On a y-o- basis, the company’s earnings before interest, taxes, depreciation and ammortisation (EBITDA) at Rs 3,543 crore was lower by 14 percent primarily due to weak commodity prices.
“We have made good progress on the ramp up of capacities at our aluminium, power and iron ore businesses during the quarter. These would be significant contributors to earnings as the year progresses. Zinc India was impacted by lower mined metal production as per the mine plan, and the second half is expected to be substantially higher,” said chief executive officer Tom Albanese.The company’s expenses in the period under review fell 15 percent on a year-on-year basis to Rs 12,489 crore, while other income rose to Rs 1,093 crore from Rs 955 crore in the same period last year.Other income increased by Rs 139 crore y-o-y primarily due to higher mark to market gain on investments in current quarter, said Vedanta.
Going ahead, we are focused on generating stronger free cash flow and delevering the balance sheet, in line with our strategic priorities, said the company.
The management also informed that simplification of the group structure is on track following the recent announcement of the revised and final terms for the Vedanta Ltd and Cairn India merger.
The boards of Vedanta and Cairn India have approved revised and final terms for the transaction on 22nd July 2016, taking into account prevailing market conditions and having regard to underlying commercial factors.The transaction is expected to close by in the first quarter of 2017.
Out of the total debt of Rs 76,953 crore, the INR/USD split is approximately 63 percent and 37 percent respectively. Further, the gross debt comprises of long term loans of Rs 59,263 crore and short term loans of Rs 17,690 crore.
FY2017 debt maturities are Rs 12,406 crore, which we intend to meet through a combination of roll over, refinancing, internal accruals and working capital initiatives. “We continue to evaluate different structures and options for future maturities with an objective to lower funding cost and/or extend the maturity profile,” said the company.