India-focused miner Vedanta Resources PLC (VED.L) Thursday reported higher profit for the year, helped by lower taxes amid a strong growth in Oil and Gas revenues. Profit before tax fell as weak commodity prices and a ban on the iron ore business in India dragged on results. The stock is up over 3 percent in early morning trading on the London Stock Exchange.
Anil Agarwal, Chairman of Vedanta, said, "Operationally, the group has seen great success, with oil and gas production up 19%, exploration recommencing in Rajasthan, and a successful discovery at the block in April. The group also achieved strong growth across copper, aluminium, lead and sliver, maintaining our position as a large global diversified natural resources company.''
Pretax profit dropped to $1.71 billion from $1.75 billion in the prior year amid higher cost of sales.
Profit attributable to equity holders of the parent surged to $157.4 million or 56.7 cents per share from $59.8 million or 21.6 cents per share last year as the prior year included hefty tax expense.
Special items totaled $41.9 million, while it amounted to $230.2 million last year. Underlying attributable profit was $363.3 million. Underlying attributable profit totaled $387.2 million last year.
Earnings Before Interest, Tax, Depreciation and Amortization, or EBITDA, climbed 21 percent to $4.9 billion.
Revenue increased 7 percent to $14.99 billion from $14.01 billion last year. According to the miner, weak commodity prices lowered revenues even as major businesses, except iron ore, delivered higher volume growth.
Revenue from iron ore plunged 73.8 percent to $442.5 million, as mining ban in Goa and Karnataka in India impacted the business significantly
Copper revenues slid more than 3 percent to $5.73 billion while Zinc revenues fell 4.6 percent to $3.06 billion
Aluminium revenue rose 2.5 percent to $1.93 billion and Power revenues climbed 25.7 percent to $576.1 million.
Oil and Gas revenues, from Cairn India, were $3.22 billion compared with $882.5 million last year which included Cairn India results with effect from December 8, 2011.
Cost of sales climbed to $11.70 billion from $10.44 billion while tax expense declined to $40.1 million from $516.7 million.
Vedanta also announced a final dividend of 37 cents per ordinary share in respect of the twelve months ended March 31.
Looking ahead, Vedanta said as the economy returns to growth, demand for commodities will continue with positive signs from China, falling inflation in India and rising income and increased prosperity in developing countries. ''With its proximity to emerging markets and strong low cost assets, Vedanta is well placed to take advantage of these opportunities,'' the miner said.
Further, Vedanta said Deepak Parekh has been appointed as an independent non-executive director on the company's board with effect from June 1. Parekh, a chartered accountant, also serves on the board of several leading corporations across various sectors.
The stock is up over 3 percent in early morning trading at 1,291.00 pence.
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