www.indiainfoline.com, April 29, 2009
India Infoline News Service / Mumbai Apr 28, 2009 17:17
Sterlite has posted a net profit after tax attributable of Rs5982.50mn for the quarter ended March 31, 2009 as against Rs13184.10mn for the quarter ended March 31, 2008.
Sterlite Industries India Ltd has posted a net profit after tax attributable of Rs5982.50mn for the quarter ended March 31, 2009 where as the same was at Rs13184.10mn for the quarter ended March 31, 2008.
Total Income is Rs48000mn for the quarter ended March 31, 2009 where as the same was at Rs73576.60mn for the quarter ended March 31, 2008.
The Group has posted a net profit after tax attributable of Rs35399.90mn for the year ended March 31, 2009 where as the same was at Rs43993.70mn for the year ended March 31, 2008.
Total Income is Rs232984.80mn for the year ended March 31, 2009 where as the same was at Rs262714.80mn for the year ended March 31, 2008.
Aluminium Business
BALCO
Aluminium production for Q4 and FY09 was 85,000tons and 357,000tons respectively, compared with 92,000tons and 359,000tons in the corresponding prior periods. As part of our focus on improving profitability and cash flow, we shut down a part of the BALCO Plant I smelter in Q4 2009 due to higher operational costs. Consequently, we are selling surplus power in commercial market, to maximise returns.
Revenues for Q4 and FY09 were Rs8.13bn and Rs39.34bn respectively, compared with Rs11.25bn and Rs41.7bn in the corresponding prior periods. EBIDTA for Q4 and the FY09 was Rs30mn and Rs8.96bn respectively, compared with Rs4.04bn and Rs13.93bn in the corresponding prior periods. The decrease in revenue and profitability was primarily on account of reduction in LME. During Q4, LME prices of aluminium fell by ~50% to US$1,360/tonne compared with US$2,729/tonne in the corresponding prior quarter.
The cost control measures undertaken by the Company along with the drop in input prices started yielding positive impact on the unit cost of production (“CoP”) at BALCO, which reduced to US$1,385 per tonne in Q4 compared with US$1,642 per tonne in the immediately preceding quarter.
Unit CoP in March 2009 was US$1,177 per tonne. Going forward, we expect the trend of reduction in costs to continue.
Construction at the new 325,000 tpa aluminium smelter site at BALCO has commenced.
Construction of the 1,200MW captive power plant is also in full swing. The project is on schedule for first metal tapping from October 2010, as earlier announced.
Vedanta Aluminium Limited (“VAL”).
The first phase of the 500,000 tonne per annum (‘tpa”) Jharsuguda I aluminium smelter is progressing well. Till date and at present 257 pots have been brought in line, supported by 5 units of captive power plant.
The remaining 76 pots in the first phase are ready for commissioning, awaiting power stabilisation. With this, the first 250,000 tpa phase is expected to be fully
operational by the first quarter of FY 2010, six months ahead of the original schedule.
Work on the second 250,000 tpa phase is on schedule. We plan to commence phased commissioning from June 2009 and become fully operational by end FY 2010.
The first stream of the alumina refinery at Lanjigarh is fully operational and produced 171,000tons in Q4 2009, close to its rated capacity. The second stream of the alumina refinery has also recently commenced operations. We expect to start progressive feeding of the Lanjigarh alumina refinery with our own Niyamgiri bauxite by mid FY 2010.
The new 1.25mn tpa Jharsuguda II aluminium smelter project is progressing well with civil construction activities in progress in all major areas of the four pot lines and associated plants. All major packages have been ordered and the overall project is on schedule for phased commissioning from March 2010, as previously announced.
Work on the 600,000 tpa debottlenecking project at our Lanjigarh alumina refinery is progressing on schedule for completion by March 2010, as earlier announced. Ordering of critical items has commenced for the new 3mtpa Lanjigarh alumina refinery expansion project and work is progressing on schedule.
Results for the Fourth Quarter and Year ended 31 March 2009
Copper Business (Sterlite Industries)
During Q4 2009, copper cathode production at the Tuticorin smelter was 88,000tons, broadly same as the corresponding prior quarter. Cathode production for FY 2009 was 313,000tons, 7.7% lower than the previous year due to planned maintenance in Q1 2009 and to repair damage in the cooling tower structure in Q3 2009. The cooling tower is now repaired and restored to its normal operations from January 2009 onwards.
Mined metal production at our Australian mines was 8,000tons in Q4 2009 with FY 2009 production at 27,000tons, in line with our expectations. Revenues for Q4 and FY09 were at Rs22.6bn and Rs115.3bn respectively, compared with Rs33.75bn and Rs126.57bn in the corresponding prior periods. The decrease in revenues was primarily on account of steep fall in LME prices of copper and fall in by-product realisation. EBITDA for Q4 and FY09 was at Rs2.9bn and Rs12.72bn respectively, compared with Rs3.44bn and Rs12.15bn in the corresponding prior periods. The decrease in profitability was mainly on account of steep fall in by-products realization and lower Tc/Rc. The Gross COP has reduced considerably from 16.94 c/lb in Q3 to 12.79 c/lb in Q4, mainly due to reduction in global commodity and crude prices.
After a good first half, the acid business saw a sharp decline in prices, mainly on account of cheaper fertilizer imports and low sulphur costs. The market showed signs of recovery at the fag end of the year.
Though fall in LME prices resulted in closure and cutbacks of several mines, global concentrate Tc/Rcs have been settled around 75/7.5 from this calendar year onwards. Spot market remains tight due to increased Chinese offtake.
Zinc Business (HZL)
During Q4 and FY 2009, company recorded its highest ever quarterly and annual zinc mined metal production of 175,438tons and 651,494tons, an increase of 27.3% and 18.1% respectively compared with the corresponding prior periods. The increase in production was primarily on account of the successful commissioning and ramp-up of the stream III concentrator at the Rampura Agucha mine.
During Q4 and FY 2009, refined zinc production was 150,544tons and 551,724tons respectively, an increase of 11.1% and 29.4% compared with the corresponding prior periods. The increase in production was primarily on account of the additional production from the ramped-up 88,000tons debottlenecked capacity.
During Q4, refined lead production was lower at 15,691tons compared with the corresponding prior quarter, primarily on account of an unplanned shutdown of the Ausmelt smelter in January 2009. During FY09, refined lead production was at 60,323tons, an increase of 3.5% compared with the corresponding prior year. Sales during Q4 were also augmented by the sale of 25,055 dry metrictons of surplus lead concentrate.
During Q4 and FY 2009, HZL achieved a record saleable silver production of 35,176 kilograms and 105,055 kilograms, an increase of 47.5% and 30.6% respectively compared with the corresponding prior periods. The increase in production was primarily on account of increased operational efficiencies and higher silver content in concentrates.
Revenues for Q4 and FY 2009 were lower at Rs1,263 crores and Rs5,680 crores respectively, compared with Rs2,266 crores and Rs7,878 crores in the corresponding prior periods. EBITDA for Q4 and FY 2009 was Rs581 crores and Rs2,875 crores, compared with Rs1,493 crores and Rs5,602 crores respectively, in the corresponding prior periods.
For the year, the positive impact, on sales and profitability, of higher volumes, higher by-product realisations and rupee depreciation was more than offset by the negative impact of lower zinc and lead LME prices and higher input costs.
During Q4 and FY 2009, average zinc prices declined to US$1,174 per tonne and US$1,563 per tonne respectively, compared with US$2,426 per tonne and US$2,992 per tonne in the corresponding prior periods. During the same period, average lead LME was US$1,160 per tonne and US$1,660 per tonne respectively, compared with US$2,891 per tonne and US$2,875 per tonne respectively.
Cost of production for FY09 was at the same level as in the previous year. During Q4, cost of production, before royalty, was lower at US$621/tonne compared with the US$698/tonne in the immediately preceding quarter.
Construction activity at the 210,000 tpa zinc smelter and 100,000 tpa lead smelter at Rajpura Dariba is progressing well and is on schedule for completion by mid-2010. Works at the mining projects at Rampura Agucha, Sindesar Khurd and Kayar are also progressing on schedule for progressive commissioning from mid-2010. Post completion of these projects, Hindustan Zinc will be the largest integrated zinc-lead producer with a capacity of 1,064,000 tpa.
Commercial Energy Projects
Work on 2,400 MW (4x600 MW) coal based Independent thermal power plant at Jharsuguda is progressing well and is on schedule for progressive commissioning from late 2009 as expected.
Cash, Cash Equivalents and liquid investments
Consolidated cash, cash equivalents and liquid investments as on 31 March 2009 was Rs192.87bn. This includes Rs137.82bn in debt mutual funds and Rs55.05bn in fixed deposits with banks. The Company has strong internal control mechanism that includes continuous review and monitoring of all its investments. The investments portfolio is independently reviewed by Credit Rating Information Services of India Limited (CRISIL) on an ongoing basis.
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