Vedanta Q1 net profit up 131% to Rs 866 crore, looks to restart Goa mining

Mining and energy group Vedanta posted a marginal fall in revenue for the quarter ended June 30, hurt by continued decline in commodity prices.

However, consolidated net profit for the quarter, its fiscal first, rose 131 per cent to Rs 866 crore, compared with Rs 376 crore a year earlier.

Consolidated net sales fell marginally to Rs 16,952 crore at Vedanta, which has interests in oil and gas, iron ore, zinc, copper, power and aluminium.

Chief Executive Tom Albanese said the company saw continued volatility in commodity prices in the first quarter.

Vedanta, which has been hit by a slump in crude prices and mining bans in key producing states, said it was on track to restart mining in key producing state Goa after monsoons.

"We continue to focus on improving efficiency, costs, and enhancing production across our well-invested asset base," Albanese said, adding Vedanta was on track to restart iron ore production at Goa following the monsoons.

He did not give a specific time frame, but the monsoons in the country typically last until September.

The government cut export tax on low-grade iron ore by a third from June, in a big boost for companies in top exporting state Goa, which is close to restarting its mining industry.

Vedanta, part of London-listed miner Vedanta Resources Plc, in June made a $2.3 billion offer to buy out minorities in its cash rich oil and gas unit, Cairn India.

Albanese told Reuters last week that Vedanta's offer was fair, dismissing reports that opposition from minority shareholders in Cairn India, including ex-parent Cairn Energy, could scupper the deal.