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Vedanta Resources Q1 EBITDA rises 26% to USD 983 million

Press Trust of India  |  New Delhi 

Diversified global 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, (EBITDA) of USD 778 million in the same quarter of previous fiscal, informed the 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 business for the first quarter ended June 30, 2018.

The loss is before interest, taxes, and amortisation.

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

Revenue for the quarter was USD 417 million and loss (before interest, taxes, 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 Board to renew the consent to operate (CTO) for the smelter was rejected. Subsequent to this, the Government of issued orders dated May 28, 2018 with a direction to shut the existing 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 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, plc said, "We delivered strong EBITDA and steady margins this quarter driven by record volumes in aluminium, higher production in and gas, as well as supportive commodity prices."

"We are excited about the growth across our portfolio in zinc, aluminium and and gas. The projects are advancing well to meet key milestones and we are confident of a progressive volume uplift in the coming quarters," Kaura added.

"On July 31, the independent committee of the board of and Volcan announced the terms of a recommended cash offer to be made by for the remaining issued and to be issued share capital of Vedanta Resources not currently owned or controlled by Volcan Investments," it said.

Under the terms of the offer, Vedanta shareholders will receive USD 10.89 per share in cash for each Vedanta share in addition to the USD 0.41 of dividend in respect of the twelve months ended March 31, 2018.

On India, it said that the mined was at 212,000 tonnes, nine per cent lower Y-o-Y.

"The decrease was driven primarily on account of closure of open-cast operation as transitioned to full underground this quarter and mined from underground mines was up by 13 per cent Y-o-Y and seven per cent Q-o-Q," it said.

is a London-listed diversified global natural resources company. The group produces aluminium, copper, zinc, lead, silver, iron ore, & gas and commercial

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, August 06 2018. 19:35 IST