Vedanta Iron and Steel’s loss narrows on year in September quarter

It slipped to a from a profit in the June quarter, as seasonal iron ore disruptions and plant shutdowns hit operations. In Apr-Jun, the company made a profit of Rs 121 crore on a revenue of Rs 3,662 crore.

The Vedanta group company clocked in a revenue of Rs 2,788 crore, down 2% on year. It produced 532,000 tonne of steel during the quarter, up 4% on year. Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter stood at Rs 83 crore, up 56% on year, while EBITDA margins improved by 112 basis points on year to 3%.

Performance for the quarter was affected by seasonal disruptions in iron ore production, planned plant shutdowns and higher input and conversion costs, the company said in a statement. These factors weighed on operating profitability during the quarter, it said.

For the first half of the year, Vedanta Iron and Steel had a revenue of Rs 6,450 crore, up 8% on year, an EBITDA of Rs 598 crore, up 54% on year and a loss of Rs 203 crore, which compares to a loss of Rs 622 crore in the year ago period. It produced 1.1 million tonne of steel during the first half of the year, up 4% on year.

It has a net debt of Rs 2,763 crores at the end of the September quarter, marginally higher from Rs 2,733 crore at the end of the June quarter.

Vedanta Iron and Steel announced its earnings after market hours on Tuesday, and its shares closed at Rs 28 on the BSE, up 5% from the previous close.