Vedanta takes $3B write-down on Cairn
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Vedanta takes $3B write-down on Cairn

By PTI

  • 05 May 2015
Vedanta takes $3B write-down on Cairn
Credit: Anil Agarwal

Vedanta Ltd today reported a consolidated net loss of Rs 19,228.12 crore in the quarter ended March 31 due to impairment charge relating largely to Cairn IndiaBSE -0.71 % acquisition goodwill. 

The company in the period under review wrote off Rs 19,180 crore as non-cash impairment charge of acquisition goodwill of Cairn India following slump in global crude oil prices. 

The one-time impairment charges stood Rs 19,956 crore, largely relating to Cairn India acquisition goodwill and a Sri Lankan block due to steep fall in crude prices. 

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Without the impairment charges, the company said net profit would have been Rs 1,166 crore for January-March. 

The company, which was earlier known as Sesa Sterlite, had reported a net profit of Rs 1,621.55 crore for the same period in the previous fiscal, it said in a filing to the BSE. 

Vedanta's turnover stood at Rs 17,804.56 crore in the fourth quarter of 2014-15 as against Rs 20,894 crore in the corresponding quarter of the previous fiscal. 

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Total expenses of the company dropped to Rs 14,554 crore in the quarter under review as against Rs 16,153 crore in the same quarter of 2013-14. 

The shares of the company closed at Rs 207.15 a piece, down 2.15 per cent from the previous close on the BSE. 

Tom Albanese, CEO, Vedanta, said: "Our Q4 results include a one-time non-cash impairment charge of acquisition goodwill, largely relating to the Oil & Gas business and the Sri Lanka Block on account of a steep fall in crude oil prices. This has no impact on the production or future earnings capacity of these assets." 

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