Vedanta : Consolidated Results for Q3FY22 ended 31st Dec 2021

Vedanta Limited

Regd. Office: Vedanta Limited 1st Floor, 'C' Wing,

Unit 103, Corporate Avenue, Atul Projects,

Chakala, Andheri (East),

Mumbai 400093, Maharashtra.

www.vedantalimited.com

CIN: L13209MH1965PLC291394

28th Jan 2022

Vedanta Limited

Consolidated Results for the 3rd Quarter and Nine months

ended 31st Dec 2021

Financial

• Record consolidated quarterly Revenue of ₹ 33,697 crore, up 50% Y-o-Y
• Highest ever quarterly EBITDA of ₹ 10,938 crore, up 42% Y-o-Y
• Attributable PAT (before exceptional items) at ₹ 4,189 crore, up 27% Y-o-Y
• Record consolidated Nine months Revenue of ₹ 91,850 crore, up 56%
• Highest ever Nine months EBITDA of ₹ 31,551 crore, up 73%

ESG

• Aluminium became the largest industrial consumer of renewable energy in India
• Jharsuguda collaborates with GEAR India for India's largest E-forklift fleet
• Improved MSCI rating to B (earlier CCC) and CDP rating to B (earlier B-)
• Board has approved revised COC* to strengthen corporate governance
• 3,000th Nandghar established, benefitting 120,000+ children & 90,000 women

Operational

• Record performance at Aluminium, Zinc India, ESL and Facor
• Double digit growth across other business segments, sustained production at Oil
• Leveraging Portfolio with acquisition of NICOMET, became the sole producer of Nickel in India

Capital Allocation & Shareholder's return

• Net Debt at ₹ 27,576 crore, reduced by ₹ 7,781 crore Y-o-Y
• Net Debt/EBITDA ratio at 0.7x, maintained at low level
• 2nd interim dividend pay-out of ₹ 5,019 crore (₹ 13.5 per share) in Q3 FY2022, record YTD dividend of ₹ 32.0 per share

*Code of Business Conduct and Ethics

Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala,	Page 1 of 11
Andheri (East), Mumbai 400093, Maharashtra, India.
CIN: L13209MH1965PLC291394

Results for the Quarter ended 31st Dec 2021

Mumbai, India: Vedanta Limited today announced its unaudited consolidated results for the third quarter (Q3) and nine months ended 31st December 2021.

Financial Highlights

Q3 FY2022

• Revenue of ₹ 33,697 crore, up 50% Y-o-Y
• EBITDA of ₹ 10,938 crore, up by 42% Y-o-Y
• Robust Industry leading EBITDA margin1 of 37%
• Att. PAT (before exceptional items) at ₹ 4,189 crore, up 27% Y-o-Y

Other Financial Highlights

• Strong double-digit ROCE at c.25%
• Net Debt/EBITDA at 0.7x, maintained at low level
• Net Debt at ₹ 27,576 crore, reduction of ₹ 7,781 crore from 31st December 2020
• Strong liquidity position with total cash and cash equivalent at ₹ 25,207 crore
• Second Interim Dividend of ₹ 13.5 per share; ₹ 5,019 crore in Q3 FY 2022
• India Ratings has upgraded outlook from 'Stable' to 'Positive' with AA- rating

Mr Sunil Duggal, Chief Executive Officer, said "We are happy to announce that we have taken a number of actions in the last three months to further the journey of ESG transformation that was laid out last quarter. With the commitment to transforming the planet and becoming net-zero carbon by 2050 or sooner, the momentum for decarbonatization across the business has increased with the focus areas being renewable energy, fuel switch, fleet electrification, plantations & afforestation. We have entered into number of partnerships to brings best-in-class expertise and also strengthen our commitment to transforming the communities and the workplace. This has also been reflected in Vedanta's ESG ratings which have seen an upward trend in terms of ratings by external agencies like Sustainayltics, MSCI and CDP etc.

We delivered another strong quarter, with record quarterly and nine monthly Revenue and EBITDA. We reported consolidated quarterly Revenue of ₹ 33,697 crore, up 50% Y-o-Y, quarterly EBITDA of ₹ 10,938 crore, up 42% Y-o-Y, and quarterly attributable PAT (before exceptional items) of ₹ 4,189 crore, up 27% Y-o-Y, with sustained margins benefitting from operational efficiencies and high commodity prices despite input commodity headwinds. Overall, we have had a very good 9-months run with highest ever 9M production across almost all of our businesses. Q3 played a big part in it with highest ever quarterly production from HZL, Aluminium & ESL. Our commitment remains unchanged towards shareholders return and capital allocation. We reduced net debt by ₹7,781 crore Y-o-Y while maintaining net debt / EBITDA at low level of 0.7x and rewarded shareholders with 2nd interim dividend of INR 13.5 per Share, entailing a pay-out of ₹ 5,019 crore in this quarter ".

Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai 400093, Maharashtra, India.

CIN: L13209MH1965PLC291394

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Sensitivity: Internal (C3)

Results for the Quarter ended 31st Dec 2021

ESG Journey: Transforming for Good

Actions in support of the Greater Good

• ESG Transformation Program
• • Supported by the three pillars of

1. Transforming Communities o Transforming the Planet
   o Transforming the Workplace

Net Zero by 2050 or sooner

• RENEWABLE ENERGY: 2.5 GW RTC by 2030; reducing 25% absolute GHG emissions o 500 MW round the clock RE power purchase under final approvals
  o Vedanta becomes the largest industrial consumer of Renewable Energy in India - procured >2 billion units of RE from IEX & PXIL leading to 1.54 million tons CO2e reduction
• FLEET ELECTRIFICATION: 100% LMV fleet conversion to EV by 2030
  o Jharsuguda: Collaborated with GEAR India; Supply of lithium-ionfork-lifts; India's largest e-forklift fleet; 250KLPA Diesel saving
  o HZL: signed MoU with Normet & Epiroc; supply of Battery-powered UG fleet
  o ESL: Tie-up with Tata Motors for EVs (LMV); Tie-up with Eveez for 100% EVs for within the plant transportation
  o Cairn: commits 100% fleet electrification by 2025
• FUEL SWITCH: Structurally moving towards cleaner fuels

• 1. VAL-Lanjigarhsigns partnership with GAIL; supply of natural gas for refinery; potential for reducing plant GHG intensity by 10%
• PLANTATIONS & AFFORESTATION
• 1. HZL commits to plant 1 million trees by FY2025; Cairn commits to plant 2 million trees by FY2030

• 1. VAL-Jharsuguda plants 20,000 trees in a day; 2.5 lacs trees in nine months
• PARTNERSHIPS & COLLABORATIONS
• 1. MoU to be signed with TERI as implementation partner for multiple environmental initiatives - water, habitat, climate

Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai 400093, Maharashtra, India.

CIN: L13209MH1965PLC291394

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Sensitivity: Internal (C3)

Results for the Quarter ended 31st Dec 2021

Other Critical ESG Actions

• Water: Net water positive by 2030
  o Onboarded Agency for water positivity roadmap, water accounting across BUs
  o High impact initiatives - Ash-pond water reuse at Aluminium; Rainwater harvesting at Cairn; STP water usage at HZL; ZLD at ESL/HZL - Projects in progress
  o 3,000 KLD Zero Liquid Discharge plant commissioned at HZL's Debari unit
• WASTE MANAGEMENT & CIRCULAR ECONOMY: Aim for 100% utilization of HVLT wastes
  o Specific projects underway for Jarofix, Red mud, Slag, Fly ash 100% utilization; Utilized 106% of fly-ash generated YTD
  o VAL-BALCO; Dispatched fly-ash 1st rake to Cement industries (6.1kt); Partnered with NHAI - 12-13% annual fly ash offtake
  o VAL- Lanjigarh- 32kT Red mud dispatched to Wonder Cement & Ultratech for Pilot
• CORPORATE GOVERNANCE
  o Remodeled Code of Business Conduct and Ethics based on benchmarking with Global Standards and practices
  o Redrafted to ensure comprehensive coverage of all elements in structured manner
• DIVERSITY & INCLUSION: Promote gender parity, diversity & inclusivity o Diversity, Equity and Inclusion Council established
  o All Women security teams deployed at Cairn & Aluminium o Women's mine at HZL Zawar mine
• COMMUNITY
  o 3,000th Nandghar established benefitting 120,000+ children & 90,000 women

Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai 400093, Maharashtra, India.

CIN: L13209MH1965PLC291394

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Sensitivity: Internal (C3)

Results for the Quarter ended 31st Dec 2021

Operational Highlights Q3 FY2022

• Aluminium:

• 1. Record Aluminium production of 578kt, up 16% Y-o-Y
  1. Alumina production of 472kt, up 16% Y-o-Y
• Zinc India
• 1. Record refined metal production of 261kt, up 11% Y-o-Y
  1. Mined metal production of 252kt, up 3% Y-o-Y
• Zinc International:
• 1. Gamsberg MIC production of 41 kt, down 5% Y-o-Y
• Oil & Gas:
• 1. Average gross operated production of 159 kboepd for Q3 FY2022, flat Y-o-Y
  1. Infill wells development projects commenced
• Iron Ore:
• 1. Karnataka sales at 1.5 Mnt, up 24% y-o-y

1. Pig iron production of 202 kt, up 39% Y-o-Y

• 1. Commercial production started at recently acquired cement plant
• Nickel:
• 1. With NICOMET acquisition became the sole producer of Nickel in India
• Steel:
• 1. Record Hot Metal production at 379kt post acquisition, up 2% Y-o-Y

• 1. Highest ever saleable production at 350 kt post acquisition, up 3% Y-o-Y
• FACOR:
• 1. Record Fe Chrome production of 20 kt in Q3 FY22, up 13% Y-o-Y

• 1. EBITDA margin at $590 per tonne, ~5 times Y-o-Y
• Copper India:
• 1. Due legal process is being followed to achieve a sustainable restart of the operations

Registered Office: Vedanta Limited 1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai 400093, Maharashtra, India.

CIN: L13209MH1965PLC291394

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Sensitivity: Internal (C3)