Mining major Vedanta's Q4 profit drops to Rs 2,615 crore

Mining major Vedanta on Tuesday reported a substantial drop in profit at Rs 2,615 crore during January to March period of 2018-19 against Rs 4,802 crore in the year-ago period.

The revenue also dropped to Rs 23,092 crore from Rs 27,311 crore year-on-year, largely due to lower commodity prices, rupee appreciation and lower volume at the aluminum and zinc India business that was partially offset by higher sales volume at ESL, Zinc International, and Iron Ore Karnataka.

The profit for FY 19 ending March 31 was down to Rs 7,065 crore from Rs 10,342 crore in the same period. The revenue totalled Rs 90,901 crore as compared to Rs 90,954 in 2018-19, the company said in a statement.

"FY 2019 was a year of production ramp-up alongside robust financials and delivering repeated and industry leading returns to our shareholders," said Chairman Navin Agarwal.

"Acquisition of ESL and its successful turnaround as well as the commencement of the long-awaited Gamsberg project, both represent significant additions to our operating business portfolio," he said.

Finance cost for FY 2019 was at Rs 5,689 crore, higher 11 per cent year-on-year, due to increase in gross borrowing due to ESL acquisition, temporary borrowing at Zinc India and higher average borrowing cost in line with market trends, partially offset by a higher capitalisation of borrowing cost.

Investment income was at Rs 3,618 crore, higher by 13 per cent year-on-year, primarily due to mark to market gains on a treasury investment made partially offset by lower investment corpus.

"Looking ahead, FY 2020 will be an exciting year of growth in our key businesses -- zinc, lead, silver, oil and gas, and aluminium -- being pursued with a strict capital allocation framework," said Chief Executive Officer Srinivasan Venkatakrishnan.

"We have also set stricter health, safety, and environmental standards, and will continue our journey towards zero harm by ensuring greater levels of safety and sustainability," he said.

Vedanta said it has robust cash and liquid investments of Rs 39,269 crore. Net debt was at Rs 26,956 crore on March 31, higher by Rs 4,998 crore year-on-year primarily due acquisition of ESL.