Skip to main content

Advertisement

Vedanta Q2 net profit drops 34% to Rs 1,343 cr as finance cost spikes

By
Vedanta Q2 net profit drops 34% to Rs 1,343 cr as finance cost spikes
In June, Vedanta acquired the management control of debt-laden Electrosteel Steels.

Metals and mining giant Vedanta Ltd Wednesday reported a 34.32 per cent decline in consolidated net profit to Rs 1,343 crore for the July-September quarter due to higher finance cost and expenses.


The Anil Agarwal-led company had clocked a profit of Rs 2,045 crore during the corresponding quarter previous fiscal.


Its total income during the quarter rose to Rs 23,297 crore as against Rs 22,509 crore in the corresponding period last fiscal.


Total expenses also rose to Rs 20,999 crore during the quarter under review as against Rs 18,854 crore in the year-ago period.


The company said in a statement that its balance sheet was strong and the net debt reduced by Rs 3,553 crore in the second quarter of FY2019. Net debt was at Rs 26,357 crore at September-end, down quarter-on-quarter on account of cash generation from operations and working capital release.


The finance cost during the quarter was at Rs 1,571 crore, higher by Rs 144 crore year-on-year mainly due to increase in borrowings on account of acquisition of Electrosteel and increase in interest rates in line with the market rates.


In March, Vedanta was declared successful resolution applicant by the committee of creditors (CoC) for Electrosteel Steels under the corporate insolvency resolution process.


In June, Vedanta acquired the management control of debt-laden Electrosteel Steels.


“The company is uniquely poised to grow in commodities that have rising demand especially in India with an enviable growth pipeline which is systematically being brought to fruition,” Vedanta Chief Executive Officer Srinivasan Venkatakrishnan said.


Vedanta was also competing for stressed asset Essar Steel.


When asked about the company’s plan of expanding Electrosteel Steels, he said, “We have already mentioned it would be USD 200-300 million dollar it would be very quick capex plan. I would say under 18 months.”

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Comments

Post a Comment

Facebook

Ads

Popular posts from this blog

President Ram Nath Kovind lauds Narednra Modi government’s campaigns to promote health and education for...

By
President Ram Nath Kovind lauds Narednra Modi government’s campaigns to promote health and education for... President Ram Nath Kovind said some people in our country were unable to understand the importance of daughters. President Ramnath Kovind Saturday lauded the Prime Minister Narendra Modi -led central government’s awareness campaign to promote health and education for women and girl’s. While inaugurating an international workshop of the Federation of Obstetricians and Gynaecologists Society of India (FOGSI), organised at the Ganesh Shankar Vidyarthi Medical (GSVM) college, President Kovind said even though daughters faced more restrictions than sons, they were surging ahead in many areas. Kovind said some people in our country were unable to understand the importance of daughters. Speaking about the Centre’s initiatives for women, he said, “I am happy that the central government’s schemes like ‘beti bachao, beti padhao’, ‘sukanya samriddhi’ and ‘kishori yojna’ etc., are chang...
Post a Comment
Read more

Jussie Smollett Reacts to 'Empire' Renewal News

By
Jussie Smollett is unlikely to return to Empire during the upcoming sixth season, but he is still showing support for the Fox series. The network just announced that the show has been renewed for a new season , but Jussie ‘s character Jamal will not be in any of the early episodes. His contract has been extended for the possibility of a return in the future. A representative for Jussie released a statement with his reaction to the news. Click inside to find out what was said… “We’ve been told that Jussie will not be on Empire in the beginning of the season but he appreciates they have extended his contract to keep Jamal’s future open. Most importantly he is grateful to Fox and Empire leadership, cast, crew and fans for their unwavering support,” his rep said in a statement (via Variety ). It has been reported this past week that the cast of Empire has been rallying behind Jussie and campaigned for him to be included in season six.
Post a Comment
Read more