Vedanta Posts .₹ 11,181-cr Ad­justed Loss in Q4

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

Mum­bai: Nat­u­ral re­sources con­glom­er­ate Vedanta Ltd re­ported a fourth-quar­ter ad­justed loss of .₹ 11,181.3 crore, hurt by a non-cash charge of .₹ 12,304 crore due to the im­pair­ment of ac­qui­si­tion good­will on Cairn In­dia and some as­sets in­ter­na­tion­ally. The Anil Agar­wal com­pany had re­ported an ad­justed loss of .₹ 19,228.1 crore in the year-ear­lier quar­ter. Net profit be­fore ex­cep­tional items came at .₹ 955.4 crore for the past quar­ter, up 89% from the year ear­lier. Sales fell 11% to .₹ 15,829.1 crore, hurt by lower oil and metal prices which though were par­tially off­set by higher vol­umes. Ebitda mar­gin stayed steady at 29%.

Vedanta didn’t share any new up­date on the im­pend­ing merger with Cairn In­dia. The merger, if suc­cess­ful, will help the highly-lever­aged Vedanta ac­cess Cairn’s cash flows and im­prove liq­uid­ity.

Chief Ex­ec­u­tive Tom Al­banese didn’t give any time­line on the clo­sure of the merger, which have been de­railed due to the global com­mod­ity melt­down. “There are clear ben­e­fits of di­ver­si­fi­ca­tion of port­fo­lio. We will com­plete the merger in due course. The plan is fully alive and we want to get it done,” he said. In the last quar­ter post-re­sult con­fer­ence in Jan­uary, Al­banese had fore­cast a share­holder vote in the fourth quar­ter.

Vedanta im­paired ac­qui­si­tion good­will of Cairn In­dia by .₹ 10,074 crore, wrote off .₹ 284 crore due to in ex­ploratory as­sets in the oil and gas seg­ment, as well as im­paired ex­ploratory as­sets in West Africa, cooper mines in Tas­ma­nia and some iron ore as­sets in Kar­nataka by .₹ 1,946 crore.

Vedanta brought down net debt .₹ 4,981 crore to .₹ 25,286 crore as it con­tin­ued to re­duce op­er­at­ing and capex. Ma­tu­ri­ties of .₹ 14,932 crore of debt are com­ing up in the cur­rent fi­nan­cial year.

Vedanta wants to ramp up pro­duc­tion at alu­minium, power and iron ore busi­nesses to gen­er­ate free cash flow. It is plan­ning a cap­i­tal ex­pen- di­ture of $1 bil­lion in the cur­rent fis­cal year ver­sus $0.6 bil­lion last year. It aims to spend $400 mil­lion on alu­minium and power busi­nesses, $300 mil­lion on zinc, $200 mil­lion on the Gams­berg project in South Africa and $100 mil­lion on oil & gas busi­ness.

The com­pany is also tar­get­ing sav­ings of $250300 mil­lion in the cur­rent fi­nan­cial year ver­sus $250 mil­lion last year.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.