Tag: Hurts

03
Oct
2020
Posted in technology

Vedanta’s Profit Tumbles as India Lockdown Hurts Output, Demand

(Bloomberg) — Billionaire Anil Agarwal’s Indian commodities conglomerate Vedanta Ltd. posted a 23.5% drop in quarterly profit as one of the world’s strictest lockdowns hit production and demand.



a man walking down a street next to a river: Police officers walk along an empty road during a lockdown imposed due to the coronavirus in Mumbai, India, on Monday, June 1, 2020. Despite a strict two-month-long lockdown, the outbreak in India’s financial capital has snowballed, with the city now accounting for nearly a quarter of India’s more than 4,700 deaths and more a fifth of India’s over 165,000 infections.


© Bloomberg
Police officers walk along an empty road during a lockdown imposed due to the coronavirus in Mumbai, India, on Monday, June 1, 2020. Despite a strict two-month-long lockdown, the outbreak in India’s financial capital has snowballed, with the city now accounting for nearly a quarter of India’s more than 4,700 deaths and more a fifth of India’s over 165,000 infections.

Group net income slumped to 10.33 billion rupees ($141 million) in the three months to June from 13.51 billion rupees a year earlier, the company said in a statement late Saturday. Sales fell 25.9% to 156.87 billion rupees.

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Key Insights

Vedanta’s main businesses include zinc, aluminum and oil and gas, all of which have been hit by a slump in demand due to the coronavirus pandemicAgarwal’s London-based Vedanta Resources Ltd. is in the process of taking Mumbai-listed Vedanta private by buying out minority shareholders to simplify his investments.Vedanta Resources is in talks with banks for a further $600 million to finance the delisting after already securing $3.15 billion in loans and bonds, according to people familiar with the information.Vedanta had net debt of 247.87 billion rupees at the end of June.Vedanta’s Hindustan Zinc, also Asia’s most valuable zinc producer, reported a 23% drop in June-quarter profit on lower prices and production.India’s economy posted its worst slump in the three months ended June as disruptions caused by the Covid-19 outbreak brought Asia’s third-largest economy to a halt. Economists expect growth to shrink in the year through March 2021, in the first such contraction in more than four decades.

Market Reaction

Shares of Vedanta rose 0.4% on Thursday to close