Sesa Sterlite fell 1.37% to Rs 190.40 after consolidated net profit as per adjusted proforma basis fell 31.34% to Rs 1222 crore on 7.05% rise in net sales to Rs 20784 crore in Q4 March 2014 over Q3 December 2013.
The result was announced during market hours today, 29 April 2014.
Meanwhile, the BSE Sensex was down 165.42 points, or 0.73%, to 22,466.19
On BSE, 7.96 lakh shares were traded in the counter, compared with an average volume of 7.09 lakh shares in the past one quarter.
The stock turned volatile after declaring Q4 result. The stock rose as much as 1.32% at the day's high of Rs 195.60. The stock fell as much as 2.3% at the day's low of Rs 188.60. The stock hit a 52-week high of Rs 213.05 on 21 January 2014. The stock hit a 52-week low of Rs 119.45 on 31 July 2013.
The stock had outperformed the market over the past one month till 28 April 2014, rising 5.55% compared with the Sensex's 1.31% rise. The scrip had also underperformed the market in past one quarter, falling 3.43% as against Sensex's 9.42% rise.
Also Read
The large-cap company has an equity capital of Rs 296.47 crore. Face value per share is Re 1.
Sesa Sterlite's consolidated net profit as per adjusted proforma basis fell 31.34% to Rs 1222 crore on 7.05% rise in net sales to Rs 20784 crore in Q4 March 2014 over Q3 December 2013. Sesa Sterlite attributed rise in Q4 sales to higher volumes across businesses. The Sesa Sterlite merger and the Vedanta Group consolidation was completed in August 2013 and hence the actual Q3, Q4 and FY 2014 numbers are not comparable with those of the corresponding prior periods, the company said.
Sesa Sterlite's consolidated net profit as per adjusted proforma basis fell 30.98% to Rs 5005 crore on 1.12% rise in net sales to Rs 72591 crore in the year 31 March 2014 over the year ended 31 March 2013.
Sesa Sterlite said that full year actual financial numbers include results of all consolidating entities of Sesa Sterlite for the full year, except Cairn India, which is consolidated from 26 August 2013. Hence, the company has drawn an adjusted proforma account for FY 2014 to indicate the performance during the period, had the merger been effected from beginning of the period. The adjusted proforma numbers also excludes the impact of a one-time tax benefit during Q2, at the time of the merger. Similarly, the adjusted proforma numbers for FY 2013 have been prepared on the same lines, as if the restructuring and full consolidation had taken place as of 1 April 2012.
In line with the Q3 adjusted proforma numbers, Q4 adjusted proforma have been provided to reflect the goodwill amortisation on the basis of production at Lisheen mine as compared to the accelerated amortisation carried out in Q2 actuals. However, an additional amount of Rs 298 crore for goodwill of Lisheen mine has been provided in Q4 adjusted proforma to align the full year amortisation charge between actual and adjusted proforma numbers, Sesa Sterlite said.
Mr. Navin Agarwal, Chairman: The Sesa Sterlite merger was completed last year, we have reconstituted the board, and the merged entity has delivered a strong performance in FY 2014. We are focused on optimizing our assets, growing production with continued cost control, and generating strong cash flows across all businesses. I am confident that Sesa Sterlite will continue to create value for all stakeholders.
Sesa Sterlite's consolidated net profit surged 445.04% to Rs 1621.55 crore on 7052.92% spurt in total income from operations (net) to Rs 20894.41 crore in Q4 March 2014 over Q4 March 2013.
Revenues during Q4 were 7% higher compared with Q3, on account of higher volumes across businesses. During FY 2014 adjusted proforma revenue remained strong on account of higher volumes at Zinc India, Oil & Gas, aluminium business and INR depreciation despite temporary closure of Copper India operations in Q1, suspension of iron ore mining operations and lower commodity prices, Sesa Sterlite said.
EBITDA during Q4 was up 2% compared with Q3, with a consistent EBITDA margin of 45%. Adjusted proforma EBITDA for FY 2014 was up 2% with a strong EBITDA margin of 47%, on account of better operating performance at Cairn India, Zinc India and Jharsuguda aluminium smelter, partially offset by lower EBITDA due to reduced volumes at the Iron Ore business, Australian copper mines and Zinc International. The INR depreciation helped to mitigate the impact of lower commodity prices.
Profit after tax for FY 2014 was lower due to higher depreciation and amortisation; higher finance cost and lower other income despite higher EBITDA. Minority interest percentage was higher during FY 2014 on account of higher profits from Zinc India and Cairn India.
During Q4, there were exceptional items charge of Rs 167 crore, which included Rs 67 crore on account of idle assets at the Lanjigarh alumina refinery relating to the Niyamgiri mining project and Rs 100 crore on account of payment of land tax to the Goa state government for mining dumps pertaining to earlier years. During the year the company had an additional exceptional charge of Rs 62 crore on account of voluntary retirement expenses at Zinc India, Sesa Sterlite said.
During Q4, there was a forex loss of Rs 30 crore. A marginal INR appreciation led to a loss on US dollar deposits at Cairn India, which was more than offset by the MTM gain on the foreign currency loans. During FY 2014, there was a net forex gain of Rs 505 crore. The INR depreciation resulted in a gain on the US dollar deposits at Cairn India, which was partially offset by the MTM loss on foreign currency loans.
We continue to have a strong balance sheet with cash and liquid investments of Rs 50797 crore as on 31 March 2014 which is mostly invested in debt related mutual funds, bank deposits and bonds, Sesa Sterlite said.
Sesa Sterlite said that the Board of Directors of the company at its meeting held today, 29 April 2014, have recommended final dividend of Rs 1.75 per share for the year ended 31 March 2014.
Sesa Sterlite is a subsidiary of Vedanta Resources plc, a London-listed company. Sesa Sterlite is one of the world's largest diversified natural resources companies. The company's business primarily involves exploring, extracting and processing minerals and oil & gas. The company produces oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power and has a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka. Sesa Sterlite has a strong position in emerging markets with over 80% of its revenues from India, China, East Asia, Africa and the Middle East.
Powered by Capital Market - Live News