Sesa Sterlite, a Vedanta Group company, has reported 15 per cent fall in the December quarter net profit at ₹1,587 crore against ₹1,868 crore due to lower realisation in metals and energy businesses.

Net sales were down one per cent at ₹19,128 crore (₹19,414 crore).

The company attributed the fall in sales realisation to 29 per cent drop in oil prices, 21 per cent dip in silver, seven per cent and five per cent decline in copper and lead prices, respectively. EPS (diluted) stood at ₹5.35 against ₹6.07.

Earnings before interest, tax, depreciation and amortisation margin was up at 43 per cent at ₹6,234 crore largely due to higher volume and lower cost of production. The better operating performance and benefit of currency depreciation was more than offset by lower Brent and commodity prices, it said.

Tom Albanese, CEO, Vedanta Group said despite challenging market condition the company has managed to deliver a sustained performance.

Strong operating performance of aluminium and zinc businesses led to the reduction in gross debt by ₹400 crore. Going ahead, he said, the company would focus on disciplined capital allocation, coupled with deferred and phased development in zinc, oil and gas and other businesses which will help optimize assets and drive strong cash flow in the near future.

Of the total loan outstanding, ₹35,219 crore is in Indian rupee and rest in dollar. The short-term loans maturing by March taken at lower rates for project finance would be refinanced on longer tenure with interest rate scenario easing, said Sesa Sterlite.

The company has reserves of ₹46,806 crore. The shares of the company were down 0.20 per cent at ₹200 on Thursday.

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