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Vedanta core profits up 21 per cent at $4.88 bn, thanks to Cairn India

Vedanta Resources has reported a 21 per cent increase in its core profits at $4.88 billion for the year ended March 2013.

twitter-logoPTI | May 16, 2013 | Updated 18:47 IST

Buoyed by earnings from subsidiary Cairn India and higher metals production, Vedanta Resources has reported a 21 per cent increase in its core profits at $4.88 billion for the year ended March 2013.

The natural resources giant, most of whose operations are in India, had reported $4.02 billion core profit or EBITDA (earnings before interest, taxes, depreciation and amortisation) in 2011-12.

Its revenues rose by 7 per cent to $14.989 billion in the last fiscal vis-a-vis $14 billion of FY12, it said in a statement.

"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.

Net profit attributable to equity shareholders rose to $157.4 million from $59.8 million, a jump of 163 per cent due to changes in profit mix and profits earned for its stake in Cairn India.

During the year, company's subsidiary Cairn India reported 18.8 per cent increase in its daily oil production at 2,05,323 barrels.

The earnings from Cairn, whose acquisition was completed in December 2011 also negated the impact of almost zero iron ore production from another group firm Sesa Goa, whose production was affected due to mining bans in Goa and Karnataka.

"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," Vedanta chairman Anil Agarwal said.

Moreover, the company managed to reduce its net debt by $1.5 billion in the last fiscal to $8.615 billion. In FY12, the company's net debt was $10.064 billion.

"Most of our growth projects are now complete so we have passed the inflexion point where free cash flow exceeds our growth capital expenditure. We are now focused on deleveraging and reducing debt," the company said.

Meanwhile, Vedanta also announced appointment of Deepak Parekh, Non-Executive Chairman of HDFC, as its independent non-executive Director on its Board with effect from June 1, 2013.

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