Vedanta Q1 profit drops 11.8% to Rs 1,351 cr on fall in commodity prices, income declines to Rs 21,754 cr
The company had posted a consolidated profit 'attributable to owners of Vedanta Ltd' of Rs 1,533 crore in the year-ago period, Vedanta said in a BSE filing.
The company said its Attributable PAT (was) at Rs 1,351 crore, down 12% Y-o-Y
Vedanta's gross debt stood at Rs 59,517 crore
The company said it has a strong financial position with total cash and liquid investments of Rs 30,774 crore
New Delhi: Mining baron Anil Agarwal-led Vedanta Ltd on Friday posted an 11.8 percent decline in consolidated profit at Rs 1,351 crore for the quarter ended 30 June 2019, mainly on the back of decline in commodity prices.
The company had posted a consolidated profit "attributable to owners of Vedanta Ltd" of Rs 1,533 crore in the year-ago period, Vedanta said in a BSE filing.
Consolidated income dropped to Rs 21,754 crore in April-June 2019, from Rs 22,624 crore in the year-ago period.
Vedanta's Chief Executive Officer Srinivasan Venkatakrishnan, at the post-earnings conference call, said the primary reason for the drop in profit was decline in commodity prices.
In a statement, the company said its "Attributable PAT (was) at Rs 1,351 crore, down 12 percent Y-o-Y.
"We continue to strengthen our position as one of the largest diversified natural resource businesses in the world with our strategy focused on value-added growth. Our businesses stayed resilient in a quarter with low commodity prices and uncertain market environment and we continued to ramp up across the key verticals, zinc & oil & gas," Venkatakrishnan said.
"Silver is outperforming as we climb up the ranks among the top global silver producers. Aluminium business is steadily moving towards its target cost," he said.
"We are also pleased with the superior returns that have been achieved with the unwinding of the structured investment transaction at CIHL (Cairn India Holdings Ltd) for the benefit of all shareholders of Vedanta," he added.
"Structured investment at CIHL unwound with net cumulative gain of... $100 million in...8 months," the statement said.
The company's gross debt stood at Rs 59,517 crore. The company said it has a strong financial position with total cash and liquid investments of Rs 30,774 crore.
At "Zinc India the refined metal production (was) at 219kt (thousand tonnes), up three percent Y-o-Y", it added.
Cairn India board will meet next week to consider a proposal to buy back shares, a move which will help promoters Vedanta Group increase its stake in the company without putting any money.
The share purchase will include buying back Cairn Energy Plc's 10.3 percent stake in the company
Mining conglomerate Vedanta Resources plunged into a USD 217 million loss for the six months ended September 30 amid lower metal prices and currency losses.