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Diversified natural resources company Vedanta Ltd on Friday reported consolidated net profit of ₹1,252 crore for the second quarter ended September, 17 per cent up against ₹1,069 crore in the year-ago period.
However, total income of the company decreased by four per cent year-on-year to ₹15,666 crore during the quarter from ₹16,340 crore in the last financial year.
The financial numbers are after taxes, minority interest and share in jointly-controlled entities and associates.
The company stated that the board of directors at its meeting held on Friday has also declared an interim dividend of ₹1.75 per share (175 per cent on face value of ₹1 per share) for 2016-17.
“We have made significant operational progress this quarter, with an increase in production from Zinc India quarter-on-quarter, good operating performance at our oil & gas business, the TSPL Power business now fully operational and aluminium continuing to ramp-up,” said Tom Albanese, Chief Executive Officer.
Aluminium vs steel On being asked why aluminium business does not get the same response from the policy makers as does steel and whether Vedanta would foray into steel, Albanese said, “Around the world steel sector always gets more attention than aluminium…from our perspective we see what has the future. Aluminium is taking away market share from the steel sector. Vedanta has a strong iron ore business as well as value added business. We will keep our minds open for future value added business, but first we want to ensure that iron ore business stays strong and the existing value added business stay strong.”
As a result of improved operating performance and working capital initiatives, the company has maximised free cash flow, he said.
He added that the company has substantially reduced its debt and remain focused on strengthening balance sheet, including refinancing debt maturities.
“Simplifying the group structure continues to be a priority, and the Cairn India-Vedanta Ltd merger remains on track for completion in first quarter of 2017, supported by the shareholders of both companies,” he added.
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