Sterlite industries Q2 net profit up 75%

Vedanta group firm Sterlite Industries today reported 74.62 per cent jump in consolidated net profit of Rs 1,742.69 crore for the July-September quarter, aided by forex gains and lower losses at its associate firm, Vedanta Aluminium.

It had reported net profit of Rs 997.98 crore in the same quarter last fiscal. Net sales were up 8.82 per cent at Rs 11,028.92 crore during the quarter, vis-a-vis Rs 10,134.94 crore of the July-September quarter of 2011-12, Sterlite said in a filing to the BSE.

Net profit was boosted by forex gain of Rs 218.82 crore. Besides, the company saw 25 per cent decline in its finance cost to Rs 177.71 crore during the quarter, "primarily due to rupee appreciation in the quarter".

In a separate statement, Sterlite said, "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."

Besides, Sterlite's share of losses at Vedanta Aluminium Ltd (VAL) decreased to Rs 61 crore in the second quarter, from Rs 243 crore in Q2 last fiscal, largely due to lower foreign exchange losses.

Although alumina production at VAL's Lanjigarh refinery was down 10 per cent to 2.05 lakh tonnes (LT) during the quarter due to lower bauxite availability, the aluminium production increased 47 per cent to 1.34 LT at nearby Jharsuguda facility.

The company also said that its merger with sister firm Sesa Goa is on track and will be completed by 2012-end.

"The Schemes are now awaiting approval from the High Court of Madras and High Court of Bombay at Goa," the company said, adding that it has obtained most of the regulatory approvals.

Besides, Sterlite is looking to synchronise 300 MW unit of its subsidiary Balco's 1200 MW captive power plant during the current quarter. It is also looking to tap the first metal at the 325 kilo tonnes per annum Korba-III aluminium smelter during the fourth quarter of the current fiscal.

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