Vedanta Resources Q1 EBITDA rises 26% to USD 983 million

Diversified global natural resources giant Vedanta Resources today posted 26.3 per cent rise in EBITDA at USD 983 million for the quarter ended June 30, 2018.

The company had posted earnings before interest, taxes, depreciation and amortization (EBITDA) of USD 778 million in the same quarter of previous fiscal, Vedanta Resources informed the London Stock Exchange.

"EBITDA of USD 983 million, (was) up 26 per cent Y-o-Y, driven by higher volumes and commodity prices, partially offset by input commodity inflation," the company said.

The Group's revenue increased by 14.9 per cent to USD 3,551 million, over USD 3,088 in the April-June quarter of year-ago period.

The Group registered a loss of USD 15 million from copper business for the first quarter ended June 30, 2018.

The loss is before interest, taxes, depreciation and amortisation.

However, it had registered a EBITDA of USD 32 million from copper business in the year-ago period.

Revenue for the quarter was USD 417 million and loss (before interest, taxes, depreciation and amortisation) was USD 14 million, "significantly lower on account of the Tuticorin plant shutdown during the quarter and maintenance costs", it said.

Smelting operations at Tuticorin were halted as part of a planned maintenance shutdown for approximately 15 days, with effect from March 26, 2018.

"We were advised on April 9, 2018, that our application to the Tamil Nadu Pollution Control Board to renew the consent to operate (CTO) for the smelter was rejected. Subsequent to this, the Government of Tamil Nadu issued orders dated May 28, 2018 with a direction to shut the existing copper smelter plant unit at Tuticorin permanently. As a result, the plant continues to remain shut," the company said.

The company has filed an appeal before National Green Tribunal, Principal Bench, challenging the rejection of renewal of CTO and sealing of the existing plant, it said.

"We are hopeful about the restart of the copper plant and would expect it to produce 100 kt of copper cathodes per quarter in line with its capacity on restart," it said.

Commenting on the results, Vedanta Resources plc Chief Executive Officer Kuldip Kaura said, "We delivered strong EBITDA and steady margins this quarter driven by record volumes in aluminium, higher production in oil and gas, as well as supportive commodity prices."