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."
Vedanta Ltd 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 India 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.
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.
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."
"We have wrote off a one-time impairment which reflects global trends of mining oil companies revisiting the asset valuation in the light of different perspectives including dip in crude oil prices," Albanese told PTI.
He added, "This has no impact on the production or future earnings capacity of these assets."
Earlier its subsidiary Cairn India, impaired Sri Lankan exploratory assets by Rs 505 crore, given the commercial non-viability of the discovery in the light of a softer oil price outlook.
Further, Rs 281 crore is on account of impairment of acquisition goodwill related to Copper Mines of Tasmania, Australia which has been under care and maintenance following a mud rush in January 2014.
For the 2014-15, Vedanta registered a loss of Rs 15,645.77 crore as against a net profit of Rs 6,298.51 crore in 2013-14.
Commenting on the outlook for the current fiscal, Albanese said, "We are hopeful of maximising our margins with the hope of improved scenario in the international market. Post the monsoon we will resume our mining activities in iron ore mines."
It may be noted that in 2013 steel-behemoth Tata Steel had announced an one-time impairment of USD 1.6 billion primarily to reduce valuation of its assets relating to its European business.
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