Vedanta Resources ramped up full-year production in the fourth quarter to boost annual output

 
Courtney Goldsmith
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Increased production helped Vedanta boost its revenue in the third quarter (Source: Getty)

India-focused metals and mining group Vedanta Resources posted record annual production at its aluminium, power, zinc India and copper India units for the year to the end of March 2017.

The FTSE 250 company, which is chaired by billionaire Anil Agarwal, share price was up 0.85 per cent at 834p in morning trading.

The group's zinc India arm hit record production of 907,000 tonnes of zinc and lead as refined production jumped around 40 per cent in the fourth quarter due to increased output at a mine in Rajasthan. It also produced a record 14.55m ounces of refined silver, seven per cent higher year-on-year.

Full-year integrated zinc production at its Indian unit fell 12 per cent to 670,000 tonnes, however, due to lower availability of mined metal in the first half of the year.

Meanwhile, copper production in India increased five per cent year-on-year, rising to 402,000 tonnes of copper cathodes.

Total aluminium output jumped 56 per cent year-on-year in the fourth quarter to a record 353,000 tonnes due to ramp ups at two smelters in India. That pushed full year production up to a record 1.21m tonnes, 24 per cent higher.

Total power sales were two per cent higher in the fourth quarter and seven per cent for the year compared to the previous year due to the commissioning of additional power capacities.

Chief executive Tom Albanese said: "In line with our strategic priority to ramp up production at our zinc, aluminium, power and iron ore businesses, I am happy to say that we have achieved strong results on this front during the year.

"The merger of Vedanta Limited and Cairn India is set for completion in due course. In addition, we have carried out a number of proactive measures to strengthen the balance sheet, while maintaining our commitment to prudent cost management, to deliver strong returns for all stakeholders."

The group confirmed later in the day its buyout of Cairn had completed today after months of delays due to investor opposition.

In February, Vedanta said revenue increased over its third quarter as a result of higher commodity prices and production volumes.

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