Sterlite Industries (India) Limited (“SIIL” or the “Company”)
today announced its unaudited consolidated results for the third
quarter (“Q3”) and nine months (“the nine months period”) ended
31 December 2009.
Highlights
- Strong financial
performance
- Revenue up 50% at Rs 6,677
crores
- EBITDA up 206% at Rs 1,788
crores
- Highest ever Zinc and Lead
mined metal production at 199,729 tonnes
- Awards received during the
quarter
- Ramakrishna Bajaj National
Quality Award 2009 for Sterlite Industries & HZL
- CII- National Award for
Excellence in Water Management 2009 for HZL
- Strong balance sheet with
cash, cash equivalents and liquid investments of Rs. 25,257
crores
Financial Highlights
(In Rs. crore, except as
stated)
Quarter ended31 December
Change
Nine months ended31 December
Change
Year Ended31
March
2009 2008
%
2009 2008
% 2009 Net
Sales/Income from operations 6,677 4,446 50
17,300 16,808 3 21,144
Profit before interest,
depreciation & taxes 2,144 1,151 86
5,297
5,625 -6 6,858 Taxes
290 116 150
780 789 -1
855
Profit After Taxes and before exceptional items
1,582 747 112
3,769 4,073 -0.08 4,905 Minority
Interest
480 172
1,170 1,061 1,267 Share in
Profit/(Loss) of Associate
(97) (47) 60 (45) (154)
Attributable Profit before exceptional item 1,005 529
90 2,660 2,967 -1
3,485 Exceptional items
274* 15
297 25 (55) Attributable PAT after
exceptional item 731 514 42 2,363
2,942 -20 3,540
* Asarco agreement termination
and related costs
Production Summary (In kt,
except as stated)
Quarter ended31 December
Change
Nine months ended31 December
Change
Year Ended31
March
2009 2008
%
2009 2008
% 2009
Aluminium
BALCO *
65 92 (29.5)
201 272 (26.1) 357 VAL
65
26 150.0
173 33 424.2 82
Copper – India/Australia
Mined Metal Content
4 7 (36.0)
17 19 (11.9) 27
Cathodes
85 76 11.8
255 225 13.2 313
Zinc and
Lead Mined Metal Content
200 192 4.2
575 538 7.0
735 Zinc – refined
148 152 (2.6)
428 401 6.7 552
Lead– refined 1
21 16 31.3
52 47 10.6 65
Silver (
in 000’ Kgs)2
36 25 44.1
95 70 36.6 105
Power
(mn units) 433 42 922.2
1,108 184 502.5 231
*Reduction in volume due to shut
down of BALCO plant I
1. Including captive consumption
of 2,000 tonnes vs 1,000 tonnes in Q3FY2010 vs Q3FY2009 and 6,000
tonnes vs 2,000 tonnes in 9 months FY2010 vs 9 months FY 2009. Full
year captive consumption was 5,000 tonnes.
2. Including captive consumption
of 43,000 kgs vs 29,163 kgs in Q3FY2010 vs Q3FY2009 and 125,000
tonnes and 84,000 tonnes in 9 months FY2010 vs 9 months FY2009 Full
year captive consumption was 132,000 kgs.
Zinc Business
Our Zinc business achieved its highest ever mined metal and
saleable silver production during the quarter. During Q3 and the
nine month period, zinc and lead mined metal production was 199,729
tonnes and 575,088 tonnes respectively, in line with the rated
capacity. During the same period, zinc and lead refined metal
production was 167,317 tonnes and 474,076 tonnes, compared with
166,539 tonnes and 445,812 tonnes in the corresponding prior
periods.
Sales during the quarter were augmented by the sale of 40,972
dry metric tonnes of surplus zinc concentrate.
During Q3, the company recorded its highest ever saleable silver
production of 35,633 kilograms, an increase of 44% compared with
the corresponding prior quarter. For the nine month period,
saleable silver production was 95,484 kilograms, an increase of 37%
compared with the corresponding prior period.
Revenues for Q3 and the nine month period were Rs 2,203 crores
and Rs 5,460 crores respectively, compared with Rs. 1,016 crores
and Rs. 4,356 crores in the corresponding prior period. EBITDA for
Q3 and the nine month period was Rs. 1,370 crores and Rs 3,182
crores respectively as compared Rs. 274 crores and Rs. 2,216 crores
in the corresponding prior periods. The positive impact of higher
LME, production volume and operational efficiency was partially
offset by a decline in the by-product realisation and impact of the
settlement of a long term wage agreement effective from July 2007,
with HZL union.
Expansion
Projects
The Rampura Agucha mine expansion from 5mtpa to 6mtpa is on
schedule for commissioning by mid 2010. Construction at the 210 kt
Zinc smelter, 100 Kt lead smelter and 160 MW CPP is progressing
well for completion on schedule. Sindesar Khurd Mine’s primary
development is on schedule for progressive commissioning from mid
2010.
Copper Business
During Q3 and the nine month period, copper cathode production
at our Tuticorin smelter was stable at 85,222 tonnes and 254,669
tonnes respectively, compared with 76,219 tonnes and 224,966 tonnes
in the corresponding prior periods.
Mined metal production at Australian Mine was 4,476 tonnes in
Q3. The production is rapidly ramping up after resumption of
production in October 2009, post the temporary mine closure in
August 2009 following a mud rush.
Revenues for Q3 and the nine month period were at Rs. 3,548
crores and Rs. 9,410 crores respectively, compared with
Rs. 2,578 crores and Rs. 9,269 crores in the
corresponding periods. EBITDA for Q3 and the nine month period was
at Rs. 165 crores and Rs. 459 crores respectively, compared
with Rs. 98 crores and Rs. 983 crores in the
corresponding prior periods.
Profitability during the current quarter improved due to better
by-product realizations and we expect similar trend going
forward.
Aluminium Business
During Q3 and the nine month period, the aluminium production
from BALCO II smelter was higher than its rated capacity at 64,769
tonnes and 200,717 tonnes respectively. BALCO I CPP continues to
sell surplus power and its performance is shown separately in the
“Power” segment.
Revenues for Q3 and the nine month period were
Rs. 693 crores and Rs. 1,937 crores
respectively, compared with Rs. 836 crores and
Rs. 3,121 crores in the corresponding prior periods. EBITDA
for the Q3 and the nine month period were Rs. 130 crores
and Rs. 392 crores respectively, compared with
Rs. 162 crores and Rs. 893 crores in the
corresponding prior periods.
Expansion
Projects
BALCO
The first metal tapping from the 325 ktpa aluminium smelter
project at BALCO is expected in Q3 FY11. The construction at the
associated 1,200 MW captive thermal power plant has resumed and the
first unit is expected to commence power generation on schedule in
October 2010.
VAL
The first 250 kt of Jharsuguda I smelter was capitalised on 30
November 2009. The second 250 kt potline is on track for
completion by the end of the financial year, with 454 pots out of
the total 608 pots currently in operation. The first metal tapping
from the 1.25 mtpa Jharsuguda II aluminium smelter project is
expected in Q1 FY11.
Power Business
During Q3 and the nine month period, we sold 433 million units
and 1,108 million units of power respectively, compared with 42
million units and 184 million units in the corresponding prior
periods.
Revenue for Q3 and the nine month period was Rs. 233 crores and
Rs. 493 crore respectively, compared with Rs. 14 crores and Rs. 62
crores in the corresponding prior periods.
EBITDA for the same period was Rs. 124 crores and Rs. 306 crores
respectively, compared with Rs. 32 crores and Rs. 78 crores in the
corresponding prior periods.
Expansion
Projects
Construction work on the 2,400 MW (4x600 MW) power plant at
Jharsuguda, Orissa is in progress, with the first unit of 600 MW
expected to be commissioned by the end of this financial year, and
the remaining units expected to be progressively commissioned by
the end of CY 2010.
For the previously announced Talwandi Sabo power project, EPC
contract has been signed and mobilisation activities for
commencement of construction have begun.
ASARCO update
On November 13, 2009, the US District Court confirmed the
re-organisation plan proposed by ASARCO’s parent company and
rejected the plan proposed by the Company. The Company has
preferred to file an appeal against the order of US District
Court.
Subsequently, the Bankruptcy Court approved the motion of ASARCO
to terminate the Settlement and Purchase and Sale Agreement and
allow it to draw on the USD 50 million Letter of Credit. The
Company has provided Rs 274 crores as an exceptional item in the
quarter. The Company has also filed an application before the
Bankruptcy Court for refund of the USD 50 million drawn down by
ASARCO and payment of compensation for legal expenses.
Cash, Cash Equivalents and liquid investments
Consolidated cash, cash equivalents and liquid investments as on
31 December 2009 was Rs. 25,257 crores. This includes Rs.
21,527 crores in debt mutual funds and Rs. 3,730 crores 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.
About Sterlite Industries
Sterlite Industries is India's largest non-ferrous metals and
mining company with interests and operations in aluminum, copper,
zinc and lead 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 and lead operations; Copper Mines of Tasmania
Pty Limited for its copper operations in Australia; and Bharat
Aluminum Company Limited for its aluminum 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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