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Vedanta's H1 pretax profit tumbles

By BFN News | 07:24 AM | Wednesday 04 November, 2015


Vedanta has posted an H1 pretax profit of USD243.7m, down from USD639.6m. Revenue was USD5.7bn, from USD6.5bn. It said there would be no interim dividend due to current market volatility, but promised to review the matter at year's end. Chairman Anil Agarwal commented: "We have delivered a sound financial performance over the past six months and maximised free cash flow, while facing challenging commodity markets. "This accomplishment is attributable to cost optimisation across our diversified asset portfolio. As India's only diversified natural resources company, Vedanta's exposure to meeting the country's future resources demands enhances our growth opportunities, in addition to our global prospects. "I am confident that our talented team of professionals, who are committed to a sustainable future, will ensure that Vedanta continues to create significant value for all shareholders and benefit communities wherever we operate." Financial Highlights: n Revenue of US$5.7 billion and EBITDA(1) of US$1.3 billion, 12% and 39% lower than H1 FY2015 respectively, primarily due to lower commodity prices n EBITDA margin (adjusted)(2) of 30% (H1 FY2015 : 43%) n Underlying (Loss)/Earnings Per Share(3) of (57.6) US cents (H1 FY2015: 9.4 US cents) n Basic (Loss)/Earnings Per Share of (117.7) US cents (H1 FY2015: (4.7) US cents), primarily due to lower commodity prices n Free cash flow after growth capex of US$1.3 billion (H1 FY2015:US$0.2 billion) n Gross debt reduced by US$0.2 billion to US$16.5 billion (US$0.7 billion over 1 year) n Net debt reduced by US$0.9 billion to US$7.5 billion (US$1.5 billion over 1 year) Business Highlights: n Strong mined and refined metal production at Zinc India; integrated silver production increased 50% n Oil & Gas: Q2 production up 6% on Q2 FY2015; H1 FY2016 production in line with guidance n Aluminium: stable volumes from existing smelters with cost reduction initiatives in progress; further pots at Jharsuguda-II smelter to commence ramp-up in Q3 FY2016 n Copper India: stable operations with 96% capacity utilisation n Iron Ore: approvals received for all major mines at Goa, and mining recommenced at 2 mines; export duty reduced from 30% to 10% for less than 58% Fe iron ore, effective from 1 June 2015 n Power: TSPL first unit achieved 71% availability during H1 FY2016; 86% in Q2 FY2016 Story provided by StockMarketWire.com

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