Key Highlights for FY 2009
- Revenues in excess of $6.0 billion.
- EBITDA of $1.6 billion incorporating rigorous cost reduction measures.
- $5.3 billion reduction in capital expenditure due to savings and deferrals.
- Strong balance sheet with cash and liquid investments of $4.9 billion and modest net debt of $0.2 billion.
- Investments of $397.1 million in share buyback and increase in subsidiary stakes.
- Final dividend proposed at 25 US cents per share bringing full year dividend to 41.5 US cents per share.
- ROCE (adjusted for capital work in progress) continues to be strong 24.4%.
- Volume growth across all metals - Record production of Aluminium, Iron Ore and Zinc.
- Exploration success in iron ore and zinc business.
- Consolidated minorities in MALCO, Sterlite, Sesa Goa and KCM.
Key Financial Performance Indicators
| (in $ millions, except as stated) | FY 2009 | FY 2008 | FY 2007 | FY 2006 | FY 2005 | FY 2004 |
| EBITDA | 1,612.2 | 3,010.4 | 2,703.0 | 1,101.5 | 454.0 | 322.7 |
| Underlying EPS (US cents per share) | 119.7 | 303.9 | 327.0 | 130.2 | 48.9 | 26.6 |
| Free cash flow | 1,709.6 | 2,216.9 | 1,504.2 | 634.8 | 204.4 | 335.4 |
| ROCE (excluding project capital WIP) (%) | 24.4 | 45.6 | 78.5 | 37.9 | 32.0 | 24.1 |
| Net (cash)/debt | 200.8 | (2,142.7) | (432.7) | 11.9 | 74.3 | (422.3) |
* Figures for FY 2007, FY 2006 and FY 2005 are under IFRS and figures for FY 2004 are under UK GAAP.
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Definitions of key financial terms
EBITDA (earnings before interest, taxes, depreciation and amortisation)
This measure is calculated by adjusting operating profit for special items plus depreciation and amortisation. Our objective is to take advantage of our low cost base and achieve the best possible margins across our businesses.
Underlying EPS (earnings per share)
This is stated before special items and their attributable tax and minority interest impacts. By producing a stream of profits and EPS we will be able to pay a progressive dividend to our shareholders. EPS growth also demonstrates the management of our capital structure.
Free Cash Flow
This represents net cash flows before financing activities and investing activities in expansion projects and dividends paid out by Vedanta. This measure ensures that the profit generated by our assets is reflected by cash flow in order to fund the future growth and development of the Group.
ROCE (return on capital employed)
This is calculated on the basis of operating profit before special items and net of tax as a ratio to capital invested in operations as at the balance sheet date and excludes investment in project capital work in progress. The objective is to earn consistently a return (net of tax) above the weighted average cost of capital to ensure that capital is invested efficiently and this indicator measures the efficiency of our productive capital.
Net Debt
This represents long term borrowings, the debt component of convertible bonds, short term borrowings and bank overdrafts net of cash, cash equivalents and liquid investments.