Sesa Sterlite Ltd has posted a net profit after taxes, Minority Interest & Consolidated Share of Profit / (Losses) of Associates of Rs. 3755.60 mn for the quarter ended June 30, 2014 where as the same was of Rs. 4143 mn for the quarter ended June 30, 2013.
Total Income is Rs. 184668.80 mn for the quarter ended June 30, 2014 where as the same was at Rs. 3842.00 mn for the quarter ended June 30, 2013.
EBITDA margins at Aluminium business continued to improve due to higher premiums and cost control; Zinc India was impacted adversely by higher costs coming from lower volume; Cairn India was also lower due to profit petroleum increase. On an overall basis, while favourable oil prices, LME, premiums, and currency depreciation helped increase EBITDA, lower volumes in Zinc & Power, higher COPs, higher profit petroleum, and Australian mines closure resulted in a modest EBITDA increase of 3.5%.
Sequentially, EBITDA was lower by Rs. 995 crore primarily due to lower volumes as explained above. EBITDA margin was marginally higher thus helping offset some of the effect of lower volume.
Depreciation and amortisation have increased in Q1 by Rs. 178 crore to Rs. 2,064 crore over Q1 FY2014, most of the increase due to higher depreciation charge in Cairn India on account of change in depreciation method from Straight Line Method (SLM) to Unit of Production (UOP) on tangible assets. There was lower amortisation of goodwill due to lesser production in Zinc International & Australian mines, which was more than offset by the depreciation increases. The depreciation and amortisation for the quarter is lower than Q4 FY2014 by Rs. 329 crore, due to higher goodwill amortisation charge at Lisheen mine in Q4FY2014.
In the quarter, finance cost was marginally lower at Rs. 1,537 crore than in proforma Q1 FY 2014, reflecting refinancing benefits. This is also in line with Q4 FY 2014.
In Q1, other income at Rs 1,139 crore increased by Rs. 539 crore compared to the corresponding prior quarter. The increase was mainly on account of higher maturities of investments in Fixed Maturity Plans (FMPs) at Zinc and Cairn India, as income is recognized at maturity of FMP’s due to partial adoption of AS 30. The higher current quarter maturities also led to an increase of Rs 375 crore sequentially over Q4FY 2014.
Thus, net interest was lower in current quarter as compared to corresponding previous quarter as well as sequentially, largely due to higher other income.
Due to change in closing currency rate, there was a forex gain of Rs. 141 crore in this quarter, mainly at Cairn India driven by their dollar denominated investments & trade debtors.
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