Vedanta's half-yearly profit jumps 49%

India-focused mining conglomerate Vedanta Resources on Wednesday reported 49 per cent growth in its core profits to $2.562 billion for the half year ended September 30, 2012, buoyed by earnings from subsidiary Cairn India.

The company had reported $1.721 billion core profits or EBITDA (earnings before income, tax, depreciation and amortisation) during the corresponding period of the last fiscal.

"Vedanta has delivered a strong financial performance driven by production growth across the portfolio and strong cost performance, especially at the newly acquired oil and gas business which has significantly ramped-up production since acquisition," company's chairman Anil Agarwal was quoted in a company statement.

Core profits of $1.290 billion from Cairn, which was acquired in December last year, accounted for most of the increase in group EBITDA of Vedanta. Besides, aluminium and power businesses were other contributors in company's group EBITDA.

However, its other businesses - iron ore, zinc and copper - were a drag on company's core profits. While iron ore business, run by subsidiary firm Sesa Goa, reported 63 per cent drop in EBITDA to $114.8 million, core profits from zinc and copper fell by 27 and 28 per cents respectively.

"Our growth capex is now largely invested, which will continue to drive production and cash flow growth. This, combined with our proximity to fast growing markets and the simplification of our corporate structure, positions the Group well for the future," Agarwal further said.

During the first half of the fiscal, company's revenue rose by 14 per cent to $7.451 billion vis-a-vis $6.552 billion reported in the corresponding period of 2010-11, it said.