Sterlite profits from higher volumes

CORPORATE SCORECARD

Sterlite Industries (India), a leading mining and metals company, today announced 41 per cent increase in consolidated quarterly net profit on higher volumes and better price realisation. The company's net profit in the three months ended March 31, 2007, went up to Rs 1,144 crore against Rs 813 crore in the corresponding period last year.

The net sales during the period grew by 23 per cent to Rs 6,252 crore from Rs 5,100 crore last year, while operating profit rose by 24 per cent to Rs 2,520 crore from Rs 2,032 crore.

The company recorded a better performance in all three major products "" copper, aluminium and zinc. Copper production in the last quarter of the year went up by 19 per cent to 89,000 tonnes from 75,000 tonnes, driving revenue up by 19 per cent to Rs 2,943 crore. Revenue from aluminium grew by 50 per cent to Rs 1,279 crore while that of zinc increased by 14 per cent to Rs 2,030 crore.

The financial year's consolidated performance was even better. The company registered a 169 per cent growth in net profit to Rs 4,387 crore from Rs 1,629 crore in 2005-06. The net sales increased by 86 per cent to Rs 24,387 crore.

However, standalone results for the country's largest copper producer were not good in the quarter ended March 31, 2007. It registered a 13 per cent decline in quarterly profit on lower income from treatment and refining operations. The net profit during the period went down to Rs 209 crore from Rs 240 crore in the corresponding previous period. The net sales in the three months ended March 31 went up by 18 per cent from Rs 2,515 crore to Rs 2,945 crore.

Sources in the London-based Vedanta Resources, which holds 72 per cent stake in Sterlite, said the consolidated results were the real indicators as it included its major subsidiaries Bharat Aluminium and Hindustan Zinc. Sterlite holds 51 per cent stake in Bharat Aluminium and 65 per cent in Hindustan Zinc.

A metal analyst said Sterlite's net sales of Rs 24,387 crore were so far the second highest in the private sector, after Reliance Industries. Its consolidated net profit of Rs 6,546 crore had been growing at a CAGR of 125 per cent over the last five years.