Mining conglomerate Vedanta Resources plunged into a $217 million loss
for the six months ended September 30 amid lower metal prices and
currency losses.
The London-listed company had reported a profit of $173.6 million in the corresponding period of 2012-13.
“Profit before tax was significantly impacted by other
gains and losses mainly due to higher rupee depreciation resulting in
mark to market foreign exchange losses of $429 million,” Vedanta said
on Friday in a statement.
Core profit, or earnings before interest, tax,
depreciation and amortisation (EBITDA) declined 14 per cent to $2.207
billion from $2.571 billion a year earlier.
According to the company, a 14 per cent decline in
average commodity prices, a 52 per cent rise in net interest expenses
($358 million) and $429 million of foreign exchange losses were the
major factors behind the loss in the first half.
A higher share of profit petroleum paid to the Indian
government in the oil and gas business, the absence of iron ore mining
in Karnataka and Goa and lower volumes in Zambia’s Konkola Copper Mines
were among the other factors that affected Vedanta’s performance, the
company said.
“Our EBITDA margins remain strong at 44.5 per cent in
the first half, demonstrating the resilience of our low-cost
diversified portfolio,” company Chairman Anil Agarwal said.
The company said it expects to resume iron ore mining
in Karnataka soon and is awaiting final statutory clearance to reopen
its mine in Chitradurga district of the state.
It said the Supreme Court has allowed the sale of iron
ore inventory in Goa and mandated the setting up of an expert committee
to determine how much mining should be allowed in the state.
Talking about its copper business in Zambia, where the
company faces opposition to its plan to cut jobs, Mr. Agarwal said
Vedanta is “committed to delivering an operational turnaround” and
remains engaged with stakeholders, including the Zambian government.
The Zambian operations have been affected by lower
volumes and higher costs. While revenue had declined 21 per cent to
$686.7 million, EBITDA has dropped 45 per cent to $101.3 million.
Operating profit fell to $15 million, down 84 per cent.
Vedanta announced an interim dividend of 22 cents per share.
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