Vedanta reports consolidated net profit of Rs 6,432 crore in March quarter

Profit before exceptional items and tax stood at Rs 6,516 crore for Q4'FY21 as compared to Rs 1,863 crore in the year-ago quarter.
Anil Agarwal-led Vedanta Limited reported a consolidated net profit of Rs 6,432 crore in the March quarter against a loss of Rs 12,521 crore in the corresponding period last year on the back of increased sales.

Net sales of the company stood at Rs 27,874 crore in the period under review, up 43 per cent from the same period last year.

According to Bloomberg estimates, the company’s top line was seen at Rs 24,969 crore in the March quarter, while the bottom line was expected to be Rs 5,360 crore.

For the quarter gone by, the exceptional items of Rs 773 crore largely comprise of write-off on account of its aluminium business (Rs 181 crore), provision of Rs 213 crore on advances given to Konkola Copper Mines (KCM, which is majority owned by Vedanta Resources), and provision for settlement of dispute regarding environmental clearance (Rs 213 crore).

This was, however, far lower than the Rs 17,132 crore write-off taken mainly on the oil & gas business in the corresponding period last year.

It was owing to the large write-off taken last year that the company incurred a loss.

Profit before exceptional items and tax stood at Rs 6,516 crore for Q4'FY21 as compared to Rs 1,863 crore in the year-ago quarter. 

Meanwhile, the earnings before interest, taxes, depreciation and ammortisation (Ebitda) in the March quarter jumped 88 per cent to Rs 9,107 crore, its highest-ever, with Ebitda margin expanding to 38 per cent from 28 per cent last year.

Finance cost for Q4 of FY21 was higher 24 per cent year-on-year (YoY), primarily due to lower interest capitalisation. “We have robust cash and cash equivalents of Rs 32,614 crore,” said the company in its release.

Gross debt was at Rs 57,028 crore on March 31, 2021, lower by Rs 2,159 crore YoY. This was mainly due to repayment of debt at its aluminum and zinc business.

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