Vedanta’s large, diversified asset portfolio, with an attractive cost position in many of its core businesses, enables us to deliver strong margins and free cash flows through the commodity cycle. We have an attractive commodity mix, with strong fundamentals and leading demand growth and remain keenly focused on base metals and oil. We also maintained our 1 st quartile cost positioning globally, across key segments such as Zinc and Aluminium, led by our resolute focus on structural cost reduction and operational efficiencies.

Vedanta continued its strong growth momentum and witnessed steady volume performance across all businesses, with aluminum and zinc delivering record performance.

India is our core market, and it has a huge growth potential, given that the current per capita metal consumption is significantly lower than the global average. Also India’s GDP, which registered a growth of 10.4% over the course of 2021, showing strong signs of recovery from 2020, is expected to grow 8.2% in the current financial year (IMF; April 2022 estimate) . Urbanisation and industrialisation, supported by government initiatives on infrastructure and housing, a strong response to COVID-19, as well as increase in capital outlay announced in the Union Budget 2022-23 will continue to drive strong economic growth and generate demand for natural resources.

Vedanta’s unique advantages:

• Operating a wide and scalable portfolio of commodities that grow the nation
• A strong market position as India’s largest base metals producer and largest private sector oil producer
• An operating team with an extensive track record of executing projects and achieving growth in the Indian geography

Our management team has diverse and extensive sectoral and global experience. Drawing from this deep insight, the team ensures that operations are run efficiently and responsibly

Disciplined approach to development; growing our production steadily across our operations with focus on operational efficiency and cost savings

Since our listing in 2004, our assets have delivered a phenomenal production growth

To optimise efficiency and ensure future-readiness in everything we do, we are actively investing in Industry 4.0 technologies, and mainstreaming a digital-first culture throughout the organisation. This has helped achieve a 100% digitally literate workforce, consistent eye on tech-led innovation, strong collaboration with startups and partners and a continued unlocking of efficiency potential across our integrated value chain.

Our key initiative in this direction has been the Disha programme, which aims to transform Vedanta into a data driven organisation by developing digital dashboards and applying analytics for different verticals, helping the senior management track progress, gather insights, identify issues and bottlenecks proactively. This results in better planning, mitigation and closing the decision loop faster, and in enabling regular production monitoring, tracking of KPIs in terms of maintenance and HSE, and in bettering overall predictability.

Another initiative in this direction in Project Pratham, which focuses on significantly improving volume, cost and improving ease of doing business. This is implemented through global partners by bringing new emerging technologies across the value chain of Vedanta Industry 4.0 framework. Key objectives of this project include EBITDA improvement, gains on intangibles and reducing overall carbon footprint. Apart from our internal digital transformation initiative, we are also leveraging the latest in technology by integrating start-up culture through the Spark programme.

We have unveiled a structured capital allocation policy that prioritises growth and shareholder returns. The policy aligns to three streams across capital expenditure, dividend policy and selective inorganic growth. It will be driven by a consistent, disciplined, and balanced allocation of capital with long term balance sheet management, optimal leverage management and maximisation of total shareholder returns.

Our operating performance, coupled with optimisation of capital allocation, has helped strengthen our financials.

• Revenues of ₹131,192 crore and EBITDA of ₹45,319 crore
• Strong ROCE of 30%
• Deleveraging and extension of our debt maturities through proactive liability management exercises
• Strong and robust FCF of ₹21,715 crore
• Cash and liquid investments of ₹32,130 crore
• A strong balance sheet, with respect to Net Debt/EBITDA (0.5x) and gearing, compared to our global diversified peers
• Interim dividend of ₹16,728 crore paid in FY2022

• Committed to being the lowest cost producer in a sustainable manner.
• Committed to incorporating global best practices to transform communities, planets and workplace in alignment to our Group objective of ‘Zero Harm, Zero Waste and Zero Discharge’.
• Implemented critical risk management across the business to improve workplace safety
• Committed to promoting diversity in all forms at the workplace and building an inclusive work culture
• Committed to attaining Net Carbon neutrality by 2050 and reducing absolute emissions by 25% by 2030 from 2021 baseline. Decarbonize 100% of our Light Motor Vehicle (LMV) fleet by 2030 and 75% of our mining fleet by 2035. Promoting operational efficiency, changing fuel mix, switching to renewable exploring greener businesses opportunities and developing low carbon product portfolio are the levers used.
• Committed to water efficiency and achieving net water positivity by 2030.
• Committed to keeping community welfare at the core of decision making by implementing global best practices and becoming a developer of choice.
• Committed to positively impacting the lives of 100 million women and children through skilling and education, nutrition and healthcare initiatives.
• Aims to improve transparency and completeness of disclosure in alignment with international best practices like GRI, TCFD etc

Action taken in FY22

• Electric mobility: Jharsuguda partners with GEAR India to supply 23 e-forklifts; deployed 50+ EVs at HZL and ESL together
• 10-year MoU signed with TERI to develop implementation programs to further our ESG vision
• Signed PDA for 580 MW RE - a significant step towards 2.5 GW RE commitment
• Launched green Aluminium under the brands ‘Restora’ & ‘Restora Ultra’ to usher new era of green metals
• Collaboration with TUV-SUD to develop roadmap for our ‘Net Water Positive’ initiative
• A 1st Fly ash rake from Jharsuguda dispatched to cement plant
• Commenced Ash backfilling in one of the coal India’s open-cast mine in Mar’22
• Used 17kt biomass in HZL; committed to using 5% biomass in our thermal power plants

We have adopted the Incident Cause Analysis Method ICAM for incident investigation to avoid repeat accidents and promote higher reporting for all incidents.