30 JANUARY 2014www.livemint.com
Sesa Sterlite’s Q3 profit beat the estimates
Edited by : AL CIRCLE
2 min read
Sesa Sterlite Ltd, India’s biggest zinc and aluminium maker, beat Q3 earnings estimates as metal and oil output rose. Billionaire Anil Agarwal’s company said it will focus on reducing debt.
Net income was Rs.18.7 billion in the three months ended 31 December, the Panaji, Goa-based unit of Vedanta Resources Plc said on Tuesday. That compared with a median estimate for Rs.16 billion. Sales were Rs.194 billion, better than analyst estimates of Rs.186.3 billion.
The figures don’t compare with the year-earlier period as the merger of copper producer Sterlite Industries (India) Ltd and iron-ore miner Sesa Goa Ltd, both owned by Agarwal, to form Sesa Sterlite took effect in August.
“We have been generating healthy cash flows in all our businesses,” chief executive officer M.S. Mehta said on a conference call. “At this point, the company’s broad direction is to make sure we reduce our gearing going forward.”
A 1.3% gain in the Indian rupee against the dollar in the period affected earnings at Sesa Sterlite’s metals business that pegs domestic sales to dollar-denominated prices on the London Metal Exchange. The rupee was the second-best performer in the quarter among Asian currencies tracked by Bloomberg. The prices of aluminum and zinc fell 10% and 2.3%, respectively in the three months compared with a year earlier. Total expenses at Sesa Sterlite were Rs.150 billion in the period. The cost of power and fuel was Rs.13.7 billion in the last quarter, according to the statement.
Shares of Sesa Sterlite rose 2.5% to Rs.199.90 at the close in Mumbai on Tuesday. The benchmark S&P BSE Sensex fell 0.1%. The earnings were announced after market hours.
“The Indian government may sell its 29.54% stake in Hindustan Zinc in a week,” Sesa Sterlite’s finance director Tarun Jain said on Tuesday.
“India will sell its remaining Hindustan Zinc holding,” commerce minister Anand Sharma said 20 January, citing a cabinet decision. Sesa Sterlite is likely to bid for the shares, analysts have said.
Net income was Rs.18.7 billion in the three months ended 31 December, the Panaji, Goa-based unit of Vedanta Resources Plc said on Tuesday. That compared with a median estimate for Rs.16 billion. Sales were Rs.194 billion, better than analyst estimates of Rs.186.3 billion.
The figures don’t compare with the year-earlier period as the merger of copper producer Sterlite Industries (India) Ltd and iron-ore miner Sesa Goa Ltd, both owned by Agarwal, to form Sesa Sterlite took effect in August.
“We have been generating healthy cash flows in all our businesses,” chief executive officer M.S. Mehta said on a conference call. “At this point, the company’s broad direction is to make sure we reduce our gearing going forward.”
A 1.3% gain in the Indian rupee against the dollar in the period affected earnings at Sesa Sterlite’s metals business that pegs domestic sales to dollar-denominated prices on the London Metal Exchange. The rupee was the second-best performer in the quarter among Asian currencies tracked by Bloomberg. The prices of aluminum and zinc fell 10% and 2.3%, respectively in the three months compared with a year earlier. Total expenses at Sesa Sterlite were Rs.150 billion in the period. The cost of power and fuel was Rs.13.7 billion in the last quarter, according to the statement.
Shares of Sesa Sterlite rose 2.5% to Rs.199.90 at the close in Mumbai on Tuesday. The benchmark S&P BSE Sensex fell 0.1%. The earnings were announced after market hours.
“The Indian government may sell its 29.54% stake in Hindustan Zinc in a week,” Sesa Sterlite’s finance director Tarun Jain said on Tuesday.
“India will sell its remaining Hindustan Zinc holding,” commerce minister Anand Sharma said 20 January, citing a cabinet decision. Sesa Sterlite is likely to bid for the shares, analysts have said.
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