Vedanta net profit falls 34 pc to Rs 2,615 cr in March quarter

Metals and mining giant Vedanta Ltd Tuesday reported a 33.8 per cent decline in consolidated net profit to Rs 2,615 crore for the March 2018 quarter, on the back of lower income.
It had posted a consolidated net profit of Rs 3,956 crore in the corresponding quarter of FY'18, the company said in a filing to the BSE.

The net profit is "after taxes, non-controlling interests and share in profit of jointly-controlled entities and associates but before exceptional items."

The company's consolidated income declined by 12 per cent to Rs 25,096 crore in the quarter, over Rs 28,547 crore in the year-ago period.

"The figures of the last quarter are the balancing figures between audited figures for the full financial year and unaudited year-to-date figures up to the third quarter of the respective financial year," the company said.

The company's consolidated total expenses declined to Rs 20,992 crore, from Rs 22,824 crore a year ago.

Vedanta Ltd Chairman Navin Agarwal said, "FY2019 was a year of production ramp-up alongside robust financials and delivering repeated and industry leading returns to our shareholders."

He said the acquisition of Electrosteel Steels Ltd as well as its successful turnaround, and the commencement of the long-awaited Gamsberg project represent significant additions to the company's operating business portfolio.

Vedanta Chief Executive Officer Srinivasan Venkatakrishnan said, "We continue to consolidate our position as one of the largest diversified natural resource businesses in the world by having excellent talent operate our long-life, high-growth, low-cost assets with a hunger for technology and modernisation."

He said the current financial year will be an exciting year of growth in the company's key businesses - zinc-lead-silver, oil and gas and aluminium.

Talking about the operational highlights of 2018-19, Vedanta Ltd said that at Zinc India, the mined metal production from underground mines was up 29 per cent Y-o-Y.

The "record aluminium production at ...2 MT, up 17 per cent y-o-y," it said.

There was a continued engagement with the government for resumption of Goa mining operations, the company said.

The production of saleable ore in Karnataka was 4.1 million tonne (MT), up 89 per cent y-o-y.

The company's gross debt was Rs 66,225 crore on March 31, 2019, an increase of Rs 8,066 crore y-o-y.

This, it said, was mainly due to the acquisition of ESL and temporary borrowing at Zinc India.

"Net debt was at Rs 26,956 crore on 31st March 2019, higher by Rs 4,998 crore y-o-y, primarily due acquisition of ESL, it said.

Vedanta Ltd, a subsidiary of Vedanta Resources Ltd, is one of the world's leading diversified natural resource companies with business operations in India, South Africa, Namibia and Australia.