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