Financial Highlights for FY 2011-12
- Revenue of US$14 billion, up 23%
- EBITDA of US$4.0 billion, up 13%; EBITDA margin of 29%
- Underlying EPS of US$1.42, down 46%, due to lower attributable profit from subsidiaries
- Final dividend of 35 US cents per share, up 8%
- Free cash flow of US$2.5 billion before growth capex
- Invested US$2.4 billion in organic growth programme during the year
- Strong balance sheet with Cash and Liquid Investments of US$6.9 billion
Key Financial Performance Indicators
| Year ended 31 March (in US$ mn)* | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 |
| EBITDA | 4,026 | 3,567 | 2,296 | 1,612 | 3,010 | 2,703 | 1,102 | 454 |
| Underlying EPS (USc/share) | 142 | 283 | 199 | 108 | 304 | 327 | 130 | 49 |
| Free cash flow | 2,533 | 2,347 | 1,814 | 1,710 | 2,217 | 1,504 | 635 | 204 |
| ROCE (excludes project capital WIP) | 7.7% | 21% | 20% | 24% | 46% | 79% | 38% | 32% |
| Net debt (cash) | 10,064 | 1,970 | 947 | 201 | (2,143) | (433) | 12 | 74 |
* Figures for the year ended 31 March 2004 are under UK GAAP, and for the years thereafter under IFRS
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.
