Sterlite Industries Reported this Weekend
I
missed this earnings report from
Sterlite Industries (SLT), but the company continues to look good. While copper is not necessarily my favorite metal, the company is branching out into various base metals (zinc) and more importantly is located right in the center of the decades long boom coming in Asia. The stock has been very range bound, but I think this reflects a weak India market in 2008 more than anything... the past few sessions the stock finally is responding. Now the ironic thing is these countries who are actually prospering have the exact opposite problem we have - their currencies are strong, and hence they suffer in currency translation...
- Highest ever annual production across all metals
- Costs lower across all operations, inspite of a challenging environment
- HZL to become world’s largest integrated zinc-lead producer by 2010 – announces expansion projects that will take its total integrated zinc-lead capacity to 1,065,000 tonnes per annum with fully integrated mining and captive power generation capacities.
- Copper cathode production at the Tuticorin custom smelter was 339,000 tonnes for FY 2008 compared with 313,000 tonnes in the corresponding prior year. Overall the plant performance was good, with copper recoveries highest ever at 98% plus in FY 2008.
- Copper revenues for FY 2008 were Rs 12,658 crore, an increase of 7.9% compared with the prior year, primarily on account of higher volumes and better LME prices, mainly offset by an appreciating Indian rupee.
- Aluminium production in Q4 was highest ever at 92,000 tonnes, taking the full year production to 359,000 tonnes. Revenues and EBITDA for FY 2008 were Rs 4,170 crore and Rs 1,435 crore respectively. The positive impact of higher volumes on sales in FY2008 was primarily offset by the appreciation of the Indian rupee.
- Mined zinc metal production in FY 2008 was 551,000 tonnes, an increase of 9.1% compared with the previous year. Revenues and EBITDA for FY 2008 were Rs 7,878 crore and Rs. 6,223 crore compared with Rs. 8,560 crore and Rs. 6,644 crore, respectively in the corresponding prior year. The positive impact of higher volumes on sales and EBITDA in FY2008 was offset by adverse impact on account of a decline in zinc LME prices and the appreciation of the Indian rupee vis-à-vis the US dollar.
Sterlite Industries is India's largest non-ferrous metals and mining company with interests and operations in aluminum, copper and zinc and lead. It is a subsidiary of Vedanta Resources plc, a London-based diversified FTSE 100 metals and mining group. Sterlite Industries' main operating subsidiaries are Hindustan Zinc Limited for its zinc and lead operations; Copper Mines of Tasmania Pty Limited for its copper operations in Australia; and Bharat Aluminum Company Limited for its aluminum operations. The company operates its own copper operations in India. The company has entered the commercial energy generation business and is in the process of setting up a 2,400MW independent power plant through its wholly owned subsidiary, Sterlite Energy Limited.
Long Sterlite Industries in fund and personal account
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