Vedanta's Q1 net profit drops 30% to Rs 615 cr

Mining conglomerate Vedanta Ltd today reported a 30 per cent fall in consolidated net profit at Rs 615.02 crore for the quarter ended June 30.
The billionaire Anil Agarwal-led firm had clocked a net profit of Rs 884.14 crore in the year-ago period, the company said in a BSE filing.
Total consolidated income declined by 15 per cent to Rs 14,437.08 crore in April-June quarter this fiscal from Rs 17,008.81 crore during the same quarter in 2015-16.
Total expenses of the company were, however, lower at Rs 12,489.51 crore as against Rs 14,423.47 crore during the same period last fiscal.

Reacting to the results, shares of Vedanta fell by 2.69 per cent to close at Rs 164.60 apiece on BSE.
Vedanta Ltd CEO Tom Albanese said: "We have made good progress on the ramp up of capacities at our aluminium, power and iron ore businesses during the quarter. These would be significant contributors to earnings as the year progresses."

Zinc India was impacted by lower mined metal production and the second half is expected to be substantially higher, he added.
"We are focused on generating stronger free cash flow and delivering the balance sheet in line with our strategic priorities. Another of these priorities, the simplification of the group structure is also on track following the recent announcement of the revised and final terms for the Vedanta Ltd and Cairn India merger," Albanese said.

The firm said it has a strong financial position with a total cash and cash equivalents of Rs 52,299 crore at the end of the June quarter.
"On y-o-y basis, revenues in Q1 were 15 per cent lower on account of the fall in oil and metal prices, weaker power market and lower zinc volumes, partially offset by ramp up in volumes at iron ore, power and aluminium," it added.
During the April-June quarter, rupee depreciation of 2 per cent led to a forex loss of Rs 67 crore primarily on restatement of MAT assets at oil & gas business, it said.

As on 30 June 2016, the firm said gross debt reduced by Rs 606 crore to Rs 76,953 crore given repayment of inter-company loan of Rs 5,736 crore to Vedanta Resources Plc, partially offset by borrowings at Zinc India and aluminium businesses.
Net debt increased by Rs 6,400 crore to 24,654 crore mainly on payout of special dividend at Zinc India during the current quarter, it added.
Out of the total debt of Rs 76,953 crore, the INR/USD split is around 63 per cent/ 37 per cent. Further, the gross debt comprises of long term loans of Rs 59,263 crore and short term loans of Rs 17,690 crore.

"Fiscal 2016-17 debt maturities are Rs 12,406 crore, which the firm intends to meet through a combination of roll over, refinancing, internal accruals and working capital initiatives," it added.