UPDATE: Sterlite Industries 3Q Net Profit Falls 17% On Higher Cost, Forex Loss
January 23 2012 - 7:41AM
Dow Jones News
Sterlite Industries Ltd. (500900.BY) Monday posted a 17% drop in
consolidated net profit for the third quarter because of higher
depreciation and amortization costs as well as foreign-exchange
losses.
Net profit for the October-December period fell to INR9.14
billion from INR11.01 billion a year earlier, the Vedanta Resources
PLC (VED.LN) unit said.
Indian base metals companies such as Sterlite are facing slowing
growth in sales and profit, as London Metal Exchange prices have
been falling for the past few months due to the European debt
crisis and global economic worries.
Sterlite's results include those of units Hindustan Zinc Ltd.
(500188.BY) and unlisted Vedanta Aluminium Ltd.
Sterlite's consolidated sales grew 23.5% to INR102.46 billion
from INR82.94 billion on higher revenue from its major businesses,
zinc and copper, though aluminum sales fell a tad.
Total costs increased to INR84.43 billion from INR66.03
billion.
The company said net profit was hit hard by a weakening of the
rupee, which resulted in total foreign-exchange losses for the
third quarter at INR4.25 billion.
Depreciation and amortization costs jumped to INR4.58 billion
from INR2.49 billion, as it accounted for capitalization of a lead
smelter and a few power generation projects in India.
Sterlite said copper cathode production at its south India
smelter was 6.9% higher at 84,000 tons.
Aluminum production fell to 63,000 tons from 65,000 tons a year
earlier, Sterlite said, but added that output at unit Vedanta
Aluminium rose to 107,000 tons from 103,000 tons.
Power sales jumped to 1,559 million kilowatt-hours during the
October-December period, from 245 million kilowatt-hours a year
earlier. The company said it sold more power from its 2,400
megawatt Jharsuguda power plant in eastern India.
- By Prasenjit Bhattacharya, Dow Jones Newswires;
91-11-4356-3358; prasenjit.bhattacharya@dowjones.com
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