MUMBAI: Vedanta Ltd registered an 81 per cent increase in its consolidated net profit at Rs 4,802 crore for the quarter ended March, 2018 as against Rs 2,647 crore a year before. The surge in profit was due to a one-time exception gain of Rs 2,869 crore on r eversal of recovery of oil impairment aggregating Rs 7,016 crore.
The Indian unit of the diversified mining group Vedanta Resources Plc saw its net revenue growing by 17 per cent at Rs 27,630 crore during the quarter under review. According to the company, the increase was on account of higher volume growth from its oil and gas, aluminium, and domestic copper businesses and improved commodity prices. In a statement issued on Thursday, Vedanta added that the top line was partially offset by currency appreciation and lower volumes at Zinc India.
Vedanta’s plans to ramp up volume was on track, yielding a higher operating profit despite challenges from input price inflation, said Kuldip Kaura, CEO, Vedanta.
The gains, Vedanta said, were partially offset by impairment of Goa iron ore assets of Rs 2,329 crore due to suspension of mining operations from March 16, 2018 and reclassification of FCTR relating to subsidiary investment companies under liquidation of Rs 1,485 crore.
According to the company, it was seeing progress on its key growth projects, which are expected to result in enhanced recovery of resources. The company has earmarked a capex of $1.5 billion for the current financial year.
Meanwhile, earnings before interest, tax depreciation and amortisation rose 6.6 per cent to Rs 7,837 crore, while margins narrowed to 28.4 per cent from 32.7 per cent.
Vedanta Ltd CEO Kuldip Kaura said: “In 2019, the focus will be on generating strong cash flows on the strength of higher volumes and improved cost structure in businesses which will further strengthen company’s financials and will drive superior shareholder returns.”
Vedanta: Lenders to get 7.6% in Electrosteel
Vedanta Ltd, the Indian unit of mining group Vedanta Resources Plc, on Thursday said that lenders will get a 7.6 per cent stake in the Jharkhand-based steel mill Electrosteel Steels if its bid to take over the company is successful. In a notice calling for a shareholders meeting on May 18 for approval of the acquisition, Anil Agarwal-led Vedanta Resources Plc said the acquisition will provide the foundations for Vedanta to vertically integrate steel manufacturing capabilities. “Vertical integration through acquiring steel manufacturing capabilities has the potential to generate significant efficiencies,” Agarwal noted.