Vedanta’s Q4 Profit Decreases by 27% to Rs 1,369 Crore Due to Declining Metal Prices

Vedanta Ltd, a leading diversified global natural resources company, recently disclosed a 27.2 per cent decrease in its consolidated net profit for the March quarter, amounting to Rs 1,369 crore. The decline has been attributed to a one-time impairment of the Tuticorin asset.

Ajay Goel, the Chief Financial Officer of Vedanta, highlighted the company’s strong financial performance, with the second-highest annual revenue and EBITDA in its history, reaching Rs 1,41,793 crore and Rs 36,455 crore, respectively. However, Arun Misra, Vedanta’s Executive Director, pointed out that the drop in net profit was primarily due to accounting charges, including a markdown on Tuticorin and ESL Steel assets totaling around Rs 1,000 crore.

Despite the decrease in consolidated income for the January-March period, Vedanta reported a 2 per cent decrease in revenue for the fiscal year 2023-24, mainly due to lower commodity prices. The company also experienced increased depreciation and amortization costs, as well as a significant surge in finance costs.

In the fourth quarter of FY24, Vedanta incurred an exceptional loss of Rs 201 crore, primarily due to impairment charges at Tuticorin. As of March 31, 2024, the company’s gross debt stood at Rs 71,759 crore.

Vedanta Ltd, a subsidiary of Vedanta Resources, has interests in various sectors including oil and gas, zinc, lead, silver, copper, iron ore, steel, aluminium, and power across India, South Africa, and Namibia. The company continues to navigate the challenging market conditions and remains focused on driving sustainable growth and operational excellence.