Vedanta's India arm posts 'robust' third quarter

Vedanta Resources' Indian subsidiary Vedanta Ltd insisted it was was on course for a strong finish to the year after a “robust” third quarter.

Vedanta said third-quarter earnings before interest, tax, depreciation and amortization were ahead 17% compared to the previous three months, at INR 6,780 crore (£753m).

Revenues came in at INR 24,361 crore, up 19% year-on-year and 17% on the second quarter.

Profits after tax and exceptional items were down 4%, at INR 2,053 crore, slightly below analyst expectations.

But chief executive Kuldip Kaura remained upbeat, commenting: “We delivered a robust quarter with EBITDA significantly higher year-on-year and quarter-on-quarter, with our EBITDA margin remaining strong. Our ramp-up plans across our well-invested assets are on track, and are delivering industry-leading growth.

“We are looking forward to a strong fourth quarter, which will help us finish the year with healthy cash generation.

"The continued strength in the commodity market augurs well for us, and we are positive on Vedanta’s commodity mix and exposure to Indian growth to drive superior shareholder returns.”

The Mumbai-based company said the third quarter had benefited from higher commodity prices, a ramp-up at its aluminium business and higher zinc volumes.