STERLITE INDUSTRIES
Sterlite Industries (India) Limited is India’s largest diversified metals and mining company. The company produces aluminium, copper, zinc, lead, silver, and commercial energy and has operations in India, Australia, Namibia, South Africa and Ireland. The company has posted a strong set of numbers for Q4FY13 with a net revenue at Rs.12674 crore, up 17% (YoY). The performance was led by copper and zinc, from Hindustan Zinc which contributes 30% to the revenue of Sterlite. It ended the quarter with a net profit at Rs.1925 crore, up by a strong 40%. It was purely driven by robust volume growth, boosting margins and profitability of the company.
In terms of breakdown of production, Mined metal production was a record 260,000 tonnes in Q4, 16% up (YoY), with FY13 production at 870,000 tonnes, 5% higher. The integrated production of refined zinc was 181,000 tonnes in Q4, 8% higher and that of FY13 was at 660,000. Integrated production of refined lead was 32,000 tonnes in Q4 and 107,000 tonnes for the full year, up 2% and 20% respectively. Integrated production of silver was a record 100,000 tonnes in Q4 and 322,000 tonnes for the full year, up 20% and 36%, respectively, driven by the continued ramp-up of the SK mine and the Dariba lead smelter.
The Tuticorin plant is closed down since March 30th but till then, the unit had clocked in Copper cathode production of 86,000 tonnes in Q4, 7% higher and 8% higher at 353,000 tonnes in FY2013. Mined metal production at Australia was 28% higher at 7,000 tonnes in Q4 and 15% higher at 26,000 tonnes for the full year. Its first 80MW unit of the 160MW captive power plant at Tuticorin was stabilised during the Q4 and was operating with plant load factor (PLF) of 81%. Surplus power generated by this plant beyond the captive consumption requirements were sold, and commercial power sales were 35 million units in Q4 and 42 m million units for the full year. The second 80MW unit is expected to be synchronized in Q1 FY2014.
In aluminium, production was at 245 ktpa Korba-II smelter was 62,000 tonnes, in line with the Q4FY12 production. Power sales were 12% higher at 2,433 million units in Q4 and 22% higher at 9,282 million units for the FY13. The increase in Q4 was primarily due to higher power generation and sales from three units of the Jharsuguda 2,400MW power plant. Power sales at BALCO 270MW were lower in Q4 and full year due to evacuation constraints. Work at the Talwandi Sabo power project is progressing well and the first unit is expected to be synchronized in Q2 FY2014.
Regarding the Tuticorin plant imbroglio, word on the street is that it is expected to restart by 8th of May. Looking at the strong set of numbers, despite Tuticorin , the company’s performance for coming months looks good.