Vedanta’s Q1 profit more than doubles, demerges real-estate business
Vedanta reported a 152% increase in net profit for the June quarter, driven by strong operational performance and cost efficiency. The company also announced the appointment of a new CEO and plans to demerge its real estate assets into a separate entity called Vedanta Property Platforms Limited.
Why it matters
The demerger and strong financial results signal a strategic shift for the mining giant to unlock value from non-core assets while streamlining its primary business operations.
Privately-owned miner Vedanta’s net profit soared more than two-and-half times in the June-end quarter marked by enhanced cost efficiency and strong output across all segments.
Along with their results, the company announced Arun Misra as their new Chief Executive Officer for a one-year period, starting August 1.
Furthermore, the miner also announced that it would demerge its surplus real estate portfolio into a new entity by the name Vedanta Property Platforms Limited (VPPL).
The privately-owned miner’s net profit in the June-end quarter increased 152% on a year-over-year basis to ₹5,294 crore.
Revenues soared 51% during the same period to ₹23,456 crore.
Subsidiary Zinc India mined 268 kilotons (KT) during the quarter – up 4% on a year-over-year basis - maintaining its lowest quarterly cost of production at $851 per tonne – 16% lower on a year-over-year basis.
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