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Vedanta H1 profit rises 27% to $1.7 billion

Last Updated: Thursday, November 10, 2011 - 14:18

Mumbai: India-focused miner Vedanta Resources has posted a 27 percent increase in first-half core profit, lifted by its newly-acquired international zinc assets and higher volumes.

The miner said earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months to the end of September came in at USD 1.7 billion, up 27 percent and broadly in line with analysts' expectations, on the back of a 43 percent rise in revenue as commodity prices rose year-on-year.

Vedanta, reporting its first results to benefit from a minority stake in Cairn India, said its basic earnings per share dipped to 186.3 US cents, on the back of lower attributable profit from subsidiaries.

Vedanta is in the final throes of completing its long-awaited deal to take control of oil explorer Cairn India from Cairn Energy , turning the miner into a fully diversified resources group, after securing approval from th Indian government and shareholders.

But the deal has inflated the group's net debt, which stood at USD 7.2 billion at the end of the period, with a gearing ratio of 36.9 percent.

Vedanta has come under pressure in recent months from its high leverage, falling prices and operational headwinds in key commodities like iron ore. Its share price has dropped almost 40 percent since the end of June against a 19 percent drop in the FTSE 350 mining sector.

Bureau Report

First Published: Thursday, November 10, 2011 - 14:18
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