Sesa Sterlite posts Rs 1,619-cr profit in second quarter

Sesa Sterlite today reported Rs 1,619 crore consolidated net profit in July-September quarter this fiscal on the back of Rs 19,448.14 crore net sales.
The metal, mining and oil and gas major had reported Rs 2,394 crore net profit after tax, minority interest and consolidated share in profit of associates in the same quarter last fiscal while net sales were at Rs 25,170.66 crore, it said in a BSE filing.
The NRI billionaire Anil Agarwal-led firm, however, said the results are not comparable as Sesa Sterlite was created in August last year following a merger of Sterlite Industries and several other entities of Vedanta group into Sesa Goa last year in August.

"Main performance drivers during the quarter were copper, aluminium and zinc India businesses; while oil & gas production in Rajasthan has normalised after completion of maintenance shutdown at the Mangala processing terminal," said Group CEO Tom Albanese in a statement.
Revenues of the company were mainly driven by improved volumes at its Indian copper business. Higher prices of aluminium and zinc helped as also its iron ore business due to better pig iron output and sale.
Revenue from Cairn India, however, dipped due to lower volumes resulting from a planned shutdown.

"Margins were lower due to oil and gas given the weaker crude oil prices. Better price in Zinc and Aluminium were offset by higher cost due to lower volumes and higher input costs in aluminium," Sesa Sterlite said.

The company reduced its gross debt by around Rs 500 crore at Rs 79,526 crore as at Sept 30. It has Rs 47,107 crore cash, cash equivalents and liquid investments. The company Board has recommended an interim dividend of Rs 1.75 per share.
Albanese said second half of the current fiscal would be better for the company as zinc production will be better than first half. There would be higher value of production from Cairn India following scheduled maintenance shutdowns. Same is the case with Indian copper business.
"So they will have higher value of production in second half, that will benefit in in the second half. In second half, iron ore operations should resume in Goa," he added.

Meanwhile, Sesa Sterlite Ltd informed BSE that its Board of Directors has approved an interim dividend of Rs 1.75 (i.E. 175 per cent) per equity share on face value of Re. 1/- each.
Shares of Sesa Sterlite jumped 2.12 per cent to end at Rs 255.55 apiece on the BSE today.