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Vedanta profit declines 15% in second half

Vedanta profit declines 15% in second half
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First Published: Thu, May 15 2008. 10 46 PM IST
Updated: Thu, May 15 2008. 10 46 PM IST
London: India’s largest zinc producer Vedanta Resources Plc. posted a 15% drop in fiscal second-half profit on lower prices for the metal and a reduced share of income from a unit.
Net income fell to $414 million (Rs1,755 crore) in the six months ended 31 March, from $486.6 million a year earlier. Profit was calculated by subtracting fiscal first-half net income from full-year earnings published on Thursday.
“Global demand for metals continues to be strong,” chairman Anil Agarwal said in a statement. “The industry faces challenges in terms of cost pressures and the ability to bring new capacities to production on time and within budget.”
Zinc, which accounted for 52% of Vedanta’s operating income in the previous financial year, averaged $2,551 a tonne for immediate delivery on the London Metal Exchange during the second half, more than a third lower than a year ago.
Output of refined zinc gained 29% to 242,000 tonnes in the half, Vedanta said last month. Production of finished copper plates, called cathodes, fell 4.8% to 239,000 tonnes after a power grid failure curbed output at its Zambian unit.
The firm’s Sterlite Industries (India) Ltd raised $2 billion in June when it sold 150 million American depository receipts, diluting Vedanta’s return from the unit.
Bloomberg
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First Published: Thu, May 15 2008. 10 46 PM IST