Vedanta consolidated net profit zooms 41% to Rs 2,036 crore in Q2
ET Bureau|
Updated: Nov 02, 2017, 11.03 PM IST
KOLKATA: Oils to metal major Vedanta has posted a 41% rise in consolidated net profit in the second quarter ended September 30, 2017, to Rs 2,036 crore led by higher volumes and prices of aluminium, zinc and copper. However, profits were offset by lower volumes of iron ore due to monsoon and currency appreciation during the quarter.
Revenues were up 37% to Rs 21,520 crore during the second quarter against Rs 15,861 crore in same period last year. Vedanta said earnings before interest, tax, depreciation and amortisation (EBITDA) margins went up 24% to Rs 5,776 crore with EBITDA margins at 35%.
Half yearly net profit went up toRs 3,561 crore compared to Rs 2,178 crore in the year-ago period. Revenues went up 31.6% to Rs 39,875 crore against Rs 30,300 crore in the half-year period ended September 30, 2016. During the quarter, Vedanta posted an exceptional gain of Rs 186 crore due to reversal of a royalty of Rs 291 crore at Zinc India, an arm of its subsidiary Hindustan Zinc Ltd.
Vedanta chief executive officer Kuldip Kaura attributed the rise in net profit and EBITDA margins to a solid operational performance in zinc and copper business supported by firm commodity prices.
“While in iron ore business volume took a hit as there were fewer shipments from Goa during the monsoons, the volumes will go up in Q3 and Q4 this year,” Kaura added. The company is also looking to develop iron ore mines in Jharkhand and is exploring opportunities in value addition.
Incidentally, Vedanta chairman Anil Agrawal had told ET earlier this week that the company will invest in a 1-mt integrated steel plant in the state. Sharing his outlook for the second half of the year, Kaura said: “We expect H2 of this fiscal to be more robust with continuing production ramp up.”
Vedanta said its gross debt, since March 31, 2017, reduced by Rs 11,466 crore to Rs 55,798 crore. “We will continue to look at reducing gross debt through earnings. The overall idea is to maintain robust cash flows that can be utilized for capital expenditure,” he added during an earnings call.
The company revised its capex guideline for FY18 to a marginally lower $1.1 billion against an earlier estimate of $1.2 billion.
Vedanta CFO Arun Kumar said: “Our programmes remain the same and our capex for the year is at Rs 7,000 crore with 60% earmarked for zinc, 30% for oil & gas and 10% between the remaining businesses.”
Revenues were up 37% to Rs 21,520 crore during the second quarter against Rs 15,861 crore in same period last year. Vedanta said earnings before interest, tax, depreciation and amortisation (EBITDA) margins went up 24% to Rs 5,776 crore with EBITDA margins at 35%.
Half yearly net profit went up toRs 3,561 crore compared to Rs 2,178 crore in the year-ago period. Revenues went up 31.6% to Rs 39,875 crore against Rs 30,300 crore in the half-year period ended September 30, 2016. During the quarter, Vedanta posted an exceptional gain of Rs 186 crore due to reversal of a royalty of Rs 291 crore at Zinc India, an arm of its subsidiary Hindustan Zinc Ltd.
Vedanta chief executive officer Kuldip Kaura attributed the rise in net profit and EBITDA margins to a solid operational performance in zinc and copper business supported by firm commodity prices.
“While in iron ore business volume took a hit as there were fewer shipments from Goa during the monsoons, the volumes will go up in Q3 and Q4 this year,” Kaura added. The company is also looking to develop iron ore mines in Jharkhand and is exploring opportunities in value addition.
Incidentally, Vedanta chairman Anil Agrawal had told ET earlier this week that the company will invest in a 1-mt integrated steel plant in the state. Sharing his outlook for the second half of the year, Kaura said: “We expect H2 of this fiscal to be more robust with continuing production ramp up.”
Vedanta said its gross debt, since March 31, 2017, reduced by Rs 11,466 crore to Rs 55,798 crore. “We will continue to look at reducing gross debt through earnings. The overall idea is to maintain robust cash flows that can be utilized for capital expenditure,” he added during an earnings call.
The company revised its capex guideline for FY18 to a marginally lower $1.1 billion against an earlier estimate of $1.2 billion.
Vedanta CFO Arun Kumar said: “Our programmes remain the same and our capex for the year is at Rs 7,000 crore with 60% earmarked for zinc, 30% for oil & gas and 10% between the remaining businesses.”
