Vedanta Q3 net up 356% to Rs 1,866 cr buoyed by metals business

Mumbai, Feb 14 (IANS) Natural resources major Vedanta Ltd on Tuesday recorded an over 350 per cent jump in consolidated net profit for the third quarter ended December at Rs 1,866 crore, as compared to the same period of the last fiscal, mainly on the back of operational performance.

The Anil Aggarwal-led mining company had posted a profit after tax of Rs 409 crore in the corresponding period of 2015-16.

Revenue during the quarter in question increased 29.6 per cent to Rs 20,393 crore on strong operational performance, as compared with Rs 15,731 crore in corresponding quarter of the last fiscal.

"Revenues in Q3 were driven by higher volumes at iron ore due to recommencement of operations, ramp-up of volumes at the aluminium and power businesses and higher volumes at Copper India and Zinc India," Vedanta said in a stock exchange filing.

"This was partially offset by lower volumes from oil and gas, and Zinc International due to closure of the Lisheen mine, in Q3 FY2016," it added.

Among the metals businesses, while the zinc, lead and silver segment grew by 45 per cent year-on-year to Rs 5,915.7 crore, the iron ore segment revenue at Rs 1,449.1 crore grew 153.2 per cent, copper rose by 13 per cent to Rs 5,440 crore, and aluminium increased 27.4 per cent to Rs 3,857.9 crore.

Vedanta's power segment revenue jumped 26 per cent to Rs 1,532.3 crore.

Oil and gas revenue increased 5.4 per cent to Rs 2,149.4 crore, with earnings before interest and tax (EBIT) at Rs 346.4 crore, as against a loss of Rs 235.1 crore registered in the same quarter of the last fiscal.

"Volume ramp-up and cost efficiencies across operations, aided by higher commodity prices, have significantly driven up EBITDA (earnings before interest, tax, depreciation and amortisation) year-on-year. Financial position remains robust and we continue to strengthen balance sheet by maximising free cash flow and reducing debt," Chief Executive Tom Albanese said in a statement.

Vedanta's net debt reduced by Rs 447 crore to Rs 11,514 crore owing to positive free cash flow. Gross debt during the quarter reduced by Rs 1,828 crore to Rs 64,966 crore.

The company's consolidated operating profit shot up 76.8 per cent to Rs 5,879 crore

Tax expenses in the December quarter, however, rose manifold to Rs 897 crore, from Rs 49.2 crore in the corresponding quarter a year ago.

Regarding the proposed Vedanta and Cairn India merger, which was approved by all sets of shareholders in September 2016, Albanese said it is expected to be completed in the first quarter of the current calender year.

The Vedanta stock closed on Tuesday at Rs 253.35 a share, down 2.70 points, or 1.05 per cent, on its previous close on the Bombay Stock Exchange (BSE).

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