Vedanta second quarter profit tumbles on weak commodity prices

Mining group Vedanta Resources posted a sharp decline in quarterly profits, as the group continued to be hampered by the worlwide weakness in oil and gas prices.

In the three months to the end of September, the FTSE 250 group said its pre-tax profit tumbled 40.9% year-on-year to 9.74bn rupees (£97.7m), while net sales slumped 16% to 163.49bn rupees.

The company, India's biggest private miner, added production in its oil and gas division rose 6% year-on-year in the period and output in the first six months of the year had been in line with expectations.

Group chief executive Tom Albanese said that while the current environment remained challenging, he was upbeat about the company's outlook.

"We are continuing to drive efficiency improvements and optimise opex and capex across the business, taking measured steps to reduce net debt and maximise free cash flow," he said.

"While the near-term market outlook is challenging, we believe we have the right mix of low cost assets fuelled with new technologies to benefit from future demand in India and globally."

Vedanta shares were down 3.31% to 481.90p at 1123 GMT on Tuesday.