Vedanta net dives 30% in June quarter on lower realisation

Our Bureau Mumbai | Updated on January 18, 2018 Published on July 29, 2016

Tom Albanese, CEO, Vedanta   -  THE HINDU

Gross debt reduced by ₹606 crore

London-based industrialist Anil Agarwal-owned Vedanta reported 30 per cent fall in June quarter net profit at ₹615 crore (₹884 crore) due to lower revenue contribution from all segments of business – copper, zinc and energy.

Net sales were down 15 per cent at ₹14,364 crore (₹16,944 crore).

As of June-end, the company’s gross debt reduced by ₹606 crore to ₹76,953 crore due to repayment of inter-company loan of ₹5,736 crore to Vedanta Resources plc, partially offset by borrowings at Zinc India and aluminium businesses. Net debt increased by ₹6,400 crore to ₹24,654 crore due to payout of special dividend at Zinc India during the current quarter.

Out of the total debt of ₹76,953 crore, the rupee debt was about 63 per cent, while loans in dollar terms accounted for the rest. Further, the gross debt comprises of long term loans of ₹59,263 crore and short-term loans of ₹17,690 crore.

The company has to repay debt of ₹12,406 crore this fiscal and it intends to meet through a combination of roll over, refinancing, internal accruals and working capital initiatives.

Tom Albanese, Chief Executive Officer, said zinc production in India was impacted by lower mined metal production as per the mine plan and it is expected to substantially go up in the second half.

The capacity ramp up at aluminium, power and iron ore is progressing well and would be significant contributors to earnings as the year progresses, he said.

On a standalone basis, the company registered a net loss of ₹120 crore against net profit of ₹634 crore due to lower realisation in copper. Net sales were down 9 per cent at ₹7,110 crore (₹7,852 crore).

The company’s standalone results include that of copper, iron ore, aluminium and power. Finance cost was higher at ₹907 crore (₹839 crore) in the June quarter.

The company said its financial position remains robust with cash and liquid investments of ₹52,299 crore which is invested in debt-related mutual funds, bank deposits and high quality bonds, besides undrawn committed facilities of ₹6,500 crore.

The company’s scrip was down 3 per cent at ₹164 on Friday.

Published on July 29, 2016
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