Vedanta Q1 net doubles to Rs 1,525 cr on better margins

Mumbai, July 25 (IANS) Natural resources major Vedanta Ltd on Tuesday reported a more than doubling of its consolidated net profit to Rs 1,525 crore for the first quarter ended June 2017 on the back of better margins on most of the metals mined by the company.

The Indian arm of London-listed energy major Vedanta Resources had posted a profit of Rs 754 crore in the corresponding quarter of last year, a company statement here said.

Revenue for the quarter in consideration rose 27 per cent over the same quarter last year to Rs 18,203 crore.

The company's EBITDA (earning before interest, tax depreciation and amortisation) for the quarter in question rose 40 per cent over last year, to Rs 4,965 crore, on account of higher volumes at Zinc India and its aluminium business as well as higher commodity prices, Vedanta said.

EBITDA margins for the quarter rose to 36 per cent during the quarter in question, from 32 per cent in the same quarter a year ago, on account of increased volumes and cost efficiencies, it added.

"EBITDA was partially offset by currency appreciation, input commodity inflation and lower plant availability at TSPL (Talwandi Sabo Power Ltd)," the statement said.

The company's gross debt at the end of June quarter was at Rs 67,342 crore, which includes temporary short-term borrowings of Rs 6,959 crore at Zinc India and preference shares of Rs 3,010 crore issued pursuant to the merger with Cairn.

"Excluding Zinc India temporary borrowings and preference shares, gross debt decreased by Rs 6,288 crore. Post June 30, 2017, gross debt was further reduced by Rs 2,500 crore. Net debt was at Rs 19,024 crore during the quarter, higher on account of the large dividend payments in April," Vedanta said.

Vedanta's stock closed on Tuesday at Rs 274.40 a share, up Rs 9.70 or by 3.66 per cent, over its previous close on the BSE.

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