Vedanta Q2 net profit declines 41% to Rs 974 crore

New Delhi: Vedanta Ltd Tuesday reported 40.6 percent drop in consolidated net profit to Rs 973.97 crore for the quarter ended September 30 on the back of lower commodity prices.

Billionaire Anil Agarwal-led mining conglomerate had reported a net profit (after taxes, minority interest and consolidated share in profit/loss of associates but before exceptional items) of Rs 1,639.93 crore during the second quarter of 2014-15.

The company, which was earlier known as Sesa Sterlite, saw its net sales drop to Rs 16,349.21 crore during the quarter from Rs 19,448.14 crore in the year-ago period.

"Revenues during the quarter at Rs 16,349 crore were 16 percent lower than last year on account of the fall in crude oil and metal prices, partially offset by higher volumes at Zinc India, Oil & Gas and TSPL (Talwandi Sabo Power Ltd) as well as rupee depreciation," the company said in a statement.

"Revenues for the quarter were lower by 4 percent QoQ due to softening of crude oil and metal prices during the quarter, partially offset by higher volumes at Zinc India and depreciation of the rupee," it said.

Total expenses of the company declined to Rs 14,221.32 crore during the period as against Rs 15,270.56 crore a year ago.

Vedanta CEO Tom Albanese said, "Our diversified asset portfolio has delivered a strong operating performance, including record production from our tier-1 zinc mines, resulting in strong free cash flows during the quarter.

"We are continuing to drive efficiency improvements and optimise opex and capex across the business, taking measured steps to reduce net debt and maximise free cash flow."

He added: "While the near-term market outlook is challenging, we believe we have the right mix of low cost assets fuelled with new technologies to benefit from future demand in India and globally."

The company further said that the gross debt amounted to Rs 79,433 crore as on September 30, 2015. Net debt decreased by Rs 5,335 crore to Rs 27,105 crore as a result of several initiatives to optimise opex, capex and working capital.

Out of the total debt of Rs 79,433 crore, debt in INR currency is Rs 36,197 crore and balance Rs 43,236 crore (54 percent) is in US dollar.

Further, the gross debt comprises long term loans of Rs 65,031 crore and short term loans of Rs 14,402 crore, it said.

"We continue to have a strong balance sheet with cash and liquid investments of Rs 52,328 crore as on September 30, 2015 which is mostly invested in debt related mutual funds, bank deposits and bonds," it added.

Vedanta shares closed 0.14 percent up at Rs 104.85 apiece on the BSE.