Sterlite Industries Q1 PAT seen up 64% at Rs 1,650 cr
Vedanta group company Sterlite Industries is likely to report a 64% rise in its first quarter FY12 profit after tax of Rs 1,650 crore against Rs 1,008 crore in the year ago period.
July 25, 2011 / 13:41 IST
Vedanta group company Sterlite Industries is likely to report a 64% rise in its first quarter FY12 profit after tax of Rs 1,650 crore against Rs 1,008 crore in the year ago period.
Net sales are seen going up by 65% to Rs 9,800 crore from Rs 5,925 crore year-on-year. EBITDA too is expected to jump 90% to Rs 2,850 crore from Rs 1,497 crore during the same period. EBITDA margin is seen improving at 29% versus 25% year-on-year.On quarter-on-quarter basis, Sterlite's net sales are likely to fall 2% and net profit is expected to show 14% decline. Factors:Sterlite should see the top PAT growth among Sensex companies on a year on year basis (65% upwards)Sterlite holds 65% stake in Hindustan Zinc Hindustan Zinc delivered healthy set of numbers whose topline came in at Rs 2821 crore and PAT at Rs 1,495 crore Out of this the entire topline will reflect whereas the 65% of the bottomline of Hind Zinc will reflect (Approximately Rs 971 crore). Last quarter Hindustan Zinc (HZ) contributed nearly 60% to the PAT of Sterlite Industries:
-Sterlite PAT was at Rs 1,925 crore but approximately Rs 1,150 crore came from Hindustan Zinc (65% of HZ PAT which was Rs 1,925 crore)
-Uplifted due to higher LME metal prices and better volumes from the zinc and lead businesses.
-On a y-o-y prices were up but on a q-o-q basis prices have corrected
-LME Copper prices increased 30% YoY; LME Lead up 28% y-o-y; LME zinc up 11% and
-LME aluminum increased on both 4% QoQ and 24% y-oy while silver has doubled on a y-o-y basis. But cost may rise in aluminium business due to higher costs of coal from CILAluminum production from Balco and Copper cathode production is expected to increase 1-2% YoY Refined Production figures as reported by Hindustan Zinc as follows: Zinc up 17%, Lead up 6% and silver up 8% Expecting a strong EBITDA growth on a year on year basis backed by strong performance from the zinc, lead and silver businesses came in at 56.5% and EBITDA came in 56% on a year on year basis.EBIT from the power segment is expected to decline on a YoY basis as power realizations declined 35% YoY to INR 3/kWhReports suggest power business was operating at lower utilization as a result of coal shortage though they recently synchronised two units of 600 Mw which are likely to add to the revenueThe company is setting up 5,040 MW independent thermal power plants through its subsidiary Sterlite Energy LimitedThis quarter will also see the full impact of the company
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