Sesa Sterlite fell 2.41% to Rs 283.30 at 9:55 IST on BSE after consolidated profit after tax dropped 9.35% to Rs 375.56 crore on 4706.58% growth in total income to Rs 18466.88 crore in Q1 June 2014 over Q1 June 2013.
The result was announced on Tuesday, 29 July 2014, when stock market was closed on account of Ramzan ID.
Meanwhile, the BSE Sensex was down 21.39 points, or 0.08%, to 25,969.84.
On BSE, so far 80,000 shares were traded in the counter, compared with an average volume of 14.50 lakh shares in the past one quarter.
The stock hit a high of Rs 286.25 and a low of Rs 282.40 so far during the day. The stock hit a 52-week high of Rs 318.40 on 6 June 2014. The stock hit a 52-week low of Rs 119.45 on 31 July 2013.
The stock had underperformed the market over the past one month till 28 July 2014, rising 0.36% compared with 3.55% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 50.38% as against Sensex's 14.84% rise.
The large-cap company has an equity capital of Rs 296.47 crore. Face value per share is Re 1.
The Sesa Sterlite merger and the Vedanta Group consolidation was completed in August 2013. Therefore, the results for Q1 June 2014 are not comparable with the results of Q1 June 2013.
In a press release, Sesa Sterlite issued adjusted proforma numbers for Q1 June 2013 which are more representative of the performance during the period. Based on these adjusted figures, attributable PAT before exceptional items more than doubled to Rs 1341 crore in Q1 June 2014, from Rs 600 crore in Q1 June 2013. Revenue jumped 19% to Rs 17056 crore in Q1 June 2014 over Q1 June 2013. The increase was primarily due to Sterlite Copper which was under temporary closure in Q1 June 2013. Cairn India also witnessed increase in revenue due to higher average oil prices though offset partially by higher profit petroleum. Revenue of the aluminium business was higher on better premium, partially offset by a weaker market and lower realisations in the power business. Operations at the Australian copper mines were suspended since January 2014 and the mine has been put under care and maintenance in July 2014. Other businesses were almost flat compared to Q1 June 2013.
Earnings before interest, taxation, deprecation and amortization (EBITDA) rose 3.5% to Rs 5670 crore in Q1 June 2014 over Q1 June 2013. While favourable oil prices, LME, premiums, and currency depreciation helped increase EBITDA, lower volumes in zinc and power, higher cost of production, higher profit petroleum, and Australian mines closure resulted in a modest EBITDA increase of 3.5%. EBITDA margin, excluding custom smelting operations of copper and zinc in India, remained strong at 47% in Q1 June 2014, higher than 45% in Q1 June 2013.
The company said it has a strong balance sheet with cash and cash equivalents of over Rs 47500 crore.
Mr. Navin Agarwal, Chairman, Sesa Sterlite said: "The outlook for the natural resources sector and for Sesa Sterlite is positive as the government is looking at formulating forward looking policies which will help harness production and grow the potential of the company's businesses. The natural gas development project pursued by Cairn India is a good example of the company's focus as a key growth area for the future."
Sesa Sterlite said that iron ore operations at its mines in Goa continue to remain suspended. The Goa state government is working towards formulation of its mining policy following the Supreme Court order of March 2014. Sesa Sterlite expects to resume mining operations at Goa in the second half of the current financial year after obtaining the necessary approvals.
Sesa Sterlite said that its alumina refinery expansion project at Lanjigarh is on hold. The company said its fresh application for environmental clearance for this project is under process and the public hearing is scheduled on 30 July 2014.
Sesa Sterlite is one of the world's largest diversified natural resources companies. Its 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 have 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. Sesa Sterlite is a subsidiary of Vedanta Resources plc, a London-listed company.
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