-- First-quarter net profit 12.02 billion rupees vs 16.40
billion rupees
-- Sales rise to 105.91 billion rupees from 98.26 billion
rupees
-- Forex loss 2.17 billion rupees, interest cost 2.42 billion
rupees
(Adds details from 4th paragraph.)
By Prasenjit Bhattacharya
NEW DELHI--Sterlite Industries Ltd. (500900.BY) Thursday posted
a 27% drop in its consolidated net profit for the fiscal first
quarter, as the unit of London-listed Vedanta Resources PLC
(VED.LN) took a mark-to-market loss on foreign-currency loans and
incurred higher interest cost.
Net profit for the April-June quarter fell to 12.02 billion
rupees ($214.6 million) from 16.40 billion rupees a year earlier.
Sales rose 8% to 105.91 billion rupees from 98.26 billion
rupees.
Sterlite said its net profit was hit by a forex loss of 2.17
billion rupees and a 47% rise in interest cost to 2.42 billion
rupees.
Lower metal prices, a fall in zinc output, lower sale of surplus
power by the aluminum division and higher cost of production in
rupee terms also hurt the performance in the past quarter, the
company said.
But, Sterlite said a fall in the Indian rupee's value partially
offset a drop in product prices, which are pegged to the
dollar.
A slowdown in global metal demand and lower international prices
have been hurting Indian metal companies over the past six months.
Metal prices in India mirror London Metals Exchange contract
prices.
Its consolidated numbers include the results of units Hindustan
Zinc Ltd. (500188.BY) and unlisted Vedanta Aluminium Ltd. and
Sterlite Energy Ltd.
Hindustan Zinc's net profit for the April-June period rose to
15.81 billion rupees from 14.95 billion rupees a year earlier,
while sales fell to 27.12 billion rupees from 28.21 billion
rupees.
Zinc output at Hindustan Zinc dropped 16% to 161,000 tons in the
April-June quarter, while its lead output rose to 31,000 tons from
16,000 tons.
Sterlite posted a 19% increase in the output of copper cathodes
to 88,000 tons, while its aluminum output fell 1% to 60,000
tons.
Vedanta Aluminium posted an 11% increase in aluminum output to
124,000 tons.
In its power business, Sterlite posted a 49% rise in sales to
2,458 million kilo-watt hours.
As of June 30, the company had consolidated cash, cash
equivalents and liquid investments of 249.17 billion rupees.
Write to Prasenjit Bhattacharya at
prasenjit.bhattacharya@dowjones.com
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