Vedanta reported a 46% dip in its fourth quarter net profit to ₹2,615 crore on a 15% fall in its net sales to ₹23,092 crore due to lower commodity prices, rupee appreciation and lower volume at aluminium and zinc India business.
Mr. Navin Agarwal, chairman, Vedanta Limited, said, “FY2019 was a year of production ramp-up alongside robust financials and delivering repeated and industry leading returns to our shareholders. Acquisition of ESL and its successful turnaround as well as the commencement of the long awaited Gamsberg project, both represent significant additions to our operating business portfolio.”
For FY19, profit dipped by 15% to ₹6,857 crore on a 1% fall in revenue to ₹90,901 crore mainly due to shutdown of Tuticorin smelter, lower volume at zinc and iron ore businesses and lower metal prices.
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Mr. Srinivasan Venkatakrishnan, chief executive officer, Vedanta, said “I am pleased with this year’s performance which included new production records being set, a new zinc mine with huge potential being commissioned, efficiencies to mitigate cost pressures, growth projects being on track and increasing our mineral and oil resources. Looking ahead, FY2020 will be an exciting year of growth in our key businesses — zinc, lead, silver, oil and gas and aluminium — being pursued with a strict capital allocation framework.”
Company’s gross debt was stood at ₹66,225 crore on March 31, 2019, an increase of ₹8,066 crore y-o-y, primarily due to the acquisition of ESL and temporary borrowing at Zinc India. Vedanta’s net debt stood at ₹26,956 crore on March 31,2019, higher by ₹4,998 crore y-o-y. The company has cash and liquid investments of ₹39,269 crore.
Vedanta shares on BSE closed down 2% to ₹163.4 in a weak Mumbai market on Tuesday.
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