Vedanta faced exceptional loss of Rs 17,386 crore in FY20 due to difficulties in the oil and gas business, triggered by significant fall in oil prices on the back of coronavirus outbreak
Diversified natural resources firm Vedanta reported a consolidated loss of Rs 6,664 crore for the financial year ending March 31, 2020, primarily due to impairment in oil and gas, copper and iron ore businesses. The firm had posted a consolidated profit of Rs 7,065 crore in the previous financial year.
Vedanta faced exceptional loss of Rs 17,386 crore in FY20 due to difficulties in the oil and gas business, triggered by significant fall in oil prices on the back of coronavirus outbreak. These headwinds were partially offset by RPO liability true up at aluminium, and interest accrued on power debtors at TSPL in line with a Supreme Court order in this regard.
“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. During these difficult times, our efforts are aligned to the singular vision of making our communities, the state and nation self-reliant and self-sufficient,” Sunil Duggal, Chief Executive Officer, Vedanta.
The Anil Agarwal-led company reported an 8 per cent decline in income from operations at the end of financial year 2019-20, mainly due to subdued commodity prices, lower volume at Oil & Gas, Zinc India and lower power sales at TSPL. The company saw its consolidated net sales decline to Rs 83,545 crore in FY20, from Rs 90,901 crore in FY19. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for FY20 stood at Rs 21,060 crore as opposed to Rs 24,012 crore for FY19. EBITDA margin fell to 29 per cent in FY20 from 30 per cent in FY19.
“EBITDA for the FY2020 was at Rs 21,060 crore, lower by 12 per cent y-o-y, mainly on account of lower commodity prices, lower volume and higher cost at Zinc India and Oil and Gas business partially offset by higher volume from Gamsberg operations, higher sales at Aluminium, Iron Ore and Steel business, improved cost of production at Aluminium business, lower input commodity prices, past exploration cost recovery at Oil & Gas business and rupee depreciation,” the company said in a regulatory filing.
Source: Business Today
Read the similar article on The Rupee Business