Vedanta Ltd, an Anil Agarwal-led company, informed that the company incurred a net loss of Rs 9,323 crore in fiscal 2015-16, a significant improvement compared to a net loss of Rs 15,646 crore reported in 2014-15.
Revenues for the year stood at Rs 63,931 crore in FY16, 13% lower compared to Rs 73,364 crore in FY15 because of a fall in oil and metal prices, partially offset by higher volumes at Zinc India, iron ore, copper and power segments as per the release.
One of the major reason behind the loss was exceptional items. The cost of exceptional items was Rs 12,312 crore, of which Rs 12,304 crore pertained to impairment. Rs 10,074 crore of the same was incurred on account of impairment of goodwill created on acquisition of Cairn India. However, the company release explained that the Cairn and Vedanta alliance is strategically significant.
In the fourth quarter (Q4) of 2015-16 as well the net loss was narrowed to Rs 11,181 crore as against a net loss of 19,228 crore in the same period of the previous fiscal.
Tom Albanese, Chief Executive Officer, Vedanta Ltd, said: This year, we successfully lowered production costs across all businesses, while achieving record annual production at Zinc India and of aluminium, power and copper cathodes. This is the result of our continued efforts to drive innovation, to optimise our existing low-cost operations.”