Vedanta profits surge as firm rejig nears end

INDIA-focused Vedanta reported an almost 50 per cent jump in first-half profit yesterday, boosted by record output from subsidiary Cairn India.

Earnings before interest, tax, depreciation and amortisation for the six months to September came in at $2.6bn (£1.62bn), driven by record production at Cairn India, which was acquired last year.

Vedanta said earlier this year it planned to overhaul its network of subsidiaries and create an umbrella unit for its assets. The miner said yesterday that the streamlined group structure is on track to complete by the end of 2012.

Revenue over the six months came in at $7.5bn for the FTSE 100 miner, up 14 per cent year on year.

However, divisional profits from its individual base metals sank. Zinc profits fell 27 per cent over the period, while profits from copper fell 28 per cent. Iron ore profits sank 63 per cent over the six months to September, largely due to a year-long ban on iron ore mining in some Indian states.

“We are operating in challenging market conditions with tapering global growth, and emerging markets continue to be the major contributor to growth,” said chairman Anil Agarwal yesterday.

Shares closed down 2.31 per cent at 1,099p.