Don’t miss the latest developments in business and finance.

Vedanta reports loss on weak prices, revenue dip in FY'14

Image
Press Trust of India London
Last Updated : May 15 2014 | 4:15 PM IST
Diversified global player Vedanta Resources, led by NRI billionaire Anil Agarwal, today clocked USD 196 million attributable loss for 2013-14 fiscal on weak commodity and oil prices as well as lower sales.
The company, which has interests in oil & gas, copper, zinc, iron ore, aluminium and silver among others in India and abroad, had reported USD 162 million attributable profit in the previous fiscal.
The company attributed the loss to USD 417.7 million dip in EBITDA (operating profit) and one-offs such as accelerated amortisation on a large convertible bond series, among others.
"Revenue was down 11.6 per cent at USD 12.9 billion primarily driven by weaker commodity and oil price environment and temporary business closures due to regulatory issues though partly offset by improved volumes at Cairn India, Zinc India," Vedanta said in a statement.
Vedanta is one of the world's top seven resources firms with operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka.
The company reported USD 4.5 billion EBITDA, down 8.5 per cent, on lower commodity prices, reduced volumes at Copper Zambia and Zinc International, lack of sales from iron ore business and temporary closure of the Sterlite's Tuticorin copper smelter in the first quarter.

More From This Section

Lack of sales at its iron ore business due to the mining ban in Goa, combined with only marginal sales in Karnataka in the fourth quarter, contributed to a negative variance of USD 123.7 million to operating profits. Tuticorin smelter closure impacted operating profit by USD 32.9 million.
"However, improved operational performance with volume increase in Cairn India, Zinc India and effective cost control measures across our businesses partially mitigated the downside," it said.
Agarwal, Vedanta's Chairman, said: "FY'14 has been a year of building momentum in the right direction, and I see it as a powerful springboard for the year ahead as we build on the significant headway achieved in production ramp-ups, cost controls, regulatory clearances and sustainability.

Also Read

First Published: May 15 2014 | 4:15 PM IST

Next Story