Vedanta Q1 profit doubles to Rs1,525 crore
New Delhi: Mining conglomerate Vedanta Ltd’s consolidated profit after tax doubled to Rs1,525 crore for the quarter through June, driven by strong show in zinc and oil and gas businesses, the company said on Tuesday.
It had posted consolidated PAT at Rs754 crore in the same quarter last year, its BSE filing showed.
Total income during the quarter was at Rs20,397 crore, an increase of 23% over a year ago.
The quantum jump in profit during the April-June quarter was on account of volumes and improved zinc pricing, CEO Tom Albanese told PTI over phone.
“Attributable profit after tax (PAT) before exceptional items for the quarter was Rs1,525 crore,” the company said in a statement.
Total expenses during April-June increased to Rs17,446 crore, from Rs14,811 crore in the same quarter of the previous fiscal.
“We have started the year on a positive note, with our net profit for the first quarter doubling over last year. Our zinc and oil and gas businesses have delivered a strong quarter. Vedanta is a world leader in zinc, and zinc prices have strengthened since the quarter end on continued global supply deficits,” Albanese was quoted as saying in the statement.
“Our continued ramp-up in the aluminium business has helped us exit the quarter on a strong production run rate of 1.4 mtpa (million tonnes per annum). We are realising the true benefits of Vedanta’s diversified portfolio,” he added.
The revenue from oil and gas segment during the quarter stood at Rs2,275 crore, up from Rs1,885 crore in the year- ago period. The figure for zinc and lead during the quarter was at Rs4,478 crore. Gross debt came down by about Rs9,000 crore in the last four months.
The company further said the Gamsberg project in South Africa is on track for production in 2018, adding that its financial position remains strong with cash and liquid investments of Rs48,318 crore.
The mining major has paid an interim dividend of Rs17.70 per share to Cairn India minority shareholders. It has submitted necessary applications for listing of redeemable preference shares.