LONDON (Alliance News) - Vedanta Resources PLC on Wednesday said rise in commodity prices led to a sharp jump in annual profit and the company is currently working with the Indian government to restart mining operations in the country's western state of Goa.
The company's operations in Goa were suspended following a Indian court order to stop all mining operations in the Goa until fresh mining leases and fresh environmental clearances are granted. The company, through its subsidiary Vedanta Ltd, owns the Codli iron ore mine and a pig iron plant.
Vedanta recorded an impairment charge of USD534 million related to its Goan operations in the year ended March 31.
Pretax profit for the 2018 financial year stood at USD2.48 billion, up 80% from USD1.38 billion in the year ago period. Revenue rose 33% to USD15.36 billion from USD11.52 billion on the back of higher commodity prices and production ramp-ups.
Earnings before interest, taxes, depreciation and amortisation - the company's preferred profit measure - grew 27% in the year to USD4.05 billion from USD3.19 billion a year ago.
"Our commodity basket benefitted from the favourable price movement and we further capitalised on this opportunity by increasing our value-added production in segments such as Aluminium. However, alongside improving prices we have experienced inflationary headwinds for input commodities. These impacted our costs, especially at Aluminium and in response we are focusing on operational improvements and have implemented a structured approach to optimize controllable costs which will yield results in the coming year, barring further cost inflationary pressures," outgoing Chief Executive Kuldip Kaura said.
The India and Zambia focused miner in April appointed Srinivasan Venkatakrishnan as its new chief executive. Venkatakrishnan currently is the chief executive of AngloGold Ashanti Ltd and will leave AngloGold at the end of August.
Net debt increased in the year to USD9.60 billion from USD8.50 billion due to dividend payments from the company's listed subsidiaries, Zinc India and Vedanta Ltd, and the acquisition of AvanStrate Inc, a Japanese company manufacturing glass substrates for LCD panels used in television sets and computer monitors.
Vedanta separately said that an Indian court has ordered the company to cease construction for second copper smelter plant at Tuticorin project, located in the state of Tamil Nadu.
The Madurai Bench of Madras High Court has ordered ceasing of construction until the environmental clearance for the second plant is approved following a public hearing, the company said.
Vedanta declared a final dividend of 41 cents per share, giving a total payout of 65 cents for 2018 financial year, up from 55 cents paid a year ago.
London listed shares in Vedanta were trading 6.5% lower at 252.30 pence each on Wednesday morning.
