Weak metal price to drag Sterlite's Q1 PAT: Poll

Sterlite Industries’June quarter profit may decline around 13 percent to Rs 1050 crore year-on-year on the back of weak metal price that prevailed during the period. Sales may also plunge around 33 percent to Rs 7125 crore, states a CNBC-TV18 poll.

While copper, aluminium segments may not put up a good show, bulk of EBITDA is expected to come from zinc, lead and silver division, say analysts.

Have a look at segment-wise likely performance of Sterlite

Sterlite holds 65 percent stake in Hindustan Zinc and it is expected to contribute close to 40 percent to Sterlite’s topline.

Copper: Tuticorin Copper Smelter was shut for two months during the quarter and this will impact topline as copper generally contributes 45 percent to overall revenues. However, being a lower margin business, decline in copper revenues may boost margins expansion

Aluminum-BALCO:
-Aluminum production from Balco is likely to remain flat Q-o-Q to 62k tonne but at EBIT level it may report loss.

.Power Business:
-Sterlite Energy (SEL) is expected to deliver higher power sales as it stands to gain from the new transmission line
- Sterlite Energy (SEL) has shown a meaningful increase in plant load factor at around 61 percent for April and May 2013)
Lower cost of coal to increase sequentially driven by lower linkage availability and higher proportion of e-auction coal

Also watch out for :
A Rs 100 crore penalty imposed by the Supreme Court on the Tuticorin smelter as compensation for polluting land and water in the area

Read This: Sterlite Q1 PAT seen down 19% at Rs 902.7 cr: Nirmal Bang