Vedanta first-quarter core earnings rise 27%

India-focused miner Vedanta posted a 27% rise in first-quarter core earnings, as strong growth in power sales offset the impact of lower metal prices and zinc volumes.

The London-listed firm said on Tuesday that earnings before interest, tax, depreciation and amortisation (EBITDA) rose 27% year-on-year to USD 1.34 billion in the three months to the end of June. Sales rose 9% to USD 3.7 billion.

First-quarter output of mined metal in the group's Zinc India unit was 187,000 tonnes, in line with the year's mine plan, compared with 188,000 tonnes in the year-earlier period.

First-quarter output of integrated silver rose 70 percent to 2.6 million ounces while integrated lead production was 79 percent higher at 29,000 tonnes, boosted by the ramp-up of the SK mine, the company said.

Total production of zinc-lead metal-in-concentrate and zinc metal was in line with the mine plan and earlier guidance at 106,000 tonnes.

It sold 2,329 million units of power in the first quarter, significantly higher than the 1,415 million units it sold in the same period a year earlier, it said.

Vedanta said production of iron ore fell to 3.4 million tonnes from 4.4 million tonnes in the year-earlier quarter, hit by a ban on mining in the southern Indian state of Karnataka and logistics constraints in Goa.

Zambian copper cathode output rose 12 percent year-on-year to 41,000 tonnes with the ramp-up of the Nchanga East concentrator.

It said plans to consolidate and simplify the company's structure were on track for completion in the last quarter of 2012 after it received shareholder approval and the go-ahead from the Foreign Investment Promotion board in the first quarter.