Vedanta Resources PLC
03 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 the
full year ('FY 2007') and quarter ('Q4') ended 31 March 2007. Consolidated
revenues and net profits for Q4 were Rs 6,252 crore and Rs 1,718 crore, an
increase of 23% and 51%, respectively, over the corresponding prior period. For
FY 2007, consolidated revenues and net profits were Rs 24,387 crore and
Rs 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%
EBIDTA 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%
Attributable 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)
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 - 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 tonnes
as compared to 273,000 tonnes and 75,000 tonnes respectively, representing an
increase of 15% and 19% over the corresponding prior periods due to
de-bottlenecking of our facility at Tuticorin. Production after successful
debottlenecking is steadily ramping up and contributing towards additional
volumes in Q4, with production close to rated capacity in March 2007. The
Tuticorin smelter was under planned shutdown for eight days in the first week of
April 2007 for carrying out modifications and improvements, at the sulphuric
Mined metal production at our Australian mines of 6,000 tonnes in Q4 is lower
than that of the corresponding period in the previous year due to a temporary
two-week disruption in the mining activities as a result of minor rockfall
incident. Post investigation of the incident by an independent expert, the site
was declared safe and mining activities were restored in the month of March
2007, which are expected to pick up to normal levels in the current quarter.
Sterlite continues its efforts to increase value added copper rod production and
has 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 increase
of 19% and 59%, respectively year on year. The increase in revenues was
primarily on account of increase in volumes coupled with significant increase in
LME prices. EBIDTA for FY 2007 was Rs 1,814 crore, an increase of 70% compared
with FY 2006, primarily on account of better TCRC realisations, an increase in
LME prices and a reduction in unit costs, which were partially offset by a
reduction 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 from
23.1 USc/lb in FY 2006 on the back of strong market conditions and due to the
benefit of price participation from high LME prices on a part of the frame
tonnages. In the current financial year, TCRC realisations are softening and we
expect 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 higher
than that of the previous year at 174,000 tonnes as a result of increase in
production due to the full ramp-up of the new Korba smelter, which produced
208,000 tonnes during the year. The stabilisation process of the new Korba
smelter was quicker than estimated and as a result the plant has consistently
achieved rated capacity in the last two quarters with the fourth quarter output
at 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 line
with its rated capacity. The captive power plant continues to operate
satisfactorily and in the current quarter has achieved its highest level of
generation, impacting costs positively.
Revenues for Q4 and FY 2007 were Rs 1,279 crore and Rs 4,100 crore, an increase
of 50% and 117%, respectively compared with the corresponding prior periods. The
increase was primarily due to an increase in production volumes and higher LME
EBIDTA for Q4 and FY 2007 was Rs 621 crore and Rs 1,683 crore, an increase of
112% and 209%, respectively year on year. The improvement in profitability was
on 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 284,000
tonnes in FY 2006, up by 23% due to the ramp-up of new hydro smelter at
Chanderiya. The total zinc production in Q4 was 95,000 tones.
Mined zinc metal production was 505,000 tonnes for FY 2007 representing an
increase of 7% over the corresponding previous year. The increase in production
was primarily due to improved production from Rampura Agucha mines. HZL also
exported 70,301 dry metric tonne ('dmt') and 313,299 dmt of zinc and lead
concentrate during Q4 and FY 2007 respectively.
Revenues for Q4 and FY 2007 were Rs 2,030 crore and Rs 8,560 crore, an increase
of 14% and 121%, respectively year on year. EBIDTA for Q4 and FY 2007 was
Rs 1,475 crore and Rs 6,644 crore, an increase of 11% and 176% respectively year
on year. The increase in net profits in Q4 and FY 2007 was on account higher
metal volume and higher prices.
The construction activities of the new 170,000 tpa Chanderiya hydro smelter and
associated captive power plant are progressing on schedule, to be commissioned
by early 2008. Work on the debottlenecking project at HZL to increase the
capacity by 88,000 tonnes and new captive power plant of 80 MW at Zawar is
progressing well and will be completed as per schedule in early 2008.
As regards the green energy project undertaken by HZL, a turnkey contract for
125 MW wind power plant had been placed, of which the first phase of 38.4 MW was
commissioned in March 2007 in the State of Gujarat in India. The remaining
capacity 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 integrated
power project at Jharsuguda has recently commenced. The project is progressing
as per schedule.
For further information, please contact:
Sumanth Cidambi email@example.com
Associate Director - Investor Relations Tel: +91 22 6646 1531
Sterlite Industries (India) Limited
Sterlite is one of India's leading diversified mining and metals companies with
interests and operations in aluminium, copper and zinc and lead, it. Sterlite is
a subsidiary of Vedanta Resources plc, a London-based diversified FTSE 100
metals and mining group. The company's main operating subsidiaries are Hindustan
Zinc Limited for its zinc and lead operations; Copper Mines of Tasmania Pty
Limited for its copper operations in Australia; and Bharat Aluminium Company
Limited for its aluminium operations. The company operates its copper operations
in India itself.
This communication shall not constitute an offer to sell or the solicitation of
an offer to buy securities, nor shall there be any sale of the securities
described herein, in any jurisdiction, including the United States, in which
such offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction. Sterlite has filed
a registration statement in the United States under the Securities Act of 1933,
as amended, in connection with the offer and sale of securities described
herein. Any public offering of the securities referred to herein to be made in
the United States will be made by means of a prospectus that forms a part of
this registration statement and that contains detailed information about
Sterlite and its management, as well as financial statements.
This press release contains 'forward-looking statements' - that is, statements
related to future, not past, events. In this context, forward-looking statements
often address our expected future business and financial performance, and often
contain words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,'
'seeks,' 'should' or 'will.' Forward-looking statements by their nature address
matteRs that are, to different degrees, uncertain. For us, uncertainties arise
from the behaviour of financial and metals markets including the London Metal
Exchange, fluctuations in interest and or exchange rates and metal prices; from
future integration of acquired businesses; and from numerous other matteRs of
national, regional and global scale, including those of a political, economic,
business, competitive or regulatory nature. These uncertainties may cause our
actual future results to be materially different that those expressed in our
forward-looking statements. We do not undertake to update our forward-looking
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