Sterlite Industries net profit up 10.6% in fourth quarter

Sterlite Industries is seen posting a net profit of $261 million for the January-March quarter, up 10.6 per cent from $236 million in the year ago period, according to brokers polled by NDTV.

Sales for the period are seen coming in 1.5 per cent higher at $2019 million against $1988 million during the same period last year.

According to estimates, the earnings before interest, tax, depreciation and amortisation margins are seen slightly lower at 24.05 per cent compared to 25 per cent in the corresponding period last year.

Hindustan Zinc, a sister company which contributes 60 per cent to the earnings before interest and taxes for Sterlite Zinc is expected to be the major driver in the consolidated results. Hindustan Zinc results had come in above estimates. Hindustan Zinc had posted a 53 per cent jump in net profit on an on-year basis at $400 million.

Factors likely to have an impact on the earnings are that the LME prices of copper for the quarter were down 4 per cent year-on year as was aluminium which was down 7 per cent on year.

Sister concern Vedanta Aluminium is expected to post a loss of $78 million during the period. Vedanta Aluminium results are seen impacted by higher cost and refinery shutdown. A muted performance is seen in the power business due to marginal lower realisation.

While aluminium production for the period is seen flat at 62 kt, copper production is seen up 7 per cent at 86kt from 80kt during the corresponding period last year.