Sterlite Industries Q3 net down 17% to Rs 913.52 crore

MUMBAI: Vedanta group firm Sterlite Industries today reported a decline of a little over 17 per cent in its consolidated net profit to Rs 913.52 crore for the quarter ended December 31.

This was largely due to increased costs and a foreign exchange loss of Rs 425.39 crore.

The company had reported a net profit of Rs 1,101.06 during the corresponding quarter of 2010-11.

Its net sales rose 23.53 per cent to Rs 10,246.18 crore during the quarter vis-a-vis Rs 8,294.32 crore of the October-December quarter of FY'11, it said in a regulatory filing at BSE.

Profit of the company was marred by rupee depreciation during the quarter as it incurred a forex loss of Rs 425.39 crore as compared to a loss of Rs 21.25 crore during the Q3 of 2010-11.

Besides, its total costs on operations increased by about 28 per cent to Rs 8,442.88 crore in the October-December quarter of 2011-12.

The other income of the company rose by over 75 per cent to Rs 876.81 crore in Q3 vis-a-vis Rs 498.85 crore. However, this has not been specified by the company in the filing.

Sterlite's results include the performance of its subsidiaries Hindustan Zinc and unlisted Vedanta Aluminium.

During the quarter, company's revenues from copper and aluminium businesses increased marginally to Rs 4,935.11 crore and Rs 800.93 crore respectively. However, its zinc, lead and silver businesses (including of international operations) increased by about 37 per cent to Rs 3,755.34 crore in Q3.

For the quarter, Vedanta Aluminium Ltd (VAL), an associate firm of Sterlite, incurred a net loss of Rs 893 crore, while aluminium production by BALCO also posted a net loss of Rs 17 crore.

The company filing added that VAL is examining the Orissa High Court order of last week for further action as its review petition for reconsideration of the decision on not permitting the company to expand its refinery's capacity to 6 million tonnes per annum (MTPA) was rejected.

Besides this, it added that Orissa Mining Corporation's (OMC )petition on the matter is listed for hearing in Supreme Court on January 30. The Environment Ministry had rejected the forest clearance to OMC, which is one of the main suppliers of bauxite to VAL's refinery, for mining in Niyamgiri hills in Orissa.

During the current quarter, Sterlite also plans to commission the fourth unit of 600 MW capacity at the 2400 MW Jharsuguda power plant in the state.

Shares of the company closed today at Rs 107.80 apiece on the BSE, down 5.36 per cent from the previous close.