Key Performance Indicators

Growth

Revenue

(` crore)

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

Commentary
In FY2018, consolidated revenue was up by
22% to ` 92,923 crore compared to ` 76,171 crore in FY2017. The increase was primarily driven by firmer commodity prices and volume ramp-up.

EBITDA

(` crore)

Description
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 FY2018 was up by 19% at ` 25,470 crore. This was primarily due to volume growth, coupled with firmer commodity prices.

FCF post capex

(` crore)

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 ` 7,880 crore, driven by a strong operating performance and disciplined capital expenditure outflow, partially offset by higher interest expenses and proactive adjustment to managing the working capital funding, given the ramp-up of capacities.

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) excluding accretive interest on convertible bonds, unwinding of discount on provisions and interest on defined benefit arrangements less investment revenue.

Commentary
The interest cover for the Company is at c. 11.5 times.

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 improved by 2.5% to 17.5%, driven by ramp-up of capacities and firmer commodity prices.

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 FY2018 was 36% (FY2017 - 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.

Commentary
Net debt/EBITDA ratio as at March 31, 2018 was at 0.9x, compared to 0.4x as at March 31, 2017.

Long-term value

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 dividend of ` 21.2 per share this year compared to ` 19.45 per share in the previous year.

Growth capex

(` crore)

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 ` 5,469 crore, with the majority invested in projects at Zinc India, the Gamsberg project at our Zinc International business, growth projects at Oil & Gas and ramping up of our Aluminium capacities.

EPS (before exceptional items)

(` /share)

Description
This represents the net profit attributable to equity shareholders and is stated before exceptional items (net of tax and minority interest impacts).

Commentary
Commentary In FY2018, underlying EPS was at ` 26.2 per share, higher than the previous year earnings of ` 24 per share. This mainly reflects the impact of increased EBITDA.

Reserves and Resources (R&R)

Zinc India (mt)

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

Commentary
During the year, gross additions of 19.5 million tonnes were made to R&R, prior to depletion of 12.6 million tonnes. Overall mine life continues to be more than 25 years.

 

Zinc International (mt)

Commentary
During the year, gross additions of 1.3 million tonnes were made to R&R, prior to depletion. Overall mine life continues to be more than 25 years

 

Oil & Gas (mmboe)

Commentary
During FY2018, the gross proved and probable R&R were increased by 58 mmboe with a depletion of 68 mmboe on account of production during the year.

Sustainable development

LTIFR

(million man-hours)

Description
The 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
We reduced the LTIFR to 0.35 this year. This continuous fall can be attributed to our efforts in training and coaching our employees on workplace safety practices.

Gender diversity

(%)

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

Commentary
We provide equal opportunities and a safe workplace to men and women. During the year, the ratio of female employees was at 10.6% 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 3.4 million people this year through our community development projects comprising community health, nutrition, education, water and sanitation, sustainable livelihood, women empowerment and bio-investment.