Billionaire Anil Agarwal-owned Vedanta has reported net profit of ₹2,989 crore in the March quarter against a net loss of ₹21,104 crore in the same period last year, on the back of higher production and better realisation.

Revenue from operations increased 40 per cent to ₹23,691 crore (₹16,865 crore).

Earnings before interest, depreciation, tax and amortisation more than doubled to ₹7,275 crore (₹3,489 crore).

The company had reduced its capital expenditure last fiscal to $0.7 billion from original guidance of $1 billion.

For this fiscal, it plans to invest $1.2 billion (₹7,680 crore) with $0.6 billion investment in zinc in India and Gamsberg, $0.16 billion in aluminium and power and $0.25 billion in oil and gas (further investment based on progress and subject to production sharing contract extension).

The company’s gross debt increased six per cent to ₹71,569 crore (₹67,776 crore), while net debt was down five per cent at ₹8,099 crore (₹8,492 crore) due to increase in cash flow.

Tom Albanese, Chief Executive Officer, said the focus to ramp up production across sectors, including zinc, aluminium, power and iron ore businesses, throughout the year has resulted in higher revenue growth. Record production of zinc and aluminium were well-timed in an environment of strong supply side pressures on both commodities, he said.

Navin Agarwal, Chairman, said the completion of the Cairn India merger transforms Vedanta into a diversified natural resources powerhouse, anchored in India.

With a contribution of ₹40,000 crore to the exchequer, Vedanta has become one of the largest contributors to the exchequer in FY-17 as the company is looking for an exciting future with all businesses operating at full capacities and cost efficiencies, he added.

Related Topics
comment COMMENT NOW