Sterlite Industries India Ltd. has posted a consolidated net profit after tax of Rs5.14bn for the quarter ended December 31, 2008 as against Rs8.55bn in the same quarter a year earlier. Consolidated total income is also down at Rs51.21bn for the fiscal third quarter versus Rs55.34bn in the quarter ended December 31, 2007.
Aluminium production for Q3 and the nine month period was 92,000 tons and 272,000 tons respectively, compared with 89,000 tons and 266,000 tons in the corresponding prior periods. The company recently started a temporary ramp-down of production in BALCO plant I, where operating costs are high and surplus power from this unit will be sold to optimize returns.
Revenues in Q3 and the nine month period were Rs8.36bn and Rs31.21bn, respectively, compared with Rs9.44bn and Rs30.45bn in the corresponding prior periods. The decrease in revenue was primarily on account of lower LME prices of aluminium by 25% in Q3, despite the depreciation of the Indian rupee against the US dollar by 21%.
As a result of the above, EBIDTA for Q3 and the nine month period was Rs1.62bn and Rs8.93bn, respectively compared with Rs2.65bn and Rs9.89bn in the corresponding prior periods.
The cost control measures, coupled with the drop in input prices have started yielding positive impact on the unit cost of production (CoP) at BALCO, which was US$1,642 per tons in Q3, down from US$1,969 per tonne in the immediately preceding quarter. Unit CoP in December 2008 was US$1,467 per tonne. Going forward, the company expects the trend of reduction in costs to continue and expect to be able to achieve a further reduction in CoP in the last quarter of FY 2009.
The 325,000 tpa smelter project at BALCO is progressing well and as per schedule for commissioning in September 2011, as announced earlier.
Work on the first phase of the 500,000 tpa aluminium smelter and associated captive power plant at Jharsuguda, Orissa is progressing well. To date, 228 pots have been commissioned, supported by three units of captive power plant with fourth unit being commissioned recently. The company expects the first phase of 250,000 tons to be fully commissioned by the end of FY 2009, approximately nine months ahead of schedule.
The first stream of the alumina refinery at Lanjigarh is fully operational and the production has been at near rated capacity at 165,000 tons in Q3.
Copper cathode production for the Q3 and the nine months period was 76,000 tons and 225,000 tons respectively, compared with 77,000 tons and 249,000 tons in the corresponding prior periods. The production was almost flat in Q3, primarily on account of an unplanned shutdown due to damage in the cooling tower in November 2008. The plant is being restored to normal operations.
Mined metal production at the company's Australian mine was in line with normal production level of 7,000 tons in Q3.
Revenues for Q3 and the nine month period were lower at Rs25.78bn and Rs92.69bn, respectively, compared with Rs26.31bn and Rs92.82bn in the corresponding prior periods. The decrease in revenues was primarily on account of lower copper LME prices which were down by 46% in Q3.
EBITDA for Q3 and the nine month period was Rs980mn and Rs9.83bn, respectively, compared with Rs2.89bn and Rs8.7bn in the corresponding prior periods. The decrease in profitability was mainly on account of lower TC/RCs and the sharp fall in by-product realisations. Going forward we expect Tc/Rcs to improve.
The company's zinc business achieved its highest ever quarterly production in Q3 for both mined and saleable metal. During Q3, HZL produced 191,684 tons of mined metal and 166,539 tons of saleable metal, an increase of 24% and 40% respectively compared with the corresponding prior quarter. For the nine months period, mined and saleable metal production was 537,592 tons and 445,812 tons respectively, an increase of 14% and 34% over the corresponding prior period.
The increase in mined metal production was primarily on account of the ramp-up of the stream III concentrator at Rampura Agucha mines in the current year. The increase in the refined metal production was primarily on account of the commissioning of the new Hydro smelter at Chanderiya in December 2007 and commissioning of the 88,000 tpa de-bottlenecking project in the current year.
During Q3, saleable silver metal production was at 24,722 kilograms, an increase of 23% compared with the corresponding prior quarter. For the nine months period, saleable silver metal production was 69,879 kilograms, an increase of 24% compared with the corresponding prior period.
Revenues for Q3 and the nine month period were lower at Rs10.31bn and Rs44.18bn, compared with Rs16.58bn and Rs56.12bn in the corresponding prior periods. Despite higher volumes and the depreciation of the Indian rupee by 21% the revenues were lower, primarily on account of lower LME prices of zinc and lead by 55% and 62%, respectively in Q3.
EBITDA for Q3 and the nine months period was Rs3.05bn and Rs22.93bn, compared with Rs10.71bn and Rs41.09bn in the corresponding prior periods. The fall in profitability is primarily on account of lower LME prices of zinc and lead and the sharp drop in by-product realisations, primarily sulphuric acid, which outpaced the benefits of increased volumes.
The zinc CoP during Q3 was US$780 per tonne, higher on account of higher input costs of coal, petroleum products, and met coke and lower realization from the sale of by-products. However, towards the end of Q3, the downward trend in the unit cost of key inputs became visible, and is expected to lower the cost of production going forward.
The construction activities at the 210,000 tpa zinc smelter and 100,000 lead smelter at Rajpura Dariba with its associated 160 MW captive power plant is progressing well and as per schedule for completion by mid - 2010. Progress of work at the mining projects at Rampura Agucha, Sindesar Khurd and Kayar is on schedule. Post completion of these projects, HZL will be the world’s largest integrated zinc – lead producer with a total capacity of 1,064,000 tons.
Work on 2,400 MW (4x600 MW) coal based thermal power plant at Jharsuguda is progressing well and overall the project is on schedule for progressive commissioning from late 2009 as expected.
For the company's 1,980 MW power plant at Talwandi Sabo, the steps for financial closure and discussions for finalization of EPC have commenced.
Consolidated cash and cash equivalents on 31 December 2008 was Rs190.34bn. This includes Rs143bn in debt mutual funds and Rs46.57bn in fixed deposits with banks. The Company has strong internal control mechanism that includes constant 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.
No comments:
Post a Comment