 "The Vedanta office building, Mumbai")
Weighed down by low commodity prices, Vedanta Limited has reported a 41 per cent fall in its consolidated net profits to Rs 974 crore in the second quarter of FY16, compared with Rs 1,640 crore in the year-ago period.
The mining conglomerate also saw its revenues drop by 16 per cent to Rs 16,349 crore “on account of the fall in crude oil and metal prices, partially offset by higher volumes at Zinc India, Oil & Gas and TSPL (Talwandi Sabo Power Ltd) as well rupee depreciation”, the company said in a statement. The company’s earnings before interest, taxes, depreciation and amortisation at Rs 4,113 crore was 35 per cent lower, on a year-on year basis. “During the quarter, Government of India notified the contribution towards DMF (District Mineral Foundation) at 30 per cent of royalty for existing mining leases, payable with effect from January 12, 2015. Accordingly, the earlier excess provision of Rs 140 crore for DMF at Zinc India was reversed during the quarter,” said the company.
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The company’s net debt fell Rs 5,335 crore to Rs 27,105 crore in the quarter under review. The first quarter had showed a net debt of Rs 32,439 crore.
Out of the total debt of Rs 79,433 crore, debt in Indian currency is Rs 36,197 crore and balance Rs 43,236 crore (54 per cent) is in US dollar.
Further, the gross debt comprises long-term loans of Rs 65,031 crore and short-term loans of Rs 14,402 crore.
“We are continuing to drive efficiency improvements and optimise opex and capex across the business, taking measured steps to reduce net debt and maximise freecash flow,” said Tom Albanese, chief executive officer, Vedanta.
“While the near-term market outlook is challenging, we believe we have the right mix of low-cost assets fuelled with new technologies to benefit from future demand in India and globally.”
