Vedanta misses quarterly profit estimates on weak aluminium prices
Indian metals-to-oil conglomerate Vedanta missed quarterly profit estimates on Thursday, as lower aluminium and copper prices and higher tax expenses overshadowed the impact of strong local demand.
Vedanta's aluminium business is the biggest in India and contributes to nearly 40% of the company's revenue. Zinc is the second-biggest business, followed by copper.
The benchmark three-month aluminium CMAL3 and copper CMCY3 dropped 4% and 4.1% on-year, during the reporting quarter, pressured by geopolitical tensions and uncertainty around US trade policies.
Lower commodity prices tend to hit selling prices and margins for mining companies.
Vedanta's overall revenue increased by 6.2% year-on-year to 374.34-billion rupees ($4.3-billion) in the quarter ended June 30, driven by higher revenue from aluminium and copper, which grew 7.7% and 34.6%, respectively.
The company's consolidated net profit declined to 31.85-billion rupees from 36.06-billion rupees a year ago.
Analysts, on an average, expected a profit of 34.83-billion rupees, per data compiled by LSEG.
Its earnings before interest, taxes, depreciation and amortization rose about 2% to 60.53 billion rupees while tax expenses jumped to 15.96 billion rupees from 8.31 billion rupees a year ago.
Vedanta's operating profit margin remained flat at 21%.
Earlier this month, Vedanta's subsidiary Hindustan Zinc HZNC.NSposted a bigger-than-expected first-quarter profit, as strong demand for the metal helped cushion the impact of prices.
Article Enquiry
Email Article
Save Article
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
ROSOND provides fast, efficient, safe, and cost-effective drilling and grouting services to mining and exploration industries throughout Africa.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
