Vedanta reports drops in net profit
Vedanta reported its second quarter numbers of FY19. Its consolidated revenue for the quarter stood at Rs. 22,705 crore, which represent an increase of 5 per cent YoY.
However, its EBITDA for the period declined 8 per cent YoY to Rs. 5,342 crore, with corresponding margin contraction of 900 bps. The EBITDA margin for the quarter stood at 26 per cent. This was led by higher raw material costs, lower volumes at Zinc India, Zinc International and the closure of Tuticorin smelter.
With poor operating performance, the company’s profit after tax slumped 35 per cent YoY to Rs. 1900 crore. Also, other income for the quarter shrunk 36 per cent YoY to Rs. 592 crore.
Vedanta Limited is a diversified natural resources company, whose business primarily involves producing oil & gas, zinc, lead, silver, copper, iron ore, steel, aluminium and commercial power. The company has presence across India, South Africa, Namibia, Australia and Ireland.
Ahead of its quarterly results, the stock of Vedanta in Wednesday’s entire trading session remained flat and closed for the day at Rs 211.3, close to the previous close of Rs. 211.15.