The Hindu Business Line : Sterlite Industries Q3 net rises 43 pc

Better performance
Total income increased by 47.8 per cent to Rs 3,219.8 crore
Operating profit rose 22.3 per cent to Rs 312.9 crore
The consolidated net profit soared by 226 per cent to Rs 1,296 crore

Mumbai , Jan. 13

Sterlite Industries has reported a 43 per cent rise in net profit, at Rs 215 crore, for the third quarter ended December 31, 2006.

Its net profit for the same year-ago period had been Rs 150 crore.

The increase in profitability was on account of better realisations on Treatment-Charges-Refining-Charges (TCRC) on manufacture of copper rods, increase in London Metal Exchange prices, and a reduction in unit costs, said a statement from the company.

Total income rose by 47.8 per cent to Rs 3,219.8 crore against Rs 2,178.4 crore.

Higher LME prices were complemented by higher volumes, copper cathode production during the quarter being the highest ever at 86,000 tonnes, an increase of 15 per cent year-on-year.

Operating profit rose 22.3 per cent to Rs 312.9 crore (Rs 255.8 crore) while the operating margin rose to 11.8 per cent against 9.8 per cent.

Interest costs more than doubled, to Rs 48 crore (Rs 23 crore) while tax outgo was considerably lower at Rs 16.7 crore (Rs 49 crore).

Consolidated net up

The company's consolidated net profit, with the financials of Bharat Aluminium Company and Hindustan Zinc taken into account, soared by 226 per cent to Rs 1,296 crore, while revenues rose 94 per cent to Rs 6,814 crore.

Balco reported a revenue increase of 131 per cent at Rs 1,145 crore, and EBIDTA increase of 309 per cent at Rs 544 crore, aided by higher production from its new Korba plant, as well as higher LME prices.

Hindustan Zinc too reported a 172 per cent increase in revenues at Rs 2,480 crore, while EBITDA at Rs 1,968 crore, rose 275 per cent.

With respect to Sterlite Industries (India)'s copper business, the statement said that TCRC realisations are softening: "We expect the impact of reduced TCRC in the fourth quarter."

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