Vedanta Group Q3 EBIDTA jumps 79% to $882 mn

New Delhi: Vedanta Resources Group's operating profit almost doubled to USD 882.3 million for the quarter ended December, while revenue rose 26 percent to USD 3.06 billion on the back of higher production volumes mainly zinc.

The metal and mining conglomerate had clocked a revenue of USD 2.45 billion and had recorded an EBIDTA (earnings before interest, taxes, depreciation and amortisation) of USD 493.6 million in the third quarter of fiscal 2015-16.

The group's revenue and EBITDA were up significantly "reflecting benefits of higher commodity prices and production volumes" while gross debt was lower by 300 million in the third quarter, Vedanta Resources said in a statement.

Tom Albanese, Chief Executive Officer, Vedanta Resources plc said: "We have made substantial operational progress during the quarter with ramp up of our aluminium, power and iron ore capacities. We are very excited about our Gamsberg zinc project in South Africa where first ore is expected in mid-2018. At KCM, we are committed to the turnaround of this asset and continue to work towards it."

He said the company's rising capacity utilisations and the continued focus on costs, alongside stronger commodity prices, enabled it to deliver 79 percent higher EBITDA and strong free cash flow.

"In line with our stated financial strategy to extend near-term maturities and optimise the balance sheet, we successfully issued a $1bn USD bond in January 2017 to pro-actively refinance part of our 2018 and 2019 bond maturities. We are pleased with the strong demand these bonds received, with support from all major markets," he said.

The Group saw its mined zinc production from India up 44 percent q-o-q in line with mine plan while integrated metal production increased q-o-q.

The company said it received environmental clearances for expansion of Zawar and Sindesar Khurd zinc mines and as far as aluminium is concerned it continued ramp up of Jharsuguda-II and BALCO-II smelters while third line of the 1.25 mtpa Jharsuguda-II smelter commenced ramp up in December 2016.

It said supply of coal has commenced from the 6 mtpa coal linkages secured earlier this year.

On power front, 1,980 MW TSPL plant fully operational with 77 percent plant availability.

In oil and gas, it said Mangala EOR with production level of 55,000 barrels per day recorded 6 percent higher growth q-o-q which Rajasthan production was impacted by planned shutdown at the Mangala processing terminal.

On iron ore front, it said, the Group achieved full year production cap in January at Goa (5.5 MT ) and Karnataka (2.3 MT ) while received further allocation of 3 MT in Goa for FY2017.

As far as copper was concerned Zambia saw lower integrated volumes due to lower equipment availability and lower grades.