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KEY PERFORMANCE INDICATORS

GROWTH INDICATORS

Global

Revenue (₹ crore)

Description: Revenue represents the value of goods sold and services provided to third parties during the year

Commentary: In FY 2023, consolidated revenue was at ₹ 1,45,404 crore compared with ₹ 1,31,192 crore in FY 2022. This was primarily driven by higher volumes from copper and zinc and aluminium, rupee depreciation and partially offset by the slip in commodity prices majorly in aluminium and copper

EBITDA (₹ crore)

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 amortization

Commentary: EBITDA for FY 2023 was at ₹ 35,241 crore, 22% lower YoY. This was mainly due to a slip in commodity prices of aluminium, lead and silver with a headwind in input commodity prices, partially offset by improved operational performance and strategic hedging gains

FCF post-capex (₹ crore)

Description: This represents net cash flow from operations after investing in growth projects. This measure ensures that profit generated through our assets is reflected by cash flow, in order to de-lever or maintain future growth or shareholder returns

Commentary: We generated FCF of ₹ 18,077 crore in FY 2023, driven by strong cash flow from operations and working capital release, partly offset by higher capex

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: ROCE stood at 21% in FY 2023 (FY 2022: 30%), primarily due to decrease in EBIT

Adjusted EBITDA margin (%)

Description: Calculated as EBITDA margin excluding EBITDA and turnover from custom smelting at copper business

Commentary: Adjusted EBITDA margin for FY 2023 was 28% (FY 2022: 39%)

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 of 31 March 2023, was at 1.3x well within approved capital allocation framework, compared with 0.5x as on 31 March 2022

Interest cover (%)

Description: This 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 8.2 times, lower YoY on account of lower EBITDA and higher interest


KEY FINANCIAL RATIOS

Debtors’ turnover ratio*

Description: The debtors’ turnover ratio is an accounting measure used to quantify a 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 31.8 times

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 the cost of goods sold, to the average Inventory

Commentary: The inventory turnover ratio for the Company was at 7.5 times in FY 2023 as compared with 7.1 times in FY 2022

Current ratio

Description: The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. This is calculated as a ratio of current assets to current liabilities

Commentary: The current ratio of the Company remained at 0.7 times

Debt-equity ratio

Description: This 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: This ratio has increased to 1.3 times in FY 2023 primarily due to an increase in gross debt from the increase in borrowings at VEDL standalone and temporary borrowings at HZL

Operating profit margin (%)

Description: Operating profit margin is a profitability or performance ratio used to calculate the percentage of profit a 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 for the Company was lower in FY 2023 as compared with FY 2022, primarily due to lower EBITDA and higher depreciation in the current year

Net profit margin (%)

Description: This is a measure of the Company’s profitability. It is calculated as a ratio of net profit (before exceptional items) to revenue from operations

Commentary: The net profit margin was at 10% in FY 2023 as compared to 19% in FY 2022

Return on net worth (%)

Description: This is also a measure of the Company’s profitability. It 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 decreased, mainly on account of a decrease in EBITDA during the year

*Excluding power business


LONG-TERM VALUE

Growth CAPEX (₹ crore)

Description: This represents the amount invested in our organic growth programme during the year

Commentary: Our stated strategy is disciplined capital allocation on high-return, low-risk projects. Capital expenditure on expansion was ₹ 10,271 crore during the year

Zinc India (million tonnes)

Reserves and resources (R&R)

Description: Reserves and resources are based on specified guidelines for each commodity and region

Commentary: During the year, combined R&R were estimated to be 460.1 million tonnes, containing 30.8 million tonnes of zinc-lead metal and 855.9 million ounces of silver. Overall mine life continues to be more than 25 years

EPS (before exceptional items) (₹ )

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 FY 2023, EPS before exceptional items was at ₹ 28.36 per share. This mainly reflects the impact of lower EBITDA and higher depreciation charges and finance cost

Zinc International (million tonnes)

Commentary: During the year combined mineral resources and ore reserves estimated at 659.1 million tonnes, containing 34.9 million tonnes of meta

Dividend (₹ /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 ₹ 101.5 per share this year compared with ₹ 45 per share in the previous year

Oil & Gas (mmboe)

Commentary: During FY 2022, the gross proved, and probable reserves and resources stood at of 1,156 mmboe


SUSTAINABILITY KPIs

GHG emissions scope 1 & 2
(million tonnes of CO2 e)

Description: Vedanta used Scope 1 and Scope 2 GHG emissions, measured in tonnes of CO2 e to track its carbon footprint

Commentary: We calculate and report Greenhouse Gas (GHG) inventory i.e.. Scope 1 (process emissions and other direct emissions) and Scope 2 (purchased electricity) as defined under the World Business Council for Sustainable Development (WBCSD) and World Resource Institute (WRI) GHG Protocol

TRIFR

Description: The total recordable injury frequency rate (TRIFR), is the number of fatalities, lost time injuries, and other injuries requiring treatment by a medical professional per million hours worked

Commentary: This year, the TRIFR was 1.20. Safety remains the key focus across businesses

HVLT (high volume low toxicity)
(million tonnes)

Description: High Volume Low Toxicity (HVLT) waste is present in large quantities and is usually stored in tailings dams/ash dyes or other secure landfill structures before being sent to other industries as raw materials. HVLT includes fly ash, bottom ash, slag, jarosite, and red mud

Commentary: In FY 2023, we have achieved ~164% recycling of our HVLT waste

CSR Footprint
(million beneficiaries)

Description: The total number of beneficiaries through our community development programmes across all our operations

Commentary: We benefited ~44 million people this year through our community development projects comprising community health, nutrition, education, water and sanitation, sustainable livelihood, women empowerment and bio-investment

Water consumed & recycled
(million m 3)

Description: Water consumed is the portion of water used that is not returned to the source after being withdrawn. Recycled water or reclaimed water means treated or recycled wastewater commonly used for non-potable (not for drinking) purposes, such as agriculture, landscape, public parks, and golf course irrigation (million m3 )

Commentary: In FY 2023, we recycled 78 million m3 of water, equivalent to around 29.4% of consumed water

Gender diversity
(%)

Description: The percentage of women in the total permanent employee workforce

Commentary: We focus on diversity, equity and inclusion in the workplace. During the year, female employees made up 14.00% of the total workforce

Note *Includes both direct and indirect beneficiaries