Investing.com– India’s reported a record annual profit on Monday and said its long-planned demerger had entered the implementation phase, as the mining conglomerate seeks to unlock value by splitting its businesses into separate entities.
The company posted a full-year profit of $2.8 billion for the year ended March 31, up 22% from a year earlier, while fourth-quarter profit nearly doubled to $1 billion.
Get real-time corporate earnings updates with InvestingPro
Gains were driven by higher commodity prices, strong aluminium and zinc performance, and improved operating efficiencies.
Vedanta’s annual revenue rose 15% to nearly $20 billion. Fourth-quarter revenue increased nearly 30% year-on-year to $5.6 billion.
Vedanta also said its demerger became effective from May 1, marking a key milestone in the restructuring of the group into five independently managed units spanning aluminium, oil and gas, power, iron and steel, and base metals and critical minerals.
The demerger plan, first announced in 2023, is aimed at simplifying the conglomerate’s structure and improving valuations by creating focused sector-specific companies.
The demerger is “a pivotal step in unlocking value through the creation of five competitive, independently scalable world-class companies benchmarked against the highest global standards,” the company said in a statement.
Vedanta, controlled by billionaire Anil Agarwal, has operations spanning metals, mining, oil and gas, and energy sectors.