Vedanta Q2 net profit falls 62% to Rs 824 cr over one-time tax expense

In a statement, the company said the tax expense for the quarter was at Rs 2,370 crore.

Vedanta on Friday reported a 61.8 per cent decline in consolidated net profit at Rs 824 crore for the quarter ended September 30, 2020 on the back of one-time tax expense.

The company posted a net profit of Rs 2,158 crore in the year-ago period, Vedanta said in a filing to BSE.

Income during July-September declined to Rs 21,744 crore from Rs 22,814 crore in the year-ago period, the filing said.

The company said in a statement the tax expense for the quarter was at Rs 2,370 crore.

"EBITDA for Q2 FY2021 was at Rs 6,531 crore, higher by 63 per cent q-o-q, mainly due to higher commodity prices, higher volumes at zinc business, lower cost of production at Zinc India and aluminium business, partially offset by higher input commodity prices, rupee appreciation and reversal in renewable purchase obligation (RPO) liability in aluminium business due to capping of RE certificates at lower prices in Q1 FY2021," the company said in a statement.

CEO Sunil Duggal said Vedanta has reported the highest quarterly operating result for more than 2 years.

"Our key growth projects are back on track and the expansion is being delivered through strict capital allocation and balance sheet focus, aimed at creating value for our stakeholders.

"Our large scale, diversified portfolio, positions us well to deliver strong margins and cash flows through the commodity cycle. Vedanta is fully committed to sustainable growth and contribute significantly towards building a self-reliant India," Duggal added.

The company said its revenue in the period under review was at Rs 20,804 crore, higher by 33 per cent as compared to the previous quarter.

The rise in revenue was primarily due to higher commodity prices, higher volumes at Zinc India, iron ore, copper and power business, partially offset by lower volumes at aluminium and steel business and rupee appreciation, it said.

Depreciation and amortization for the second quarter stood at Rs 1,938 crore, a rise of 12 per cent as compared to April-June, mainly due to higher ore production at zinc business.

Finance cost for the quarter was at Rs 1,312 crore, up 5 per cent quarter-on-quarter, primarily due to higher average borrowing cost, partially offset by reduction in gross borrowings.

The gross debt of the company was at Rs 62,759 crore on September 30, 2020.

Vedanta, a subsidiary of Vedanta Resources, is one of the world's leading oil and gas and metals companies with significant operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa, Namibia, and Australia.