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| Sterlite Industries posts 42% fall in Q1 net |
| BS Reporter / Mumbai Jul 29, 2009, 16:32 IST |
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Sterlite Industries, the Vedanta Group diversified base metals producer, has posted 42 per cent decline in net profit at Rs 924 crore in the first quarter of the current financial as compared to Rs 1,595 crore in the same quarter of the previous year. Net sales of the company also plunged by 21 per cent to Rs 4,537 crore from Rs 5,770 crore. Earnings per share (EPS) slipped, therefore, to Rs 9.49 from Rs 16.25 in the first quarter of the previous year.
During the quarter, aluminium production slipped to 72,056 tonnes compared with 88,989 tonnes in the corresponding prior quarter. The decrease in production was primarily on account of the complete ramp down of Balco plant I smelter. Revenues and EBITDA for Q1, 2009 were Rs 615 crore and Rs 147 crore, respectively, compared with Rs 1,167 crore and Rs 452 crore in the corresponding prior quarter.
The positive impact of lower operating costs was more than offset by the lower LME aluminium prices and the complete ramp down of Balco plant I smelter. The company reported that construction of the new 325,000 tonnes aluminium smelter and 1,200 Mw CPP at Balco is progressing well. All major packages have been ordered with shipments of equipment starting to arrive on site. The project is on schedule for first metal tapping from October 2010.
During Q1, copper cathode production at Sterlite’s refineries was 78,189 tonnes, an increase of 15 per cent as compared to the corresponding prior quarter. However, cathode production in Q1 was lower than its rated capacity primarily on account of low copper in concentrate and certain operational issues, which have since been rectified. During the quarter, mined metal production at our Australian mines was stable at 7,000 tonnes.
During Q1, HZL produced 162,241 tonnes of zinc mined metal and 20,601 tonnes of lead mined metal, an increase of 17 per cent and 5 per cent, respectively, compared with the corresponding prior quarter. During Q1, the company produced 139,315 tonnes of refined zinc, an increase of 9 per cent as compared to the corresponding quarter of the previous year. The refined zinc production in Q1 was lower than the production in Q4, 2009, primarily on account of operational factors during the current quarter at the hydro smelters at Chanderiya, which are being addressed. Sales during Q1 were augmented by the sale of 73,962 dry metric tonnes of surplus zinc concentrate.
During the quarter, saleable silver production was 29,527 kilograms, an increase of 25 per cent compared with the corresponding prior quarter. The increase in production was primarily on account of higher silver content in the mined ore.
Sterlite stocks closed at Rs 621.15, down 5.53 per cent on the Bombay Stock Exchange today.
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