Vedanta arm ends legacy disputes with SEPCO for 3×660 MW thermal project

Diversified natural resources company Vedanta Limited on Friday (September 12), said its wholly-owned subsidiary, Talwandi Sabo Power Limited (TSPL),  signed a settlement agreement with SEPCO Electric Power Construction Corporation on September 11.The agreement resolves all long-standing disputes related to the EPC contracts for the establishment of a 3×660 MW thermal power project. The settlement includes a full and final resolution of claims and counterclaims between the two parties and provides for the withdrawal of pending arbitration proceedings.

First quarter results

On a consolidated basis, Vedanta’s net profit fell 12% to ₹3,185 crore from ₹3,606 crore last year. Revenue for the quarter increased by 5.8% on a year-on-year basis to ₹37,824 crore. The topline for the same quarter last year stood at ₹35,764 crore.Also Read: New SC bench to hear PIL against Vedanta citing Viceroy Report after judge recusesEarnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter remained unchanged at ₹9,918 crore. EBITDA margin for the quarter narrowed by 160 basis points from last year to 26.2% from 27.8% last year.

The company said its net-debt to EBITDA stood at 1.3 times. Vedanta’s Lanjigarh refinery recorded its highest alumina production at 587 kt, a growth of 9% from last year. Net debt at the end of the June quarter stood at ₹58,220 crore. Vedanta’s aluminium business’ EBITDA stood at ₹4,462 crore, which was higher than Kotak Institutional Equities’ estimate of ₹4,172 crore.

The oil and gas business’ EBITDA stood at ₹1,268 crore, which too was higher than the ₹1,074 crore projection from Kotak, while Zinc International’s EBITDA stood at ₹422 crore, topping the ₹359 crore estimate.

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Shares of Vedanta Ltd ended at ₹450.95, up by ₹13.35 or 3.05%, on the BSE today, September 12.