Sterlite Industries (India) rose 1.68% to Rs 81.65 at 09:23 IST on BSE as proposed merger of the company with Sesa Goa and Vedanta Group consolidation and simplification received the approval of the High Court of Madras on 25 July 2013.
Meanwhile, the BSE Sensex was up 24.54 points, or 0.12%, to 19,829.30.
On BSE, 49,606 shares were traded in the counter as against an average daily volume of 4.55 lakh shares in the past one quarter.
The stock hit a high of Rs 82.20 and low of Rs 80.40 so far during the day. The stock had hit a 52-week high of Rs 123.35 on 3 January 2013. The stock had hit a 52-week low of Rs 75.90 on 25 June 2013.
The stock had underperformed the market over the past one month till 25 July 2013, rising 4.22% compared with the Sensex's 6.31% gain. The scrip had also underperformed the market in past one quarter, sliding 11.12% as against Sensex's rise of 2.05%.
The large-cap company has an equity capital of Rs 336.12 crore. Face value per share is Re 1.
Sterlite Industries (India)'s consolidated net profit fell 22% to Rs 934 crore on 23% fall in net sales/income from operations to Rs 8190 crore in Q1 June 2013 over Q1 June 2012. The company announced the result after market hours Thursday, 25 July 2013.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) declined 7% to Rs 2173 crore in Q1 June 2013 over Q1 June 2012. Sterlite said EBITDA was lower primarily on account of a temporary closure of the Tuticorin copper smelter, which was partially offset by higher power generation at the Jharsuguda 2,400 megawatts (MW) power plant and higher production at Zinc India. Temporary closure of the Tuticorin smelter negatively impacted EBITDA by Rs 180 crore. The profit after tax (PAT) and basic EPS were impacted by lower EBITDA and higher losses at associate. Higher interest cost on borrowings was largely offset by increase in other income.
Following the Tamil Nadu Pollution Control Board's (TNPCB) order for closure of the Tuticorin copper smelter on 29 March 2013, the National Green Tribunal (NGT) after hearing company's appeal, passed an interim order on 31 May 2013, conditionally allowing the smelter to recommence operations, and the plant restarted on 23 June 2013. On 15 July 2013, an expert committee confirmed that the plant meets the prescribed standards, and the NGT in its order of even date took cognizance of the findings of the expert committee and observed that the company "is neither an existing pollutant nor is a threat of future pollution (not violating prescribed standards) resulting in health hazards", and declined to modify its earlier interim order dated 31 May 2013, enabling the plant to continue to operate. Separately, the TNPCB has also filed an appeal against the NGT's earlier interim order before the Supreme Court.
Meanwhile, Sterlite Industries (India) said after market hours on Thursday, 25 July 2013 that the proposed merger of the company with Sesa Goa and Vedanta Group consolidation and simplification has received the approval of the High Court of Madras on 25 July 2013 and the High Court of Bombay at Goa on 3 April 2013. One of the shareholders of Sesa Goa has filed an appeal against the order passed dated 3 April 2013 by the High Court of Bombay at Goa before the Division Bench. The hearing before the Division Bench has been completed and the order of the Division Bench is awaited.
Sterlite Industries (India) is India's largest diversified metals and mining company. The company produces aluminium, copper, zinc, lead, silver and commercial energy.
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