Cairn India boosts Vedanta’s FY’13 net profit by 163%

Vedanta Resources today reported a 163 per cent jump in its net profit at $157.4 million for the 2012-13 financial year, against a net profit of $59.8 million during the previous financial year ended 31 March 2012, gaining from its oil sector acquisition Cairn India and a change in product mix.

London-listed Vedanta said its core profits (earnings before interest, taxes, depreciation and amortisation) rose 21 per cent to $4.888 billion during the year ended March 2013 on the back of strong performance by its subsidiary Cairn India and gains from zinc and other base metals.

Vedanta with its India-centred operations had reported core profits (EBDTA) of $4.026 billion in the previous fiscal ended 31 March 2012.

Vedanta said its revenues rose 7 per cent to $14.989 billion in the 2012-13 fiscal against revenues of $14.005 billion in the previous fiscal.

"Improved attributable profit from Cairn India's first full year of operation, lower losses in Vedanta Aluminium Ltd improved the attributable profit of the company. However, this was impacted by lower profits from our iron ore business, Copper Zambia and higher interest at group level," the company said.

During the year, the company also managed to reduce its net debt by $1.5 billion to $8.615 billion. Vedanta had net debt of $10.064 billion in FY'12.

This despite near zero production by group iron ore mining firm Sesa Goa whose production was affected by a court-imposed mining ban in Goa and neighbouring Karnataka.

Hardly two years into its December 2011 acquisition from Cairn Energy Plc, Cairn India reported an 18.8 per cent increase in crude oil production at 2,05,323 bpd.

''Vedanta has once again delivered a strong performance. Operationally, the group has seen great success, with oil and gas production up 19 per cent, 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. We delivered positive free cash flow of $1.5 billion after growth capex, and have maintained progressive dividends,'' Anil Agarwal, chairman of Vedanta Resources Plc, said.

"Despite industry-wide inflationary pressures, we have reduced or maintained unit costs across majority of our operations.

"Whilst we are not immune to cost inflationary pressures, we continued to control costs and have demonstrated a track record of implementing operational improvements and maintaining our relatively new asset base at low sustaining capex costs," Agarwal added.

Vedanta Resourcs also announced the appointment of Deepak Parekh, non-executive chairman of HDFC, as its independent non-executive director on its board with effect from 1 June 2013.
production up 19 per cent, 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. We delivered positive free cash flow of $1.5 billion after growth capex, and have maintained progressive dividends,'' Anil Agarwal, chairman of Vedanta Resources Plc, said.

"Despite industry-wide inflationary pressures, we have reduced or maintained unit costs across majority of our operations.

"Whilst we are not immune to cost inflationary pressures, we continued to control costs and have demonstrated a track record of implementing operational improvements and maintaining our relatively new asset base at low sustaining capex costs," Agarwal added.

Vedanta Resourcs also announced the appointment of Deepak Parekh, non-executive chairman of HDFC, as its independent non-executive director on its board with effect from 1 June 2013.