Vedanta Q3 profit dips 5%, Zambia disappoints
Miner Vedanta Resources posted a 5 percent dip in core profit its December quarter, hit by weaker performances at its aluminium and Zambian copper operations.
London: Miner Vedanta Resources posted a 5 percent dip in core profit its December quarter, hit by weaker performances at its aluminium and Zambian copper operations.
The India-focused miner said earnings before interest, tax, depreciation and amortisation (EBITDA) came in at USD 848.4 million for the third quarter, including USD 131 million from its majority stake in Cairn India, acquired last year.
Zambia, the focus of market attention as Vedanta's listed subsidiaries have already reported, posted results well below market expectations, hit by a drop in production, weaker copper prices and a provision for higher power costs.
The Zambian copper operations posted core earnings of USD 67.7 million, compared to USD 134.4 million a year ago.
Aluminium was also badly hit by lower market prices and by the depreciation of the Indian rupee, which forced mark-to-market losses on foreign currency loans. Core profit sank to USD 3.6 million for the division from USD 76.3 million a year earlier.
Over the nine months to the end of December, the group's core profit rose 14 percent to USD 2.6 billion.