near mean you of quarter future, that option hasn't payment I In to asked that line the is you hard time in dividend seen specific

But logical. I indicative think that, is seems lines hard. to that give some quite time

No.

So dividend, Xx pay -- any threshold in of not a to debt-to-EBITDA beyond have? at keep mind or number going there net we looking is the

Limited, We time the or good around around a than think leverage is less for any a Vedanta good number. one X.Xx one X, number; is and

is that our depending upon it So the threshold. normal environment, but -- might change. And

so fully cost of as Right. side, requirements kind Yes. And integrated what expect? also meet the we on the reduction and expansion on BALCO of will alumina should will we well? get And

Yes.

million And hot will also of be for see requirement able BALCO. we'll permission current we that, If ton. at million million the also the to So And ton for metal. X.X this debottlenecking the to are to of X contract the we are X produce looking we it ton. million X capacity, EC aligning ton,

the ton to million So, produce of X million potential X metal. ton has

to X.X go tons. in capacity up addition With total million the capacity will BALCO, the

are you to the With to a benefit local Orissa. the apart able give say, from Lanjigarh But from source that, of, it expansion, cost will bauxite $XX we $XX.

say, will of, further have a We around $XX. advantage

is a from benefit the vision ambition cost and from the get our expansion. Lanjigarh to is, more net-net, $XXX our So than

expand Right, of you right. And BALCO, higher in that given to a sir, would also, level I'm want threats. why wondering much minority so

So up at would it priority be to more Jharsuguda? not ramp it will

other advantages No, also are think I there. the

water security. have We a

a have to security there. We put power plant. don't have We our power

optimize it put make the the up it BALCO. important this is at all to more productive, more and CapEx So capacity

that conference comments. now and was to the Raksha hand Ladies Thank for the last you. gentlemen, closing question. I Ms. over Jain

today Thank operator. you, for on you, this call. us Thank joining everyone,

let us know your are the feedback look out any have same. if you. there that reach required, can follow-up announce you I up our Relations on to our year integrated clarifications to team. the like If report and for the are or on XXXX website. Please annual Investor wrap a any questions now do would is call, we the there live Before Thank

you. Thank everyone. Thanks,

Thank and you all Vedanta behalf this your on may joining very concludes you Ladies for conference. of you and now much. gentlemen, thank disconnect We lines. that us, Limited,