Sterlite Q1 PAT likely to fall 30% to Rs 1150 cr
Sterlite Industries, India's largest non-ferrous metals and mining company, will announce its results today for the quarter ended June 2012. Analysts on an average expected profit after tax to fall by 29.9% year-on-year and 10% quarter-on-quarter to Rs 1,149.6 crore during the quarter.
July 26, 2012 / 14:35 IST
Sterlite Industries, India's largest non-ferrous metals and mining company, will announce its results today for the quarter ended June 2012. Analysts on an average expected profit after tax to fall by 29.9% year-on-year and 10% quarter-on-quarter to Rs 1,149.6 crore during the quarter.
They feel earnings are likely to be impacted by a forex loss of over Rs 400-500 crore in the quarter.Net sales are expected to increase by 4% YoY to Rs 10,212.4 crore, but that is likely to fall by 5% quarter-on-quarter.Earnings before interest, tax, depreciation and amortisation (EBITDA) are seen going down by 9% YoY and 17% QoQ to Rs 2,464.1 crore in the first quarter of FY13.
Analysts feel lower volume growth in Hindustan Zinc (HZL) will dampen its revenues as Sterlite Industries holds 65% stake in Hindustan Zinc.HZL delivered their topline at Rs 2,712.7 crore and profit after tax at Rs 1,581.3 crore during the quarter. Out of this the entire topline will reflect in Sterlite's results whereas the 65% of the bottomline of HZL will reflect, which is approximately around Rs 1,027.9 crore. HZL’s PAT was helped by higher other income of Rs 574.3 crore. Sterlite results will be impacted by decline in consolidated net profit due to lower zinc/lead production, lower LME prices and higher losses in VAL (Vedanta Aluminium).Realizations: In the first quarter fo FY13, the average LME prices for all the base metals dropped on a QoQ basis and YoY basis:Copper went down 14% YoY and down 5.5% QoQ while aluminum fell by 24% YoY and 9.2% QoQ.Zinc prices dropped by 14% YoY and 5% QoQ while lead slipped by 22% YoY and 5.6% QoQ.But depreciation in average Indian rupee will support the topline as they are dollar-denominatedAnalyts feel margins are expected to decline on a sequential basis due to a decline in metal volumes and subdued realizations. However, increase in Tc/Rc margins would also lead to margin expansion for the copper divisions.Sterlite Industries is likely to report stable performance in copper and aluminium segments, but the zinc segment, international as well as domestic, will deliver a subdued performance.Power segment showed strong growth due to commissioning of Sterlite Energy units. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
