Vedanta’s Fourth-Quarter Profit Slips 27% Due to Metal Price Weakness
Indian mining conglomerate Vedanta reported a 27% decline in fourth-quarter profit, attributed to softer prices of key metals such as aluminium and zinc, coupled with rising finance costs.
Led by billionaire Anil Agarwal, Vedanta’s consolidated net profit stood at 13.69 billion rupees (approximately $164 million), missing analysts’ estimates of 21.10 billion rupees, according to LSEG data.
Finance costs surged nearly 34%, contributing to increased expenses. Weak domestic zinc and aluminium prices, influenced by subdued global metal prices amid demand uncertainties from China, affected revenues during the January-March period.
The zinc and lead segment, Vedanta’s second-largest revenue generator, experienced a significant 16% decline, leading to an overall 6% drop in company revenue.
Similarly, revenue from the aluminium and copper businesses, Vedanta’s primary and third-largest revenue sources, also dipped by 1.5% and 1.8%, respectively.
These earnings challenges coincide with Vedanta’s ongoing efforts to revamp operations to enhance shareholder value, following plant shutdowns and earnings adjustments.
Investors are closely monitoring Vedanta’s growth and expansion initiatives while supporting its parent company, Vedanta Resources, in reducing substantial debt burdens.
Unit Hindustan Zinc, a subsidiary of Vedanta, reported a 21% decline in net profit for the quarter due to lower zinc prices.
