India's diversified base metal manufacturer and subsidiary of Vedanta Resources, Sterlite Industries (India) Ltd. reported lower stand-alone net profit for the fourth-quarter, on one-time exceptional loss.
Stand-alone Results
The Tuticorin-based company posted a stand-alone net profit after exceptional items of Rs.86.43 crore, lower by 69 percent, compared with Rs.283.03 crore in the year-ago quarter. On a per share basis, earnings for the quarter was Re.0.15, compared with Re.0.70 in the year-ago quarter, reflecting a 79 percent decline.
The results for the quarter included a one-time charge of Rs.423.32 crore, under exceptional item, in respect of a suit filed by ASARCO in U.S. Courts against the company and Sterlite (USA) for an alleged breach of Purchase and Sale Agreement.
Net income from operations decreased by six percent to Rs.4,532.98 crore from the Rs.4,826.20 crore in the corresponding quarter last year, while other operating income was Rs.1.34 crore, compared with Rs.4.09 crore in the fourth-quarter of last year.
Income for the quarter from 'Copper' segment fell by seven percent to Rs.4,381.00 crore from the Rs.4,725.82 crore in the corresponding quarter last year, while that from 'Phosphoric Acid' rose by 25 percent to Rs.165.85 crore from the Rs.132.54 crore in the year-ago quarter.
For the fiscal year, Sterlite's stand-alone net profit rose by 17 percent to Rs.1,657.48 crore from the Rs.1,419.71 crore last year. Total income, including other operating income, grew by 18 percent to Rs.18,092.06 crore from the Rs.15,307.14 crore last year.
Consolidated Results
The company posted fourth-quarter consolidated net profit, after share in profit/loss of associates and minority interest, of Rs.1,276.89 crore or Rs.3.61 per share, whereas it was Rs.1,925.00 crore or Rs.5.47 per share in the year-ago quarter.
The company said the consolidated results for the quarter/year were not comparable with those of last year's due to acquisition of zinc business at Namibia, South Africa and Ireland in H2FY11.
Total income, including other operating income, amounted to Rs.10,818.87 crore, while the company reported last year's at Rs.10,056.11 crore.
Income for the quarter under review from the 'Copper' segment was Rs.4,945.42 crore, while that from 'Aluminium' totaled Rs.868.71 crore. Income from 'Zinc and Lead' segment amounted to Rs.4,071.07 crore and that from 'Power' was Rs.737.00 crore. Income for the quarter from 'Others' was Rs.165.85 crore.
For fiscal year, the company reported consolidated net profit, after share in profit/loss of associates and minority interest, of Rs.4,827.92 crore, while it was Rs.5,042.52 crore last year. Total revenue, including other operating income, totaled Rs.41,178.94 crore, whereas the company reported Rs.30,428.50 crore last year.
Mined metal production at Hindustan Zinc Ltd. was 223,000 tonnes in Q4 and 830,000 tonnes in FY12, compared with 231,000 tonnes and 840,000 tonnes in the corresponding prior periods.
Refined Zinc production was marginally lower at 190,000 tonnes in Q4 and at a record 759,000 tonnes for FY12, while Lead production was 37,000 tonnes in Q4 and at a record 99,000 tonnes in FY12, up 110 percent and 56 percent respectively.
Silver production was at 88 tonnes in Q4 and at a record 242 tonnes in FY12, up 77 percent and 35 percent respectively.
The company's Board recommended a final dividend of 100 percent or Re.1.00 per equity share of Re.1 each for the fiscal year 2012.
Outlook
The company expects FY13 mined metal production to be slightly higher than last year. Production in H1FY13 is expected to be marginally lower than that in the corresponding prior year, but will be more than made up in H2FY13.
SK mine is expected to deliver volumes near its capacity of 2.0 mtpa in FY13. Total integrated Silver production is projected to be around 350 tonnes in FY2013.
At the BSE, Sterlite Industries closed Wednesday's trading at Rs.107.80, up by Rs.2.00 or 1.89 percent on a volume of 474,000 shares.
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