Vedanta dips as one time loss impacts March quarter earning

Decline in the global commodity prices along with a sharp decline in crude oil prices impacted the business

Shares of Vedanta ( Sesa Sterlite) are trading down over 1% to Rs 204.70 on the BSE after the company posted a steep fall of 72.5% in adjusted profit at Rs 491 crore for the quarter ended March 2015 as compared to profit of Rs 1,788.65 crore in the corresponding period previous year.

Before adjustment, the company reported a loss of Rs 19,228.12 crore during the March quarter against profit of Rs 1,621.55 crore in the same quarter previous year.

The massive loss of Rs 19,955 crore was mainly on account of steep fall in crude oil prices, said the company in its filing.
 

The total income on consolidated basis dropped 14.8% to Rs 17,804 crore during March quarter as compared to Rs 20,894 crore in the corresponding period last year.

Vedanta, which holds significant stake in Hindustan Zinc and Cairn India, businesses were impacted by the decline in the global commodity prices. The profit margin was largely affected by weak performance of Cairn India owing to a sharp decline in crude oil prices.

The company has announced its March quarterly results post market hours on Wednesday.

The Board of Directors of the Company at its meeting held on April 29, 2015 has recommended a final dividend of 235% of the financial year 2014-2015 i.e. Rs.2.35 per equity share of Re. 1/- each, subject to the approval of the shareholders of the company.

The stock opened at Rs 203, touched a low of Rs 201.80 on the BSE. A total of 133,416 shares changed hands on the BSE so far.