Zinc Prices, Higher Oil Output Boost Vedanta’s Q1 Profit
Vedanta’s Q1 profit doubles, misses estimates.
Resources giant Vedanta Ltd.’s profit doubled in the quarter ended June on higher metal prices and increased oil output.
Net profit rose 102 percent to Rs 1,525 crore from the year-ago period, driven by higher contribution from the Mangala oilfield in Rajasthan and rising prices of zinc and silver, it said in an exchange filing. That compares with the Bloomberg consensus estimate of Rs 1,568 crore.
“Our zinc and oil and gas businesses have delivered a strong quarter... zinc prices have strengthened... on continued global supply deficits,” Tom Albanese, chief executive officer, Vedanta, said in a statement. “Our continued ramp-up in the aluminium business has helped us exit the quarter on a strong production run rate.”
The metals and mining company managed to reduce its total debt by Rs 9,000 crore in the last four months, the filing said. It stood at Rs 67,342 crore as of June 30, the company said in its statement.
- Revenue rose 26 percent to Rs 19,342 crore, beating the estimated Rs 18,237 crore.
- Earnings before interest, tax, depreciation and amortisation jumped 42 percent to Rs 4,874 crore year-on-year.
- EBITDA margin expanded to 27 percent from 24 percent earlier.
The stock rose as much as 4.4 percent after the quarterly results were announced.
(Corrects an earlier version that misstated profit after tax)
