Vedanta's April-June profit doubles to Rs 1,525 cr on strong volume
The quantum jump in profit during the April-June quarter was on account of volumes and improved zinc pricing, CEO Tom Albanese said
New Delhi: Mining conglomerate Vedanta Ltd's consolidated profit after tax doubled to Rs 1,525 crore for the quarter through June, driven by strong show in zinc and oil and gas businesses, the company said on Monday. It had posted consolidated profit after tax (PAT) at Rs 754 crore in the same quarter last year, its BSE filing showed. Total income during the quarter was at Rs 20,397 crore, an increase of 23 percent over a year ago.
The quantum jump in profit during the April-June quarter was on account of volumes and improved zinc pricing, CEO Tom Albanese told PTI over phone. "Attributable profit after tax before exceptional items for the quarter was Rs 1,525 crore," the company said in a statement.
Total expenses during April-June increased to Rs 17,446 crore, from Rs 14,811 crore in the same quarter of the previous fiscal. "We have started the year on a positive note, with our net profit for the first quarter doubling over last year. Our zinc and oil and gas businesses have delivered a strong quarter. Vedanta is a world leader in zinc, and zinc prices have strengthened since the quarter end on continued global supply deficits," Albanese was quoted as saying in the statement.
"Our continued ramp-up in the aluminium business has helped us exit the quarter on a strong production run rate of 1.4 mtpa (million tonnes per annum). We are realising the true benefits of Vedanta's diversified portfolio," he added.
The revenue from oil and gas segment during the quarter stood at Rs 2,275 crore, up from Rs 1,885 crore in the year-ago period. The figure for zinc and lead during the quarter was at Rs 4,478 crore. Gross debt came down by about Rs 9,000 crore in the last four months.
The company further said the Gamsberg project in South Africa is on track for production in 2018, adding that its financial position remains strong with cash and liquid investments of Rs 48,318 crore.
The mining major has paid an interim dividend of Rs 17.70 per share to Cairn India minority shareholders. It has submitted necessary applications for listing of redeemable preference shares.
Domestic markets rebounded after a six-day losing streak. Auto, realty and PSU Bank were some of the biggest gainers. IT and pharma were some of the sectors which experienced minor losses
Domestic markets ended in negative for the sixth consecutive session. Investors remain cautious over rising inflation levels as retail inflation rose to 7.79 percent by April end
On the sectoral front, metal, power, oil & gas, healthcare, IT and realty sector indices shed between 1 and 5 percent, while banking went gone up by 0.60 percent. Both BSE Midcap and Smallcap indices settled around 2 percent lower