Vedanta’s profit declines 34% YoY in Q2 FY2019

Vedanta Resources plc's subsidiary Vedanta Limited announced results on Wednesday, October 31, for the second quarter ended 30 September 2018. Metals and mining major reported net profit of INR 1,343 crore in the July-September quarter of 2018, up 34.3 per cent from INR 2045 crore in the July-September quarter of 2017.

Revenue stood at INR 22,705 crore, an increase of 5 per cent, as compared with INR21, 590 crore in the same period previous year. The increase in revenue was attributable to higher volumes at aluminium, higher availability at TSPL, acquisition of Electrosteel, currency depreciation and higher commodity prices partially offset by, lower volumes at Zinc India, Zinc International and closure of Tuticorin smelter.

EBITDA in Q2 FY2019 was at INR 5,342 compared to INR 5,776 crore in Q2 FY2018. The figure shows a decrease of 8 per cent primarily on account of higher costs due to input commodity inflation, lower volume at Zinc India, Zinc International, and closure of Tuticorin smelter. This was partially offset by higher commodity prices, acquisition of ESL and currency depreciation.

Mr. Srinivasan Venkatakrishnan, Chief Executive Officer, Vedanta, said: “The company is uniquely poised to grow in commodities that have rising demand, especially in India with an enviable growth pipeline, which is systematically being brought to fruition.” 

Vedanta had reported record quarterly aluminium production at 494,000 tonnes in Q2 FY2019, registering a growth of 23% YoY.