Vedanta Q2 net profit climbs 43% to Rs 2,036 crore

Metals and mining conglomerate Vedanta Ltd's consolidated net profit jumped 43 per cent to Rs 2,036 crore for the July-September quarter, helped by strong commodity prices and higher zinc and copper output.
The company had posted a consolidated net profit (after taxes, non controlling interests and share in profit of jointly controlled entities and associates but before exceptional items) of Rs 1,424 crore in the same quarter last year, Vedanta Ltd said in a filing to the BSE.
Total income during the quarter increased to Rs Rs 22,466 crore, over Rs 18,154 crore in the year-ago period.
Commenting on the result, Vedanta CEO Kuldip Kaura said the "PAT for the quarter was up...on the back of solid operational performance in our zinc and copper businesses, supported by strong commodity prices."

Key contracts on its announced oil and gas projects are at advanced stages of being awarded, Kaura said adding that the company expects the second half of the ongoing fiscal to be most robust with the continuing production ramp-up.
"We continue to maintain a strong balance sheet and remain focused on creating long-term shareholder value," the CEO added.

Its revenue in the second quarter was higher 37 per cent (Y-o-Y) on higher volume at Copper India, Zinc India, Zinc International, ramp-up at aluminium business and higher commodity prices partially offset by currency appreciation, lower volumes at oil and gas.
"Depreciation at Rs 1,426 crore was lower on Y-o-Y basis by Rs 131 crore driven by lower depreciation at oil and gas business...," the company said in a statement.

The finance cost during the quarter was Rs 1,384 crore, lower by Rs 67 crore on Y-o-Y basis due to lower debt level on account of de-leveraging during the first half of FY18.
The financial position remains strong with cash and liquid investments of Rs 40,206 crore, the company said adding that its gross debt as on September 30 was at Rs 55,798 crore.
"As on September 30, 2017, gross debt was at Rs 55,798 crore including temporary short-term borrowings of Rs 593 crore at Zinc India and preference shares of Rs 3,010 crore issued pursuant to the Cairn merger," it added.

Its net debt as on September 30, 2017 was at Rs 15,592 crore on account of improved operating performance resulting in higher free cash flows.