Vedanta Resources operating profit up 27% to $4.1 bn in FY’18
New Delhi, May 23 (PTI) Diversified global natural resources giant Vedanta Resources today reported a 27 per cent surge in operating profit to USD 4.1 billion for 2017-18 on higher output and increase in prices.
The LSE listed company, which produces aluminium, copper, zinc, lead, silver, iron ore, oil and gas and commercial energy, had registered group EBITDA (earnings before interest, tax, depreciation, and amortisation) of USD 3.2 billion in the financial year 2016-17, it said in a statement.
Its revenue increased by 33 per cent to USD 15.4 billion driven by firmer commodity prices and volume ramp-ups.
The gross debt at USD 15.2 billion saw a reduction of USD 3 billion in 12 months which included repayment of USD 1.2 billion of temporary borrowing at Zinc India, the company said.
Vedanta Resources Plc Chairman Anil Agarwal said: “…increased volumes and prices underpinned a 33 per cent increase in revenues to reach USD 15.4 billion, as well as a 27 per cent growth in EBITDA to USD 4.1 billion.”
Agarwal said the Group’s focus on all-round improvement was complemented by improving markets and commodity prices.
He added: “We reached record production levels at several of our businesses. We transformed our approach to developing our assets, which gives me the confidence of efficient and productive ramp-ups across our world class assets…
“Vedanta remains well positioned to capitalise on India’s growing resources demand. I look forward to another strong year for the company.”
About India, the mining baron said the country has an abundance of opportunities as it is one of the fastest-growing G20 economies, and by 2030 forecasts suggest it will be worth USD 6 trillion with a population of over 1.5 billion.
“Over 80 per cent of India’s demand for oil and minerals is currently met by imports, and the consumption of metals per capita remains around 70 per cent below the global average. As the country’s sole diversified natural resource group, Vedanta is uniquely placed to help power India’s growth, and we are committed to investing in its future,” he said.
He said the Indian Government has introduced important pro-business reforms that will attract global investments and be a catalyst for growth.
The amended MMDRA (Mines and Mineral Development and Regulation Act) in 2015 has brought increased clarity on the licensing around mining, he said.
Key regulatory reforms around opening commercial coal mining to the private sector and the launch of Open Acreage Licensing (OALP) in the oil and gas sector to improve exploration, are some of the steps in the past year towards creating a more favourable business environment, he added.
On the new insolvency code and the resolution process therein, he said: “We have participated in this process and are very pleased with the smooth and transparent way in which it was run.
“I am happy with the outcome and look forward to the integration of Electrosteel, post completion of due processes, with our Iron Ore business in Jharkhand as we focus on avenues to create value.