Sterlite's Q1 net down 22% on finance cost, forex loss

Moneycontrol Bureau

Sterlite Industries has reported 22 percent decline in its June quarter profit to Rs 934.06 crore on higher interest cost and forex loss. While interest cost went up almost 50 percent to Rs 362 crore, forex loss also climbed around 6 percent to Rs 230 crore.

Sales also declined 23 percent Y-o-Y to Rs 8190 crore.

Revenues and EBITDA came in lower primarily on account of a temporary closure of the Tuticorin copper smelter, which was partially offset by higher power generation at the Jharsuguda 2,400 megawatt power plant and higher production at Zinc India. Temporary closure of the Tuticorin smelter
negatively impacted EBITDA by Rs 180 crore, stated the firm in a statement.

Also, copper and aluminium segments saw revenues slide sharply.While revenues from copper division almost halved to Rs 2446.53 crore Y-o-Y. Aluminium de-grew marginally to Rs 745.24 crore versus 780.49 crore Y-o-Y.

On company performance during the quarter, chairman Anil Agarwal, said, “We achieved a strong performance in the first quarter of FY 2014 and delivered production growth at our world-class zinc, silver, power and aluminium businesses despite global economic volatility and lower metal prices."

He further said that the firm will remain focussed on completing the merger with Sesa Goa, and ramping up production from our growth projects
across our world class asset portfolio.

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