CHARTS: The coming critical minerals trade war is BRICS short of a load
"While a large number of countries around the world continue to talk about securing raw material supply, China is actually doing something about it."
Indian metals-to-oil conglomerate Vedanta Ltd reported a 68% slump in fourth-quarter profit on Friday after revenue fell amid declining prices of metals.
Vedanta’s consolidated net profit stood at 18.81 billion rupees ($230 million) for the quarter ended March 31, compared with 57.99 billion rupees a year earlier, the billionaire Anil Agarwal-led company said in an exchange filing.
Analysts had, on average, expected a profit of 28.91 billion rupees, according to Refinitiv IBES data.
The metals and mining major’s quarterly revenue fell 5.4% to 372.25billion rupees. The share of revenue from the mainstay aluminum business reduced to 33% from 39%.
Zinc and aluminum prices have plunged more than 40% from the record highs hit in March 2022.
Total expenses climbed 10.5% to 330.4 billion rupees from a year earlier, with finance costs jumping 35% and depreciation & amortization costs surging 16%.
The results come as Vedanta Group-owned Hindustan Zinc’s proposal to buy certain zinc assets from Vedanta Ltd for $2.98 billion lapsed after failing to get shareholders’ approval.
The company’s earnings before interest, taxes, depreciation, and amortization slumped 32%.
Meanwhile, the losses due to a windfall tax on oil exports fell to 1.18 billion rupees from 3.33 billion rupees in the December quarter after the government reduced levies.
Total aluminum sales contracted 1.4%, but production remained flat.
Last month, Hindustan Zinc reported a fall in quarterly profit, hit by lower zinc and silver prices.
($1 = 81.7800 Indian rupees)
(By Aleef Jahan; Editing by Dhanya Ann Thoppil)
Comments