Vedanta Resources gross earnings up 33%

PTI London/New Delhi | Updated on July 29, 2011 Published on July 29, 2011

Vedanta Resources has reported a 32.85 per cent growth in its gross earnings at $1,054.7 billion for the first quarter ended June 30, 2011, on the back of higher realisations from metals and zinc businesses.

Its gross earnings or earnings before interest, tax, depreciation and amortisation (EBITDA) were $793.9 million during the corresponding quarter of 2010-11.

During the quarter, refined zinc production was up 17 per cent at 1,93,000 tonnes due to higher volumes from the 210 kilo tonnes per annum capacity Dariba (Rajasthan) zinc smelter capacity, Vedanta said in a statement today.

The Dariba zinc smelter capacity was commissioned in March 2010.

Production of refined lead production went up by 6 per cent to 16,000 tonnes during the quarter, while silver production also increased by 8 per cent at 1.50 million ounces, the statement said.

However, the company’s iron ore production was down by about 23 per cent during the quarter at 4.4 million tonnes due to the termination of a third party mining agreement in Orissa, reduced production in Karnataka and logistical constraints in Goa.

Vedanta’s subsidiary, Sesa Goa, had said earlier this month that its net profit was down by 36 per cent in April-June quarter due to about 12 per cent fall in iron ore production.

Aluminium production registered a growth of 23 per cent during the quarter at 1,73,000 tonnes, primarily due to 46 per cent increase in production from Jharsuguda-I smelter.

However, production from the smelter, having a capacity to produce 500 kilo tonnes per annum, will be lower in the next six months due to a power outage in June 2011, the statement said.

Talking about the power business of the company, the Vedanta statement said that it sold 1,415 million units of power in Q1, which was significantly higher than 286 million units during the corresponding quarter of 2010-11.

The company is also planning to commission about 1,320 MW new power generation capacity at its Jharsuguda plant (Orissa) in the next six months, the statement added.

Published on July 29, 2011
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