Sterlite net rises 50% to Rs 1,008 cr

MUMBAI: Sterlite Industries, part of Vedanta Resources, said on Monday its consolidated fiscal net profit for the first quarter of the financial year 2011 surged 50% due to higher metal prices. The metals company, which has interests in aluminium, copper and zinc, said its profit in the April-June period jumped to Rs 1,008 crore, compared with Rs 673 crore last year. Revenue in the same period grew 30% to Rs 5,970 crore. However, shares of Sterlite fell 0.1% to Rs 173.85 on BSE as results fell short of expectation.

Copper revenues for the first quarter rose 35% to Rs 3,092 crore despite a shutdown at the Tuticorin smelter in Tamil Nadu. Operating profit for the first quarter stood at Rs 261 crore, an increase of 125% due to higher copper recovery, increased by-product realisation and better margins from its phosphoric acid business.

During the same quarter, treatment and refining charges — fees that miners pay to smelting companies to convert ore into metal — were 13.5 cents per pound, compared with 11.9 cents in the corresponding prior quarter. In the zinc business, revenue for Sterlite was Rs 1,928 crore, an increase of 29% compared with Rs 1,489 crore last year. The aluminum division reported lower profitability due to higher alumina cost, steep electricity charges and additional gratuity provision. Revenue from aluminum rose 4% to Rs 666 crore in the first quarter.

Separately, Sterlite said the excise department has levied a tax notice of about Rs 324 crore on grounds that the company violated rules. However, company officials said Sterlite has obtained a stay from the Madras High Court on excise department’s notice. “The central excise department issued an ex-parte notice for reversal of cenvat credit of Rs 315 crore, along with interest of Rs 8.8 crore for non-compliance of cenvat credit rules, in respect of non-return of job work challans for March-September period, 2009,” Sterlite informed BSE.