MUMBAI (Reuters) – Vedanta Ltd (VDAN.NS) said on Wednesday its quarterly profit more than doubled from a year-ago comparison weighed down by a one-time charge, and that it was on track to restart mining in key producing state Goa after monsoons.
The mining and energy group, which has been hit by a slump in crude prices and mining bans in key producing states, posted a consolidated net profit of 8.66 billion rupees ($ 135.61 million) for its fiscal first quarter to June 30.
That compared with a profit of 3.76 billion rupees in the same period last year, which was hurt by a one-time charge of 21.28 billion rupees.
Excluding the impact of one-off charge, the company’s first- quarter profit was 35.4 percent lower than a year earlier.
Consolidated net sales fell marginally to 169.52 billion rupees from 170.56 billion at Vedanta, which has interests in oil and gas, iron ore, zinc, copper, power and aluminium.
Chief Executive Tom Albanese said the company saw continued volatility in commodity prices in the first quarter.
“We continue to focus on improving efficiency, costs, and enhancing production across our well-invested asset base,” he said, adding Vedanta was on track to restart iron ore production at Goa following the monsoons.
He did not give a specific time frame, but the monsoons in India typically last until September.
The Indian government cut export tax on low-grade iron ore by a third from June, in a big boost for companies in top exporting state Goa, which is close to restarting its mining industry.
Vedanta, part of London-listed miner Vedanta Resources Plc (VED.L), in June made a $ 2.3 billion offer to buy out minorities in its cash rich oil and gas unit, Cairn India Ltd (CAIL.NS).
Albanese told Reuters last week that Vedanta’s offer was fair, dismissing reports that opposition from minority shareholders in Cairn India, including ex-parent Cairn Energy (CNE.L), could scupper the deal.
($ 1 = 63.8600 rupees)
(Reporting by Aman Shah in Mumbai; Writing by Devidutta Tripathy; Editing by Sumeet Chatterjee and Mark Potter)
