First Quarter Ended 30 June 2008
MUMBAI, India--(BUSINESS WIRE)--July 28, 2008
Sterlite Industries (India) Limited ("Sterlite" or the "Company")
today announced its results for the first quarter ended 30 June 2008
-- Refined zinc and lead production at 128,000 tonnes and 17,000
tonnes, an increase of 38% and 27% respectively
-- 88,000 tpa zinc debottlenecking project successfully completed
-- Significant improvement in unit costs in Zinc and Copper-India
businesses, despite rising energy costs
-- Dispatches start from the new aluminium smelter at Jharsuguda,
ahead of schedule
-- Commercial Energy: Awarded the 1,980 MW Talwandi Sabo power
project in a competitive bidding process
-- Net Sales and Attributable Profits at Rs 5,770 crore and Rs
1,151 crore respectively
-- Strong balance sheet with net cash position of Rs 12,244 crore
Unaudited Consolidated Financial Highlights
(in Rs Crore, except as stated)
Quarter Ended 30 June Change March
2008 2007 % 2008
Net Sales/Income from
operations 5,770.1 6,139.1 (6) 24,705.4
EBITDA 2,229 2,506.2 (11) 9,434.3
EBITDA Margin 38.6% 40.8% - 38.2%
Depreciation 165.5 203.1 18.5 595.0
Interest 87.4 95.5 8.4 318.6
Profit before tax 1,976.1 2,207.6 (10.5) 8,467.9
Taxes 380.8 524.7 27.4 2,102.7
Profit after tax 1,595.4 1,682.9 (5.2) 6,365.2
Minority Interest 447 540 17.2 1,961.6
Attributable profits 1,151.1 1,142.9 0.7 4,399.4
Earnings Per Share ("EPS")
(Rupees per share) 16.3 19.9 - 65.2
During Q1, the copper cathode production at the Tuticorin custom
smelter was 68,000 tonnes compared with 81,000 tonnes in the
corresponding prior quarter. The production was lower on account of
the planned bi-annual plant maintenance shut down for 26 days in May -
June 2008. The smelter is now working well and is back to the normal
production levels. We now expect the campaign life of the smelter now
to be about three years.
Mined metal production at our Australian mines was stable at 7,000
tonnes in Q1.
Operating costs in our Tuticorin smelter showed significant
improvement despite high energy costs, primarily due to better copper
recovery and higher by-product realisations.
EBITDA for Q1 was higher at Rs. 584 crore compared with
Rs. 382 crore in the corresponding prior quarter, primarily on account
of higher interest income; better operating efficiencies and
by-product management which were offset by lower TcRcs and increase in
TcRcs remained under pressure in Q1 compared with the
corresponding prior quarter.
During Q1, SIIL received the prestigious Golden Peacock
Environment Award 2008 from the World Environment Foundation for its
effective implementation of environment management systems on a
sustainable basis. The Company also received the prestigious
Confederation of Indian Industry award for Excellence in Human
Aluminium production in Q1 was 89,000 tonnes compared with 88,000
tonnes produced in the corresponding prior quarter.
EBITDA for Q1 was Rs. 458 crore compared with Rs. 418 crore in the
corresponding prior quarter. The increase in EBITDA was primarily on
account of higher volumes and better LME prices, partly offset by
higher energy related costs.
The Lanjigarh alumina refinery produced 136,000 tonnes of calcined
alumina from a single stream operation using bauxite purchased from
third parties and BALCO's bauxite. The refinery is performing well and
is close to stabilisation.
The recently commissioned Jharsuguda smelter produced 800 tonnes
of aluminium during the quarter. The first dispatch of aluminium has
successfully commenced from Jharsuguda. The first power unit has been
synchronized. We will continue to progressively commission the Phase 1
pot line together with the remaining power units.
Mined zinc metal and lead metal production in Q1 was marginally up
at 138,000 tonnes and 20,000 tonnes respectively, compared with the
corresponding prior quarter. During Q1, HZL produced 128,000 tonnes of
zinc and 17,000 tonnes of lead, an increase of 38% and 27%
respectively compared with the corresponding prior quarter.
Consequent to the increase in smelting capacities and output,
availability of surplus concentrate for sale was limited.
EBITDA for Q1 was Rs. 1,187 crore compared with Rs. 1,706 crore in
the corresponding prior quarter. The positive impact of higher volumes
on sales and EBITDA in Q1 was offset by the adverse impact on account
of a decline in zinc LME prices to $2,115 per tonne in Q1 from
US $3,667 per tonne in the corresponding prior quarter.
During Q1, HZL was able to achieve significant reduction in the
operating cost on the back of increased volumes, improved operational
efficiencies and higher byproduct credits, partially impacted by the
removal of 5% import duty on zinc during Q1.
During the quarter, HZL received the coveted annual process
excellence award for the Best Manufacturing Process Improvement by
International Quality and Productivity Centre - London. The Rampura
Agucha mine received the Overall Excellence Award from the Federation
of Indian Mineral Industries.
Consolidated Net Profit after Taxes and EPS
Consolidated Net Profit after Taxes, attributable to equity
shareholders for Q1 was Rs 1,151 crore compared with Rs 1,143 crore in
the corresponding prior quarter. EPS in Q1 was Rs 16 per equity share
compared with Rs 20 per equity share in the corresponding prior
quarter, due to the fresh issue of shares on account of Sterlite's ADS
offering during the corresponding prior quarter.
Vedanta Aluminium Limited
In the recent hearings in the Honourable Supreme Court of India
regarding the bauxite mining clearance at Lanjigarh, all the arguments
have been heard and we expect the Court to give its final judgment
Work on the second phase of the green-field 500,000 tpa aluminium
smelter and associated captive power plant in Jharsuguda, Orissa, is
progressing well. Overall the project is on schedule.
Work on the 2400 (4X600) MW coal based independent thermal power
plant is progressing on schedule for commissioning from late 2009 as
earlier announced. Basic engineering is complete and nearly 90% of the
detailed engineering is complete. Civil foundations of the boiler
units 1, 2 and 3 are complete and structural erection for the same is
During Q1, Sterlite Energy Limited has emerged successful in an
international bidding process and has been awarded the 1,980 MW
thermal power plant at Talwandi Sabo, in the State of Punjab in India.
The project is expected to be completed in 56 months.
Zinc and Lead
Recently, HZL announced Phase III of it expansion program,
comprising a 210 ktpa Zinc Smelter, 100 ktpa Lead Smelter and 160 MW
of Captive Power Plants. The order for the Lead Plant and Captive
Power Plant has been placed on a lumpsum turnkey basis and major
orders for the Zinc Plant have been placed. Initial work has started
for the smelters and associated mining and captive power plants.
About Sterlite Industries
Sterlite Industries is India's largest non-ferrous metals and
mining company with interests and operations in aluminum, copper and
zinc and lead. 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
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
Sterlite Industries (India) Limited
Sumanth Cidambi, +91-22-6646-1531
Associate Director - Investor Relations
Sheetal Khanduja, +91-22-6646-1427
Manager - Investor Relations
-0- Jul/28/2008 12:09 GMT
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