India tops up strategic reserves with cheaper crude, saves over USD 685 million
India tops up strategic reserves with cheaper crude, saves over USD 685 million
Zukiman Mohamad

Vedanta Ltd on Thursday reported a consolidated profit of Rs 6,432 crore for March quarter 2020-21 on the back of various factors, including better volumes and lower cost of production.

It had posted a loss (attributable to owners of Vedanta) of Rs 12,521 crore in the year-ago period.

The company's income in the period under review increased to Rs 29,065 crore from Rs 20,382 crore in the same period a year ago.

Vedanta Group CEO Sunil Duggal said the company's businesses delivered record operational performance, maintaining the trajectory of cost and volumes, driven by structural integration and technology adoption.

"Our businesses have shown resilience in uncertain market environment as we continue with our winning streak, reporting the highest ever quarterly EBITDA. We are fully supporting our employees, partners, and communities to navigate through these tough times. We are well on our path to execute on strategic priorities to maximize value for stakeholders," he added.

Vedanta Group Deputy CFO Ajay Goel in a concall attributed good results to various factors like better volumes and lower cost of production "Last year, we had taken one impairment in our oil and gas business. It was quite a large amount...that is one time non-cash charge that led bottom line to become red," he said.

"In the fourth quarter our volumes in couple of businesses specifically zinc and aluminium are record high. The cost of production is lower in almost across the portfolios. These two factors coupled with LME prices again being record high...better volumes, lower cost (of production), better LME prices led to 88 per cent jump in EBITDA for the fourth quarter," he explained.

Revenue in the quarter was at Rs 27,874 crore, higher 24 per cent quarter-on-quarter (q-o-q) and 43 per cent year-on-year primarily due to higher volume at aluminium business, Zinc India and iron ore business among others, the company said.

"Depreciation & amortisation for Q4 FY2021 was at Rs 2,054 crore, higher 7 per cent q-o-q, primarily due to higher volume and projects capitalisation at Zinc India and capitalisation of pots in aluminium business," it said.

The company said it has robust cash and cash equivalents of Rs 32,614 crore and added that its net debt was at Rs 24,414 crore as on March 31, 2021.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal