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Non-Energy Minerals

Vedanta Ltd.

Company Background

Vedanta, formerly called Sesa Sterlite, is an Indian natural resources company that focuses on iron ore and non ferrous metals such as aluminum and copper. It is an Indian subsidiary of mining conglomerate Vedanta Resources which is headquartered in London.

 

Vedanta is the parent company of several listed Indian subsidiaries, including oil and gas unit Cairn India and Hindustan Zinc, which specializes in zinc operations. The company is engaged in the exploration of a wide range of minerals in India, and also has iron ore and zinc operations in Africa.

 

The Vedanta group has achieved tremendous success under the leadership of Anil Agarwal, the founder of the group and chairman emeritus of Vedanta. Since its entry into the copper market in 1979, Vedanta group has gradually expanded its operations. In 2002, the group bought the Indian government's shares in Hindustan Zinc, bringing the zinc producer under its umbrella. It acquired major iron ore miner Sesa Goa in 2007. These acquisitions have helped the group grow into India's largest natural resources major. In 2003, Vedanta Resources was listed on the London Stock Exchange. It supervises the management of its major Indian subsidiaries, such as Vedanta.

 

Navin Agarwal, Anil's brother, is chairman of Vedanta. In April 2015, former Sesa Sterlite renamed to Vedanta to enhance the group's brand identity.

Business Summary

Vedanta Ltd. is a natural resource company, which engages in the exploration, extraction, and processing of minerals, oil, and gas properties. It operates through the following segments: Copper, Aluminum, Iron Ore, Power, and Oil and Gas. The Copper segment focuses in custom smelting and also include a copper smelter, a refinery, a phosphoric acid plant, a sulphuric acid plant, a copper rod plant, and three captive power plants. The Aluminum segment comprises refinery and a captive power plant at Lanjigarh and a smelter, a thermal coal based captive power facility at Jharsuguda both situated in the State of Odisha in India. The Iron Ore segment explores, mines, and processes iron ore, pig iron, and metallurgical coke. The Power segment consists 600 MW thermal coal-based commercial power facility at Jharsuguda in the State of Odisha in Eastern India. The Oil and Gas segment involves in the exploration and development and production of oil and gas. The company was founded by Anil Kumar Agarwal on June 25, 1965 and is headquartered in Panaji, India.

Financial Highlights

Mar 2021 INRUSD
Revenue880,210M11,857.07M
Gross Profit401,660M5,410.65M
Operating income196,800M2,651.03M
Income before tax172,130M2,318.71M
Net income116,020M1,562.87M
EBITDA273,180M3,679.93M
Diluted EPS31.130.41
Dividends Per Share----
Total Assets1,856.97B25,398.37M
Total liabilities1,082.81B14,809.93M
Total equity622,780M8,517.96M
Operating cash flow206,690M2,784.26M
Currency in INRCurrency in USD

Historical Data

 Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021
Revenue 761,710M 914,480M 915,900M 840,380M 880,210M
Gross Profit 248,400M 253,590M 238,330M 204,180M 401,660M
Operating income 149,560M 184,220M 152,780M 118,750M 196,800M
Income before tax 136,520M 195,690M 135,600M -82,590M 172,130M
Net income 69,580M 103,420M 70,650M -66,640M 116,020M
EBITDA 274,110M 248,010M 235,720M 210,640M 273,180M
Diluted EPS 23.46 28.24 18.98 -17.99 31.13
Dividends Per Share 19.45 21.20 18.85 3.90 --
Total Assets 1,990.30B 1,845.85B 2,020.43B 1,836.22B 1,856.97B
Total liabilities 1,204.44B 1,010.95B 1,201.10B 1,074.76B 1,082.81B
Total equity 605,000M 632,260M 622,970M 546,350M 622,780M
Operating cash flow 130,780M 137,750M 186,590M 148,240M 206,690M
 Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021
Revenue 11,359.13M 14,185.45M 13,095.00M 11,852.03M 11,857.07M
Gross Profit 3,704.30M 3,933.69M 3,407.50M 2,879.58M 5,410.65M
Operating income 2,230.33M 2,857.62M 2,184.35M 1,674.75M 2,651.03M
Income before tax 2,035.87M 3,035.55M 1,938.72M -1,164.78M 2,318.71M
Net income 1,037.62M 1,604.25M 1,010.11M -939.83M 1,562.87M
EBITDA 4,087.71M 3,847.14M 3,370.18M 2,970.69M 3,679.93M
Diluted EPS 0.34 0.43 0.27 -0.25 0.41
Dividends Per Share 0.29 0.32 0.26 0.05 --
Total Assets 30,650.65M 28,301.16M 29,165.35M 24,272.16M 25,398.37M
Total liabilities 18,548.39M 15,500.21M 17,338.14M 14,206.77M 14,809.93M
Total equity 9,317.00M 9,694.01M 8,992.70M 7,221.95M 8,517.96M
Operating cash flow 1,950.27M 2,136.78M 2,667.75M 2,090.65M 2,784.26M

Valuation Measures

Mar 2021
PER7.30
ROA6.28%
ROE19.84%
Operating margin22.35%
Profit margin13.18%

Key executives

  • Chief Executive Officer & Director: Sunil Duggal
  • Secretary & Compliance Officer: Prerna Halwasiya
  • Senior Vice President & Head-Taxation: Pallavi Joshi Bakhru
  • Group Director-Projects: Mansoor Siddiqi
  • Director-Management Assurance: Dilip Golani

Shareholders

  • Volcan Investments Ltd. (65.0%)
  • Life Insurance Corp of India (5.7%)
  • The Vanguard Group, Inc. (1.2%)
  • ICICI Prudential Asset Management Co. Ltd. (1.0%)
  • Dimensional Fund Advisors LP (0.8%)
  • BlackRock Fund Advisors (0.7%)
  • GIC Pte Ltd. (Investment Management) (0.6%)
  • Baillie Gifford & Co. (0.4%)
  • Kotak Mahindra Asset Management Co. Ltd. (0.4%)
  • Nippon Life India Asset Management Ltd. (Invt Mgmt) (0.2%)

Contact Details

Related Companies

  • Lisheen Mine Partnership
  • THL Zinc Holding BV
  • Monte Cello BV
  • Vedanta Star Ltd.
  • MALCO Energy Ltd.
  • Cairn India Holdings Ltd.
  • Bloom Fountain Ltd.
  • Sterlite Ports Ltd.
  • THL Zinc Ventures Ltd.
  • Paradip Multi Cargo Berth Pvt Ltd.
  • Sesa Resources Ltd.
  • Vizag General Cargo Berth Pvt Ltd.
  • Sterlite (USA), Inc.
  • Talwandi Sabo Power Ltd.
  • Phillips Carbon Black Ltd
  • Bharat Aluminium Co. Ltd.
  • Hindustan Zinc Limited

Competitors

  • Hindustan Copper Ltd
  • Rio Tinto Limited
  • Rio Tinto plc
  • Hindalco Industries Limited
  • Vale S.A.
  • BHP Group Ltd
  • BHP Group Plc
  • Oil & Natural Gas Corp. Ltd.
  • Oil India Limited
  • Jindal Steel & Power Ltd.
  • NMDC Limited
  • Tata Steel Limited
  • Fortescue Metals Group Ltd
  • MMTC Limited
  • ArcelorMittal SA
  • Reliance Industries Limited
  • JSW Steel Limited
  • Steel Authority of India Limited
  • South32 Ltd.
  • Alcoa Corporation
  • Alumina Limited
  • New Century Resources Limited
  • Alba Mineral Resources plc
  • Zijin Mining Group Co., Ltd. Class H
Last Updated on 23 Jun, 2021

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