Sterlite Industries slips after smelter shutdown

Sterlite Industries (India) fell 3.94% to Rs 90.10 at 9:35 IST on BSE after the company's copper smelter in Tuticorin was shut down on Saturday, 30 March 2013, after a preliminary inspection by state pollution regulator.

The announcement was made on Saturday, 30 March 2013.

Meanwhile, the BSE Sensex was up 56.13 points, or 0.30%, to 18,891.90.

On BSE, 1.93 lakh shares were traded in the counter as against an average daily volume of 4.77 lakh shares in the past one quarter.

The stock hit a high of Rs 92.80 and a low of Rs 89.15 so far during the day. The stock had hit a 52-week high of Rs 123.35 on 3 January 2013. The stock had hit a 52-week low of Rs 88.60 on 4 June 2012.

The stock had outperformed the market over the past one month till 28 March 2013, falling 0.11% compared with the Sensex's 0.14% fall. The scrip had, however, underperformed the market in past one quarter, sliding 19.73% as against Sensex's 3.13% fall.

The large-cap company has equity capital of Rs 336.12 crore. Face value per share is Re 1.

Sterlite Industries (India) said in a statement that Tamil Nadu Pollution Control Board (TNPCB) carried out a preliminary inspection of the company's copper smelter in Tuticorin in the wake of alleged noxious gas leak from it.

The company said it provided all technical details of the operations. Since all parameters were found within the permissible levels and there were no cases of illness, the company believes this should have been the subject matter of detailed technical evaluation by TNPCB. However, TNPCB has ordered closure of the plant, said the company.

The company added that it will engage with TNPCB to explain the factual position regarding emissions from the unit in Tuticorin city and is committed to co-operate fully with the authorities in this regard, in order to be able to restart operations.

Sterlite Industries said it is operating the copper smelter in Tuticorin for the last 17 years with requisite approvals and consents issued by regulatory authorities.

Sterlite Industries (India)'s consolidated net profit jumped 30.4% to Rs 1191.41 crore on 4.3% growth in net sales to Rs 10692.40 crore in Q3 December 2012 over Q3 December 2011.

Sterlite Industries (India) is India's largest diversified metals and mining company. The company produces aluminium, copper, zinc, lead, silver, and commercial energy and has operations in India, Australia, Namibia, South Africa and Ireland. The company has a strong organic growth pipeline of projects.

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