 "A bird flies by the Vedanta office building in Mumbai")
Vedanta Resources today reported a 18% decline in profit before taxes and interest to $527.1 million (nearly Rs 3,439 crore) for the quarter ended June 30, on account of lower revenue.
The billionaire Anil Agarwal-led group had clocked an earnings before interest, taxes, depreciation, and amortisation (Ebitda) of $644.6 million in the first quarter of last fiscal.
Its revenue fell 21% to $2.34 billion in April-June quarter of the current fiscal, from $2.95 billion in the same quarter of 2015-16, the company said in a statement.
Vedanta Resources CEO Tom Albanese said: "We are focused on generating stronger free cash flow and de-levering balance sheet, in line with our strategic priorities. Another of these priorities, the simplification of the group structure, is also on track following the recent announcement of the revised and final terms for the Vedanta Ltd-Cairn India merger."
The Group has made good progress on the ramp up of capacities at aluminium, power and iron ore businesses during the quarter, he said.
"These would be significant contributors to earnings as the year progresses. Zinc India was impacted by lower mined metal production as per the mine plan, and the second half is expected to be substantially higher. We are making good progress towards optimising costs at Copper Zambia," he said.
Vedanta Resources' oil & gas segment reported a 45% drop in Ebitda at $119.2 million in Q1 2016-17 from $215.4 million in Q1 2015-16. Revenue fell by 32% to $281.5 million during the quarter from $413 million in the corresponding quarter of the last fiscal.
Zinc India business' operating profit declined 37% to $160.3 million in June quarter from $255.4 million in the year-ago period. Revenue dipped 35% to $364.8 million from $558.2 million.
Its Zinc International business, however posted a stagnant Ebitda at $37.4 million, while revenue was down by 51% to $67.7 million from $139.3 million in the year-ago quarter.
Vedanta Resources said the iron ore business posted an operating profit at $54 million in Q1 2016-17 from $3.4 million in Q1 2015-16. Revenue also shot up by 92% to $145 million compared to $75.6 million during the same period.
Copper India segment's Ebitda dropped by 20% to $65.7 million during April-June of this fiscal from $82.4 million in the same quarter in 2015-16. Revenue declined 21% to $695.5 million from $877.4 million during the reported quarter.
While is the case of Copper Zambia, the Ebitda dropped 38% to $3.7 million from $6 million, whereas, revenue declined to $194.8 million from $289.2 million a year-ago.
