Sterlite Profit Misses Estimates on Higher Raw Material CostsAbhishek Shanker
Sterlite Industries (India) Ltd., the nation’s top copper producer, failed to meet analysts’ forecast for its third-quarter profit because of higher costs and lower income from selling the metal used to make cables.
Group net income rose to 11.9 billion rupees ($222 million), or 3.54 rupees a share, in the three months ended Dec. 31, from 9.14 billion rupees, or 2.72 rupees, a year earlier, the Vedanta Resources Plc unit said today in a statement to stock exchanges. The median profit of 26 analyst estimates compiled by Bloomberg was 13.9 billion rupees. Sales gained 4.2 percent to 106.9 billion rupees.
Sterlite’s raw material costs jumped 14 percent to 54.6 billion rupees, while total expenses increased 2.9 percent to 90.1 billion rupees in the period. The profit before tax from its copper business fell 54 percent to 1.6 billion rupees. A 6.6 percent drop in aluminum prices also affected profitability.
On Jan. 18, Sterlite unit Hindustan Zinc Ltd., the nation’s largest producer of the metal, reported a 27 percent gain in profit in the last quarter on higher silver and lead production.
Sterlite fell 0.7 percent to 113.25 rupees at close in Mumbai. The stock has fallen 6.2 percent in the past year, compared with a 16 percent increase in the key Sensitive Index.