New Delhi: Vedanta group firm Sterlite Industries on Tuesday reported over 30% growth in consolidated net profit at Rs1,191.41 crore for the quarter ended 31 December, 2012, largely on account of improved sales realizations and lower tax outgo. The company had reported a net profit of Rs913.52 crore in the same quarter of the previous fiscal.
Net sales of the company was up 4.33% at Rs10,692.40 crore during the quarter vis-a-vis Rs10,248.77 crore of the October-December quarter of the previous fiscal, it said in a filing to the BSE.
Total expenditure of the company inched up by nearly 3% at Rs9,011 crore, while its tax outgo declined by 29.64% to Rs355.53 crore during the quarter. Its interest costs also went up by 13% to Rs226.85 crore.
In a separate statement, Sterlite said its core profits reflected “improved operational efficiencies, marginally higher metal prices and premiums and improved sales realization due to rupee depreciation, which were partially offset by lower by-product realizations”.
Commenting on the results, company’s chairman Anil Agarwal said, “Sterlite Industries continues to maintain its strong performance and leadership position. We have substantially improved our efficiencies, operational performance and metal production across businesses.”
Besides, its subsidiary Hindustan Zinc Ltd plans to add 1.2 million tonnes per annum new capacity for about $1.5 billion (Rs8,000 crore) and it will be invested over a six-year period, the company said.
Talking about Vedanta Aluminium Ltd (VAL)—an associate firm—, the company said improved operational performance and lower foreign exchange losses decreased Sterlite’s share of loss by 14% in the VAL during the third quarter to Rs226 crore.
VAL, which had suspended operations in December at its Lanjigarh alumina refinery due to paucity of bauxite, is in talks with “concerned authorities and other stakeholders for sourcing of bauxite from Orissa and other states to restart” the refinery, it added.
Bauxite availability issues also impacted VAL’s alumina production, which was down by nearly 56% to 1.04 lakh tonnes during the quarter. Moreover, the company said it expects to commence operations of the Vizag coal berth during the current quarter and has already obtained provisional commercial operations declaration. The project, for which it had won 30-year contract in October 2010, is being implemented at a total project cost of $150 million through Vizag General Cargo Berth Pvt Ltd (VGCB).
Shares of the company on Tuesday fell by 0.70% to close at Rs113.25 apiece on the BSE.