Vedanta Receives Rs 1.71-Crore Tax Demand For FY18

Vedanta Ltd. has received two orders from the office of GST & Central Excise, imposing a penalty of Rs 1.71 crore along with tax demand and applicable interest, as per a disclosure to the exchanges on Monday.

The issue relates to the carryforward of cenvat credit on capital goods and the availing of transitional credit in Tran-1 during financial year 2018, said the company.

Vedanta also recently made headlines after the company announced its plan to invest Rs 1 lakh crore in Odisha to establish a 6-million-tonne per annum alumina refinery and a 3-million-tonne aluminium plant that will produce green aluminium using renewable power.

The company, in collaboration with the Odisha government, will set up educational centres, hospitals, skill development centres, and Nand Ghars across the state. These initiatives were expected to create two lakh jobs and provide opportunities for 1,000 MSMEs.

The announcement was made during an interaction between the company and the Chief Minister's delegation as part of the Make-in-Odisha Conclave 2025 roadshow.

Over the past two decades, the Mumbai-based conglomerate has invested more than Rs 1 lakh crore in Odisha, creating over 1 lakh jobs. Additionally, it has acquired the Sijimali mines, which are among the largest bauxite reserves in the country, according to the statement.

• Revenue down 3.4% to Rs 37,634 crore versus Rs 38,945 crore (Bloomberg estimate: Rs 34,942.9 crore).

• Ebitda down 14% to Rs 9,828 crore versus Rs 11,479 crore (Bloomberg estimate: Rs 9,316.4 crore).

• Ebitda margin narrows to 26.1% versus 29.5% (Bloomberg estimate: 26.7%).

• Net profit of Rs 5,603 crore versus a loss of Rs 915 crore (Bloomberg estimate: Rs 2,378.2 crore).

Vedanta Ltd.'s total debt as of Sept. 30 stood at Rs 78,654 crore, which is 5.6% higher than a year ago. The increase in debt is due to higher debt by Hindustan Zinc Ltd., Zinc International, and Bharat Aluminium Co.

The company's cash and cash equivalent stood at Rs 21,727 crore versus Rs 16,702 crore a year ago.

Shares of the company closed 1.03% lower at Rs 496.25 apiece, as compared to a 0.24% decline in the benchmark Nifty 50.