New Delhi: Vedanta Ltd on Friday reported a 60.8 percent decline in its consolidated net profit at Rs 1,808 crore for the quarter ended September 30 due to higher expenses.
The company posted a solid net profit of Rs 4,615 crore in the year-ago period, Vedanta Ltd said in a regulatory filing.
Its consolidated revenue 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 CEO Sunil Duggal said the company generated strong free cash flow (before capital) of Rs 8,369 crore bolstered by robust operational and financial performance.
Vedanta said its growth and vertical integration projects, aimed at reducing the impact of market volatility and creating shareholder value, are progressing well.
The company said its board has given permission for expansion of rolling stock capacity at its Balco arm 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 a premium product segment,” Vedanta said.
The board, it further said, approved expansion of Balco’s molding capacity 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 its revenues in the second quarter increased by 21 percent to Rs 36,237 crore over the year-ago period due to higher sales volume and strategic hedging among others.
Vedanta’s “depreciation and amortization” increased by 24 percent YoY and 6 percent QoQ to Rs 2,624 crore; mainly due to higher depletion charge in oil and gas and amortization at Zinc India”.
The company’s gross debt declined 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 companies with operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, aluminum and power across India, South Africa and Namibia.