OREANDA-NEWS. October 24, 2012. Sterlite Industries (India) Limited ("Sterlite" or the "Company") today announced its results for the Second Quarter (Q2) and Half Year (H1) ended 30 September 2012.

Operations

 Strong integrated production of Silver and Lead at Zinc India, up 63% and 40% respectively

 Power sales from 2,400 MW Power Plant at Jharsuguda, up 53%

 Consistent performance at Zinc International

 Aluminium Cost of Production maintained in the 2nd quartile of the global cost curve Financials

 Basic EPS up 75% at Rs. 5.2 per share

 Strong balance sheet with cash and liquid investments of Rs. 23,334 crore Corporate

 Interim dividend of Rs. 1.1 per share

 Sesa Sterlite merger expected to complete by end CY 2012

 Contribution of over Rs. 3,000 crore to Indian exchequer in taxes, duties and royalties in H1

Consolidated Financial Performance

Q2

Q1

H1

Particulars (In Rs. Crore, except as stated)

FY2013

FY2012

%

change

YoY

FY2013

FY2013

FY2012

%

change

YoY

Net Sales/Income from operations

11,029

10,135

9%

10,591

21,620

19,961

8%

EBITDA

2,538

2,551

-

2,337

4,875

5,309

-8%

Interest expense

178

237

-25%

242

420

402

5%

Forex gain/ (loss)

219

(246)

-

(217)

1

(189)

-

Profit before Depreciation and Taxes

3,416

2,724

25%

2,797

6,213

6,150

1%

Depreciation

522

446

17%

518

1,040

866

20%

Profit before Exceptional items

2,894

2,278

27%

2,279

5,173

5,284

-2%

Exceptional Items

-

30

-

-

-

34

-

Taxes

511

505

1%

334

845

1,119

-25%

Profit After Taxes

2,383

1,744

37%

1,945

4,328

4,131

5%

Minority Interest

579

503

15%

577

1,156

1,145

1%

Share in Profit/ (Loss) of Associate

(61)

(243)

75%

(167)

(227)

(349)

35%

Attributable PAT after exceptional item

1,743

998

75%

1,202

2,944

2,638

12%

Basic Earnings per Share (Rs./ share)

5.2

3.0

75%

3.6

8.8

7.8

12%

Exchange rate (Rs./ USD ) - Average

55.2

45.8

21%

54.2

54.7

45.3

21%

Exchange rate (Rs./USD ) - Closing

52.7

48.9

8%

56.3

52.7

48.9

8%

Strong production and sales volumes of silver and lead at Zinc India, commercial power at Sterlite Energy Limited (SEL) and refined copper at Copper India generated revenues of Rs. 11,029 crore in Q2, up 9% year-on-year and Rs. 21,620 crore in H1, up 8% year-on-year. The fall in metal prices was largely offset by the depreciation of the Indian Rupee.

Q2 EBITDA was in line with the corresponding prior quarter at Rs. 2,538 crores and marginally lower for H1 at Rs. 4,875 crore, reflecting improved operational efficiencies, lower metal prices, higher metal premiums and significant depreciation of the Indian Rupee.

Interest costs during Q2 was lower at Rs. 178 crore compared with the corresponding prior quarter primarily due to rupee appreciation in the quarter which resulted into lower foreign exchange loss being transferred to interest cost.

During Q2, the company recorded a foreign exchange gain of Rs. 219 crore due to appreciation of Indian Rupee from Rs. 56.30 per US dollar as on 30 June 2012 to Rs. 52.70 per US dollar as on 30 September 2012, which helped offset the foreign exchange loss in Q1.

With the improved performance and lower foreign exchange losses at Vedanta Aluminium Limited (VAL), Sterlite's share of Loss of Associate decreased to Rs. 61 crore in Q2 and Rs. 227 crore in H1 as compared with Rs. 243 crore and Rs. 349 crore respectively, in the corresponding prior periods.

Depreciation cost during Q2 and H1 was higher at Rs. 522 crore and Rs. 1,040 crore compared with Rs. 446 crore and Rs. 866 crore respectively in the corresponding prior periods due to capitalization of new plants at Zinc India and SEL.

Attributable PAT and Basic EPS were Rs. 1,743 crore and Rs. 5.2 per share for Q2, up 75% and were Rs. 2,944 crore and Rs. 8.8 per share for H1, up 12%.

The company continued to maintain a strong balance sheet with cash and liquid investment of Rs. 23,334 crore as on 30 September 2012.

Further to the approval received from the Stock Exchanges in India, the Competition Commission of India, Foreign Investment Promotion Board and the equity shareholders during Q1, approval of the Supreme Court of Mauritius for the merger of Ekaterina Limited with the Sesa Goa Limited was obtained during Q2. The Schemes are now awaiting approval from the High Court of Madras and High Court of Bombay at Goa.