Vedanta net dips 27% on lower realisation

BL Mumbai Bureau Updated - April 25, 2024 at 09:18 PM.

Ebitda during the reviewed quarter is down by 4 per cent to ₹8,969 crore from ₹9,362 crore

Anil Agarwal, Chairman of Vedanta Resources Ltd.

Anil Agarwal-led Vedanta has reported that its net profit in the March quarter was down 27 per cent at ₹2,275 crore against ₹3,132 crore, due to lower realisation.

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The mining to metal company’s income was down 7 per cent at ₹36,093 crore ( ₹38,635 crore). EBITDA during the quarter under review was down 4 per cent at ₹8,969 crore ( ₹9,362 crore).

Finance cost was up 34 per cent at ₹2,415 crore ( ₹1,805 crore). The company registered an exceptional loss of ₹201 crore, due to impairment charge of ₹994 crore, majorly incurred at Tuticorin plant. However, it was partially offset by capital creditors writing back ₹793 crore in the power business.

Vedanta aims to produce 3 mt of alumina and 2.4 mt of aluminium with a cost of production of $1,725 a tonne in FY25 

Cash position

Gross debt of the company reduced by ₹3,468 crore q-o-q to ₹71,759 crore as March-end. It has cash and cash equivalent of ₹15,421 crore, an increase of ₹2,687 crore q-o-q

The company has given a guidance to produce 3 million tonnes(mt) of alumina and 2.4 mt of aluminium at the cost of production of $1,725 a tonne in FY25.

Zinc production was pegged at 1.12 lt, finished metal of 1.10 lt and silver output of 775 tonnes at the cost of $1,100 a tonne.

For the financial year ended March, the net profit of the company was down 48 per cent to ₹7,539 crore (₹14,503 crore) as the income dipped to ₹1.46-lakh crore (₹1.50-lakh crore).

Arun Misra, Executive Director, Vedanta said the company has achieved record production across key businesses with the focus on cost optimisation which ensured strong margins even during a challenging commodity market.

Ajay Goel, Chief Financial Officer, Vedanta said, driven by operational excellence, the holding company has deleveraged by $1.6 billion in FY24.

Published on April 25, 2024 14:35

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