Sterlite Industries (India) Limited (“SIIL” or the “Company”)
today announced its Un-audited consolidated results for the first
quarter (“Q1”) ended 30 June 2010.
Highlights
- Robust financial
performance
- Q1 revenue up 29% at Rs. 5,925
crore
- Q1 PBIDT up 47% at Rs. 2,189
crore
- Attributable PAT up 50% at Rs
1,008 crore
- Achieved boiler light-up of
the first unit of the 2,400 MW Independent power plant at
Jharsuguda
- Debari zinc smelter awarded
the “International British Safety Council” award
- Strong balance sheet with
cash and liquid investments of Rs. 24,874 crore
Financial
Highlights
(in Rs. crore, except as
stated)
Particulars Quarter ended
Change Full Year ended
30th June 31st
March 2010 2009
% 2010
Net Sales/Income from
operations 5,925 4,580
29 24,501
Profit before interest, depreciation and taxes 2,189
1,489
47 8,179 Taxes
368 230 1,233
Profit after
taxes 1,462 924 5,409 Minority Interest
376 322
1,724 Share in profits/(loss) of associates
(78) 71 59
Attributable profit 1,008 673
50 3,744 Basic
earnings Per Share (“EPS”) (Rs/share)*
3.0
2.4 11.7
* Not Annualised
Production
Summary
(In Kt, except as stated)
Particulars
Quarter ended30 June
Change
YearEnded
2010 2009
% 2010 Aluminium
BALCO
63 72 (12)
268 VAL
77 53 45 264
Copper India/Australia Mined
metal content
7 7 - 24 Cathodes
77 78 (1) 334
Zinc
and Lead Mined metal content
182 183 - 769 Refined metal
content
180 157 15 650
Silver (‘000 kgs) 43 41
5 176
Power (Mn units) (net of captive consumption)
480 287 68
1,416
Zinc Business
During Q1, the Company produced 182,000 tonnes of Mined metal,
inline with the production in the corresponding prior quarter.
During the quarter, production from the Rampura Agucha mine was
impacted by lower grades and repair and maintenance of one of the
mills.
Refined zinc production during the quarter was 165,000 tonnes,
an increase of 18% compared with the corresponding prior quarter.
The 210 ktpa Zinc smelter at Rajpura Dariba commissioned in Q4
FY2010 is ramping up well and contributed 33,000 tonnes in Q1. The
production at the existing plants was impacted due to a temporary
water shortage, which is expected to normalize with the onset of
monsoon.
Refined silver production during Q1 was 43,000 kilograms, an
increase of 5%, compared with the corresponding prior quarter. The
increase in production was primarily on account of higher silver
content in the mined ore and improved plant efficiencies.
Revenues for Q1 were Rs 1,928 crore, an increase of 29% compared
with Rs. 1,489 crore in the corresponding prior quarter. EBITDA for
Q1 was Rs 1,000 crore, an increase of 32% compared with Rs. 760
crore in the corresponding prior quarter. The positive impact of
improved LME prices and improved by-product realization on
profitability was partly offset by the impact of the additional
gratuity provisions due to change in the limit of salary in the
payment of Gratuity Act, full impact of long term settlement of
wage agreement, higher stripping cost at mines and increase in
coal, and coke costs.
Construction activity at the 100 ktpa lead smelter at Rajpura
Dariba is progressing as planned, and is on schedule for completion
by Q2 FY2011. Of the 160MW captive power plant, one unit of 80 MW
CPP was synchronized in June 2010 and the second unit is expected
to be synchronized in September 2010.
Primary mine development activity at Sindesar Khurd mine project
is on schedule, with production expected to commence from Q2 FY
2011
Copper Business
During Q1, copper cathode production at the Tuticorin smelter at
77,000 tonnes was lower due to a planned maintenance shutdown for
22 days beginning 22 June 2010.
Mined metal production at our Australian mines contributed 7,000
tonnes during the quarter.
Revenues for Q1 were Rs 3,092 crore, an increase of 35% compared
with Rs 2,297 crore in the corresponding prior quarter.
EBITDA for Q1 were Rs 261 crore, an increase of 125%, compared
with Rs 116 crore in the corresponding prior quarter. The increase
in profitability during the quarter was on account of improved
copper recovery, higher by-product realisation and improved margins
from the phosphoric acid business.
During Q1, TC/RC realisation were 13.5 USc/lb compared with 11.9
USc/lb in the corresponding prior quarter.
Acid realization, in Q1, improved to Rs 3,322 per tonne as
compared with Rs 227 per tonne in the corresponding prior
quarter.
Aluminium
Business
During Q1, the aluminium production from BALCO II smelter was
63,000 tonnes, higher than its rated capacity. We continue to sell
surplus power from the BALCO I CPP.
Revenues for Q1 were Rs 666 crore, an increase of 4%,
compared with Rs 639 crore in the corresponding prior
quarter. EBITDA for Q1 was Rs 98 crore, compared with
Rs 133 crore in the corresponding prior quarter. The
decrease in profitability was primarily on account of increase in
costs due to higher alumina cost, power costs, additional gratuity
provision pursuant to enhancement of gratuity ceiling under Payment
of Gratuity Act and unabsorbed costs of BALCO plant I.
The first metal tapping from the 325 ktpa aluminium smelter
project at BALCO is expected in Q4 FY 2011. Construction of the
1,200MW captive power plant is progressing well and the first unit
is expected to be synchronised in Q3 FY2011, with the remaining
three units progressively synchronised by Q2 FY2012.
The share of profit/ (loss) from VAL, as an associate, for Q1
were Rs. (78) crore, compared with a profit of Rs 71 crore in the
corresponding prior quarter. Losses in VAL were primarily on
account of interest and depreciation which could not be absorbed
fully because of production ramp up.
Power Business
During Q1, we sold 480 million units of power, compared with 287
million units in the corresponding prior quarter. Average
realisation during the quarter was Rs 4.98 per kwh as compared with
Rs. 5.43 per kwh in the corresponding prior quarter.
Revenue (net of transmission and wheeling charges and inter
segment transfers) for Q1 were Rs 239 crore, an increase of 54%
compared with Rs 155 crore in the corresponding prior quarter.
EBITDA for Q1 was Rs 138 crore, an increase of 36% compared with
Rs 102 crore in the corresponding prior quarter.
The boiler light-up for the first 600MW unit of the 2400 MW
(600MW x 4) coal based commercial power plant at Jharsuguda was
announced on 26 June 10 and commercial production is expected to
commence in September 2010. The remaining three units are expected
to be progressively synchronized by end of Q1 FY 2012.
At the 1,980 MW supercritical IPP project at Talwandi Sabo, the
EPC contract has been signed and ordering of major equipment
packages have been completed by the EPC contractor. Activities have
commenced on site and piling work is currently under progress. The
first unit is expected to be commissioned by Q4 FY 2013 and overall
project completion by Q2 FY 2014.
Minority
Interest
Minority Interest for Q1 was Rs 376 crore (25.7%) comprising Rs.
313 crore at HZL and Rs. 63 crore at BALCO. Minority Interest in
corresponding prior quarter was Rs 322 crore (34.8%). Minority
interest percentage decreased during Q1, primarily on account of
lower profit mix from BALCO and HZL.
Port business
We have entered the port business through a contract to develop
a coal berth at Vizag on a revenue sharing basis in a joint venture
with Leighton Contractors (India) Pvt. Limited. Agreement has been
signed with Vizag Port Authorities and the estimated cost of the
project is Rs. 500 crore which is likely to be completed in mid
2012.
The Company, along with its joint venture partner Leighton, has
also been awarded the project for development of multipurpose berth
on revenue sharing basis for Paradeep Port. The indicative cost of
the project is likely to be Rs. 400 crore.
Cash, Cash Equivalents and
liquid investments
Consolidated cash, cash equivalents and liquid investments as at
30 June 2010 was Rs. 24,874 crore. This includes Rs. 17,042
crore in debt mutual funds and Rs. 7,832 crore in cash and fixed
deposits with the banks. The Company has a strong internal control
mechanism that includes continuous review and monitoring of all its
investments. The investments portfolio is independently reviewed by
Credit Rating Information Services of India Limited (CRISIL) on an
ongoing basis.
Bonus and Stock
Split
Consequent to the announcement made earlier, the equity shares
of the company were subdivided from Rs. 2/- each to Re 1/- each
fully paid up and has also issued bonus shares in the ratio of 1:1
on the subdivided shares during the quarter.
About Sterlite Industries
Sterlite Industries is India's largest non-ferrous metals and
mining company with interests and operations in aluminium, copper,
zinc, lead & silver and power. It is a subsidiary of Vedanta
Resources plc, a London-based diversified FTSE 100 metals and
mining group. Sterlite Industries' main operating subsidiaries are
Hindustan Zinc Limited for its zinc, lead & silver operations;
Copper Mines of Tasmania Pty Limited for its copper operations in
Australia; and Bharat Aluminium Company Limited for its aluminium
operations. The company operates its own copper operations in
India. The company has entered the commercial energy generation
business and is in the process of setting up a 2,400MW independent
power plant through its wholly owned subsidiary, Sterlite Energy
Limited. Sterlite Industries is listed on the Bombay Stock Exchange
and National Stock Exchange in India and the New York Stock
Exchange in the United States. For more information, please visit
www.sterlite-industries.com.
Disclaimer
This press release contains “forward-looking statements” – that
is, statements related to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance, and often contain words
such as “expects,” “anticipates,” “intends,” “plans,” “believes,”
“seeks,” “should” or “will.” Forward–looking statements by their
nature address matters that are, to different degrees, uncertain.
For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in
interest and or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other
matters. of national, regional and global scale, including
those of a political, economic, business, competitive or regulatory
nature. These uncertainties may cause our actual future results to
be materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking
statements.
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