Regulatory Story
Go to market news section View chart   Print
Company Vedanta Resources PLC
TIDM VED
Headline

Sterlite Industries announces Q3 FY2013 results

Released 10:36 29-Jan-2013
Number 5835W10

RNS Number : 5835W
Vedanta Resources PLC
29 January 2013
 



 

29 January 2013

Vedanta Resources plc
Sterlite Industries (India) Limited announces Unaudited Consolidated Results for the Third Quarter and Nine Months Ended 31 December 2012

The following release was issued today by Vedanta Resources Plc's subsidiary Sterlite Industries (India) Limited.

 

                                                                                                                                                                        29 January 2013

 

Sterlite Industries (India) Limited

Unaudited Consolidated Results for the Third Quarter and

Nine Months Ended 31 December 2012

 

Mumbai, India: Sterlite Industries (India) Limited ("Sterlite" or the "Company") today announced its results for the Third Quarter (Q3) and Nine Months ended 31 December 2012.

 

 

 Q3 Highlights

 

 

Financials

n Attributable PAT and Earnings per share up 30% at Rs. 1,191 Crore and Rs. 3.5 per share, respectively

n Strong balance sheet with cash and liquid investments of Rs. 23,472 crore

 

 

Operations

n Mined metal production up 11% and integrated silver production up 8% at Zinc India

n Next phase of mining growth to 1.2 mtpa of zinc-lead capacity announced at Zinc India

n Strong operational performance at Aluminium smelters, producing above rated capacity

n Vizag Coal Berth obtained provisional Commercial Operations Declaration (COD) and expected to commence operations in the current quarter

 

 

Mr. Anil Agarwal, Chairman, Sterlite Industries (India) Ltd. : "Sterlite Industries continues to maintain its strong performance and leadership position.  We have substantially improved our efficiencies, operational performance and metal production across businesses. Zinc India is poised for the next phase of growth as we embark on a major exploration drive using best in class technology and global expertise."

 Consolidated Financial Performance

 


Q3

Q2

Nine months period

Particulars (In Rs. Crore, except as stated)

FY2013

FY2012

% change YoY

FY2013

FY2013

FY2012

% change YoY

Net Sales/Income from operations

10,692

10,249

4%

11,029

32,313

30,210

7%

EBITDA

2,375

2,363

1%

2,538

7,252

7,672

(5%)

Interest expense

227

200

-

178

646

602

-

Forex (loss)/gain

(63)

(300)

-

219

(61)

(489)

-

Profit before Depreciation and Taxes

2,896

2,616

11%

3,416

9,110

8,766

4%

Depreciation

538

461

-

522

1,578

1,327

-

Profit before Exceptional items

2,358

2,155

-

2,894

7,531

7,439

-

Exceptional Items

-

6

-

-

-

41

-

Taxes

356

505

-

511

1,200

1,624

-

Profit After Taxes

2,003

1,643

22%

2,383

6,331

5,775

10%

Minority Interest

585

466

-

579

1,742

1,611

-

Share in Profit/(Loss) of Associate

(226)

(264)

-

(61)

(453)

(612)

-

Attributable PAT after exceptional item

1,191

914

30%

1,743

4,136

3,551

16%

Basic Earnings per Share (Rs./share)

3.5

2.7

-

5.2

12.3

10.6

-

Underlying Earnings per Share*(Rs./share)

3.7

3.6

-

4.7

12.4

12.1

-

Exchange rate (Rs./$) - Average

54.1

51.0

-

55.2

54.5

47.2

-

Exchange rate (Rs./$) - Closing

54.8

53.3

-

52.7

54.8

53.3

-

 

*Before forex and exceptional items

 

 

Q3 EBITDA was in line with the corresponding prior quarter at Rs. 2,375 crore, reflecting improved operational efficiencies, marginally higher metal prices and premiums and improved sales realization due to INR depreciation, which were partially offset by lower by-product realizations. Q3 FY2013 EBITDA was lower compared to Q2 FY2013, impacted by lower power sales and lower by-product credits.

 

Improved operational performance and lower foreign exchange losses at Vedanta Aluminium Limited decreased Sterlite's share of loss of associate by 14% during Q3 compared with the corresponding prior quarter.

 

Depreciation cost during Q3 was higher compared with the corresponding prior quarter on account of capitalization of new plants at Zinc India and Sterlite Energy Limited.

 

Interest cost in Q3 FY2013 was higher as compared to the corresponding prior quarter and Q2 FY2013 due to capitalisation of new plants and increased borrowings.

 

Attributable PAT and Basic EPS were Rs. 1,191 crore and Rs. 3.5 per share for Q3, up 30% and were Rs. 4,136 crore and Rs. 12.3 per share for the nine months period, up 16%.

 

The company continued to maintain a strong balance sheet with cash and liquid investment of
Rs. 23,472 crore as on 31 December 2012.

 

 

Merger of Sterlite and Sesa Goa Limited and Vedanta Group Consolidation 

 

The transaction has received approvals of respective companies' equity shareholders, the Stock Exchanges in India and the Competition Commission of India. Approvals of Foreign Investment Promotion Board and the Supreme Court of Mauritius have been received for the merger of Ekaterina Limited with Sesa Goa Limited. The hearings at the High Court of Madras have been completed and the order is awaited. The hearings at the High Court of Bombay at Goa are in progress.

 

 

 Zinc - India Business

 


Q3

Q2

Nine months period

Production (in'000 tonnes, or as stated)

FY2013

FY2012

% change YoY

FY2013

FY2013

FY2012

% change YoY

   Mined metal content

233

209

11%

190

610

607

-

   Refined Zinc - Total

171

191

(10%)

163

495

569

(13%)

   Refined Zinc - Integrated

168

188

(10%)

153

479

563

(15%)

   Refined Zinc - Custom

3

3

-

10

17

6

-

   Refined Lead - Total 1

32

29

11%

27

90

62

45%

   Refined Lead - Integrated

22

25

(11%)

24

75

58

29%

   Refined Lead - Custom

10

4

-

3

15

4

-

   Silver - Total (in tonnes) 2

117

58

103%

92

290

154

89%

   Silver - Integrated (in tonnes)

62

58

8%

80

222

154

44%

   Silver - Custom (in tonnes)

55

-

-

12

68

-

-









Financials (In Rs. crore, except as stated)








Revenue

3,117

2,726

14%

2,746

8,504

8,070

5%

EBITDA

1,484

1,380

8%

1,408

4,241

4,359

(3%)

PAT

1,629

1,278

27%

1,497

4,668

4,087

14%

Zinc CoP without Royalty (Rs./MT)

44,900

40,300

11%

46,750

45,700

39,400

16%

Zinc CoP without Royalty ($/MT)

829

785

6%

844

838

836

-

Zinc CoP with Royalty ($/MT)

993

944

5%

999

999

1,015

(2%)

Zinc LME Price ($/MT)

1,947

1,897

3%

1,885

1,920

2,123

(10%)

Lead LME Price ($/MT)

2,199

1,983

11%

1,975

2,051

2,328

(12%)

Silver LBMA Price ($/oz)

33

32

3%

30

31

36

(15%)

 

1.     Includes captive consumption of 1,647 tonnes in Q3 FY2013 vs. 1,730 tonnes in Q3 FY2012, and 4,723 tonnes in nine months period FY2013 vs. 4,469 tonnes in nine months period FY2012.

2.     Includes captive consumption of 8 tonnes in Q3 FY2013 vs. 9 tonnes in Q3 FY2012, and 25 tonnes in nine months period FY2013 vs. 24 tonnes in nine months period FY2012.

 

 

Mined metal production was 11% higher in Q3, as compared with the corresponding prior quarter. Compared to Q2 FY2013 mined metal production was 22% higher in Q3. As guided previously, we expect higher mined metal production during the full year FY2013 as compared with the previous year.

 

In line with the mine-plan, mined metal production was lower in first half of FY2013 resulting in a lower integrated zinc production in Q3 as compared with the corresponding prior quarter. However, compared to Q2 FY2013, integrated zinc production was 10% higher in Q3, and is expected to increase further in Q4 FY2013.

 

Integrated lead production was 11% lower in Q3 FY2013. However, total refined lead production was 11% higher.

 

Integrated silver production was 8% higher in Q3 driven by production ramp-up at SK mine and improved utilisation of lead-silver refining capacities.

 

EBITDA for Q3 was 8% higher due to higher refined lead and silver volumes, higher metal prices and depreciation of the Indian Rupee, partially offset by lower refined zinc volumes and higher CoP. CoP was higher on account of lower by-product credits and lower volumes, partially offset by operational efficiencies and lower coal prices.

 

PAT for Q3 was 27% higher compared with the corresponding prior period primarily on account of higher investment income.

 

The Board of Directors of Hindustan Zinc has approved the next phase of growth. Zinc India has been actively conducting exploration, which increased net Reserve and Resource across all mines to 332.3 mt of ore as at end FY 2012. Based on a long-term evaluation of assets and in consultation with mining experts, Zinc India has finalised plans for the next phase of growth, which will involve sinking of underground shafts and developing underground mines. The plan comprises developing a 3.75 mtpa underground mine at Rampura Agucha and expanding the Sindesar Khurd mine from 2.0 mtpa to 3.75 mtpa, Zawar mines from 1.2 mtpa to 5.0 mtpa, Rajpura Dariba mine from 0.6 mtpa  to 1.2 mtpa and Kayad mine from 0.35 mtpa to 1.0 mtpa. It will also involve the opening up of a small new mine at Bamnia Kalan in the Rajpura Dariba belt.

 

The growth plan will increase mined metal production capacity to 1.2 mtpa Metal in Concentrate (MIC). These mines will be developed using the best-in-class technology and equipment, and in consultation with leading global mine experts, ensuring highest level of productivity. The projects will be completed in six years and the benefit of growth projects will start flowing in from the third year, even as projects will continue till FY2019. Annual capital expenditures for these projects will average US$250 million a year over next six years (totalling approximately Rs. 8,000 Crores).


Zinc - International Business

 


Q3

Q2

Nine months period

Production (in'000 tonnes, or as stated)

FY2013

FY2012

% change YoY

FY2013

FY2013

FY2012

% change YoY

Refined Zinc - Skorpion

36

34

7%

37

109

109

-

Mined metal content- BMM and Lisheen

68

71

(4%)

77

215

228

(6%)

Total

104

105

-

114

324

337

(4%)

Financials (In Rs.  Crore, except as stated)








Revenue1

1,065

1,030

3%

1,125

3,201

3,251

(2%)

EBITDA

439

373

18%

392

1,169

1,365

(14%)

PAT

226

235

(4%)

210

627

844

(26%)

CoP - ($/MT)

1,095

1,188

(8%)

1,053

1,091

1,237

(12%)

Zinc LME Price ($/MT)

1,947

1,897

3%

1,885

1,920

2,123

(10%)

Lead LME Price ($/MT)

2,199

1,983

11%

1,975

2,051

2,328

(12%)

  

1.     Includes intercompany sales to Zinc India of Rs. 153 crore in nine months period FY 2012.

 

Zinc International delivered a total production of refined zinc and mined zinc-lead metal MIC of 104,000 tonnes in Q3.

 

EBITDA for Q3 was 18% higher compared with the corresponding prior quarter mainly due to higher zinc and lead LME prices and lower CoP.

 

 

 Copper - India / Australia Business

 


Q3

Q2

Nine Months period

Production (in'000 tonnes, or as stated)

FY2013

FY2012

% change YoY

FY2013

FY2013

FY2012

% change YoY

Copper - Mined metal content

6

6

8%

6

19

17

11%

Copper -  Cathodes

92

84

9%

87

267

245

9%









Financials (In Rs. crore, except as stated)








Revenue

5,164

5,130

1%

5,417

15,882

15,068

5%

EBITDA

234

426

(45%)

342

842

1,196

(30%)

Foreign Exchange gain/(loss)

(92)

(122)

25%

161

(151)

(234)

35%

PAT

147

347

(58%)

475

718

1,033

(31%)

Tc/Rc (US¢/lb)

12.4

15.9

(22%)

11.3

12.0

14.3

(16%)

Net CoP - cathode (US¢/lb)

10.8

2.4

-

7.1

7.8

(1.4)

-

Copper LME Price ($/MT)

7,909

7,489

6%

7,706

7,827

8,531

(8%)

 

 

Copper cathode production was 92,000 tonnes in Q3, 9% higher than the corresponding prior period. Mined metal production at Australia was at 6,000 tonnes in Q3, in-line with the corresponding prior period.

 

EBITDA for Q3 was 45% lower compared with the corresponding prior quarter on account of lower sulphuric acid realisations, lower contribution from phosphoric acid operations and lower Tc/Rc, partially offset by increase in volumes. Demand for phosphoric acid and sulphuric acid remains low and we anticipate lower acid realisations in the current quarter as well.

 

The first 80MW unit of the 160MW captive power plant at Tuticorin was commissioned in Q3 and is currently operating at 80% PLF. The second 80MW unit is expected to be synchronized in Q1 FY2014.

 

 

Aluminium Business - BALCO 

 


Q3

Q2

Nine months period

Production (in'000 tonnes, or as stated)

FY2013

FY2012

% change YoY

FY2013

FY2013

FY2012

% change YoY

Aluminium

62

63

-

63

185

184

1%









Financials (In Rs. crore, except as stated)








Revenue

832

801

4%

859

2,472

2,243

10%

EBITDA

64

36

77%

95

216

305

(29%)

PAT

(8)

(17)

52%

32

18

110

(84%)

CoP ($/MT)

1,995

1,880

6%

1,970

1,958

1,984

(1%)

CoP (Rs./MT)

108,000

98,200

10%

108,800

106,800

95,400

12%

Aluminum LME Price ($/MT)

1,997

2,090

(4%)

1,918

1,964

2,360

(17%)

 

 

The Korba-II smelter operated above its rated capacity and continues to convert all of its primary metal into value added products.

 

EBITDA during Q3 was higher compared with the corresponding prior quarter, primarily on account of higher premiums, which more than offset the impact of higher CoP in rupee terms and lower LME prices.

 

Q3 aluminium CoP was higher as compared with the corresponding prior quarter on account of higher alumina cost and higher coal prices due to tapering of coal linkage.

 

The first 300MW unit of the BALCO 1,200MW captive power plant is awaiting regulatory approvals. We plan to tap the first metal at the 325 ktpa Korba-III aluminium smelter in Q1 FY2014. The smelter plans to initially draw power from the existing 810 MW power plants.

 

For the 211mt coal block at BALCO, we have received the second stage forest clearance during the quarter and expect to commence mining in Q1 FY2014.

 

Aluminium Business - Vedanta Aluminium Limited (Associate Company)


 

 


Q3

Q2

Nine months period

Production (in'000 tonnes, or as stated)

FY2013

FY2012

% change YoY

FY2013

FY2013

FY2012

% change YoY

 Alumina - Lanjigarh

104

236

(56%)

205

527

687

(23%)

 Aluminum - Jharsuguda

135

111

21%

134

394

314

25%









Financials (in Rs. crore except as stated)








Revenue

1,713

1,444

19%

1,819

5,213

4,117

27%

EBITDA

248

102

143%

225

736

341

116%

Forex gain/(loss)

(295)

(339)

13%

280

(131)

(544)

76%

PAT

(766)

(893)

14%

(206)

(1,537)

(2,076)

26%

SIIL Share (29.5%)

(226)

(263)

14%

(61)

(453)

(612)

26%

Aluminium CoP ($/MT)

1,928

2,004

(4%)

1,905

1,892

2,280

(17%)

Aluminium CoP (Rs./MT)

104,400

103,100

1%

105,300

103,200

107,500

(4%)

Aluminium LME Price ($/MT)

1,997

2,090

(4%)

1,918

1,964

2,360

(17%)

 

 

During the quarter, we temporarily suspended operations at the Lanjigarh alumina refinery due to lower availability of bauxite. VAL is in discussions with the concerned authorities and other stakeholders for sourcing of bauxite from Orissa and other states to restart the refinery operations. We produced 104,000 tonnes of Alumina during the quarter as compared with 236,000 tonnes during the corresponding prior quarter.

 

The Jharsuguda-I smelter operated above its rated capacity. Aluminium production was 21% higher in Q3 as compared with the corresponding prior period on account of full capacity utilization and higher operational efficiencies.

 

Q3 Aluminium CoP was stable in rupee terms due to better operational efficiencies, lower power consumption and lower coal cost despite increased cost of alumina. VAL achieved the best quarterly operational efficiency, and CoP remained in the lower half of the global cost curve.

 

Q3 EBITDA was significantly higher than the corresponding prior quarter, on account of higher production and higher metal premiums. EBITDA margin also improved due to higher conversion of primary metal into value added products. 46% of primary metal was converted to value added products in Q3 compared to 40% last year.

 

PAT during the quarter improved due to higher EBITDA and lower mark to market loss on foreign currency borrowings as compared to the corresponding prior quarter.

 

Status of Investment in Vedanta Aluminium Limited as at 31 December 2012

 

Investment in VAL (Rs. Crore)

Sterlite

Vedanta

External

Total

Equity

563

1,391

-

1954

Preference Shares

3,000

-

-

3,000

Quasi Equity / Debt

8,140

853

18,210

27203

Total Funding

11,703

2,244

18,210

32,157

Corporate Guarantees

6,538

23,271

-

29,809

 

 

Power Business

 


Q3

Q2

Nine months period

Particulars (in million units)

FY2013

FY2012

% change YoY

FY2013

FY2013

FY2012

% change YoY

Total Power Sales

1,916

1,997

(4%)

2,474

6,848

5,412

27%

SEL 1

1,578

1,559

1%

1,940

5,457

3,964

38%

Balco 270MW Power Sales

275

382

(28%)

346

959

1,192

(20%)

HZL Wind Power

62

56

12%

188

432

256

69%









Financials (in Rs. crore except as stated)








Revenue 2

520

574

(9%)

885

2,267

1,775

28%

EBITDA

155

147

5%

300

784

447

75%

PAT

(28)

35

(180%)

113

168

108

55%

Average Power CoP (Rs./unit)

2.29

2.47

(7%)

2.22

2.16

2.50

(14%)

Average Power Realization (Rs./unit)

3.35

3.44

(3%)

3.45

3.42

3.60

(5%)

SEL CoP (Rs./unit)

2.22

2.64

(16%)

2.31

2.23

2.78

(20%)

SEL realization (Rs./unit)

3.31

3.49

(5%)

3.42

3.43

3.70

(7%)

 

1.     Includes production under trial run of 456 million units in Q3 FY2013 vs. 428 million units in Q3 FY2012, and 795 million units in nine months period FY2013 vs. 717 million units in nine months period FY2012.

2.     Includes intercompany sale of Rs. 4 crore in nine months period FY2012.

 

 

Power sales were at 1,916 million units in Q3, 4% lower than last year. During the quarter, PLF was 31%, considering three commissioned units of the 2,400MW Jharsuguda power plant, constrained by continued evacuation limitations that were imposed after the Northern and Eastern region grid failure in August 2012.

 

The evacuation capacity has improved with the charging of a shared 1,000MW Raipur-Wardha transmission line in January 2013, and PLFs for the 3 commissioned units are expected to be around 50% in Q4 FY2013. The fourth unit is currently under trial run, and is expected to be stabilised by the end of the current quarter.

 

Power sales at the Balco 270 MW plant were 28% lower in Q3 due to similar evacuation constraints.

 

Inspite of lower sales realisation, EBITDA for Q3 was marginally higher due to lower power generation cost at SEL.

 

Work at the Talwandi Sabo power project is progressing well and the first unit is expected to be synchronized in Q2 FY2014.

 

 

 Port Projects

 

In October 2010, we had been awarded a 30-year concession to upgrade the coal berth at Vishakhapatnam Port to 10.18mtpa (Coal Berth mechanization project) and operate it. This is being implemented at a total project cost of $150mn through Vizag General Cargo Berth Private Limited (VGCB), a 74:26 joint venture between Sterlite Industries (India) Ltd. and Leighton Welspun Contractors Private Ltd. VGCB has obtained provisional Commercial Operations Declaration and is expected to commence operations in the current quarter.

 

Cash, Cash Equivalents and Liquid Investment 

The company continues to follow a conservative investment policy and invests in high quality debt instruments in the form of mutual funds, bonds and fixed deposits with banks. As at 31 December 2012, the company has cash, cash equivalents and liquid investments of Rs. 23,472 crore, out of which Rs. 13,302 crore was invested in debt mutual funds and bonds, and Rs. 10,170 crore was in fixed deposits and bank balances.

 

 

Note: Figures in previous periods have been regrouped or restated, wherever necessary to make them comparable to current period.

 

Regd. Office: SIPCOT Industrial Complex, Madurai Bypass Road, TV Puram P.O., Tuticorin-628002, Tamil Nadu

 

 

For further information, please contact:

Investors

Ashwin Bajaj

Senior Vice President - Investor Relations

Vedanta Resources plc

 

ir@vedanta.co.in

Tel:  +91 22 6646 1531

 

Media

Gordon Simpson

Finsbury

Tel:  +44 20 7251 3801

 

 

About Vedanta Resources plc

Vedanta Resources plc ("Vedanta") is a London listed FTSE 100 diversified global natural resources major. The group produces aluminium, copper, zinc, lead, silver, iron ore, oil & gas and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka. With an empowered talent pool globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information, please visit www.vedantaresources.com.

 

Disclaimer

This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCNKCDBKBKDFDB
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Sterlite Industries announces Q3 FY2013 results - RNS