Vedanta swings back into the black in Q4 helped by higher revenue

Vedanta Ltd , the Indian unit of diversified energy group Vedanta Resources PLC , reported a consolidated quarterly profit, as revenue surged, driven by improved commodity prices and higher zinc volumes.

Consolidated net profit stood at Rs 2,988 crore in the fourth quarter ended March 31, compared with a loss of Rs 21,104 crore a year earlier, the metals and mining group said on Monday.

Consolidated revenue surged about 35% to Rs  24,612 crore.

Shares of the company on BSE were up 2% at Rs 241 at the time of closing on Monday.

"Revenue in the fourth quarter was up... 41 per cent y- o-y, driven by higher volumes from Zinc India, supported by ramp-up at the aluminium and power business and improved metal and oil prices. Additionally, higher volumes at iron ore in Q4 FY2017 over Q4 FY2016 aided higher revenues," the company said in a statement.

Navin Agarwal, Chairman, Vedanta Ltd, said, "The completion of the Cairn India merger transforms Vedanta Ltd into a diversified natural resources powerhouse, anchored in India."

He said further, "The combined entity truly reflects our strong, diversified, low-cost portfolio with industry-leading volume growth from our well-invested assets."

Vedanta is one of the largest contributors to the exchequer in 2016-17, at Rs 40,000 crore, Agarwal said.

He added: "The record dividends during the past financial year highlight our commitment to shareholder value. We are looking forward to a very exciting 2017-18 and future years, with all our businesses operating at full capacities and cost efficiencies."

Tom Albanese, CEO, Vedanta Ltd, said the company's strategic focus to ramp up production across the portfolio, namely zinc, aluminium, power and iron ore businesses, has supplemented revenue growth.

"In particular, record production levels at zinc and aluminium were well-timed in an environment of strong supply side pressures on both commodities. Our cost management initiatives have helped us deliver strong returns for all our shareholders," he added.