Vedanta Q3 net profit drops 41% on higher input cost, windfall tax
The company had posted consolidated net profit at Rs 2,464 crore and consolidated income of Rs 34,818 crore.
Ltd on Friday reported a 40.8% drop in consolidated net profit at Rs 2,464 crore in the quarter ended December 31, 2022 on the back of higher input cost and windfall tax.
The company had posted its consolidated net profit at Rs 4,164 crore in the year-ago period, Vedanta Ltd said in a filing to BSE.
However, the consolidated income of the company in the October-December period increased marginally by 0.4% to Rs 34,818 crore from Rs 34,674 crore in the year-ago period.
The consolidated expenses of the company during the third quarter of FY23 increased to Rs 31,327 crore from Rs 26,777 crore in the corresponding quarter of previous fiscal.
There has been an impact of Rs 333 crore due to introduction of windfall tax in July 2022.
In a conference call, Vedanta Group CFO Ajay Goel said, "If you look at Q2 over Q3 our PAT has increased by 15%.
Commenting on Vedanta's board approval to sell international zinc business to Hindustan Zinc, company's Chief Executive Officer Sunil Duggal said, "The objective of this merger is to create a winning combination where the fundamental of both the companies is so great...The R&R of our Zinc International is more than Hindustan Zinc so there is a great potential there."
The move, Duggal said, will give opportunity to put Hindustan Zinc into the foothold of geography where availability of many more critical minerals could be the opportunity. Vedanta on Thursday said that it will sell Zinc International assets to Hindustan Zinc for a cash consideration of $2,981 million.
The company's board approved the fourth interim dividend of Rs 12.50 per equity share for the financial year 2022-23 amounting to Rs 4,647 crore.
The board also approved plans for the group to source 91 mw hybrid renewable power and 600 mw solar power for its aluminium plant in Jharsuguda, copper and oil and gas operations across the country.
"Accordingly, the company will execute power delivery agreements through special purpose vehicles (SPVs)...," the BSE filing said.
Vedanta's depreciation and amortisation increased by four per cent quarter-on-quarter to Rs 2,720 crore mainly due to higher depletion charge in oil and gas business.
The company's gross debt stood at Rs 61,550 crore as on December 31, 2022.
Vedanta Ltd, a subsidiary of Vedanta Resources Ltd, is a diversified global natural resources company with significant operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa and Namibia.
Edited by Akanksha Sarma