Vedanta, a conglomerate with interest in mining, metal and energy, reported a three-fold increase in net profit in September quarter at ₹5,812 crore, against ₹1,658 crore in the same period last year.
Revenue from operations was up 44 per cent at ₹30,048 crore (₹20,804 crore). The company announced an interim dividend of ₹18.5 a share leading to an outgo of ₹6,855 crore.
Overall expenses increased to ₹23,222 crore (₹17,826 crore). EBITDA was up 62 per cent to ₹10,582 crore.
Sunil Duggal, Chief Executive Officer, Vedanta, said the steady increase in volumes across business segments and sustained margins on the back of high commodity prices led to better profit despite challenging cost environment.
The company has reclassified ₹12,587 crore from general reserves to ‘retained earnings’ through a scheme of arrangement between the company and its shareholders.
The company is of the view that the funds in the general reserves are in excess of anticipated operational and business needs in the foreseeable future, it said.
Thus, these excess funds can be utilised to create further shareholders’ value, in such manner and to such extent, as the board decides in its sole discretion, said the company.
As of September-end, the company has cash and cash equivalent of ₹30,650 crore. Its gross debt was at ₹51,040 crore which fell by ₹11,719 crore due to deleveraging at zinc and aluminium business. Net debt was down by ₹7,232 crore at ₹20,389 crore.