3rd May 2007 11:00
Vedanta Resources PLC03 May 2007 03 May 2007 Sterlite Industries (India) Limited Results Vedanta Resources plc's subsidiary company Sterlite Industries (India) Limited ("Sterlite") declared fourth quarter and full year results today. These results are prepared in accordance with Indian GAAP and denominated in Indian currency, the Rupee. The text of Sterlite's press release is attached. Full Year Consolidated Revenues up 86% to Rs 24,387 crore Full Year Consolidated PAT soars 169% to Rs 4,387 crore Sterlite Industries (India) Limited ("Sterlite") today announced results for thefull year ("FY 2007") and quarter ("Q4") ended 31 March 2007. Consolidatedrevenues and net profits for Q4 were Rs 6,252 crore and Rs 1,718 crore, anincrease of 23% and 51%, respectively, over the corresponding prior period. ForFY 2007, consolidated revenues and net profits were Rs 24,387 crore andRs 6,546 crore, a year on year increase of 86% and 192% respectively. Consolidated Financial Highlights (In Rs crore, except as stated) Quarter ended Year ended 31 March 31 March 2007 2006 % 2007 2006 %-----------------------------------------------------------------------------Net Sales/Income from 6,252 5,100 23% 24,387 13,127 86%operationsEBIDTA 2,521 2,032 24% 10,141 4,024 152%Net Profit after Tax before 1,718 1,135 51% 6,546 2,238 192%Exceptional ItemsAttributable PAT 1,144 813 41% 4,387 1,629 169%Diluted Earnings Per Share (Rs) 20.47 14.72 39% 78.53 29.55 166% Production ('000 tonnes) Copper Mined metal content 6 7 -15% 28 34 -16% Copper - Cathode 89 75 19% 313 273 15% Aluminium 89 60 48% 313 174 80% Zinc Zinc - Mined Metal Content 121 125 -3% 505 472 7% Refined Zinc 95 92 4% 348 283 23%----------------------------------------------------------------------------- Copper Business - Sterlite Copper cathode production in FY 2007 and Q4 was 313,000 tonnes and 89,000 tonnesas compared to 273,000 tonnes and 75,000 tonnes respectively, representing anincrease of 15% and 19% over the corresponding prior periods due tode-bottlenecking of our facility at Tuticorin. Production after successfuldebottlenecking is steadily ramping up and contributing towards additionalvolumes in Q4, with production close to rated capacity in March 2007. TheTuticorin smelter was under planned shutdown for eight days in the first week ofApril 2007 for carrying out modifications and improvements, at the sulphuricacid plant. Mined metal production at our Australian mines of 6,000 tonnes in Q4 is lowerthan that of the corresponding period in the previous year due to a temporarytwo-week disruption in the mining activities as a result of minor rockfallincident. Post investigation of the incident by an independent expert, the sitewas declared safe and mining activities were restored in the month of March2007, which are expected to pick up to normal levels in the current quarter. Sterlite continues its efforts to increase value added copper rod production andhas produced 312,720 tonnes in FY 2007, an increase of 15% over FY 2006. Revenues for Q4 and FY 2007 were Rs 2,943 crore and Rs 11,727 crore, an increaseof 19% and 59%, respectively year on year. The increase in revenues wasprimarily on account of increase in volumes coupled with significant increase inLME prices. EBIDTA for FY 2007 was Rs 1,814 crore, an increase of 70% comparedwith FY 2006, primarily on account of better TCRC realisations, an increase inLME prices and a reduction in unit costs, which were partially offset by areduction in import tariffs to 7.5% in FY 2007 from 10.0% in FY 2006. Average TCRC realisations for FY 2007 improved significantly to 31.2 USc/lb from23.1 USc/lb in FY 2006 on the back of strong market conditions and due to thebenefit of price participation from high LME prices on a part of the frametonnages. In the current financial year, TCRC realisations are softening and weexpect this to impact profitability of the copper smelting business in FY 2008. Aluminium Business - Bharat Aluminium Company Limited ("BALCO") Production of 313,000 tonnes of aluminium in FY 2007 was significantly higherthan that of the previous year at 174,000 tonnes as a result of increase inproduction due to the full ramp-up of the new Korba smelter, which produced208,000 tonnes during the year. The stabilisation process of the new Korbasmelter was quicker than estimated and as a result the plant has consistentlyachieved rated capacity in the last two quarters with the fourth quarter outputat 62,000 tonnes, taking the total aluminium production in Q4 to 89,000 tonnes.The existing smelter at BALCO produced about 28,000 tonnes this quarter, in linewith its rated capacity. The captive power plant continues to operatesatisfactorily and in the current quarter has achieved its highest level ofgeneration, impacting costs positively. Revenues for Q4 and FY 2007 were Rs 1,279 crore and Rs 4,100 crore, an increaseof 50% and 117%, respectively compared with the corresponding prior periods. Theincrease was primarily due to an increase in production volumes and higher LMEprices. EBIDTA for Q4 and FY 2007 was Rs 621 crore and Rs 1,683 crore, an increase of112% and 209%, respectively year on year. The improvement in profitability wason account of increase in production volumes from BALCO's new Korba plant,higher LME prices and achieved operational efficiencies. Zinc Business - Hindustan Zinc Limited ("HZL") Refined zinc production during FY 2007 was 348,000 tonnes, compared with 284,000tonnes in FY 2006, up by 23% due to the ramp-up of new hydro smelter atChanderiya. The total zinc production in Q4 was 95,000 tones. Mined zinc metal production was 505,000 tonnes for FY 2007 representing anincrease of 7% over the corresponding previous year. The increase in productionwas primarily due to improved production from Rampura Agucha mines. HZL alsoexported 70,301 dry metric tonne ("dmt") and 313,299 dmt of zinc and leadconcentrate during Q4 and FY 2007 respectively. Revenues for Q4 and FY 2007 were Rs 2,030 crore and Rs 8,560 crore, an increaseof 14% and 121%, respectively year on year. EBIDTA for Q4 and FY 2007 wasRs 1,475 crore and Rs 6,644 crore, an increase of 11% and 176% respectively yearon year. The increase in net profits in Q4 and FY 2007 was on account highermetal volume and higher prices. The construction activities of the new 170,000 tpa Chanderiya hydro smelter andassociated captive power plant are progressing on schedule, to be commissionedby early 2008. Work on the debottlenecking project at HZL to increase thecapacity by 88,000 tonnes and new captive power plant of 80 MW at Zawar isprogressing well and will be completed as per schedule in early 2008. As regards the green energy project undertaken by HZL, a turnkey contract for125 MW wind power plant had been placed, of which the first phase of 38.4 MW wascommissioned in March 2007 in the State of Gujarat in India. The remainingcapacity is expected to be commissioned progressively during FY 2008. Power Business - Sterlite Energy Limited Basic engineering work on the new Rs 8,730 crore greenfield 2,400 MW integratedpower project at Jharsuguda has recently commenced. The project is progressingas per schedule. For further information, please contact: Sumanth Cidambi [email protected] Director - Investor Relations Tel: +91 22 6646 1531Sterlite Industries (India) Limited About Sterlite Sterlite is one of India's leading diversified mining and metals companies withinterests and operations in aluminium, copper and zinc and lead, it. Sterlite isa subsidiary of Vedanta Resources plc, a London-based diversified FTSE 100metals and mining group. The company's main operating subsidiaries are HindustanZinc Limited for its zinc and lead operations; Copper Mines of Tasmania PtyLimited for its copper operations in Australia; and Bharat Aluminium CompanyLimited for its aluminium operations. The company operates its copper operationsin India itself. Disclaimer This communication shall not constitute an offer to sell or the solicitation ofan offer to buy securities, nor shall there be any sale of the securitiesdescribed herein, in any jurisdiction, including the United States, in whichsuch offer, solicitation or sale would be unlawful prior to registration orqualification under the securities laws of such jurisdiction. Sterlite has fileda registration statement in the United States under the Securities Act of 1933,as amended, in connection with the offer and sale of securities describedherein. Any public offering of the securities referred to herein to be made inthe United States will be made by means of a prospectus that forms a part ofthis registration statement and that contains detailed information aboutSterlite and its management, as well as financial statements. This press release contains "forward-looking statements" - that is, statementsrelated to future, not past, events. In this context, forward-looking statementsoften address our expected future business and financial performance, and oftencontain words such as "expects," "anticipates," "intends," "plans," "believes,""seeks," "should" or "will." Forward-looking statements by their nature addressmatteRs that are, to different degrees, uncertain. For us, uncertainties arisefrom the behaviour of financial and metals markets including the London MetalExchange, fluctuations in interest and or exchange rates and metal prices; fromfuture integration of acquired businesses; and from numerous other matteRs ofnational, regional and global scale, including those of a political, economic,business, competitive or regulatory nature. These uncertainties may cause ouractual future results to be materially different that those expressed in ourforward-looking statements. We do not undertake to update our forward-lookingstatements. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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