Vedanta reports 22% YoY revenue growth for FY 2018 on account of the capacity boost at Aluminium

Mining conglomerate Vedanta Ltd. has announced its unaudited consolidated results for the fourth quarter of the financial year 2017-18, as well as the full financial year ended March 31, 2018. According to the results, the company has witnessed 22 per cent increase in year-on-year revenue closing at INR 92,923 crore and 13 per cent increase in quarter-on-quarter revenue to close at INR 27,630 crore. The increase was mainly on account of the ramp-up of capacities at Aluminium, record production from Zinc India and improved commodity prices partly offset by currency appreciation and lower sales at Iron ore.

The firm has reported a 34 per cent rise in consolidated profit-after-tax (PAT) at INR 5,675 crore for the fourth quarter of FY2017-18, whereas, in the contemporary period last year, it had witnessed a consolidated PAT of INR 4,226 crore. For the entire financial year 2017-18, Vedanta’s PAT grew 21 per cent to INR 13,692 crore, up from INR 11,319 crore in the financial year 2016-17.

Commenting on the results, Vedanta Ltd CEO Kuldip Kaura said: "Our volume ramp-up plans stayed on track, resulting in a significantly higher EBITDA for the year, despite challenges from input price inflation."

He further said that in 2019, the company will focus on generating stronger cash flows on the strength of higher volumes and improved cost structure in the business, which in turn will drive superior shareholders returns and boost company’s financials.

Vedanta has also reported its 17 per cent increased EBITDA for Q4 closing at INR 7,929 crore and on a year-on-year basis, 9 per cent increase. EBITDA for the full year, on the other hand, came in at INR 25, 470 crore, up 19 per cent on account of record production from Zinc India and Aluminium and improved commodity prices.

However, Kaura said that the results could have been even better, but the shutting down of mining operations in Goa in the wake of a Supreme Court order had a minor impact on the company’s business during the last quarter. According to him, "FY'18 was a transformational year for Vedanta. The diversified, well-invested and low-cost portfolio of the company delivered industry leading volume growth during the year. We paid a record interim dividend of Rs 7,881 crore and contributed Rs 33,000 crore to the exchequer in FY'18. I am excited about the many growth opportunities for the company which will further enhance shareholder value.”

Vedanta’s Gamsberg project is on track and is expected to start operating from mid-2018.