Highlights 2017

Highlights 2014-2
 

Vedanta delivered a strong set of results this year and took important steps towards achieving strategic objectives. We reached record production levels across several of our businesses, and are confident of continued successful ramp-ups from our worldclass assets. An important milestone for us this year was the completion of the merger of Vedanta Limited and Cairn India, and our simplified group structure will support strong shareholder returns. We remain committed to a consistent strategy and de-levering the balance sheet, and look ahead to FY 2018 in a stronger financial position and with more confidence than ever.

Financial Highlights

  • Revenue of US$11.5 billion and EBITDA of US$3.2 billion, driven by firmer commodity prices and volume ramp-up (FY2016 Revenue: US$10.7 billion, FY2016 EBITDA: US$2.3 billion)
  • Adjusted EBITDA margin2 of 36% (FY2016: 28%), driven by firmer commodity prices and operational efficiencies
  • Free cash flow of US$1.5 billion (FY2016: US$1.8 billion)
  • Gross debt at US$18.2 billion (FY2016: US$16.3 billion), higher on account of temporary borrowings at HZL (US$1.2 billion) for special dividend payment
  • Gross debt reduced by US$1.4 billion post 31 March 2017
  • Net debt at US$8.5 billion (FY2016: US$7.3 billion), driven by dividends paid to minorities and the associated dividend distribution tax.
  • Vedanta Limited and Cairn India merger completed.
  • Underlying profit per share of US cents 1.1 (FY2016: loss of US cents 131.9)
  • Positive credit rating movements ; 
    • S&P upgraded the issuer credit rating from B/Stable Outlook to B+/Stable Outlook;
    • Moody’s upgraded the company’s Corporate Family Rating (CFR) by one notch from B2/Negative to B1/Stable
  • Announced a final dividend of US cents 35 per share (total dividend US cents 55 per share), dividend yield of 6.5%
  • Declaration of record interim dividend by subsidiaries in March 2017
    • Hindustan Zinc Limited announced dividend of US$2.1 billion including dividend distribution tax
    • Vedanta Limited announced a dividend of US$1.0 billion, of which US$500 million was received by Vedanta Resources Plc.

Business Highlights

  • Record annual production at Aluminium, Power, Zinc-India (Zinc and Silver) and Copper-India
  • Successful ramp up from Mangala EOR with production level of 56,000 boepd in Q4 at Cairn-Oil & Gas
  • Zinc International 
    • Highest quarterly production in Q4 at Black Mountain in 4 years; 
    • Mobilisation on Skorpion Pit layback commenced in April; 
    • Gamsberg project on track to commence production in mid CY 2018
  • Aluminium recorded strong production during the year, volumes impacted by a pot outage in April
  • Power: 
    • 1,980 MW Talwandi Sabo Power Plant (TSPL) operating at 85% availability in Q4
    • TSPL operations impacted by a shutdown due to fire in April, rectification in process and expected to recommence operations by the end June 2017
  • Iron ore: Achieved 2.6 million tonnes of the additional production capacity granted in Goa for FY2017
  • Copper Zambia: 
    • Strong custom production; 
    • Lower integrated production due to lower equipment availability ; 
    • Ramp-up commenced at reconfigured Nchanga underground mine
  • Delivered cumulative cost and marketing savings of US$814 million over the past 2 years; ahead of plan to deliver $1.3 billion in four years

Sustainability highlights

  • 2.21 million beneficiaries of our community investment
  • US$ 17.63 million invested in community development 
  • 0.39 lost time injury frequency rate
  • US$ 6 billion tax payments to exchequers
  • 1.33 million training hours delivered to all staff 
  • 51% non-hazardous waste recycling rate
  • 24% water recycling rate
  • 1,115,562 man-hours of safety training provided
  • 3,75,373 man-hours training on Code of Conduct and Human Rights