Sterlite Industries (India) Limited Consolidated Results for the Fourth Quarter and Year Ended 31 Ma

Sterlite Industries (India) Limited Consolidated Results for the Fourth Quarter and Year Ended 31 March 2013

Highest ever annual EBITDA and Net Profit

MUMBAI, India--(BUSINESS WIRE)-- Sterlite Industries (India) Limited ("SIIL" or the "Company") today announced its audited consolidated results for the fourth quarter (Q4) and full year ended 31 March 2013 (FY 2013).

 

Q4 and FY 2013 Highlights

 

Operations

● Strong full year production growth and cost performance across businesses

● Record full year production of Zinc-Lead mined metal and integrated silver at Zinc India

Exploration

● Significant addition to R&R at Zinc India and Copper Australia

Financial

● Record EBITDA for the quarter and the year :

○ Q4 up 23% at Rs. 3,323 crore

○ FY2013 up 2% at Rs. 10,574 crore

● Record attributable PAT for the quarter and the year :

○ Q4 attributable PAT up 51% at Rs. 1,925 crore and EPS at Rs. 5.7 per share

○ FY2013 attributable PAT up 26% at Rs. 6,060 crore and EPS at Rs. 18 per share

● Total interim dividend of Rs. 2.30 per share for FY2013

● Contribution of Rs. 6,200 crore to the Exchequer during the year in terms of taxes, duties and royalties

 

Mr. Anil Agarwal, Chairman: "We achieved a strong operating and financial performance in FY2013. With production growth across our portfolio of world class assets, we recorded a net profit of Rs 6,060 crore in FY2013 and the Board has declared total interim dividend of Rs. 2.30 per share for FY2013."

 

Consolidated Financial Performance

 
    Q4   Q3   Full year
Particulars (In Rs. crore, except as stated) FY2013   FY2012   % change YoY FY2013 FY2013   FY2012   % change YoY
Net Sales/Income from operations 12,609 10,757 17 10,692 44,922 40,967 10
EBITDA 3,323 2,691 23 2,375 10,574 10,362 2
Interest expense 276 250 10 227 922 852 8
Forex (loss)/gain 78 184 (58) (63) 17 (305) 106
Profit before Depreciation and Taxes 3,907 3,408 15 2,896 13,017 12,174 7
Depreciation 453 503 (10) 538 2,032 1,830 11
Profit before Exceptional items 3,454 2,905 19 2,358 10,985 10,344 6
Exceptional Items 118 432 (73) - 118 473 (75)
Taxes 418 487 (14) 356 1,618 2,111 (23)
Profit After Taxes 2,918 1,987 47 2,003 9,249 7,761 19
Minority Interest 787 550 43 585 2,529 2,161 17
Share in Profit/(Loss) of Associate (206) (160) (29) (226) (660) (772) 15
Attributable PAT after exceptional item 1,925 1,277 51 1,191 6,060 4,828 26
Basic Earnings per Share (Rs./share) 5.7 3.8 51 3.5 18.0 14.4 26
Underlying Earnings per Share* (Rs./share) 5.5 4.1 34 3.7 17.9 16.7 7
Exchange rate (Rs./$) - Average 54.2 50.3 8 54.1 54.5 47.9 14
Exchange rate (Rs./$) - Closing   54.4   51.2   6   54.8   54.4   51.2   6
 

*Before forex and exceptional items

 

Revenues for Q4 and FY2013 were Rs. 12,609 crore and Rs. 44,922 crore, an increase of 17% and 10% respectively. The increase in revenue was driven by higher volumes and depreciation of the Indian Rupee, which more than offset lower metal prices. During Q4 and full year, the company delivered higher refined silver, lead, Copper, Aluminium and Power and higher mined metal production at Zinc India.

EBITDA in FY2013 was up 2% at Rs. 10,574 crore and in Q4 was up 23% higher at Rs. 3,323 crore, on account of higher production, higher metal premiums and lower costs which more than offset lower metal prices during the year.

Interest cost in Q4 and FY2013 was higher as compared to the corresponding prior periods due to capitalisation of new plants.

Depreciation in Q4 was lower due to one-off depreciation reversal at Zinc India. Depreciation cost for FY2013 was higher on account of capitalization of new plants at Zinc India and Sterlite Energy Limited (SEL).

During the year there was gain on account of foreign exchange movement as compared to the previous year, largely on account of foreign exchange hedge contract towards investments made in overseas subsidiaries, as designated contracts, resulting into transfer of foreign exchange movement to reserves, in accordance with AS 30.

During Q4 and FY2013, Attributable PAT and Basic EPS were significantly higher by 51% and 26% respectively, over the corresponding prior periods on account of higher EBITDA, higher investment income, lower foreign exchange losses and lower tax rate.

 

Merger of Sterlite and Sesa Goa Limited and Vedanta Group Consolidation

 
The proposed Vedanta Group Consolidation and Simplification has received the approval of the High Court of Bombay at Goa on 3 April 2013. The hearings at the High Court of Madras have been completed and the order is awaited.
 

Dividend

 
The Board has declared a second interim dividend of Rs 1.20 per share. The total interim dividend for FY2013 is Rs 2.30 per share and no final dividend is proposed to be declared. The total dividend outgo will be Rs. 773 crore as against Rs. 686 crore during the previous year.
             

Zinc - India Business

             
    Q4   Q3   Full Year
Production (in'000 tonnes, or as stated) FY2013   FY2012   % change YoY FY2013 FY2013   FY2012   % change YoY
Mined metal content 260 223 16 233 870 830 5
Refined Zinc - Total 182 190 (4) 171 677 759 (11)
Refined Zinc - Integrated 181 189 (4) 168 660 752 (12)
Refined Lead - Total 1 35 37 (6) 32 125 99 26
Refined Lead - Integrated 32 31 2 22 107 89 20
Silver - Total (in tonnes) 2 117 88 33 117 408 242 69
Silver - Integrated (in tonnes) 100 83 20 62 322 237 36
               
Financials (In Rs. crore, except as stated)              
Revenue 3,820 3,062 25 3,117 12,324 11,132 11
EBITDA 2,098 1,617 30 1,484 6,339 5,976 6
PAT 2,174 1,418 53 1,629 6,842 5,506 24
Zinc CoP without Royalty (Rs./MT) 44,901 41,693 8 44,900 45,461 40,003 14
Zinc CoP without Royalty ($/MT) 829 828 - 829 835 834 -
Zinc CoP with Royalty ($/MT) 998 995 - 993 998 1,010 (1)
Zinc LME Price ($/MT) 2,033 2,025 - 1,947 1,948 2,098 (7)
Lead LME Price ($/MT) 2,301 2,093 10 2,199 2,113 2,269 (7)
Silver LBMA Price ($/oz)   30.1   32.6   (8)   33   30.5   35.3   (14)
1.   Includes captive consumption of 1,777 tonnes in Q4 FY2013 vs. 2,156 tonnes in Q4 FY2012, and 6,500 tonnes in FY2013 vs. 6,625 tonnes in FY2012.
2. Includes captive consumption of 9 tonnes in Q4 FY2013 vs.11 tonnes in Q4 FY2012 and 34 tonnes in FY2013 vs. 35 tonnes in FY2012.
 

Mined metal production was a record 260,000 tonnes in Q4, 16% higher than the corresponding prior period, and in line with the annual mine plan. Full year production was 870,000 tonnes, 5% higher than the previous year.

The integrated production of refined zinc was 181,000 tonnes in Q4, 8% higher than Q3. Full year production was 660,000 tonnes, in line with the annual plan. Sales of zinc metal-in-concentrate (MIC) were 61,000 tonnes, due to surplus concentrate in Q4. Integrated production of refined lead was 32,000 tonnes in Q4 and 107,000 tonnes for the full year, up 2% and 20% respectively.

Saleable integrated production of silver was a record 91 tonnes in Q4 and 288 tonnes for the full year, up 26% and 43%, respectively, driven by the continued ramp-up of the SK mine and the Dariba lead smelter.

EBITDA for Q4 was higher by 30% mainly due to higher integrated silver sales, zinc concentrate sale of 61,000 tonnes and higher sales realisation due to rupee depreciation.

EBITDA for FY2013 was higher by 6% on account of higher sales realisation and volume which was partially offset by lower prices and higher cost of production

Zinc India achieved record net profits of Rs. 6,842 crore in FY 2013, up 24%, benefiting from higher sales and other income, partially offset by higher operating costs. Net profit for the quarter was up 53%to Rs. 2,174 crore driven by higher sales.

The Zinc metal cost, without royalty for FY 2013 was higher by 14% in INR and flat in USD term at Rs. 45,500 per MT ($835), compared with the previous year. The cost during the quarter was Rs. 44,900 per MT ($829), 8% higher in INR and flat in USD terms from a year ago. The increase was due to higher strip ratio at Rampura Agucha and lower acid credits, partially offset by lower power costs.

During the year, Zinc India announced its next phase of growth plan, which will increase its mined metal production capacity to 1.2 mtpa. Rampura Agucha underground mine and Kayad mine will start commercial production in FY 2014.

In FY 2013, there was a gross addition of 24.6 million tonnes to reserves and resources, prior to a depletion of 8.6 million tonnes. Total reserves and resources at 31 March 2013 were 348.3 million tonnes containing 35.1 million tonnes of zinc-lead metal and 910 million ounces of silver. Zinc India's mine life continues to be 25+ years.

Mined metal production in FY 2014 is projected to increase by 15% to approximately 1.0 mtpa. Integrated saleable Silver production is projected to be approximately 360 tonnes in FY 2014.

             

Zinc - International Business

 

 

  Q4   Q3   Full Year
Production (in'000 tonnes, or as stated) FY2013   FY2012   % change YoY FY2013 FY2013   FY2012   % change YoY
Refined Zinc - Skorpion 36 36 2 36 145 145 -
Mined metal content- BMM and Lisheen 65 71 (8) 68 280 299 (6)
Total 102 106 (4) 104 426 444 (4)
Financials (In Rs. crore, except as stated)              
Revenue1 1,130 1,007 12 1,065 4,331 4,258 2
EBITDA 434 371 17 439 1,603 1,737 (8)
PAT 267 174 53 226 894 1,034 (14)
CoP - ($/MT) 1,181 1,158 2 1,095 1,113 1,165 (4)
Zinc LME Price ($/MT) 2,033 2,025 - 1,947 1,948 2,098 (7)
Lead LME Price ($/MT)   2,301   2,093   10   2,199   2,113   2,269   (7)
 

1.  Includes intercompany sales to Zinc Indi


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