Indian metals-to-oil conglomerate Vedanta reported a 9.11 per cent rise in consolidated net profit to Rs. 36.5 bn for the quarter ended September 30, as higher base metal prices supported its performance. The Mumbai-based miner also recorded stronger margins and revenue during the July-September period.

Revenue increased about 57 per cent to Rs. 258.12 bn in the September quarter. Revenue from the company’s combined India zinc and lead segment rose 59.5 per cent, helped by higher average zinc prices. Analysts at Emkay Global said the pricing environment was expected to support revenue growth in Vedanta’s India zinc business.

Spot zinc prices climbed 35 per cent year on year, according to Jefferies data, amid tight supply conditions. Copper prices increased 44 per cent, supported by supply constraints and demand linked to electrification and energy-transition projects. Lead prices, however, declined 6 per cent as demand growth remained weak, while its demand-supply balance was broadly stable.

Vedanta’s net profit margin expanded to 24 per cent from 13 per cent a year earlier. Higher commodity prices generally improve selling prices and margins for mining companies, although the company’s cost of raw materials also rose 42.5 per cent. Total expenses increased nearly 34 per cent to Rs. 184.76 bn during the quarter.

The results followed a strong performance from group company Hindustan Zinc, which reported more than a twofold increase in quarterly profit in the previous week. The company attributed the improvement to higher metal prices and also reduced its annual zinc production cost forecast, supported by rising output and stronger realisations from by-products.