Vedanta Ltd has reported 35 per cent fall in June quarter net profit at ₹866 crore against ₹1,341 crore registered in the same period last year, due to lower realisations across business except for zinc and copper.

Net sales were down one per cent at ₹16,952 crore (₹17,056 crore).

The company attributed fall in revenue to the 44 per cent decline in crude oil prices, impacting revenues by ₹1,856 crore.

Tom Albanese, CEO, said commodity prices witnessed heavy volatility, but zinc prices held well in view of its strong fundamentals and is now the largest contributor to our EBITDA.

“We continue to focus on improving efficiency, costs, and enhancing production across our assets. We have broken ground at the Gamsberg Zinc project in South Africa and remain on track to re-start iron ore production at Goa after the monsoon," he said.

Earnings before interest, tax, depreciation and amortisation were down 29 per cent at ₹4,039 crore due to a steep fall in crude oil prices and aluminium premia.

Gross debt increased by ₹1,778 crore to ₹79,530 crore due to fund raising for new project payments and working capital. Debt levels are expected to reduce as working capital is repaid in the September quarter, said the company.

Of the total debt loan ₹40,914 crore is in US dollar and the rest in rupee. Average cost of borrowing was 7.9 per cent. It has cash and liquid investments of ₹47,091 crore as on June 30. Shares of the company were up two per cent at ₹131 on Wednesday.

Related Topics
comment COMMENT NOW