VEDANTA Income Statement Analysis

 Operating income increased 1.4% year over year (YoY) during the year.

 During the fiscal, the company's operating profit fell by 15.7% YoY. Operating profit margins
decreased, falling from 30.6% in FY18 to 25.4% in FY19.

 Depreciation charges went up by 30.4% year over year, while borrowing costs went up by
11.3%.

 Other income grew by 26.4% YoY.

 Net profit for the year fell by 29.2% year over year.

 Net profit margins decreased from 15.1% in FY18 to 10.5% in FY19 over the course of the year.

VEDANTA Balance Sheet Analysis

 The company's current liabilities increased 14.0% in the fiscal year 2019 to Rs 766 billion from
Rs 672 billion in the prior year.

 The long-term debt increased by 29.6% to Rs 347 billion from Rs 268 billion in FY18.

 In FY19, current assets increased by 9% to reach Rs 598 billion, while fixed assets increased by
11% to reach Rs 1,387 billion.

 Overall, the assets and liabilities for the fiscal year 2019 increased by 11% to Rs 1,986 billion
from Rs 1,797 billion in the previous fiscal year.

VEDANTA Cash Flow Statement Analysis

 Cash flow from operating activities (CFO) for VEDANTA in FY19 was Rs 238 billion, up
36.8% year over year.

 On a year-over-year basis, cash flow from investing activities (CFI) during FY19 totaled Rs -
105 billion.

 During FY19, cash flow from financial activities (CFF) was Rs -102 billion, an improvement of
74% year over year.

 Overall, the company's net cash flows for FY19 were Rs 29 billion as opposed to Rs -64 billion
for FY18.

Current Valuations for VEDANTA

 The company's trailing twelve-month profits per share (EPS) are Rs 26.1, down from the EPS of
Rs 36.8 recorded the previous year.

 At the present price of Rs. 183.8, the price to earnings (P/E) ratio is 5.0 times its trailing twelve-
month earnings.
 At the present price levels, the price to book value (P/BV) ratio is 1.1 times, but the price to
sales ratio is 0.7 times.

 The company's price to cash flow (P/CF) ratio was 4.8 times its operational cash flow earnings
at the end of the year.

Ratio Analysis for VEDANTA

 Solvency Ratios
Current Ratio: From 0.8x in FY18 to 0.8x in FY19, the company's current ratio declined. The
company's capacity to meet both short- and long-term obligations is gauged by the current ratio.

Interest Coverage Ratio: From 4.8x in FY18 to 3.4x in FY19, the company's interest coverage
ratio declined. The ease with which a corporation can pay its interest expense on outstanding
debt is shown by its interest coverage ratio. The ratio should be higher.

 Profitability Ratios
Return on Equity (ROE): In FY19, the company's ROE decreased and fell to 15.6% from
FY18's 21.7%. The ROE gauges a company's capacity to make a profit using the investment of
its shareholders.

Return on Capital Employed (ROCE): In FY19, the company's ROCE decreased and fell to
19.9% from FY18's 27.4%. The ROCE gauges a company's capacity to turn a profit from the
total capital (shareholder and borrowed capital) it has on hand.

Return on Assets (ROA): From 10.5% in FY18 to 7.7% in FY19, the company's ROA
decreased. The ROA gauges how effectively a corporation generates profits from its assets.