Vedanta's Q2 net profit grows 17% to Rs 1,251 crore

Mining giant Vedanta Ltd on Friday posted 17.14% jump in its consolidated net profit at Rs 1,251.13 crore for the quarter ended September 2016 as against a year ago.

In the year-earlier period, the figure stood at Rs 1,068.95 crore, the company said in a BSE filing on Friday. These numbers are after taxes, minority interest and share in jointly controlled entities and associates.

Total income has decreased to Rs 18,029.76 crore for the said quarter, from Rs 18,898.27 crore in the previous fiscal.

The company stated that the board of directors at its meeting held on October 28 declared an interim dividend of Rs 1.75 per share i.e. 175% on face value of Re 1 per share for 2016-17.

Vedanta Ltd CEO Tom Albanese in the statement said: "We have made significant operational progress this quarter, with an increase in production from Zinc India quarter on quarter and good operating performance at our oil and gas business. The TSPL power business is now fully operational and aluminum is continuing to be ramped up."

According to him, improved operating performance and working capital initiatives have led to maximization of free cash flow during the quarter. This has also helped "substantially" reduce debt.

The company is focusing on strengthening its balance sheet, including by refinancing debt maturities. Simplifying the group structure continues to be a priority, and Cairn India-Vedanta Ltd merger remains on track for completion in the first quarter of 2017, supported by the shareholders of both companies, he added.