Vedanta earnings up 3% at $1.14 bn, revenue slips

Written by PTI | New Delhi | Updated: Feb 2 2014, 04:01am hrs
Mining conglomerate Vedanta Resources reported a 3% fall in revenues to $3.45 billion for the quarter ended December 2013, primarily due to a decline in income in the zinc and aluminium businesses.

However, core profit, or Ebitda (earnings before interest, tax, depreciation and amortisation), rose 3% to $1.141 billion in the last quarter vis-a-vis $1.111 billion in Q3FY13, it said in a statement.

The company, which has interests in copper, zinc, aluminium and iron ore, among others, and businesses spanning over seven countries, had clocked $3.575 billion in revenues in the same quarter last fiscal.

Copper contributed the highest to the company's revenue at $1.389 billion, followed by oil and gas at $804 million.

Revenues from the zinc business were down 14% to $666.7 million, followed by aluminium at $419.7 million, down 10%.

Iron ore, which used to be one of the major revenue-earners for Vedanta, accounted for only $45.9 million as operations remained closed for most of the quarter due to a mining ban in Goa and non-resumption of operations in Karantaka.

Vedanta, which operates the business through Sesa Sterlite, resumed operations at the Karnataka mine on December 28, 2013 after securing clearance from the Supreme Court and other statutory clearances. The company's production capacity has been reduced to 2.29 million tonne annually.

It is "ramping up production (of the Karantaka mine) to a run-rate of around 0.5 mt per month, and we expect to commence sales through auction shortly," the company said.

The company said its average daily crude oil production, managed by subsidiary Cairn India, rose 10 per cent tos 2,24,495 barrels of oil equivalent (BoE). Of this, production from the prolific Barmer oil field in Rajasthan accounted for 1,86,361 BoE per day, up 10 per cent.

The Lanjigarh alumina refinery in Odisha, which is running at reduced capacity due to paucity of bauxite, has ramped up well and produced 1,81,000 tonne in the third quarter.

The refinery had a capacity utilisation of 72% and is "expected to further increase in the current quarter", the company said, though it did not specify from where the bauxite will be sourced to feed the refinery. Revenues from the power business stood at $132.3 million.

Production of integrated refined zinc was up 17% in the last quarter.