Vedanta Resources Q1 operating profit up 48% at $777.8 mn

Diversified global natural resources giant Vedanta Resources today saw its operating profit swell by 48 per cent to USD 777.8 million for the first quarter to June on higher zinc output and uptick in prices.
The company, which produces aluminium, copper, zinc, lead, silver, iron ore, oil and gas and commercial energy, had registered group Ebitda (earnings before interest, tax, depreciation and amortisation) of USD 527.1 million in the corresponding quarter a year ago, it said in a statement.
Tom Albanese, CEO, Vedanta Resources, said: "We have made a positive start to the year with both revenue and Ebitda significantly up year on year. In particular, our zinc and oil and gas businesses have delivered a strong quarter."

He said zinc prices have strengthened since the quarter end following continued global supply deficits.
"The Gamsberg zinc project remains on course to commence production in mid-2018. We remain committed to improvements at CopperZambia while our continued ramp-up in the aluminium business has helped us exit the quarter with a strong production run rate of 1.4 mtpa. Our recent comprehensive refinancing exercise of USD 1.84 billion further helps optimise our balancesheet and create value for all our stakeholders," Albanese said.
The group's gross debt, excluding Zinc India temporary borrowing, came down by USD 1.3 billion in April-June while it reported a further reduction of USD 385 million post June.

The company said mined metal production of zinc in the said quarter was at 233 kt, up 84 per cent y-o-y. The increase was primarily on account of higher volumes from all mines, higher zinc grades and depletion of opening ore stock.

Its Lanjigarh refinery produced 3,03,000 tonnes of alumina in the June quarter, up 10 per cent a year ago.
The company said its financial position remains robust, with total cash and liquid investments of USD 7.4 billion and undrawn committed facilities of USD 1.1 billion as of June end.
"At June 30, 2017, gross debt and net debt were at USD 16.8 billion and USD 9.4 billion, respectively compared to USD 18.2 billion and USD 8.5 billion, respectively, as on March 31, 2017," the company said.