Indian metals miner Vedanta Ltd turned in much lower numbers than usual in the previous quarter, thanks in large part to a drop in prices for aluminium and other metals.
Last week the firm reported a 68 percent drop in consolidated net profit for the previous quarter, coming in at ₹18.18 billion (US$230 million). This came in stark contrast to market expectations, which predicted a profit of ₹28.91 billion. Last year’s first quarter consolidated net profit came in at ₹57.99 billion.
Quarterly revenue came in at ₹372.25 billion, down by 5.4 percent on the year, with the aluminium business dropping from 39 percent to 33 percent of that total. Meanwhile, expenses jumped by 10.5 percent to ₹330.4 billion, including a 16 percent rise in depreciation and amortization and a 35 percent bump in finance costs.
EBITDA dropped by almost a third in the first quarter, thanks in part to a drop in aluminium and zinc prices of over 40 percent.
Overall, the firm’s total aluminium sales were off by a mere 1.4 percent, while production in the quarter was unchanged.
Vedanta’s dismal results come as part of a one-two punch of Hindustan Zinc’s offer to buy a portion of Vedanta Ltd.’s zinc assets for US$298 billion ended for want of shareholder approval. Hindustan Zinc was also hit hard by lower metals prices, turning in a drop in quarterly profit as well.
