Vedanta Resources rewarded shareholders with a six per cent rise in dividend as the miner unveiled an increase in revenue and earnings in its full-year results.
The company will pay a dividend of $0.37 a share after achieving a 21% year-on-year jump in earnings before interest, tax, depreciation and amortisation (EBITDA) to $4.9bn for the year to the end of March.
Revenue climbed 7.0% to $14.9bn, driven by record production of zinc-lead, silver, oil and gas.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
A 4.8% rise in zinc-lead and silver production was boosted by strong results in India while a 32% increase in oil and gas production was buoyed by higher output at the Rajasthan block.
The FTSE 100 group said it reduced unit costs across majority of its operations to mitigate industry-wide inflationary pressures.
"Whilst we are not immune to cost inflationary pressures, we continued to control costs and have demonstrated a track record of implementing operational improvements and maintaining our relatively new asset base at low sustaining capital expenditure costs," Chairman Anil Agarwal said.
Vedanta also cut its net debt by $1.5bn and reduced its gearing ratio to 31% from 35%. The group delivered free cash flow of $1.5bn after growth capital expenditure.
Annual results improved despite the effects of a ban on mining iron ore in Karnataka and Goa. Iron ore production of saleable ore fell 73% to 3.7m tonnes.
The Supreme Court recently lifted the ban in Karnataka and Vedanta will resuming mining operations in the region However, mining in Goa remains suspended as court proceedings continue.
Vedanta is India's largest private sector miner of iron ore.
RD
-
Barclays warns of significant rise in social media investment scamsInvestment scam victims are losing an average £14k, with 61% of those falling for one over social media. Here's how to spot one and keep your money safe
-
Over a thousand savings accounts now offer inflation-busting rates – how long will they stick around?The rate of UK inflation slowed again in March, boosting the opportunity for savers to earn real returns on cash in the bank. But you will need to act fast to secure the best deals.
