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Vedanta Profit Beats Estimates Boosted by Metals, One-time Gain

Bound aluminium ingots at the Vedanta Ltd. Aluminium Smelter in Jharuguda district, Odisha, India. Photographer: Dhiraj Singh/Bloomberg (Dhiraj Singh/Bloomberg)

(Bloomberg) -- Vedanta Ltd. reported a 43.5 billion rupees ($516 million) net-profit for the quarter through September, boosted by higher revenue from metals and a write-back of earlier charges, according to a Friday statement. 

The miner’s earnings, the highest in nine quarters, surpassed the average estimate compiled by Bloomberg. The company had reported a loss in the year-earlier period due to weak zinc prices and an increase in tax expenses.  

Vedanta’s earnings recovery has eased debt repayment concerns at its London-based parent Vedanta Resources Ltd., helping the parent reduce its debt by more than $4 billion in the past two years. 

Earnings were aided by a rise in metals prices. The quarter witnessed a 10% rise in average aluminum price at the London Metal Exchange from a year earlier, while zinc rates climbed 16%.

During the quarter, Vedanta wrote back an impairment on its oil and gas business and income from non-core revenue sources doubled, both adding to the profit, the statement showed.     

 

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