Sterlite Q4 net up 50% to Rs 1,925 crore, beats estimates

Volume growth drives strong performance, revenues up over 17% for the quarter ended March 2013

Sterlite Industries reported strong set of numbers for the quarter ended March 2013.

Its March-quarter profit rose by 50.74% to Rs 1,925 crore versus a consensus forecast of Rs 1,360 crore.

During the quarter, the company's revenue grew at 17.14% to Rs 12,673.76 crore, led by strong growth in copper segment which clocked 17% year-on-year growth in revenue.

In the March quarter, the company reported copper cathode production of 86,000 tonne as against the expectations of 82,000 and 80,000 tonne in corresponding quarter last year.

Indian Zinc and lead business, which comes under Hindustan Zinc, accounted for about 30% of total revenue, helping the strong operating performance.

Zinc reported 21% growth followed by 49% growth in silver. Silver reported 33% growth in volumes to 117 tonnes in Q4 FY13.

Higher volumes also helped in operating margins, which saw a strong 109 basis point jump to 26.09% in Q4 FY13.

In December quarter, operating margins were at 21.7%.

“Sterlite Industries reported better than expected 4Q FY2013 results both on top line and net profit front. Net sales increased above our estimate. Net sales growth was driven by increase in all the segments. On the operating front, Sterlite’s EBITDA grew 14.6% y-o-y at Rs 3,306 crore and EBITDA margin was 26.2% (above our estimate of 23.1%) mainly due to higher profitability from all the segments and hence, adjusted net profit increased, which was above our estimate of Rs 1,522cr. We maintain our accumulate rating on the stock with a target price of Rs.98,” Said Bhavesh Chauhan, who tracks the company at Angel Broking.