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Vedanta posts 49pct jump in EBIDTA in H1 on higher Cairn India output
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Monday, 12 Nov 2012
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Vedanta Resources has reported a 49% jump in core profits as earnings before interest, tax, depreciation and amortization rose to USD 2.6 billion in the H1 of FY 2013 buoyed by record production at Cairn India, a company it acquired last year.

Gains from Cairn IndiaBSE 0.30 % offset the lower profitability of Vedanta's zinc, copper and iron ore business during the period. During the H1 of FY 2013, Vedanta's revenues rose 14% to USD 7.5 billion against revenues of USD 6.55 billion in the same period last year.

Mr Anil Agarwal chairman of Vedanta Resources said that "Vedanta has delivered a strong financial performance driven by production growth across the portfolio and strong cost performance, especially at the newly acquired oil and gas business which has significantly ramped up production since acquisition."

In particular, a 35% increase in Cairn India's output from its Rajasthan block boosted the company's earnings during the period to a significant extent. However, slowing demand from China and high input costs led to lower profitability in Vedanta's other businesses including iron ore, zinc and copper.

While Vedanta subsidiary, Sesa GoaBSE -0.87 % which operates iron ore mines reported a 63% drop in EBITDA to USD 114.8 million, core profits from zinc and copper fell by 27% and 28% respectively between April-September 2012.

While announcing its H1 FY 2013 results, the company said that it is on track with the proposed simplication of its group structure, adding that it has received nearly all regulatory approvals, except for those from various high courts for the exercise which was announced in February 2012.

As part of the move, a new entity will be created through merger of Sterlite IndustriesBSE 0.88 % and some other subsidiaries including Vedanta Aluminium, Madras AluminiumBSE 0.43 % into Sesa Goa. Post restructuring, all of Vedanta's operations barring the Konkola Copper Mines in Zambia, will come under Sesa Sterlite. The company said the move is expected to be completed by 2012 end as announced earlier.

Source - Economic Times


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