29th Apr 2014 11:20
LONDON (Alliance News) - Vedanta Resources PLC Tuesday said net profit at its subsidiary Sesa Sterlite Ltd fell in its full year despite improved revenues and results from its fourth quarter as costs hit the company.
The Indian multi-commodities company said its net profit fell 16% to INR123.47 billion in its full year ended March 31 from INR146.25 billion the previous year, as the company's finance costs increased to INR61.11 billion from INR46.64 billions.
The company also said its net profit in its fourth quarter fell 12% to 30.74 billion rupees from 34.78 billion rupees the previous quarter.
Its revenues and profit figures are adjusted proforma numbers which exclude the impact of a one-time tax benefit during the second quarter, at the time when Sesa merged with Vedanta.
Sesa said its net profit was lower due to higher depreciation and amortisation; higher finance costs and lower other income then previously.
The company said its revenues increased 1.1% to INR725.91 billion from INR717.80 billion as a result of higher volumes at its Zinc India operations, oil and gas operations and aluminium businesses, with its fourth quarter revenues increasing 7.1% compared with the previous quarter.
Sesa Sterlite noted that it achieved record oil and gas production at its Rajasthan operations and achieved the milestone of over 200,000 barrels of oil per day in March, with cumulative production of over 215 million barrels in the full year.
The company said that its on-going oil and gas programme in Rajasthan has led to the establishment of six discoveries and the addition of over 1 billion barrels of oil in place reserves.
As such, the company announced a final dividend of 1.75 rupees per share, taking the total dividend for its full year to 3.25 rupees per share.
Vedanta Resources shares were down 0.6% to 930.00 pence, putting it in the top FTSE 250 fallers Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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