Sterlite Q1 PAT may dip 13.9% at Rs 1221.1cr: Motilal Oswal

Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the metals sector. The brokerage house expects Sterlite Industries to report a 37.8 percent degrowth quarter-on-quarter (degrowth of 13.9 percent year-on-year) in net profit at Rs 1221.1 crore.

Revenues are expected to decrease by 40 percent Q-o-Q (down 28.6 percent Y-o-Y) to Rs 7606.3 crore, according to Motilal Oswal.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 31.4 percent Q-o-Q (down 1.8 percent Y-o-Y) to Rs 2267.1 crore.

Motilal Oswal report on Sterlite Industries

We expect consolidated net sales to decrease 40 percent Q-o-Q (down 29 percent Y-o-Y) to INR76billion. Decline will be on account of lower volumes from Tuticorin copper smelters and absence of zinc concentrate sales at HZL.

Tuticorin smelter was shut for major part of the quarter and was started only in the second week of June after NGT approval. Sterlite Energy (SEL) is expected to deliver higher power sales as it stands to gain from the new transmission line.

Aluminum production from Balco is likely to remain flat Q-o-Q to 62k tonne, while copper cathode production is likely to decrease 79 percent Q-o-Q to 18k tonne.

We expect EBITDA to decline 31 percent Q-o-Q (down 2 percent Y-o-Y) to INR23billion. Copper EBIT is likely to decrease 87 percent Q-o-Q to INR0.4 billion. Aluminum (Balco) EBIT would turn to a loss of INR1.3billion due to lower realization. EBIT from power segment should improve 39 percent Q-o-Q to INR2.9 billion due to higher production.