News Column

Vedanta Resources' Sesa Sterlite Subsidiary Sees Fall In Profit

July 29, 2014

Tom McIvor

LONDON (Alliance News) - Vedanta Resources PLC Tuesday said its subsidiary Sesa Sterlite Ltd Tuesday saw a large fall in its profit after tax for the first quarter, despite an increase in revenues, as Cairn India Ltd changed its method of depreciation.

Sesa Sterlite owns majority stakes in Hindustan Zinc Ltd and Cairn India Ltd, which both announced falls in post-tax profits in the quarter to June 30 last week.

The company said its post tax profit fell 43% to INR13.63 billion from INR23.79 billion the previous year with an overall exceptional item cost of INR16.27 billion due to changes in Cairn India's method of depreciation from the straight line method to the unit of production method during the period.

Sesa Sterlite said its overall sales from operations increased 19% to INR17.06 billion from INR14.36 billion due to Sterlite Copper being under temporary closure during the comparative period and revenue increases at Cairn India.

The company said its oil and gas operations are seeing sustained production at roughly 220,000 barrels of oil equivalent per day and significant exploration and appraisal activity underway at its Rajasthan operations should provide continued growth.

Vedanta Resources merged its Indian subsidiaries Sesa Goa, Sterlite Industries, Madras Aluminium Co, Sterlite Energy and Vedanta Aluminium into one entity, Sesa Sterlite, last year.

Vedanta shares were up 0.6% to 1,100.00 pence on Tuesday.

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Source: Alliance News

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