Sterlite consolidated net dips 37% on fall in metal prices

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Third-quarter income declines 15% at Rs 4,445 cr.

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Mumbai Jan. 24 Non-ferrous metals and mining major Sterlite Industries on Saturday reported a nearly 37 per cent dip in its third quarter consolidated net profit primarily due to fall in LME prices of aluminium, copper, zinc and lead.

The company clocked a net profit of Rs 732 crore against Rs 1,176 crore in the corresponding quarter a year ago.

During the quarter, the company’s income also slid about 15 per cent to touch Rs 4,445 crore (Rs 5,233 crore).

On a standalone basis, its net profit for the quarter was Rs 204 crore (Rs 230.85 crore).

Aluminium segment

In the aluminium segment, the company notched up a revenue of Rs 836 crore (Rs 944 crore) on account of lower LME prices, despite the depreciation of the rupee against the dollar. It said LME prices of aluminium were down by 25 per cent during the quarter.

“The cost control measures, coupled with the drop in input prices, have started yielding positive impact on the cost of production at BALCO, which was $1,642/tonne during the quarter, against $1,969/tonne in the preceding quarter,” the company said.

Similarly, revenues from the copper stream were lower at Rs 2,578 crore (Rs 2631 crore) as LME copper prices fell 46 per cent.

The company said work on the five lakh tonne capacity aluminium smelter at Jharsuguda (Orissa) was progressing well and it expected to commission the first phase of the project, with a capacity of 2.5 lakh tonnes, by the end of the current fiscal.

construction activities

“The construction activities at the 2.10 lakh tonne zinc smelter and one lakh tonne lead smelter at Rajpura Dariba are progressing well and will be commissioned as scheduled by mid-2010. After completion of these projects, Hindustan Zinc Ltd will be the world largest integrated zinc-lead producer with a total capacity of 10.64 lakh tonnes,” the company said in a statement.

The company’s consolidated cash and cash equivalents as on December 31, 2008 were Rs 19,034 crore, including Rs 14,300 crore in debt mutual funds and Rs 4,657 crore in fixed deposits with banks.

(This article was published in the Business Line print edition dated January 25, 2009)
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