Sterlite Q1 net surges 63% to Rs 1,640 cr

Vedanta Group firm Sterlite Industries today reported a whopping growth of 62.60% in its consolidated net profit at Rs 1,639.73 crore for the quarter ended June 30, due to higher sales realisations from its copper, zinc, lead and silver businesses.

The company had posted a net profit of Rs 1,008.43 crore during the same period in last fiscal.

Net sales of the company stood at Rs 9,824 crore, registering a growth of 65.82% in the April-June quarter vis-a-vis Rs 5,924.50 crore of the same quarter in 2010-11, it said in a filing to the Bombay Stock Exchange.

Its revenues from copper business rose by about 55% at Rs 4,503.92 crore, while realisations from zinc, lead and silver businesses together went almost two folds up at Rs 3,844.60 crore, the filing added.

Revenues from aluminium segment stood at Rs 756.67 crore, while power business contributed Rs 614.64 crore for the Vedanta Group company during the quarter under review.

However, the standalone net profit of the company declined by 18.25% at Rs 342.86 crore during the quarter vis-a-vis Rs 419.43 crore of same period in 2010-11.

The drop in standalone profit was mainly due to rising input costs as the expenses on consumption of raw materials rose by over 38% at Rs 3,755.51 crore.

Sterlite also said the Environment Ministry had denied permission for expansion of its alumina refinery in Lanjigarh in Orissa, which is being operated through its subsidiary, Vedanta Aluminium.

"The associate company is in the process of examining the matter for appropriate action," the Sterlite filing said.

In a major setback to Vedanta Aluminium, the Orissa High Court, last week, had rejected the company's plea challenging Environment Ministry's order to stop expansion activities at the site.

The company was in process of expanding the alumina refinery by six folds from existing capacity of 1 million tonne per annum, when MOEF order of last year put a brake on its expansion.

Vedanta Aluminium was charged with continuing the project without environmental permits.

Upholding the MoEF's order, the Orissa High Court in its order of last week, asked the Anil Agarwal-controlled company to seek fresh clearance for regularisation of the expansion.

Scrips of the company closed today at Rs 172.45 on the BSE, up 2.25% from previous close.