Vedanta Aluminium Metal

“see, H1 we did about $1,720, $1,710 per ton hot metal cost. H2, broadly, we should be around the same levels or slightly lower.”

“We, we, we believe that this QMJP compared to the $410 and the compared to $425-odd, NEP that we did, we should be about $50 lower in H2.”

“We are likely to start production from the mine, in end of this year or early next financial year, and we are targeting a volume of 5 million tons in the next, year from Ghogharpalli.”

“And if you look at our existing ones, once all of that get commissioned, we will be about 10% to 12% of the, of the requirement. We want to increase this to maybe 25% as we go into, say, FY29, FY30, as you mentioned.”

“I am saying on a drawing board, we have the initiatives were $200-odd. We expect to have $100, $125 as we exit the year and the balance in maybe say another 1 or 2 quarters.”

“with the layout we have, we have put it on our drawing board and we have configured for, 8, 7, lines of the same configuration of 525 kiloamperes, which we just implemented at Balco.”

“But on a standalone basis, also based on the earnings that we see, we believe we have sufficient cash to manage the forthcoming expansion as and when it is announced.”

“See, the cash at Balco, as and when we finalize the project, no, all the options are on the table there. See, we will look at structuring that point of time.”

“So, we are in very advanced stage of the acquisition of land both for the refinery as well as the smelter.”

“And then the third mine which we will start is Ghogharpalli, which we plan to do in the last quarter of this financial year.”

“At Balco Potline 3, currently 50% of the pots are in full production, and we will reach the full capacity run rate by end of this year.”

“We are scaling towards 3 million tons of aluminium and 5 million tons of alumina capacity, supported by the ramp-up at BALCO and Lanjigarh.”

“With the commissioning of the second zone at BALCO, we are now poised to operationalize the third and final zones in Q3, Q4 to reach the target run rate of 435 KTPA by March exit.”

“We ramped up at a rate of more than 2 pots -- 2.1 pots per day, which is a world record as regards the ramp-up is concerned of such similar type of smelters.”

“The next phase of volume growth will be driven by progressive ramp-up of Lanjigarh and increase in metal volume from Balco Potline 3, which will come to full capacity in -- by the end of this year.”

“Indian market offers exposure to an estimated 40% demand growth between current -- between calendar year 2025 and calendar year 2030.”

“So, if I look at, the global aluminium market, it is supposed to remain tight in 2026, and there is a deficit of 0.7 million tons.”

“and some additional capacity of, a million ton might come in Indonesia and other places, Middle East and other areas, which can lead to a little bit, supply side, extra of, around 1 million to 1.4 million in the later half of FY27.”

“So as I mentioned, the domestic demand remains very robust and the growth which is happening in the country in the power, in the transportation, in light-weighting and many other areas, we see a very big upside.”

“This stronger VAP production and domestic mix, supported by robust aluminium demand, translated into stronger realizations, with NEP increasing to $453 per ton compared to $205 per ton year on year.”

“On the cost side, hot metal cost in Q2 stood at $1,722, up 1% quarter-on-quarter with the structural benefit in alumina cost been offset by continuing inflationary pressures on carbon and fuel oil.”

“Any relaxation in the input commodity pressures been seen on account of the Middle East disruption would further augment this savings.”

“So, Sijimali cost currently would be close to $60. Because for the -- if we start the mine early, we get 50% rebate on this, which will continue for the next 1.5 years.”

“And one can assume, assuming $60, we will have a saving of $25 per ton of the bauxite.”

“Consequently, our net debt to EBITDA ratio improved from 0.9x in Q1 to 0.7x at the end of Q2.”

“We maintained a healthy cash and cash equivalent of INR6,318 crores, providing a strong liquidity cushion and adequate financial flexibility.”

“ICRA and CRISIL have reaffirmed our AA+ ratings with a stable outlook, while India Ratings has now upgraded Vedanta Aluminium to AA+ stable.”

“On the net debt, we have reduced the net debt by INR3,090 crores during the quarter from INR29,532 crores at the end of Q1 to INR26,442 crores at quarter end after accounting for dividend payment of INR3,119 crores.”

“Importantly, the reduction in net debt was underpinned by cash flow of INR6,043 crores during the quarter.”

“Consent to operate for Sijimali was obtained in September, and Balco has been declared as the preferred bidder for Karlapat bauxite block, driving captive bauxite security, while Kuraloi and Ghogharpalli will increase the captive coal contribution.”

“Even with whatever premium you are saying, we believe we will be able to generate alumina as and when we start the mine below $400.”

“You are aware that this was the last of the biggest -- big coal, big bauxite blocks that came in the Odisha. And given our expansion plans around the smelter and the refinery, it made a lot of sense for us to secure”

“We've also paid a dividend of INR8 per share during the quarter, translating into a dividend yield of 2%, balancing shareholder returns with continued investment in our growth and integration projects.”

“Now, this INR17,000 crores, INR18,000 crores can be used for three purposes. One, deleveraging, the second for the new expansion projects which is -- which for -- which we are on the drawing board, and the third for the dividend.”

“And on the dividend, you are aware that we've been guiding that based on the market cap, one can assume a 3% to 5% broadly the dividend every year.”

“So, Sanjay, just to respond to it, both the options that you spoke about is a matter of board and of course, the board looks at it.”

“Sequentially, profit after tax was almost flat, but for the exceptional charges of around INR400 crores recognized in Q2.”

“So, we have some planned power plant shutdowns in Q3. Post that, we expect the power cost to come down to the Q1 levels.”

“On the hedging front, for the balance year, we are hedged 22% of our volumes at an average price of $3,274 per ton.”

“so our approach on hedging has always been one, tactical, and the second, opportunistic, based on our informed view of the medium-term market and our objective to protect margins and cash flow.”

“So, there would be some pressures to towards the second part of FY27 on prices.”

“Coming to OMC, the matter has been partially heard in the Supreme Court and, Subsequently, I think it will be further heard after Diwali vacations, so, it's sub judice.”

“Aluminium production reached an all-time high of 649,000 tons, up 5% year-on-year and 3% up quarter-on-quarter.”

“Domestic sales achieved a quarterly record of 338,000 tons.”

“At a headline level, revenue for the quarter stood at INR22,066 crores, an increase of 41% year-on-year and an increase of 5% quarter-on-quarter.”

“EBITDA during the quarter was at INR10,192 crores, up 83% year-on-year and lower 3% sequentially.”

“Profit after tax stood at INR6,187 crores, more than doubling Y-o-Y.”