The diversified natural resources company with aluminium operations in India, Vedanta Limited reported improved bottomline for Q1 FY 2017-18. The company’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’s net earnings by more than 50 per cent and EBITDA by 40 per cent year-on-year.
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.
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The strong quarterly financials are further highlighted by Vedanta’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. The company’s net debt/EBITDA at 0.8x stands among the lowest across its Indian as well as global peers.
Vedanta also succeeded in achieving cost savings of INR 856 million over the last nine quarters.
On factors attributable for the quarterly revenue growth, Vedanta management said that ramp-up at Aluminium business and higher commodity prices partially offset by currency appreciation and pot outages at 500Kt Jharsuguda-I smelter delivered the desired results.
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“We have started the year on a positive note, with our Net Profit for Q1 doubling over last year. Our Zinc and Oil & 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. We are realizing the true benefits of Vedanta's diversified portfolio," Mr. Tom Albanese, Chief Executive Officer of Vedanta Ltd, said.
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