The company's EBITDA jumped 83 percent on a year-on-year basis to Rs 6,002 crore in the period under review on account of higher commodity prices and increased volumes at iron ore due to recommencement of operations, ramp up of volumes and cost efficiencies at the aluminium and power business along with decline in discount to Brent at Oil & Gas.
The company managed to post a much higher bottomline line on year-on-year basis despite a forex loss of Rs 117 crore and higher tax outgo of Rs 897 crore as against Rs 49 crore in the corresponding period last year.
During the quarter, rupee depreciated by 1.9 percent, primarily on restatement of MAT assets at Oil & Gas business, informed Vedanta.
"Volume ramp-up and cost efficiencies across our operations, aided by higher commodity prices, have significantly driven up EBITDA y-o-y," the release quoted Tom Albanese, chief executive officer of Vedanta as saying. "Our financial position remains robust and we continue to strengthen our balance sheet by maximising free cash flow and reducing debt. With our focus on simplifying the group structure, the Vedanta Limited and Cairn India merger is expected to be completed in the first quarter of CY 2017," he added.
Coming to specific business verticals, company's iron ore operations achieved annual mining production cap in January and received additional mining allocation in Goa for FY2017.
In aluminium, the third line of the 1.25 mtpa Jharsuguda-II smelter commenced ramp up in December.
The company's total cash and liquid investments stood at Rs 53,452 crore as on Dec 31, 2016. Out of the total debt of Rs 64,966 crore, the INR/USD split is approximately 82%/ 18%, said the company. Further, the gross debt comprises of long term loans of Rs 62,614 crore and short term loans of Rs 2,352 crore.
Vedanta has presence in several businesses such as oil&gas, zinc, power, iron ore, aluminium and copper. The company's consolidated earnings include earnings from Cairn India and Hindustan Zinc.