OREANDA-NEWS. July 27, 2011. Sterlite Industries (India) Limited ("SIIL" or the "Company") announced its unaudited consolidated results for the first quarter ("Q1") ended 30 June 2011.

Highlights for the Quarter Operational Performance

-          Refined Zinc production up 17% at 193,000 tonnes at Zinc - India operations

-          Commissioning commenced at 100,000 tpa Dariba Lead smelter which will take HZL's total Zinc - Lead capacity to 1,064 ktpa

-          Refined silver production up 8% at 47,000 kgs

-          Strong operating performance with 12% higher metal equivalent production at Zinc - International

Financial performance

-          Revenues up 66% at f 9,824 crore

-          Attributable PAT up 64% at f1,640 crore, f317 crore contributed by Zinc International business

-          Strong balance sheet with cash and liquid investments of f22,933 crore

Financial Highlights

(In crore, except as stated)

Particulars

Quarter ended 30 June

Change

Year Ended 31 March

 

2011

2010

%

2011

Net Sales/Income from operations

9,824

5,925

65.8

30,248

Profit before interest, depreciation & taxes

3,600

2,175

65.5

10,530

Interest

174

127

 

309

Depreciation

420

217

 

1,030

Taxes

614

368

 

1,811

Profit After Taxes

2,388

1,462

63.3

7,322

Minority Interest

642

376

 

1,995

Share in Profit/(Loss) of Associate

(106)

(78)

 

(285)

Attributable PAT after exceptional item

1,640

1,008

62.7

5,043

Earnings per Share (EPS) (f /share)*

4.9

3.0

63.3

15.0

*Not Annualised

Zinc India Business

Particulars

Quarter ended 30 June

Change

Year Ended 31 March

 

2011

2010

%

2011

Production (in Kt, except for silver)

 

 

 

 

Mined Metal*

188

182

4.0

840

Refined Metal - Zinc

193

165

17.0

712

Refined Metal - Lead*(1)

16

15

6.6

63

Silver (in 000's Kgs) (2)

47

43

8.0

179

 

 

 

 

 

Financials

 

 

 

 

Revenue ( Cr)

2,784

1,928

44.4

9,844

EBITDA ( Cr)

1,554

1,000

55.3

5,556

CoP with Royalty (USD /MT)

1,063

1,019

 

990

Zinc LME (USD /MT)

2,250

2,018

 

2,185

*Zinc and Lead Production and Financial data pertain to HZL only

(1)        Including captive consumption of 1,391 tonnes in Q1 FY2012 vs. 1,166 tonnes in Q1 FY2011.

(2)        Including captive consumption of 7,196 Kgs. in Q1 FY2012 vs. 6,133 Kgs. in Q1 FY2011.

Mined metal production was 4.0% higher at 188,000 tonnes in Q1, compared with the corresponding prior quarter. Higher contributions from Sindesar Khurd mine was partially offset by the volume loss due to unplanned maintenance shutdown of the primary crusher at the Rampura Agucha mine. Rampura Agucha was back on line during the quarter and the shortfall in production volume is expected to be recovered during the year.

Refined Zinc production was 17.0% higher at 193,000 tonnes in Q1. This was primarily on account of enhanced contribution from the 210,000 tpa Dariba Hydro smelter commissioned in March 2010, now operating at full capacity.

Refined Lead production during the quarter was 16,000 tonnes, 6.6% higher compared with the corresponding prior period.

Refined Silver production was 8.0% higher at 47,000 kg in Q1 due to increase in mined ore from the ramp up of silver rich Sindesar Khurd mine.

Sales during Q1 were augmented by sale of surplus lead concentrate of 10,086 dry metric tonnes, including 17,031 kg of payable Silver.

EBITDA for Q1 was  1,554 crore, an increase of 55.3% compared with the corresponding prior quarter.

Realization from refined Silver during the quarter was Rs. 228 Crore, compared to Rs. 101 Crore in the corresponding prior quarter. Realization from sale of surplus Lead concentrate during the quarter was Rs. 139 Crore. This includes realization of Rs. 81 Crore from payable Silver content in Lead concentrate.

The cost of production of Zinc metal (ex-royalty) was Rs.39,100 per MT (USD 874) during Q1. The positive impact of operational efficiencies was more than offset by the impact of volume loss at Rampura Agucha and higher energy costs, specifically the cost of coal and petroleum products.

During Q1, average Zinc and Lead LME prices were USD 2,250 per tonne and USD 2,550 per tonne respectively, compared with USD 2,018 per tonne and USD 1,944 per tonne, in the corresponding prior quarter.

The average Silver Cash Settlement Price as per London Bullion Market Association increased to USD 38.0/oz in Q1 from USD 18.3/oz in the corresponding prior quarter.

Expansion Projects

The commissioning of the 100,000 tpa Lead smelter at Dariba has commenced, and we are targeting production of saleable Lead metal by mid Q2 FY2011-12. The new silver refinery will commence silver production by the end of Q2 FY2011-12.

The expansion in wind power generation capacity to 273MW is progressing well and is on schedule for completion by Q2 FY2011-12.

Zinc International Business

Particulars

Quarter ended

Quarter ended

 

30 June

31 March

 

2011

2011

Production (Kt)

 

 

Mined Metal Content (MIC)

80

44

Refined Metal content

39

36

Total

119

80

 

 

 

Financials

 

 

Revenue ( Cr)

1,060

842

EBITDA ( Cr)

517

439

CoP - (USD  per MT)

1,189

1,200

Zinc LME (USD /MT)

2,250

2,018

Figures for the Quarter ended 31 March 2011 are from the date of acquisition of the respective assets

The total equivalent metal production was 12% higher at 119,000 tonnes in Q1, compared with 106,000 tonnes in the corresponding prior quarter (pre-acquisition period) due to higher utilisation rates. This comprised mined metal of 80,000 tonnes (MIC) at BMM and Lisheen, and refined zinc metal of 39,000 tonnes at Skorpion.

During Q1, revenue and EBITDA at our Zinc - International business were Rs 1,060 Crore and Rs 517 crore respectively.