Photo: Reuters
Photo: Reuters

Vedanta net profit rises 44% on tax writeback

  • Revenues in the second quarter of the fiscal slipped 3% to 21,739 crore primarily due to lower international prices of zinc and aluminium
  • Operating profit (earnings before interest, tax, depreciation and amortization or EBITDA) for Q2 FY20 was at 4,497 crore

MUMBAI : A fall in revenues notwithstanding, Anil Agarwal’s mining and minerals behemoth Vedanta Ltd reported a 44% year-on-year jump in its consolidated net profit to 2731 crore in the September quarter following a deferred tax writeback of 1891 crore.

Revenues in the second quarter of the fiscal slipped 3% to 21,739 crore primarily due to lower international prices of zinc and aluminium.

Operating profit (earnings before interest, tax, depreciation and amortization or EBITDA) for Q2 FY20 was at 4,497 crore, down 15% year-on-year. While commodity prices dragged down operational efficiencies, this was partially offset by additional volumes from commencement of Gamsberg operations (zinc) in South Africa, and higher sales of iron ore in Karnataka.

The EBITDA margin for Q2 FY20 was at 25%.

Gross debt was at 55,898 crore as on 30 September, lower by 3,279 crore compared to that on 30 June. Net debt was at 20,081 crore as on 30 September 2019.

“We are at an exciting transition that will see the company accelerate in the expansion of its reserves and resource base over coming quarters. This expansion is being delivered through strict capital allocation and balance sheet focus aimed at creating value for our stakeholders. As we look forward to the year, we have in place the building blocks to enhance our performance in the three key businesses," said Srinivasan Venkatakrishnan, chief executive officer, said in a release.

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