Vedanta’s Q1 FY18 net doubles on strong aluminium production run rate

<p>The diversified natural resources company with aluminium operations in India, Vedanta Limited reported improved bottomline for Q1 FY 2017-18. The company&rsquo;s Aluminium business registered strong exit production run rate of 1.4 million tonnes per annum from continued ramp-up. The increased production along with the volumes generated by Zinc, Oil and Gas helped drive Vedanta&rsquo;s net earnings by more than 50 per cent and EBITDA by 40 per cent year-on-year.</p> <p>The net profit (PAT) and EBITDA for the mining and metals giant stood at INR 1,525 crore and INR 4,965 crore respectively for the quarter ended June 30, 2017.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/vedanta.jpg" alt="news" width="448" height="300" /></p> <p>The strong quarterly financials are further highlighted by Vedanta&rsquo;s revenues, which is up by 27 per cent YoY at INR 18,203 crore and gross debt, which reduced by INR 9,000 crore in the last 4 months. &nbsp;The company&rsquo;s net debt/EBITDA at 0.8x stands among the lowest across its Indian as well as global peers.</p> <p>Vedanta also succeeded in achieving cost savings of INR 856 million over the last nine quarters.</p> <p>On factors attributable for the quarterly revenue growth, Vedanta management said that ramp-up at&nbsp; Aluminium business and higher commodity prices partially offset by currency appreciation and pot outages at 500Kt Jharsuguda-I smelter&nbsp; delivered the desired results.</p> <p>{googleAdsense}</p> <p>&ldquo;We have started the year on a positive note, with our Net Profit for Q1 doubling over last year. Our Zinc and Oil &amp; Gas businesses have delivered a strong quarter. Vedanta is a world leader in Zinc, and Zinc prices have strengthened since the quarter end on continued global supply deficits. Our continued ramp-up in the Aluminium business has helped us exit the quarter on a strong production run rate of 1.4 mtpa.&nbsp; We are realizing the true benefits of Vedanta's diversified portfolio," Mr. Tom Albanese, Chief Executive Officer of Vedanta Ltd, said. &nbsp;</p>