Vedanta posts profit in Q4 on higher revenue
Vedanta Ltd, the Indian unit of diversified energy group Vedanta Resources, reported a consolidated quarterly profit, as revenue surged, driven by improved commodity prices and higher zinc volumes.
Consolidated net profit stood at ₹2,988 crore ($466.09 million) in the fourth quarter ended March 31, compared with a loss of ₹21,100 crore a year earlier, the metals and mining group said on Monday. Consolidated revenue surged about 35% to ₹24,612 crore.
Analysts on average expected Vedanta, which recently completed the buyout of Cairn India, to post a profit of ₹2,667 crore, according to Thomson Reuters.
“Revenue in the fourth quarter rose due to higher volumes from Zinc India, supported by ramp-up at the aluminium and power business and improved metal and oil prices. Additionally, higher volumes at iron ore in Q4 FY2017 over Q4 FY2016 aided higher revenues,” the company said in a statement.
“The completion of the Cairn India merger transforms Vedanta Ltd into a diversified natural resources powerhouse, anchored in India,” said Navin Agarwal, chairman, Vedanta Ltd. ”The combined entity truly reflects our strong, diversified, low-cost portfolio with industryleading volume growth from our well-invested assets.”
Vedanta was one of the largest contributors to the exchequer in 2016-17, at ₹40,000 crore, Agarwal said. “The record dividends during the past financial year highlight our commitment to shareholder value. We are looking forward to a very exciting 2017-18 and future years, with all our businesses operating at full capacities and cost efficiencies.”
Tom Albanese, CEO, Vedanta Ltd, said the company’s strategic focus to ramp up production across the portfolio, namely zinc, aluminium, power and iron ore businesses, has supplemented revenue growth.