Vedanta suffers loss
Diversified natural resources firm Vedanta on Saturday reported a consolidated net loss of Rs 12,521 crore during the fourth quarter of 2019-20 against a net profit of Rs 2,615 crore in the corresponding period of the previous fiscal.
The profit was impacted by an exceptional loss of Rs 17,132 crore during the quarter because of impairment of assets in its oil & gas, copper and iron ore businesses, Vedanta said in a filing to the BSE.
The significant fall in crude oil prices following the outbreak of Covid-19 acted as a major trigger for the loss, the company added.
The consolidated income of the company during the January-March quarter dropped to Rs 20,382 crore over Rs 25,096 crore in the year-ago period, the filing said.
“The Covid-19 pandemic has hit the world and us in the last quarter of the year. We have taken a proactive approach to keep our assets and people safe while ensuring optimum operations during these difficult times,” Vedanta chief executive officer Sunil Duggal said in a statement.
The company’s revenue for the fourth quarter came in at Rs 19,513 crore, lower by 8 per cent sequentially, primarily due to lower commodity prices and lower volumes at its aluminium business .
“EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the fourth quarter was lower by 23 per cent year-over-year, primarily because of lower commodity prices further impacted by Covid-19 and lower volume at the zinc, oil and gas and steel businesses,” it said.
Finance cost for the reporting quarter was Rs 1,064 crore, lower by 14 per cent sequentially and 24 per cent year-over-year, primarily because of lower borrowing costs in line with market trends and repayment of debt in various businesses.
The company’s gross debt was at Rs 59,187 crore as on March 31, 2020.