Vedanta posts 46% fall net profit on one-time reversal in impairment gain

MUMBAI: Mining and metals giant Vedanta Ltd reported a net profit of ₹2615 crore, down 46% from ₹4802 crore in the year-ago period. While the March quarter’s performance was better than expected driven by higher volumes in sales of metals and better cost management, the net profit was lower because of a one-time reversal in impairment gain, it had recorded last year.

However, the shutdown of the copper smelter at Thoothukudi weighed on its revenue, shrinking 15% year-on-year to ₹23,092 crore in the March quarter from ₹27,311 crore in the same period a year ago. Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at ₹6,330 crore for the quarter, lower by 19% from the March 2018 quarter which had reported ₹7,767 crore. The company’s EBITDA was affected by lower commodity prices, rupee appreciation, and lower volumes at Zinc India.