Vedanta Ltd back in black in March quarter with Rs2,988 crore profit
Mumbai: Resource firm Vedanta Ltd posted on Monday a consolidated net profit of Rs2,988 crore for the three months ended March, supported by higher commodity prices and sales. The company had reported a loss of Rs21,104 crore a year ago.
Consolidated quarterly revenue jumped 41% year-on-year (y-o-y) to Rs23,691 crore in the quarter. Earnings before interest, tax, depreciation and amortisation (Ebitda), an indicator operating profitability, on a consolidated basis was Rs6,766 crore.
A Bloomberg poll of 10 analysts had estimated the consolidated net profit to come in at Rs2,803.1 crore and a poll of 11 analysts had forecast sales of Rs21,979.3 crore.
“Revenue in the fourth quarter was up 41% y-o-y, driven by higher volumes from Zinc India, supported by ramp-up at the aluminium and power business and improved metal and oil prices. Additionally, higher volumes at iron ore in Q4 FY2017 over Q4 FY2016 aided higher revenues,” Navin Agarwal, chairman, Vedanta Ltd, said in a statement.
Last month, Vedanta completed its merger with Cairn India Ltd.
“The completion of the Cairn India merger transforms Vedanta Ltd into a diversified natural resources powerhouse, anchored in India,” Agarwal said.
Vedanta’s gross debt declined by Rs4,115 crore during the year to 31 March. It aims to reduce debt by further Rs6,200 crore in the current financial year. Vedanta has total cash and liquid investments of Rs63,471 crore.
“The record dividends during the past financial year highlight our commitment to shareholder value. We are looking forward to a very exciting 2017-18 and future years, with all our businesses operating at full capacities and cost efficiencies.” Tom Albanese, CEO, Vedanta Ltd, said.
The company’s strategic focus on ramping up production across its portfolio, namely the zinc, aluminium, power and iron ore businesses, has supplemented revenue growth, Albanese said.
“In particular, record production levels in zinc and aluminium were well-timed in an environment of strong supply side pressures on both commodities. Our cost management initiatives have helped us deliver strong returns for all our shareholders,” he added.
The company expects its capital expenditure this financial year to be $1.2 billion.
Vedanta shares ended up 2.07% to Rs241.30 on the BSE on Monday, a day the BSE Sensex rose 0.44% to 30,322.12 points.