Vedanta Profit Declines 61% To Rs 1,808 Crore In July-September Period

Vedanta Ltd on Friday reported a 60.8 per cent decline in  its consolidated net profit at Rs 1,808 crore for the quarter ended September 30 on the back of higher expenses.
     
The company had posted a consolidated net profit of Rs 4,615 crore in the year-ago period, Vedanta Ltd said in a regulatory filing.
     
Its consolidated income during the July-September period increased to Rs 37,351  crore from Rs 31,074 crore last year.
     
The company's expenses during the quarter under review increased to Rs 33,221 crore from Rs 23, 171 crore in the year-ago period.
     
Vedanta's Chief Executive Officer Sunil Duggal said that the company has generated strong free cash flow (pre capex) of Rs 8,369 crore strengthened by robust operational and financial performance.
     
Vedanta said that its growth and vertical integration projects, intended to reduce  market volatility impact and create shareholders' value, are progressing well.
     
The company said that its board has given a go-head for expansion of rolled  product capacity at its arm Balco from current 50 KTPA to 180 KTPA at a revised cost of  Rs 595 crore.
     
"With the completion of this project, Balco will be placed in high premium product  segment," Vedanta said.
     
The board, it further said, has approved expansion of smelter capacity of Balco from existing 580 KTPA to 994 KTPA at a revised cost of approximately Rs 8,094 crore, subject to necessary government approvals.
     
The company said that its revenue in the second quarter went up by 21 per cent to  Rs 36,237 crore over the year-ago-period on the back of higher sales volume and strategic hedging among others.
     
Vedanta's "depreciation and amortization increased by 24 per cent Y-o-Y and 6 per cent Q-o-Q to Rs 2,624 crore; mainly due to higher depletion charge in oil and gas and amortisation at Zinc India".
     
The company's gross debt dropped by Rs 2,543 crore quarter-on-quarter to Rs 58,597 crore as on September 30, 2022.
     
Vedanta Ltd, an arm of Vedanta Resources, is one of the world's leading oil and gas and metals firm with operations in oil and gas, zinc, lead, silver, copper, iron ore,  steel, aluminium and power across India, South Africa and Namibia.