InvestorQ : Why has Vedanta reported such a huge loss in the Mar-20 quarter and how does that impact the delisting of the stock?
Deepa Salunkhe made post

Why has Vedanta reported such a huge loss in the Mar-20 quarter and how does that impact the delisting of the stock?

Answer
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Juvina Maggie answered.
4 months ago


Vedanta reported a net loss of Rs.12,521 crore for the Mar-20 quarter largely on the back of a write-off taken for impairment charges on its oil and gas business assets of Cairn. The exceptional write-off alone was worth Rs.17,132 crore. The write down was on account of a significant fall in crude oil prices after the Covid-19 outbreak. In fact, crude prices had fallen from a high of $68/bbl in the Brent market in early Jan-20 to as low as $16/bbl by end of April before bouncing back. The global demand slowdown for aluminium and copper also resulted in sales revenues for the quarter falling 16% to Rs.19,513 crore. Most base metal prices on the LSE were also sharply down; impacting realizations. The loss could have been worse had it not been for the Rs.3186 crore claw back as benefits of deferred tax. OPMs were also lower at 28% compared to 31% last year due to lower realizations.