Sterlite Industries (India) jumped 5.18% to Rs 80.25 at 12:14 IST on BSE after the company said that the National Green Tribunal upheld its interim order of 31 May 2013 and allowed the company's Tuticorin Copper Smelter to continue operations.
The company made the announcement after market hours on Thursday, 8 August 2013.
Meanwhile, the S&P BSE Sensex was up 185.01 points, or 0.98%, to 18,974.35.
On BSE, 2.10 lakh shares were traded in the counter as against an average daily volume of 417239 shares in the past one quarter.
The stock hit a high of Rs 80.25 and a low of Rs 76.35 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 70 on 6 August 2013.
The stock had underperformed the market over the past one month till 8 August 2013, sliding 7.68% compared with the Sensex's 2.77% fall. The scrip had also underperformed the market in past one quarter, falling 22.77% as against Sensex's 6.01% fall.
The large-cap company has an equity capital of Rs 336.12 crore. Face value per share is Re 1.
Sterlite Industries (India) said that the National Green Tribunal (NGT) on 8 August 2013 affirmed its 31 May 2013 interim order allowing to continue operations at the company's copper smelting plant in Tuticorin district of Tamil Nadu.
The company said it welcomed the judgment and shall implement all recommendations laid down by the NGT-appointed expert committee in a time bound manner. The company said it would work closely with the regulatory authorities and the Government and would continue to ensure the highest environment standards at its operations.
The closure of Sterlite's copper plant was ordered on 29 March 2013 by the Tamil Nadu Pollution Control Board (TNPCB) following allegations that leakage of sulphur dioxide gas from the unit on 23 March 2013, caused serious ailments in the residents of Tuticorin town, located eight kilometeres away.
Following the TNPCB's order for closure of the Tuticorin copper smelter on 29 March 2013, the 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 met 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.
Sterlite Industries (India)'s consolidated net profit fell 22% to Rs 934 crore on 23% fall net sales/income from operations to Rs 8190 crore in Q1 June 2013 over Q1 June 2012.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) declined 7% to Rs 2173 crore in Q1 June 2013 over Q1 June 2012. Sterlite said revenue and EBITDA were 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.
Sterlite Industries (India) is India's largest diversified metals and mining company. The company produces aluminium, Copper, zinc, lead, silver, and commercial energy and has operations in India, Australia, Namibia, South Africa and Ireland. The company has a strong organic growth pipeline of projects.
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