Sterlite Industries, the country's largest zinc producer, posted its first increase in quarterly profits in more than a year on higher zinc and aluminum prices. Consolidated net profit after exceptional items rose 42.35 per cent to Rs 731.33 crore on the back of 49 per cent spike in gross sales for the quarter ended December 2009, the company said in a statement.
Rising demand for steel used to make air conditioners and cars is boosting sales of zinc, used to rust-proof the alloy, said analysts tracking the stock. Zinc for three-month delivery averaged $2,241 a tonne in the quarter ended December 31, up 84 per cent from $1,219 a year ago, according to the London Metal Exchange data.
The average price of aluminum, which the company also produces, was higher in the December quarter, compared with a year ago, the statement said, without giving specific numbers.
On a standalone basis, Sterlite's net profit after exceptional items fell 77 per cent to Rs 46.59 crore during the quarter ended December 2009, from Rs 204 crore in the corresponding quarter last fiscal. Sterlite has provided for Rs 273.53 crore for the quarter, or $50 million loss in the ASARCO deal, after the US bankruptcy court advised ASARCO to terminate the deal with Sterlite and draw its Letter of Credit.
The shares of Sterlite closed 1.9 per cent lower at Rs 802.6 on the Bombay Stock Exchange today. The shares have more than tripled in the past year.