London-based Indian metals and mining firm Vedanta Resources plc released unaudited consolidated results for the third quarter of fiscal year 2017 on Tuesday. Higher commodity prices and increases in production volume helped enhance the firm’s bottom line in the quarter.
Net sales and income from operations in the just-ended quarter totaled ₹19,320 crore, up 31% year-on-year from 2016’s total of ₹14,795 crore. EBITDA for the quarter came in at ₹6,002 crore, an 83% increase year-on-year from last year’s Q3 total of ₹3,284 crore. Profit after taxes but before exceptional items for the quarter totaled ₹2,987 crore, also up year-on-year from last year’s total of ₹1,069 crore.
The firm attributes the stronger financial position in the quarter ending December 31 to higher commodity prices and an increase in production volume. Also playing a part in the better financial picture was an increase in zinc and iron ore production. Lower oil and gas volumes due to a planned shutdown in the quarter as well as a shutdown of one of the firm’s zinc mines exerted downward pressure upon numbers for the quarter.
For the first nine months of fiscal year 2017, net sales totaled ₹49,350 crore, a 3% increase year-on-year from last year’s first nine month total of ₹48,079 crore. EBITDA for the period came in at ₹14,173 crore, a 21% increase over last year’s total of ₹11,704. Profit after taxes but before special items for the period totaled ₹6,422 crore, a 32% increase over last year’s first nine-month period total of ₹4,852 crore.
“Volume ramp-up and cost efficiencies across our operations, aided by higher commodity prices, have significantly driven up EBITDA y-o-y,” explained Vedanta CEO Tom Albanese. “Our financial position remains robust and we continue to strengthen our balance sheet by maximising free cash flow and reducing debt. With our focus on simplifying the group structure, the Vedanta Limited and Cairn India merger is expected to be completed in the first quarter of CY 2017.”