Diversified global natural resources giant Vedanta Resources on Wednesday saw its operating profit swell by 48 per cent to $777.8 million for the first quarter to June on higher zinc output and uptick in prices. The 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 $527.1 million in the corresponding quarter a year ago, it said in a statement.
Tom Albanese, CEO, Vedanta Resources, said: “We have made a positive start to the year with both revenue and Ebitda significantly up year on year. In particular, our zinc and oil and gas businesses have delivered a strong quarter.” He said zinc prices have strengthened since the quarter end following continued global supply deficits. “The Gamsberg zinc project remains on course to commence production in mid-2018. We remain committed to improvements at CopperZambia while our continued ramp-up in the aluminium business has helped us exit the quarter with a strong production run rate of 1.4 mtpa. Our recent comprehensive refinancing exercise of $1.84 billion further helps optimise our balancesheet and create value for all our stakeholders,” Albanese said.
The group's gross debt, excluding Zinc India temporary borrowing, came down by $1.3 billion in April-June while it reported a further reduction of $385 million post June. The company said mined metal production of zinc in the said quarter was at 233 kt, up 84 per cent y-o-y. The increase was primarily on account of higher volumes from all mines, higher zinc grades and depletion of opening ore stock.