In the 12-month period to 31 December, pre-tax profits rose to $1.84bn from $1.18bn on revenues 21% higher at $7.9bn.

Vedanta said annual production of aluminium rose 15.4%, iron ore rose 34% and refined zinc was up 4.9%. The company has embarked on a $20bn investment programme as it plans to organically grow its business.

The company has not ruled out strategic purchases, especially in Africa.

The group had $7.2bn in cash at the end of the period and $0.9bn of debt after investing $3.5bn in organic growth projects last year. In 2010, the company plans to invest $3.9bn in its businesses, with a focus on power and aluminium production.

The company will use half of its new electricity capacity in its aluminium smelter operations and half will be sold commercially onto the Indian market, which is short of power.

The company’s Zambian copper operations had been struggling with the high costs, but the group managed to reduce unit production costs by 29% last year due to ‘better mine management and performance’.

MS Mehta, Vedanta's chief executive, said he expects strong growth in India and he doesn’t expect to see a ‘double-dip’ recession. He also supports quarterly iron ore contracts.

It increased output of its aluminium, copper, zinc, lead and iron ore in its Indian, Zambian, Australian and units