Quarterly results: Vedanta Q2 earnings drop 62% to Rs 824 crore

Vedanta on Friday reported a 61.8 percent decrease in consolidated net profit at Rs 824 crore for the quarter ended September 30, 2020 due to a one-time tax expense.

The company posted a net profit of Rs 2,158 crore in the same period last year, Vedanta said in a presentation to the BSE.

Revenues during July-September decreased to 21,744 million rupees from 22,814 million rupees in the prior year period, according to the filing.

In a statement, the company said that fiscal expense for the quarter was Rs 2,370 crore.

“EBITDA for the second quarter of fiscal 2021 was Rs 6,531 crore, an increase of 63 percent qoq, primarily due to higher raw material prices, higher volumes in the zinc business, lower cost of production in Zinc India and the aluminum business, partially offset by higher commodity prices, the appreciation of the rupee and the reversal of the liability of the renewable purchase obligation (RPO) in the aluminum business due to the ceiling of the renewable energy certificates at lower prices in the first quarter of fiscal 2021, ”the company said in a statement.

CEO Sunil Duggal said that Vedanta has reported the highest quarterly operating result in over 2 years.

“Our key growth projects are back on track and expansion is being achieved through strict capital allocation and a balance sheet focus, aimed at creating value for our stakeholders.

“Our large-scale diversified portfolio positions us well to offer strong margins and cash flows throughout the commodity cycle. Vedanta is fully committed to sustainable growth and contributes significantly to building a self-sufficient India, ”added Duggal.

The company said its revenue in the period under review was Rs 20.804 crore, 33 percent more compared to the previous quarter.

The increase in revenues was mainly due to higher raw material prices, higher volumes in Zinc India, iron ore, copper and energy businesses, partially offset by lower volumes in the aluminum and steel business and the appreciation of the rupee, he said.

Depreciation and amortization for the second quarter stood at Rs 1,938 crore, an increase of 12 percent compared to April-June, mainly due to higher ore production in the zinc business.

Financial cost for the quarter was Rs 1,312 crore, an increase of 5% QoQ, mainly due to higher average cost of borrowing, partially offset by lower gross borrowing.

The company’s gross debt was 62,759 crore on September 30, 2020.

Vedanta, a subsidiary of Vedanta Resources, is one of the world’s leading oil, gas and metals companies with significant operations in oil and gas, zinc, lead, silver, copper, iron ore, steel and aluminum and energy in India, South Africa. , Namibia and Australia.