Vedanta first-quarter core earnings fall 23 percent

REUTERS - India-focused miner Vedanta Resources Plc reported a 23 percent decline in first-quarter core earnings, hurt by a fall in profit at its zinc, oil and gas, iron ore and copper businesses.

The London-listed mining conglomerate said core earnings or earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell to $1.03 billion for the quarter ended June 30 from $1.34 billion a year earlier.

Total revenue fell 23 percent to $2.87 billion.

EBITDA in its zinc business fell 1 percent, while that from its oil and gas business declined 17 percent.

The company's iron ore business reported a loss of $8.4 million before interest, taxes, depreciation, and amortisation hurt by mining bans in the states of Goa and Karnataka in India.

 

Vedanta said it expected to resume iron mining in Karnataka in the second quarter after it received clearance from India's top court.

The miner moved a step closer to consolidating its group structure, after it received an approval last week from the Madras High Court in India.

The company, controlled by billionaire Anil Agarwal, hopes that the restructuring will attract investors who have been put off by its complex structure and help pay down its huge debt pile.

Vedanta's shares closed at 1176 pence on the London Stock Exchange on Tuesday.

(Reporting by Karen Rebelo in Bangalore; Editing by Supriya Kurane)