Revenue (` cr.)
Description: Revenue represents the value of goods sold and services provided to third parties during the year
Commentary: In FY2021, consolidated revenue was at `86,863 crore compared to `83,545 crore in FY2020. This was primarily driven by higher commodity prices, higher volumes at Zinc India, Copper, Iron Ore and Aluminium business, inclusion of FACOR in FY2021 and rupee depreciation, partially ofset by lower power sales at TSPL, lower volume at Oil & Gas, Skorpion, and lower cost recovery at Oil & Gas business in FY2021.
EBITDA (` cr.)
Description: Earnings before interest, tax, depreciation and amortisation (EBITDA) is a factor of volume, prices and cost of production. This measure is calculated by adjusting operating profit for special items and adding depreciation and amortisation.
Commentary: EBITDA for FY2021 was at `27,341 crore, 30% higher y-o-y. This was mainly driven by higher commodity prices, higher sales realisation from Iron ore and Steel business, increased volumes at Zinc India and Aluminium business, lower cost of production at Zinc, Aluminium and Oil & Gas business, and rupee depreciation, partially offset by lower brent realisation and lower cost recovery at Oil & Gas business.
FCF post-capex (` cr.)
Description: This represents net cash flow from operations after investing in growth projects. This measure ensures that profit generated by our assets is reflected by cash flow, in order to de-lever or maintain future growth or shareholder returns.
Commentary: We generated FCF of `13,821 crore in FY2021, driven by strong cash flow from operations and lower sustaining and project capital expenditure.
Return on capital employed (ROCE) (%)
Description: This is calculated on the basis of operating profit before special items and net of tax outflow, as a ratio of average capital employed. The objective is to earn a post-tax return consistently above the weighted average cost of capital.
Commentary: Strong ROCE ~19% in FY2021 (FY2020: 11.2%), primarily due to strong operating and financial performance coupled with lower depreciation due to impairment in Oil & Gas business in FY2020.
Adjusted EBITDA margin (%)
Description: Calculated as EBITDA margin excluding EBITDA and turnover from custom smelting of Copper India and Zinc India businesses.
Commentary: Adjusted EBITDA margin for FY2021 was 36% (FY2020: 29%).
Net Debt /EBITDA (Consolidated)
Description: This ratio represents the level of leverage of the Company. It represents the strength of the balance sheet of Vedanta Limited. Net debt is calculated in the manner as defined in Note 16(c) of the consolidated financial statements.
Commentary: Net debt/EBITDA ratio as at 31 March 2021 was at 0.9x, compared to 1x as at 31 March 2020.
Interest Cover
Description: The ratio is a representation of the ability of the Company to service its debt. It is computed as a ratio of EBITDA divided by gross finance costs (including capitalised interest) less investment revenue.
Commentary: The interest cover for the Company was at ~11.0x, higher y-o-y on account of higher EBITDA.
Debtors turnover ratio*
Description: The debtors’ turnover ratio is an accounting measure used to quantify the Company’s effectiveness in collecting its receivables. This is calculated as a ratio of revenue from operation to average trade receivables.
Commentary: The debtors turnover ratio was at 33.9x, higher y-o-y primarily on account of higher revenue from operations
*Excluding power business
Inventory turnover ratio
Description: The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is managed. This is calculated as a ratio of cost of goods sold to average inventory.
Commentary: The inventory turnover ratio for the Company was at 5.6x in FY2021 as compared to 5.1x in FY2020.
Current ratio
Description: The current ratio is a liquidity ratio that measures the Company’s ability to pay short-term obligations or those due within one year. This is calculated as a ratio of current assests to current liabilities.
Commentary: The current ratio of the Company remained flat at ~1.0x.
Debt equity ratio
Description: It is a financial ratio indicating the relative proportion of shareholders’ equity and debt used to finance a company’s assets. This is calculated as a ratio of total external borrowing to total equity (share capital + reserves + minority).
Commentary: The ratio has decreased to 0.7x in FY2021 primarily because of decrease in gross debt due to the repayment of debt at Vedanta Standalone partially offset by increase in borrowing at Zinc India business and BALCO and increase in equity.
Operating profit margin (%)
Description:Operating profit margin is a profitability or performance ratio used to calculate the percentage of profit the Company produces from its operations. This is calculated as a ratio of operating profit (EBITDA less depreciation) to revenue from operations.
Commentary: The operating profit margin was higher in FY2021 as compared to FY2020, primarily due to higher EBITDA and lower depreciation in the current year.
Net profit margin (%)
Description: It is a measure of the profitability of the Company. This is calculated as a ratio of net profit (before exceptional items) to revenue from operations.
Commentary: The net profit margin was higher in FY2021 as compared to FY2020, primarily due to robust EBITDA and lower depreciation in the current year.
Return on net worth (%)
Description: It is a measure of the profitability of the Company. This is calculated as a ratio of net profit (before exceptional items) to average net worth (share capital + reserves + minority).
Commentary: The return on net worth has increased, mainly on account of increase in EBITDA during the year.
Growth capex (` cr.)
Description: This represents the amount invested in our organic growth programme during the year.
Commentary: Our stated strategy is of
disciplined capital allocation on high-return, low-risk projects. Expansion
capital expenditure during the year stood
at
` 2,578 crore.
EPS (before exceptional items and DDT) (` per share)
Description: This represents the net profit attributable to equity shareholders and is stated before exceptional items and dividend distribution tax (net of tax and minority interest impacts).
Commentary: In FY2020, EPS before exceptional items was at `32.80 per share. This mainly reflects the impact of lower depreciation charges and higher EBITDA.
Dividend (` per share)
Description: Dividend per share is the total of the final dividend recommended by the Board in relation to the year, and the interim dividend paid out during the year
Commentary: The Board has recommended a total interim dividend of `9.50 per share this year compared with `3.90 per share in the previous year.
Reserves and Resources (R&R)
Zinc India (million mt)
Description: Reserves and resources are based on specified guidelines for each commodity and region.
Commentary:
Zinc India: During the year, gross additions of 45 million tonnes were made to R&R, prior to depletion of 15 million tonnes. Overall mine life continues to be more than 25 years.
Zinc International (million mt)
Zinc International: During the year, mineral R&R at Zinc International increased by 8% to 566.4 mt containing 30.3 mt of metal. Gross additions to R&R, after depletion, amounted to 41.3 mt of ore and 1.8 mt of metal. Despite depletion, reserve levels were successfully maintained at the same level as 2020, and amounted to 139.7 mt containing 8.3 mt of metal. The most signifcant contributor to the addition of metal in resources was the declaration of a maiden resource at Gamsberg South (23.2 mt @ 7.1% Zn and 0.6% Pb). Overall mine life is more than 30 years
Oil & Gas (mmboe)
Oil & Gas: During FY2021, the gross proven and probable R&R increased by 35 mmboe during the year.
LTIFR
Description: The lost time injury frequency rate (LTIFR) is the number of lost-time injuries per million man-hours worked. This includes our employees and contractors working in our operations and projects.
Commentary: This year the LTIFR was 0.55. Safety remains the key focus across businesses.
Gender diversity ( % )
Description: The percentage of women in the total permanent employee workforce.
Commentary: We provide equal opportunities to men and women. During the year, the ratio of female employees was 11% of total employees.
CSR footprint (million beneficiaries)
Description: The total number of beneficiaries through our community development programmes across all our operations.
Commentary: We benefited around 42 million people this year through our community development projects comprising community health, nutrition, education, water and sanitation, sustainable livelihood, women empowerment and bio-investment. This year our large-scale COVID-19 outreach programme has further augmented the metric.
