Vedanta net surges 3-fold on strong metal prices

May 7, 2010: Vedanta Resources, the London-listed metals company, said its consolidated net profit for the full fiscal year grew three-fold to $602.3 million (around Rs 2,710 crore as per current exchange rates) from $219.4 million in the corresponding period of the previous year after metal prices surged due to strong demand from users.

Total revenue rose 21 percent from last fiscal year to $7.93 billion in the year that ended on March 31, 2010.

The Anil Agarwal-controlled mining major, which had recently been the target of a high-profile campaign by environmentalists, is likely to simplify shareholding structure by buying out government stakes in group companies Balco and Hindustan Zinc, said chief executive MS Mehta.

Speaking to analysts during a conference call after announcing the results, Mr Mehta said: "We expect this matter (buying out government stakes) to be settled sometime in August and once Balco is settled, we expect Hindustan Zinc should get decided along the lines of Balco."

Vedanta has maintained that it has proceeded with the alumina refinery project in close co-operation with the local people. The 1.4-million ton refinery has been fully commissioned and produced 762,000 tons in the just concluded year. Currently, bauxite feed for this refinery is being sourced internally from Balco's mines and externally from bauxite mines in central and eastern India.

"The recovery in demand and commodity prices appears well-founded and the medium- and long-term outlook for our commodities remains strong," chairman Anil Agarwal said in a statement.

Source: The Economic Times