Vedanta declares net loss of Rs.12,521 in Q4 | Business Upturn

Vedanta declares net loss of Rs.12,521 in Q4

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On Saturday, Vedanta posted a net loss of Rs 12,521 crore for the March quarter in FY20. However, the multinational reported a net profit of Rs. 2,615 crore in the same quarter last fiscal, as per the company’s exchange filing. On Friday, the company shares closed at 105.50, up 1.05 percent.

The company posted that its consolidated income in the fourth quarter ended in March declined to Rs 20,382 crore. Moreover, this was in comparison to Rs 25,096 crore in the Q4FY19, as stated in the filing.

“The COVID pandemic has hit the world and us in the last quarter of the year. We have taken a pro-active approach to keep our assets and people safe while ensuring optimum operations during these difficult times,” said Vedanta CEO, Sunil Duggal, in a press release.

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Additionally, the company stated that it’s quarter four revenue was lower by 8 percent at Rs. 19,513 owing to lesser commodity prices. It was further affected by the pandemic, lower volume at aluminum business, including others.

The firm reported its revenue for the whole fiscal year lower by 8 percent Year-on-Year at Rs. 83,545 crore. This was owing to subdued commodity prices, lower volume at Oil & Gas, Zinc India, and lower power sales at TSPL, as per the release.

The EBITDA (Earnings before interest, taxes, depreciation, and amortization) for Q4FY20 was low by 23 percent Year-on-Year. It was because of low commodity prices which were further impacted by COVID-19. Similarly, it was affected by lower volume zinc, Oil & Gas and Steel business, lower input commodity prices, and more.

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The corporation posted its EBITDA for the full fiscal year to have dropped by 12 percent Year-on-Year. Therefore, it was at Rs. 21,060 crore caused by lower commodity prices, lower volume, among others.