Saturday, April 28, 2012

Sterlite Q4 net dips 27% on exceptional item


Sterlite Industries March quarter net profit declined 27.2% to Rs 1987 crore Year-on-Year, due to the company recognising an exceptional loss of Rs. 423 crores. The company said due to an unfavorable ruling by the US courts in connection with the cancellation of the share purchase agreement entered with ASARCO in 2009 , it incurred this loss

Meanwhile, sales of the company climbed 7.6%. to Rs 10,763 crore driven by higher volumes as several of the company’s growth projects commenced operations and ramped up production, and the successful integration of the zinc international business acquired in second half of FY 2011.

Anil Agarwal, chairman, Sterlite Industries said; “Sterlite Industries delivered strong operating and financial performance during the year despite macroeconomic headwinds. We continue to deliver on our growth projects, expanding and optimizing our assets to generate strong returns for our shareholders.”

The company in a statement said  it  continues to maintain a strong balance sheet and financial position, with cash and liquid investments totaling to Rs.23,403 crore on 31 March 2012.

Meanwhile, during the quarter, production of refined zinc was marginally lower at 190,000 tonnes YoY primarily on account of higher utilization of new-generation smelters in Rajasthan and ramp-down of Vizag smelter.

But lead production was 37,000 tonnes in Q4, up 110% YoY. Silver production was at 88 tonnes during the quarter, up 77%. The increase in lead and silver production was on account of the ramp-up of the SK mine, the 100 ktpa Dariba lead smelter and the silver refinery.

During the quarter the company announced a merger of Sterlite with Sesa Goa, and simplification of the Vedanta Group structure. "The merger process is well on track to create one of the world’s largest natural resource majors, and deliver significant long term value for shareholders," said the company.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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