Vedanta’s quarterly profit declines on weak prices, higher costs
Billionaire Anil Agarwal’s Indian mining company Vedanta reported an 18% drop in quarterly profit on weak prices of key metals such as zinc and aluminum and higher finance costs.
It posted a profit of 20.1-billion rupees ($242-million) in October-December, down from 24.64-billion rupees a year earlier, the company said in a statement Thursday. Revenue rose 3.8% to 349.7-billion rupees.
Total costs climbed 2.8% with finance costs jumping 54% during the period. Net income at unit Hindustan Zinc, which makes up most of Vedanta’s profits, fell 5.6% during the quarter, it said last week.
The drop in profits come at a time when investors expect the Mumbai-listed firm to focus on its own expansion projects rather than helping its holding company reduce debt. Some of that pressure eased after parent Vedanta Resources extended the due dates for some of its dollar bonds.
“With a balanced capital structure through successful liabilities management at Holdco, Vedanta has a stronger balance sheet and will remain committed towards deleveraging and value creation,” Ajay Goel, chief financial officer, said in the statement.
The company is also in the middle of planning an overhaul of its businesses to unlock value. It has filed a proposal with stock exchanges in the last quarter and upon receiving approval, the plan will be submitted to the company law tribunal, Vedanta said.
Shares of Vedanta closed 0.4% higher in Mumbai on Thursday. Analysts have eight buy recommendations on the company, three holds and three sells, according to data compiled by Bloomberg.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
ZF Aftermarket is the after-sales division of the world-renowned German ZF group, a global leader in mobility technology.
VISIT SHOWROOM
Electrifying the world in a safe, smart, and sustainable way, ABB Electrification is a global technology leader in electrical distribution and...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
