Moneycontrol Bureau
London Stock Exchange listed Vedanta Resources' associate company Vedanta said consolidated profit during July-September quarter grew by 11.9 percent year-on-year to Rs 1,252 crore. Bottomline was supported by operational performance but growth limited due to weak revenue.
Revenue in Q2 fell by 4.3 percent to Rs 16,777 crore on yearly basis, impacted by oil, zinc and copper segments; but sequentially grew by 9 percent.
Consolidated operating profit grew by 8.5 percent year-on-year to Rs 4,667 crore on account of higher metal prices, improved cost efficiencies at aluminium business, lower discount to Brent, ramp up of volumes in the power business, which partially offset by lower volumes from Zinc India as per the mine plans and lower oil prices.
Margin expanded by 330 basis points YoY to 27.8 percent in the quarter ended September 2016.
"We have made significant operational progress this quarter, with an increase in production from Zinc India quarter-on-quarter, good operating performance at oil & gas business, the TSPL power business now fully operational and aluminium continuing to ramp-up," Tom Albanese, chief executive officer said.
The company gets majority of income from its subsidiaries Hindustan Zinc and Cairn India which both already announced their earnings. Vedanta owns 59 percent stake in Cairn India and 65 percent stake in Hindustan Zinc. Both companies announced better-than-expected earnings.
Albanese said the company has substantially reduced its debt and remained focused on strengthening balance sheet, including by refinancing debt maturities.
Net debt in Q2 declined by Rs 2,259 crore to Rs 11,961 crore on account of positive free cash flow.
He said, "The Cairn India - Vedanta merger remains on track for completion in Q1 CY2017, supported by the shareholders of both companies."
At 14:47 hours IST, the stock was quoting at Rs 203.25, up Rs 3.90, or 1.96 percent on the BSE.
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