Vedanta Q3 profit jumps 4.5-fold to Rs 1866 cr on strong EBITDA
Anil Agarwal-led Vedanta has reported a 4.5-fold jump in third quarter consolidated profit at Rs 1,866 crore on year-on-year basis, boosted by operational performance and low base in year-ago period despite sharp rise in tax expenses.
Revenue during the quarter increased 29.6 percent to Rs 20,393 crore compared with Rs 15,731 crore in corresponding quarter of last fiscal, driven by metals business. "Revenues in Q3 were driven by higher volumes at iron ore due to recommencement of operations, ramp-up of volumes at the aluminium and power businesses and higher volumes at Copper India and Zinc India. This was partially offset by lower volumes from oil & gas, and Zinc International due to closure of the Lisheen mine, in Q3 FY2016," the company said in its filing.
Zinc (including lead & silver) business grew by 45 percent year-on-year to Rs 5,915.7 crore, iron ore segment showed 153.2 percent jump in revenue at Rs 1,449.1 crore and copper grew by 13 percent to Rs 5,440 crore while aluminium business increased 27.4 percent to Rs 3,857.9 crore, with strong operational performance. Power segment revenue rose 26 percent to Rs 1,532.3 crore while oil business increased 5.4 percent to Rs 2,149.4 crore, with strong EBIT (earnings before interest & tax) at Rs 346.4 crore (against loss of Rs 235.1 crore YoY). "Volume ramp-up and cost efficiencies across operations, aided by higher commodity prices, have significantly driven up EBITDA YoY.
Financial position remains robust and we continue to strengthen balance sheet by maximising free cash flow and reducing debt," Tom Albanese, Chief Executive Officer said. Consolidated operating profit shot up 76.8 percent to Rs 5,879 crore and margin expanded by 770 basis points to 28.8 percent compared with year-ago period, reflecting benefits from higher commodity prices and volume ramp-up. Tax expenses jumped significantly to Rs 897 crore in Q3FY17 from Rs 49.2 crore in Q3FY16.
During the quarter, gross debt reduced by Rs 1,828 crore to Rs 64,966 crore. Net debt reduced by Rs 447 crore to Rs. 11,514 crore on account of positive free cash flow.
Albanese said with focus on simplifying the group structure, the Vedanta and Cairn India merger is expected to be completed in the first quarter of CY 2017. The proposed merger was approved by all sets of shareholders in September 2016.
Technical Levels For Vedanta
Support at 250 –245 and Resistance at 258—262
Trading in range either side breakout with volume decide further .
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