Arun Misra named Vedanta CEO as company posts 72% rise in June-quarter profit

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Vedanta Ltd has appointed Hindustan Zinc Chief Executive Officer Arun Misra as its new Chief Executive Officer for a one-year term beginning August 1, as the diversified mining company reported a 72 per cent year-on-year increase in consolidated net profit for the June quarter, supported by higher metal prices across its key businesses.

Misra, who currently heads Hindustan Zinc, will step down from that role to lead Vedanta following the board's approval of his appointment.

The strong quarterly performance follows similar earnings growth across Vedanta Group companies. Hindustan Zinc recently reported more than a twofold increase in quarterly profit, while Vedanta Aluminium reported more than a threefold rise in profit for the June quarter, supported by higher aluminium prices.

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For the quarter ended June 30, Vedanta reported a consolidated net profit of INR 54.73 billion (USD 572.4 million), up 72 per cent year-on-year. Revenue rose 51 per cent year-on-year to INR 234.56 billion (USD 2.45 billion), while net profit margin improved to 22 per cent from 12 per cent a year earlier. 

The company's performance was supported by higher prices for base metals during the quarter. According to Jefferies, spot zinc prices increased 31 per cent year-on-year, copper prices rose 40 per cent, and silver prices more than doubled between April and June. The brokerage attributed the gains to supply disruptions, steady demand and geopolitical tensions in the Middle East, which affected global supply chains.

Vedanta's India zinc and lead business recorded nearly 50 per cent growth in revenue during the quarter, while the copper business reported a 34 per cent increase. Revenue from the India silver segment more than doubled year-on-year.

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Raw material expenses increased 37 per cent during the quarter, contributing to a 33 per cent rise in total expenses to INR 175.58 billion (USD 1.84 billion). However, higher commodity prices offset the increase in costs and supported overall profitability.

Vedanta has been restructuring its business through the demerger of several operations, including its aluminium business, into separately listed entities. Misra's appointment comes as the company continues that transition.

Vedanta shares closed 1.1 per cent higher following the announcement of the quarterly results and leadership change.