Vedanta reports staggering loss of Rs 12,521 crores

Image of the Vedanta Plant
Image Source: Jagran.com

Vedanta, the natural resources firm reported a consolidated net loss of Rs 12521 crore for the first quarter of 2020. However, as of March 31, 2020 the losses stand at Rs 17132 crores. This is primarily due to damage of assets in the oil and gas, and copper and iron ore businesses.

According to BSE filings, last year, Vedanta had posted a net profit of Rs 2615 crores.

The integrated income of the company during Q1 dropped from Rs 25096 crore last year, to Rs 20382 crores.

The COVID-19 pandemic has had extremely adverse effects on Vedanta’s finances. However, the company has said that it has undertaken proactive steps to keep their assets safe. Further, they also hope to ensure optimum operations during these difficult times.

The exceptional items for Q4 of fiscal 2020 was at Rs 17132 crores. Primarily due to impairment of assets in the oil, gas, copper and iron ore businesses.

The company’s revenue for the Q4 of 2020 was at Rs 19513 crores, lowered by 8%. This is predicted due to lower commodity pricing thanks to COVID-19, and lower volumes at aluminium businesses.

The earnings before interest, taxes, depreciation and amortization for Q4 of 2020 was lower by 23% year-over-year.

Finance costs for the reported fiscal quarter lay at Rs 1064 crores. Lower by 14% in sequence and then by another 24% year-over-year.

Vedanta’s gross debt stands at a high Rs 59187 crores as of March 31, 2020.

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