How Vedanta Makes Money
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Vedanta Q3 Results are out now. Vedanta reported Consolidated Revenue of ₹ 38,526 crore, up 4% QoQ and 10% YoY. The Company Reported Profit after tax jumps 70% YoY to ₹4,876 crore.
Vedanta is in trend due to its demerger plan. Company Shareholders & creditors meeting for demerger on 18th February. Parent company, VRL successfully restructured $3.1 billion through bond issuances in the last 4 months resulting in longer maturities of up to 8 years, better covenant terms, and a significant reduction in average coupon rate by 250 bps
Vedanta Q3 Revenue Segment:
- Zinc and Lead India: 6833 Cr
- Silver India: 1464 Cr
- Zinc International: 1045 Cr
- Oil and Gas: 2636 Cr
- Aluminium: 15,306 Cr
- Copper: 5803 Cr
- Iron Ore: 1865 Cr
- Power: 1273 Cr
- Others: 2523 Cr
Vedanta’s planned demerger involves splitting its business into five distinct entities rather than just two. This is a strategic move aimed at unlocking shareholder value, enhancing operational efficiency, and giving investors the ability to focus on more specific sectors.
Also Read: How Hindustan Unilever Makes Money
Here are the 5 Companies After the Demerger
- Vedanta Ltd
- Hindustan Zinc Limited
- Semiconductors
- Display
- Vedanta Stainless (FACOR & Nicomet)
- Base Metals
2. Vedanta Aluminium
- Including a 51% stake in BALCO
3. Vedanta Oil & Gas
- Cairn Oil & Gas
4. Vedanta Steel & Ferrous Materials
- Iron Ore Business (“IOB”)
- Western Cluster Limited (“WCL”)
- ESL Steel Limited
5. Vedanta Power
- Contains all Vedanta Limited IPPs
- Including Athena & Meenakshi
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