Vedanta Group re-structuring is on track, says management

Moneycontrol Bureau

The management of Vedanta Resources re-iterated that plans to consolidate and simplify the company's structure were on track for completion in the last quarter of  FY12 as it has received shareholder approval and the go-ahead from the Foreign Investment Promotion Board during the quarter. 

The restructuring of the company announced earlier this year involved merging iron ore miner Sesa Goa and copper maker Sterlite Industries and the latter would be the holding company.

On being asked on the residual stake buyback in Balco and Hindustan Zinc Ltd (HZL).from the government, Ashwin Bajaj, senior vice- president, investor relations said, "We have made an offer and we have yet to hear from the government."

Balco and Hindustan Zinc were strategically sold to Vedanta Group companies in 2000-2002. Though there was a call option for Vedanta, it could not be exercised due to a legal battle and other reasons. The matter came into the limelight last July when Vedanta Group CEO Anil Agarwal wrote to the  government about it last year for the first time.

Meanwhile, Bajaj also released the production details for the June quarter during the conference and said that total revenue realized from production during the first quarter of 2012 increased 9% to $3.746 billion from $3.43 billion,YoY.

He also informed that the Group has reported a strong production ramp-up at its oil and gas operations in Rajasthan, as well as significant production growth in refined silver and lead at Zinc India and a substantial increase in commerical power sales overall.

The London-listed firm has said that its earnings before interest, tax, depreciation and amortisation (EBITDA) rose 27%,YoY to $1.34 billion for the June quarter. Sales also rose 9% to $3.7 billion,YoY.