Zimbabwe central banker stockpiles gold to bolster ZiG currency
The ZiG - short for Zimbabwe gold — is the nation’s sixth attempt at having a functioning local currency in the last 15 years.
Vedanta Ltd. reported a loss in the second quarter as a higher tax outgo added to the impact from lower zinc and aluminum prices.
The Indian unit of billionaire Anil Agarwal swung to a loss of 17.8 billion rupees ($214 million) in three months to September, from a profit of 18.1 billion rupees a year earlier. Revenue grew 6.4% to 385.5 billion rupees, the Mumbai-based company said in a statement on Saturday.
The company had an exceptional tax expense of 61.3 billion rupees in the quarter as it opted for a new tax regime. That came amid weak performance at its Indian zinc unit.
Hindustan Zinc Ltd., its Indian zinc subsidiary that makes for a big chunk of profits, reported a drop of 35% in quarterly net income and missed estimates, it said in October.
The loss at Vedanta has come at a time when Agarwal is trying to overhaul his conglomerate and split the business in six listed units. Investors are keenly watching how the company will generate cash to help its parent Vedanta Resources Ltd. pay debt. The recent rehiring of a former finance head is expected to benefit the miner’s restructuring efforts.
Crisil Ltd. has placed the company’s long-term loan facilities and about $1.1 billion of bonds on rating watch with negative implications following the restructuring plan. Clarity on allocation of assets and liabilities across entities under the proposed structure, along with group or parent’s support for each entity, is yet to emerge, it said.
Shares of Vedanta closed 1.6% higher in Mumbai on Friday. Analysts have seven buy recommendations on the company, four holds and three sells, according to data compiled by Bloomberg.
(By Swansy Afonso)
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