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 - Total1

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