Hindustan Zinc, Cairn India lift profits of Vedanta Group's Sesa Sterlite

Nov 01 2013, 10:46 IST
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SummaryVedanta Group's Sesa Sterlite posted a 20.33% jump in revenues.

Sesa Sterlite, the diversified natural resources company of the Vedanta Group, posted a 20.33% jump in revenues and a 133.66% jump in net profit for the quarter ended September, compared with the first quarter of the current fiscal.

The proforma revenues for the quarter was R18,026 crore, compared with R14,361 crore in Q1 of the current fiscal, while its profit after tax stood at R1,402 crore, compared with R600 crore in Q1, primarily due to higher Ebitda with the Ebitda margin at 49% in Q2 FY14, against 45% in Q1 FY14.

The proforma numbers usually are anticipated results based on the current cash flow and earnings of a company and are usually used when a merger or acquisition happens in the mid of an accounting year and cannot be strictly comparable.

In Sesa Sterlite results, the numbers are compared with Q1 as the adjusted proforma numbers for Q2 FY14 are in contrast to the adjusted proforma numbers for Q1 FY14 as reported by the company.

In fact, the real push in the financials came due to the results posted by Hindustan Zinc and Cairn India, as both the companies experienced higher volumes and the positive impact of rupee depreciation.

Also, a company note said that the revenues increased primarily on account of resumption of operations at Tuticorin copper smelter, rupee depreciation and higher volumes at most of the businesses.

Proforma Ebitda for the quarter ended September was R6,955 crore, compared with R5,479 crore in Q1.

This increase was primarily on account of higher volumes and rupee depreciation as also the increase in Ebitda at Cairn India by R570 crore, Zinc India by R399 crore, Copper India by R336 crore and other business by R171 crore.

Apart from Hindustan Zinc and Cairn India, other businesses such as Vedanta Aluminium and iron ore operations of Sesa Goa continued to be a laggard with the company refraining from giving any concrete guidance on them.

“We are actively pursuing other sources of bauxite in Orissa and are engaged with the government,” head of the company’s aluminium business SK Roongta said.

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