Vedanta H1 operating profit up 19%

London: Buoyed by a 43 percent increase in revenue, Anil Agarwal-led Vedanta Resources Plc today reported an 18.9 percent rise in consolidated operating profit to $1.171 billion for the first half of the current fiscal.

The London Stock Exchange-listed entity had clocked a $985.3 million operating profit in the April-September period last fiscal, it said in a filing to the exchange.

The company said its profits would have been higher had there been no mark-to-market foreign exchange losses on account of depreciation of the Indian rupee.

[caption id=“attachment_128315” align=“alignleft” width=“380” caption=“The company said it generated $746 million in free cash flow. Reuters”]  [/caption]

“Profits during the current period were also adversely affected by losses at VAL and SEL… Underlying attributable profit and EPS, which are based on profit for the period after excluding the impact of special items, mark-to-market foreign exchange losses and gains on embedded derivatives, were $186 million and 68 US cents, respectively,” it said.

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Driven by higher sales and realisation across the majority of its operations- including zinc, silver, copper and aluminium mining and power generation - the company’s revenue rose to $6.553 billion during the first six months of the current fiscal from 4.581 billion a year ago.

“Vedanta has delivered strong production growth… With its significant exposure to fast-growing economies and strong organic investment programme, supplemented by select acquisitions, it is well-placed and remains confident about the future,” Agarwal said.

The company said it generated $746 million in free cash flow before capex of $1.2 billion during the half-year. The net debt of the company stood at $7.2 billion as of end-September.

Vedanta Resources Plc has announced a 20 US cents interim dividend on its shares. Since listing in 2003, it has returned $1.3 billion to shareholders in the form of dividends and share buy-backs.

“We look forward to delivering good performance with increase in volumes across our operations and sustainably drive value creation through our structurally low-cost operations, strategic acquisitions and industry-leading

organic growth programme,” Agarwal said.

Reuters