Anil Agarwal-led Vedanta Limited reported a consolidated net profit of Rs 1,644 crore in the July-September quarter, down 40 per cent from the same period last year, as high tax expense ate into the company’s bottom line.
Consolidated net sales of the company in the quarter gone by stood at Rs 20,804 crore, down 4.3 per cent from same period last year.
This was on the back of lower volume at the oil & gas business and weak commodity prices.
The company posted strong earnings before interest, taxes, depreciation and ammortisation (Ebitda) of Rs 6,531 crore in the period under review, up 45 per cent from the corresponding period last year.
Total expenses declined 16 per cent year-on-year (YoY), lending firm support to the earnings of the company.
“Vedanta has reported the highest quarterly operating result for more than two years. Our key growth projects are back on track and the expansion is being delivered through strict capital allocation and balance sheet focus, aimed at creating value for our stakeholders. Our large scale, diversified portfolio positions us well to deliver strong margins and cash flows through the commodity cycle. Vedanta is fully committed to sustainable growth and contributes significantly towards building a self-reliant India,” the release, quoted Sunil Duggal, chief executive officer (CEO), as saying.
Depreciation and amortisation for Q2 of FY21 stood at Rs 1,938 crore, down 19 per cent YoY, primarily due to impairment of assets in oil & gas business in Q4 of FY20, and Skorpion mine put under care and maintenance since April 2020.
A total tax outgo of Rs 2,369 crore in the July-September quarter against a tax credit of Rs 1,609 crore in the corresponding period last year hurt the company’s bottom line.
The company's gross debt stood at Rs 62,759 crore as on September 30, 2020, higher by Rs 4,191 crore as compared to the preceding quarter, mainly due to temporary borrowing at the domestic zinc business unit.
Meanwhile, net debt in the period under review was at Rs 27,190 crore as on September 30, 2020, up Rs 92 crore compared to June quarter.