REBOUNDING metals prices have helped Vedanta post a healthy 187 per cent surge in full-year profits.
The Indian mining giant recorded earnings of $2.3bn (£1.5bn), a rise of 42 per cent from the previous year. Zinc, which gained 80 per cent in value during Vedanta’s fiscal year, was a big contributor to Vedanta’s profits.
Chairman, Anil Agarwal said: “Our excellent results fully endorse our decision to continue investing through the cycle in our organic growth programme.”
He added: “We have achieved significant milestones during the year and are on track to deliver a substantial increase in production capacity across our businesses in 2011.”
Vedanta, which operates in India, Zambia and Australia, said it increased production of all metals in line with its long-term bullish view on commodity prices. The group was confident about ongoing demand for metals due to buoyant economies in China, India and Brazil.
“The recovery in demand and commodity prices appears well-founded and the medium and long-term outlook for our commodities remains strong,” Agarwal said.
Vedanata has also pledged to conclude a long-awaited buyout of minority stakes, after investors complained about the complex structure of the company. The miner is waiting for a final arbitration hearing about how much it must pay the Indian government for its minority stakes in units Bharat Aluminium and Hindustan Zinc of 49 per cent and 29 per cent respectively. The matter is expected to be resolved by August.