Vedanta Q1 revenue dips by 23% to $2.874 billion
New Delhi: Hit by lower realisations across various business verticals, Vedanta Resources' revenue dipped by 23 percent during the first quarter at USD 2.874 billion compared to USD 3.746 billion a year earlier.
Revenue from the oil and gas business, which the London Stock Exchange-listed company operates through Cairn India, dipped by 12 percent to USD 726 million from USD 822 million a year ago, it said in a statement.
"During Q1 FY 2014, revenues and EBITDA were affected by lower realisations and higher profit petroleum payout at Rajasthan block Development Area 1, partially offset by higher volumes and the depreciation of the Indian rupee," it said.
However, it said average daily gross production was up to 212,442 barrels of oil equivalent, three percent higher than the same quarter a year ago, mainly due to production ramp-up of the Rajasthan block fields.
Vedanta's copper business, spanning across India, Zambia and Australia, was hit by lower production. In Australia, it was down by 18 percent and 12 percent in Zambia. It was also lower in India as copper cathode production at the Tuticorin smelter was closed for most of the quarter since March, 2013.
As a result of all these, copper business of the company also saw a 44 percent decline in revenue to USD 752 million from USD 1.332 billion a year ago.
Revenue from iron ore business hit hard as it dipped 79 percent to USD 64 million from USD 313 million a year ago mainly because operations in both Goa and Karnataka continued to remain suspended.
"Our Karnataka mine has received clearance from the Supreme Court and is now awaiting final statutory clearances in order to restart mining. We expect to resume mining at Karnataka in Q2," Vedanta said.
The aluminium business also witnessed a two percent decline to USD 437 million from USD 447 million a year ago. Vedanta attributed the fall to prices in the London Metal Exchange (LME).
Power was the brightest spot clocking around 34 percent hike in revenue to USD 211 million from 157 million a year ago mainly due to higher power generation at its 2,400 MW Jharsuguda plant.
"During Q1, power sales were 28 percent higher than the corresponding prior period due to higher power generation from Jharsuguda plant, which operated at PLF of 54 percent for all four units as compared with 50 percent for three units during the corresponding prior period," Vedanta said.
Average power realisation increased to Rs 3.65 per unit due to higher sales volume from open access. Power generation cost at Jharsuguda during the quarter was Rs. 2.21 per unit as compared with Rs 2.14 per unit in corresponding prior quarter, it said.
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