Vedanta reports net loss of Rs 12,521 cr for Q4 over asset impairment

Diversified natural resources firm Vedanta on Saturday reported consolidated net loss of Rs 12,521 crore for the quarter ended March 31, 2020 on the exceptional loss of Rs 17,132 crore, primarily due to impairment of assets in oil and gas, copper and iron ore business.

However, the company had posted net profit of Rs 2,615 crore in the year-ago period, Vedanta said in a filing to the BSE.

The consolidated income of the company during January-March quarter dropped to Rs 20,382 crore, over Rs 25,096 crore in the year-ago period, the filing said.

"The Covid-19 pandemic has hit the world and us in the last quarter of the year. We have taken a proactive approach to keep our assets and people safe while ensuring optimum operations during these difficult times.

“During these difficult times, our efforts are aligned to the singular vision of making our communities, the state and nation self-reliant and self sufficient," Vedanta Chief Executive Officer Sunil Duggal said in a statement.

The exceptional items for the fourth quarter of financial year 2020 was at Rs 17,132 crore, primarily due to impairment of assets at oil and gas, copper and iron ore business.

"Exceptional loss for financial year 2020 was at Rs 17,386 crore, mainly due to impairment of assets at oil and gas, triggered majorly due to significant fall in crude oil prices primarily consequent to the outbreak of Covid-19...," the statement said.

The company said its revenue for the fourth quarter of financial year 2020 was at Rs 19,513 crore, lower by 8 per cent sequentially, primarily due to lower commodity prices further impacted by Covid-19 and lower volume at aluminium business among others.

"EBITDA (Earnings before interest, taxes, depreciation, and amortization) for fourth quarter of financial year 2020 was lower by 23 per cent year-over-year, primarily due to lower commodity prices further impacted by Covid-19, lower volume zinc, oil and gas and steel business...,"it said.

Finance cost for the reported quarter was at Rs 1,064 crore, lower by 14 per cent sequentially and 24 per cent year-over-year, primarily due to lower average borrowing cost in line with market trends and repayment of debt at various businesses.

The company's gross debt was at Rs 59,187 crore on March 31, 2020.