STERLITE INDUSTRIES
The Tuticorin plant closure played havoc with the Q1FY14 numbers of the company. Tamil Nadu Pollution Control Board’s (TNPCB) ordered for closure of the Tuticorin copper smelter on March 29, 2013. The National Green Tribunal (NGT) after hearing company's appeal, passed an interim order on May 31, 2013 conditionally allowing the smelter to recommence operations, and the plant restarted on June 23, 2013. Thus almost entire quarter the copper plant was closed and this affected the performance. The company posted a consolidated net sales of Rs.8190 crore, down 23% (YoY) and down 35% (QoQ). EBIDTA at Rs.2173 crore was down 7% (YoY) but a sharper decline of 35% (QoQ). Interest expense galloped – up 50% (YoY) at rs.362 crore. What added to the interest cost was the cessation of interest capitalization pertaining to the Jharsuguda-II smelter on account of delay in its commissioning, in compliance with the relevant accounting standard. It ended the quarter with a 22% drop in net profit at Rs.934 crore. Sequentially, it was down 51%. Thus there has been an overall decline, with QoQ performance showing a sharper decline.
Copper revenue dropped 53% (YoY) and down 58% (QoQ) and the segment showed a loss of Rs.190 crore, compared to a PAT of Rs.96 crore in previous Q1 . Apart from Tuticorin, mined metal production at Australia was 13% lower due to lower grades. Zinc did well, with its Indian operations showing a 9% (YoY) rise in revenue on account of higher sales volume and depreciation of rupee, partially offset by lower metal prices. PAT was up 6%. On the other hand, international zinc revenue was down 7% and PAT was status quo. Aluminium revenue fell 5% and it posted a much higher loss at Rs.63 crore compared to Rs.7 loss previous Q1 and a profit of Rs.20 crore in Q4. The The BALCO 1,200MW captive power plant is awaiting its consent to operate. The company expects to tap first metal at the 325 ktpa BALCO-III aluminium smelter in Q3 FY2014. Having obtained both stages of forest clearance for the BALCO coal block, it is working on obtaining other approvals and expects to commence mining in Q1 FY2015.
Its power business did well, showing a 33% rise in revenue and 68% jump in PAT. Power sales during the quarter were 20% higher on account of higher power generation from Jharsuguda 2,400MW plant. The plant operated at PLF of 54% for all four units during the quarter v/s 50% for three units during the corresponding prior period. Average power realization increased to Rs. 3.49 due to higher sales volume from open access. The power generation cost at SEL during the quarter was Rs. 2.21 per unit as compared with Rs. 2.14/unit, YoY. The first unit of the 1,980MW Talwandi Sabo power project is expected to be synchronized in Q3Fy14.
As at 30 June 2013, the company has consolidated cash, cash equivalents and liquid investments of Rs. 25,890 crore, out of which Rs. 15,369 crore was invested in debt mutual funds, Rs. 2,217 crore in bonds, and Rs. 8,304 crore in bank deposits.