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Sterlite Industries (India)
F1Q12: Largely in-Line Results
Quick Comment –Sterlite declared F1QF12 results:
1) Sterlite reported EBITDA of Rs27.2bn, higher by 87%
YoY but down 9% QoQ and 3% above our estimates. 2)
Attributable PAT was Rs16.4bn, up 63% YoY but down
15% QoQ and 3% above our estimates.
Highlights:
1) EBITDA of Rs5.17bn from the Zinc international
business, up 18% QoQ, driven primarily by higher
mined metal and refined metal production of 80kt
and 39kt compared to 44kt and 36kt in F4Q11.
2) Copper EBIT was 6% below MSe at Rs2.91bn (up
55% YoY and down 2% QoQ). The negative
surprise was due to lower-than-expected production
volumes of 74kt (down 3% YoY and 7% QoQ) vs.
80kt MSe caused by lower concentrate grade and
reduced plant availability due to an unscheduled
maintenance shutdown Tc/Rc was marginally
higher at US$13.9 c/lb.
3) Balco’s aluminum EBIT stood at Rs1.59bn (down
18% QoQ but up 347% YoY) and 15% ahead of
MSe. The surprise was primarily due to lower-than-
expected cost of aluminum production (CoP).
However we note that a CoP of US$1,981/Mt in the
current quarter is still on the higher side, reflecting
an inflation in alumina and coal costs.
4) VAL reported an EBIDTA of Rs2.11bn (down 15%
QoQ but up 51% YoY) and a net loss of Rs3.60bn
(up 33% QoQ and 35% YoY). The incremental loss
was driven by higher CoP of US$2,344/Mt and
higher interest and depreciation charge. Aluminum
production volumes were 112Kt (up 4% QoQ and
45% YoY). Due to a power outage in June 2011 at
500kt Jharsuguda smelter, around 170 pots were affected;
hence, F2Q and F3Q12 production is expected to be lower.
5) Sterlite’s energy business reported net realization of
Rs3.6/unit vs. Rs4.9/unit in F1Q11 (Rs3.4/unit for F2011).
Cost of generation was 2.6Rs/unit compared to Rs1.6/unit
(Rs1.8/unit for F2011). Power sales were at 1,652 units
compared to 480 units in F1Q11 and 2,035 units for F2011.
The increase is due to the sales from the two 600 MW
units of the 2400MW Jharsuguda power plant.
6) Sterlite’s Indian zinc division reported EBIT Rs14.32bn, up
61.5% YoY but down 20.5% QoQ. (See our note dated
July 21, 2011, India Zinc Division 1QF12 result:
Production disappoints.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Sterlite Industries (India)
F1Q12: Largely in-Line Results
Quick Comment –Sterlite declared F1QF12 results:
1) Sterlite reported EBITDA of Rs27.2bn, higher by 87%
YoY but down 9% QoQ and 3% above our estimates. 2)
Attributable PAT was Rs16.4bn, up 63% YoY but down
15% QoQ and 3% above our estimates.
Highlights:
1) EBITDA of Rs5.17bn from the Zinc international
business, up 18% QoQ, driven primarily by higher
mined metal and refined metal production of 80kt
and 39kt compared to 44kt and 36kt in F4Q11.
2) Copper EBIT was 6% below MSe at Rs2.91bn (up
55% YoY and down 2% QoQ). The negative
surprise was due to lower-than-expected production
volumes of 74kt (down 3% YoY and 7% QoQ) vs.
80kt MSe caused by lower concentrate grade and
reduced plant availability due to an unscheduled
maintenance shutdown Tc/Rc was marginally
higher at US$13.9 c/lb.
3) Balco’s aluminum EBIT stood at Rs1.59bn (down
18% QoQ but up 347% YoY) and 15% ahead of
MSe. The surprise was primarily due to lower-than-
expected cost of aluminum production (CoP).
However we note that a CoP of US$1,981/Mt in the
current quarter is still on the higher side, reflecting
an inflation in alumina and coal costs.
4) VAL reported an EBIDTA of Rs2.11bn (down 15%
QoQ but up 51% YoY) and a net loss of Rs3.60bn
(up 33% QoQ and 35% YoY). The incremental loss
was driven by higher CoP of US$2,344/Mt and
higher interest and depreciation charge. Aluminum
production volumes were 112Kt (up 4% QoQ and
45% YoY). Due to a power outage in June 2011 at
500kt Jharsuguda smelter, around 170 pots were affected;
hence, F2Q and F3Q12 production is expected to be lower.
5) Sterlite’s energy business reported net realization of
Rs3.6/unit vs. Rs4.9/unit in F1Q11 (Rs3.4/unit for F2011).
Cost of generation was 2.6Rs/unit compared to Rs1.6/unit
(Rs1.8/unit for F2011). Power sales were at 1,652 units
compared to 480 units in F1Q11 and 2,035 units for F2011.
The increase is due to the sales from the two 600 MW
units of the 2400MW Jharsuguda power plant.
6) Sterlite’s Indian zinc division reported EBIT Rs14.32bn, up
61.5% YoY but down 20.5% QoQ. (See our note dated
July 21, 2011, India Zinc Division 1QF12 result:
Production disappoints.
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