India-focused mining conglomerate Vedanta Resources on Wednesday reported 49 per cent growth in its core profits to $2.562 billion for the half year ended September 30, 2012, buoyed by earnings from subsidiary Cairn India.
The company had reported $1.721 billion core profits or EBITDA (earnings before income, tax, depreciation and amortisation) during the corresponding period of the last fiscal.
"Vedanta has delivered a strong financial performance driven by production growth across the portfolio and strong cost performance, especially at the newly acquired oil and gas business which has significantly ramped-up production since acquisition," company's chairman Anil Agarwal was quoted in a company statement.
Core profits at $1.290 billion from Cairn, which was acquired in December last year, accounted for most of the increase in group's EBITDA of Vedanta. Besides, aluminium and power businesses were other contributors in company's group EBITDA.
However, its other businesses - iron ore, zinc and copper - were a drag on company's core profits. While iron ore business, run by subsidiary firm Sesa Goa, reported 63 per cent drop in EBITDA to $114.8 million, core profits from zinc and copper fell by 27 and 28 per cents respectively.
"Our growth capex is now largely invested, which will continue to drive production and cash flow growth. This, combined with our proximity to fast growing markets and the simplification of our corporate structure, positions the group well for the future," Agarwal further said.
During the first half of the fiscal, company's revenue rose by 14 per cent to $7.451 billion vis-a-vis $6.552 billion reported in the corresponding period of 2010-11, it said.
Besides, net profit attributable to the shareholders of the company rose by over six times to $171.2 million in the April-September period from $27.8 million of the corresponding period of FY 12.
The rise in net profit was largely due to higher attributable profit at Cairn India and lower losses at Vedanta Aluminium, the company said.
The company also said that it has received most of the regulatory approvals, barring approvals from various high courts in India, for simplification of its group structure, which was announced in February.
Except Konkola Copper Mines in Zambia, Vedanta's all operations will come under one fold, Sesa Sterlite, after the restructuring. According to the company, the exercise is expected to be completed by 2012-end as announced earlier.
The new entity will be created through merger of Sterlite Industries and some other subsidiaries including Vedanta Aluminium, Madras Aluminium into Sesa Goa.