Vedanta Profit Declines 27% in First Quarter, Margins Contract
Vedanta Q1FY17 financial results are out!
India’s biggest mining company, Vedanta Ltd., posted a 27 percent year-on-year decline in the April-June quarter of the current fiscal year.
The company’s net profit fell in the June quarter to Rs 1,157 crore from Rs 1,593 crore in the corresponding quarter last year, it said in a press release.
The profit after minority interest, however, declined 30.4 percent to Rs 615 crore from Rs 884.14 crore. This figure missed the Bloomberg consensus estimate of Rs 787.8 crore.
Revenue fell 10 percent to Rs 14,437 crore versus Rs 17,008 crore on a year-on-year basis on account of the fall in oil and metal prices, weaker power market and lower zinc volumes. This was below the Bloomberg consensus estimate of Rs 16,022.12 crore.
Earnings before interest, taxes, depreciation and amortisation slumped 15.8 percent to Rs 3,439.61 crore as compared to Rs 4,087.21 crore in the same quarter of financial year 2016.
EBITDA margin contracted by 21 basis points to 23.82 percent to 24.03 percent.
The company’s gross debt reduced by Rs 606 crore.
Segment Breakdown
Revenue share declined across various segments, with Zinc India being the biggest loser.
Zinc India was impacted by lower mined metal production as per the mine plan, and the second half is expected to be substantially higher.Tom Albanese, Chief Executive Officer, Vedanta, said in the press release.
- Oil and gas revenue declined 28.2 percent to Rs 1,885.1 crore versus Rs 2,627 crore year-on-year.
- Revenue from zinc, lead and silver plunged 34.7 percent to Rs 2,894.9 crore from Rs 4,435.1 crore
- Net sales for copper segment fell 16 percent to Rs 4654 crore from Rs 5571 crore.
- Aluminium revenue increased 0.9 percent to Rs 2757.9 versus Rs 2733 crore.