Vedanta net leaps 353% in Q3 FY17 to Rs 1,866 crore

Vedanta reported a whopping 353% rise in its consolidated net profit for the third quarter-ended December 31, 2016, period. 

The company reported net profit of Rs 1,866.28 crore, a rise of 353.25% compared to Rs 411.75 crore in the similar period of the previous year. 

In the previous quarter, Vedanta had reported a consolidated net profit of Rs 1252.13 crore. 

For the December 2016-ending quarter, a Bloomberg poll had estimated the company would record net profit of Rs 1,990 crore. 

The consolidated total income from operations stood at Rs 20,393.03 crore, registering growth of 21.54% year-on-year (YoY) and 29.63% quarter-on-quarter (QoQ). 

Tom Albanese, Chief Executive Officer, Vedanta Limited, said: “Volume ramp-up and cost efficiency across our operations, aided by higher commodity prices, have significantly driven up EBITDA y-o-y. Our financial position remains robust and we continue to strengthen our balance sheet by maximising free cash flow and reducing debt."

Operating profit (EBITDA) stood at Rs 6,002 crore, up 83% y-o-y and 29% q-o-q. 

Vedanta delivered cumulative cost and marketing savings of $545 million (nearly Rs 3442 crore) over the last 7 quarters. It plans to deliver $1.3 billion (Rs 8212 crore) of cumulative cost and marketing savings in next four years. 

Meanwhile, Vedanta's gross debt reduction stood at Rs. 1,828 crore and net debt reduction at Rs. 447 crore during the quarter.

Talking on Vedanta-Cairn merger, Albanese added, "With our focus on simplifying the group structure, the Vedanta Limited and Cairn India merger is expected to be completed in the first quarter of CY 2017."