Sesa Sterlite Q3 consolidated PAT down 11% to Rs 1,588 cr

Sesa Sterlite today posted 11% dip in consolidated profit after tax during the third quarter of the current fiscal at Rs 1,588 crore subdued oil prices lowered income.

The company, led by NRI billionaire Anil Agarwal, had reported Rs 1,780 crore "attributable profit after tax before exceptional item" during the October-December quarter of the last fiscal.

The company, however, said as Sesa Sterlite merger and the Vedanta Group consolidation was completed in August, 2013, the third quarter performance was compared with the adjusted proforma numbers of respective periods, which are more representative of the performance during the period.

Revenue of the company was down by 1% to Rs 19,128 crore during the quarter, driven by a decline in the prices of oil, copper, lead and silver. This was partly offset by stronger zinc and aluminium prices.

"We have delivered sustained performance in the third quarter despite the challenging markets. Strong operating performance of aluminium and zinc businesses led to reduction in gross debt by Rs 400 crore," said company CEO Tom Albanese.

Hinting that the company might prune its proposed capital expenditure plan, he said, "We are focused on disciplined capital allocation, coupled with deferred and phased development spending in zinc, oil and gas and other businesses which will help optimise our assets and drive strong cash flow in the near future."

EBITDA margin, excluding custom smelting, during the third was strong at 43% on the back of higher volumes and lower cost. The better operating performance and benefit of currency depreciation was more than offset by lower brent and commodity prices, it said.