Highlights 2016

Highlights 2014-2
 

Vedanta demonstrated resilience this year: delivering healthy EBITDA margins, strong free cash flow and lower gross and net debt in a volatile commodities market. In India, we achieved record production in aluminium, zinc, lead, silver and copper cathodes, with significant increases in power generation. We made good progress on the turnaround of our Copper business in Zambia and broke ground at the Gamsberg zinc deposit in South Africa. With our combination of low-cost and well invested assets, we look forward to the future with cautious optimism.

Financial Highlights

  • Revenue of US$10.7 billion and EBITDA1 of US$2.3 billion, lower than FY2015 primarily due to lower commodity prices (FY2015 Revenue: US$12.9 billion, FY2015 EBITDA: US$3.7 billion) 
  • Adjusted EBITDA margin2 of 28% (FY2015: 38%), driven by low commodity prices
  • Free cash flow3 of US$1.7 billion, up 63% (FY2015: US$1.0 billion), driven by optimisation of operational, capital expenditure and working capital initiatives
  • Net debt reduced by US$1.1 billion and gross debt reduced by US$0.4 billion during the year
  • Underlying (loss) per share4 of (131.9) US cents (FY2015: (14.2) US cents)
  • Basic loss per share of (665.8) US cents primarily due to a non-cash impairment of US$3.3 billion (net of tax) and lower EBITDA, reflecting lower commodity prices
  • Covenant modifications on bank loans at Vedanta Resources plc secured until the period ending 30 September 2018 and complied with as on 31 March 2016
  • S&P downgraded issuer credit rating from ‘BB’ to ‘B’ and Moody’s downgraded its corporate family rating from ‘Ba1’ to ‘B2’ due to weak commodity prices – S&P subsequently revised the outlook to ‘Stable’ in April 2016
  • Hindustan Zinc Limited announced its highest ever special dividend in Q4 (c. US$1.8 billion including dividend distribution tax)
  • Final dividend of 30 US cents per share

Business Highlights

  • Simplification of the Group structure continues to be a priority
  • Record production of zinc, lead and silver at Zinc India; aluminum, power and copper cathodes at Copper India
  • Commenced ramp-up of capacities at Aluminum, Power and Iron Ore divisions
  • Entire Power portfolio of 9,000MW now operational
  • Successful implementation of Mangala Enhanced Oil Recovery Programme at Cairn India
  • Recommenced production at Goa Iron Ore operations, achieved exit run rate production of 0.8 million tonnes per month
  • Continued ramp-up of production at the Konkola mines at Copper Zambia
  • Strong cost performance, with lower cost of production across all businesses; cost savings of c.US$325 million delivered in the year

Sustainability highlights

  • 2.25 million beneficiaries of our community investment
  • US$ 37 million invested in community development 
  • 42 million mt carbon footprint 
  • 0.46 lost time injury frequency rate
  • US$3.2 billion tax payments to exchequers
  • 2,283 full-time female employees
  • 100% of sites conduct periodic medical examinations for employees
  • 4,176 village meetings held
  • 1.53 million training hours delivered to all staff 
  • 0 category 4 or 5 (severe) environmental incidents 
  • 50% non-hazardous waste recycling rate
  • 23% water recycling rate
  • 42,240 man hours training on Code of Business Conduct & Ethics