Revenue went up 31% on consolidated basis to Rs 19,320 crore compared with a year ago. While Vedanta’s top line grew in line with expectations during Q3FY17, its profits were a shade below estimates of its quarterly net crossing Rs 2,000 crore.
EBIDTA (earnings before interest depreciation taxes and amortization) was at Rs 6,002 crore, up 83% from a year ago.
“We have seen the worst of the downturn and we have also seen strong resilience in our businesses. We continue to ramp-up volumes and cost efficiencies across our operations, synchronized with higher commodity prices, have significantly driven up EBITDA yoy,” Tom Albanese, CEO, Vedanta Limited said commenting on the results.
Albanese said the current strength in metals market is driven by underinvestment in mining and oil and gas and tighter supply conditions in last year. “Absence of large capital budgets will lead to supply constraints and is thus expected to lead to better prices in coming quarters. The recovery in the US and reasonable performance of the Chinese and Indian economies will drive metal demand in near to medium term,” he added.
Vedanta also said it achieved cumulative cost and marketing savings of $545 million over the last seven quarters, ahead of plans to save $1.3 billion in four years. Improved operational performance has led to generation of free cash flow of Rs 1,801 crore. “As on December 31, 2016, gross debt reduced by Rs 1,828 crore to Rs. 64,966 crore, while net debt was lower by Rs 447 crore to Rs 11,514 crore on account of positive free cash flow,” an official statement issued on Tuesday added.
While its volume of zinc mined metal production went up 44% quarter on quarter, Vedanta, through Hindustan Zinc received environment clearances for expansion of Zawar and Sindesar Khurd zinc mines. In its aluminium business, the third line at the 1.25 mtpa Jharsuguda-II smelter commenced ramp up in December 2016, even as Vedanta received additional mining allocation in Goa in iron ore for FY17. Incidentally, zinc and oil account for almost 70% of Vedanta business. “The merger with Cairn India is an important strategic step in simplifying the group structure, the Vedanta statement said, adding that “the transaction is due to complete by March 2017.”
Read More News on
Download The Economic Times News App to get Daily Market Updates & Live Business News.