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Vedanta Resources posts 26 percent rise in EBITDA at USD 983 million

The company had posted earnings before interest, taxes, depreciation, and amortization (EBITDA) of USD 778 million in the same quarter of previous fiscal, Vedanta Resources informed the London Stock Exchange.


PTI 06 Aug 2018, 02:03 PM India

Diversified global natural resources giant Vedanta Resources today posted 26.3 percent rise in EBITDA at USD 983 million for the quarter ended June 30, 2018.

The company had posted earnings before interest, taxes, depreciation, and amortization (EBITDA) of USD 778 million in the same quarter of previous fiscal, Vedanta Resources informed the London Stock Exchange.

"EBITDA of USD 983 million, (was) up 26 percent Y-o-Y, driven by higher volumes and commodity prices, partially offset by input commodity inflation," the company said.

The Group's revenue increased by 14.9 percent to USD 3,551 million, over USD 3,088 in the April-June quarter of a year-ago period.

The Group registered a loss of USD 15 million from copper business for the first quarter ended June 30, 2018.

The loss is before interest, taxes, depreciation, and amortization.

However, it had registered an EBITDA of USD 32 million from copper business in the year-ago period.

Revenue for the quarter was USD 417 million and loss (before interest, taxes, depreciation, and amortization) was USD 14 million, "significantly lower on account of the Tuticorin plant shutdown during the quarter and maintenance costs", it said.

Smelting operations at Tuticorin were halted as part of a planned maintenance shutdown for approximately 15 days, with effect from March 26, 2018.

"We were advised on April 9, 2018, that our application to the Tamil Nadu Pollution Control Board to renew the consent to operate (CTO) for the smelter was rejected. Subsequent to this, the Government of Tamil Nadu issued orders dated May 28, 2018, with a direction to shut the existing copper smelter plant unit at Tuticorin permanently. As a result, the plant continues to remain shut," the company said.

The company has filed an appeal before National Green Tribunal, Principal Bench, challenging the rejection of renewal of CTO and sealing of the existing plant, it said.

"We are hopeful about the restart of the copper plant and would expect it to produce 100 kg of copper cathodes per quarter in line with its capacity on the restart," it said.

Commenting on the results, Vedanta Resources plc Chief Executive Officer Kuldip Kaura said, "We delivered strong EBITDA and steady margins this quarter driven by record volumes in aluminum, higher production in oil and gas, as well as supportive commodity prices."

"We are excited about the growth across our portfolio in zinc, aluminum and oil and gas. The projects are advancing well to meet key milestones and we are confident of a progressive volume uplift in the coming quarters," Kaura added.

"On July 31, the independent committee of the board of Vedanta Resources Plc and Volcan announced the terms of a recommended cash offer to be made by Volcan Investments for the remaining issued and to be issued share capital of Vedanta Resources not currently owned or controlled by Volcan Investments," it said.

Under the terms of the offer, Vedanta shareholders will receive USD 10.89 per share in cash for each Vedanta share in addition to the USD 0.41 of dividend in respect of the twelve months ended March 31, 2018.

On Zinc India, it said that the mined metal production was at 212,000 tonnes, nine percent lower Y-o-Y.

"The decrease was driven primarily on account of closure of open-cast operation as Zinc India transitioned to full underground mining this quarter and mined metal production from underground mines was up by 13 percent Y-o-Y and seven percent Q-o-Q," it said.

Vedanta Resources plc is a London-listed diversified global natural resources company. The group produces aluminum, copper, zinc, lead, silver, iron ore, oil & gas and commercial energy.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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