Sesa Sterlite posts 15.5% rise in net on higher other income

Written by fe Bureau | Mumbai | Updated: Oct 30 2014, 09:31am hrs
Sesa Sterlite, the flagship company of Vedanta Resources, on Wednesday posted a 15.5% rise in consolidated attributable net profit for the quarter ended September 30, supported by a higher other income and the improved performance of aluminium and copper business.

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The companys attributable net profit (excluding exceptional items) for the July-September quarter stood at R1,658 crore against a bottomline of R1,436 crore (on proforma adjusted basis) reported a year earlier. However, the earnings are not strictly comparable with the year earlier because of the Sesa Sterlite merger and the Vedanta Group consolidation in August 2013.

The companys consolidated net profits were boosted by a 24% decline in outgo towards minority interest at R1,528 crore, on back of an improved performance at standalone level. Also, a 49% rise in other income to R686 crore aided the earnings growth.

The consolidated net sales rose by 8% y-o-y to R19,448 crore driven by improved volumes in the copper segment and higher LME prices and premia in the zinc and aluminium business.

Copper cathode production rose 22% y-o-y with the Tuticorn smelter delivering record volumes post planned maintenance shutdown for 23 days in the previous sequential quarter. This helped the copper segment revenues to rise by 31% y-o-y to R6,286 crore. The alumunium revenues went up by 24% to R3,459 crore led by a higher LME aluminium price that rose 12% y-o-y while the zinc India business revenues rose 6% to R3,682 crore aided by a 24% rise in LME zinc price. Cairn India revenues, however, declined by 14% due to planned shutdown and lower brent crude price. Also, the company mentioned that the production at Ravva was lower by 29% at 20,596 boepd in the quarter on account of gas sales there being suspended since July 4 till October 14 due to an unplanned maintenance activity at one of its customers place.

The operating profit or Ebitda, however, declined by 8% due to weaker crude prices and lower volumes in high margin zinc and oil and gas segments.

Sesa Sterlite said it has written off R45-crore expenditure towards the coal block at Balco which was one of the 214 coal blocks cancelled by the SC as an exceptional item. The block was at advanced stages of approvals but had not commenced mining.

Gross debt reduced by R500 crore to R79,526 crore even as the companys net debt remained constant at R32,419 crore.