SESA STERLITE LIMITED (Formerly known as Sesa Goa Limited) Regd. Office: Sesa Ghor, 20 EDC Complex, Patto, Panaji, Goa - 403001. www.sesasterlite.com
CIN: L13209GA1965PLC000044
29 January 2015 Sesa Sterlite Limited Consolidated Results for the third Quarter and nine months ended 31 December 2014Attributable PAT* at Rs. 1,588 crore
Mumbai, India: Sesa Sterlite Limited ("Sesa Sterlite" or the "Company") today announced its unaudited consolidated results for the third quarter (Q3) ended 31 December 2014.Financial Highlights
Q3 FY2015 Revenues at Rs. 19,128 crore
EBITDA at Rs. 6,234 crore; EBITDA margin of 43%1
Attributable PAT excluding exceptional items at Rs. 1,588 crore
Gross debt reduced by Rs. 1,470 crore in 9 months
Strong balance sheet with Cash & Cash equivalents of Rs. 47,000 crore
Operational Highlights
Strong mined metal production at Zinc - India
Gross daily average production of 219 kboepd at Oil & Gas; production at Rajasthan normalised following planned maintenance shutdown in Q2
Strong operating performance at Aluminium and newly commissioned pot-lines ramping up
Received approval to start the BALCO 1,200 MW power plant; trial runs to start in
Q4
First 660MW unit of 1,980 MW Talwandi Sabo Power Plant commenced commercial operations
Iron Ore mining leases renewed at Goa and Karnataka
Reviewing capex & opex plans across businesses to maximize cash flows in light of recent commodity price declines
Mr. Tom Albanese, Group CEO: "We have delivered sustained performance in the third quarter despite the challenging markets. Strong operating performance of Aluminium and Zinc businesses led to the reduction in gross debt by Rs. 400 crore. We are focused on disciplined capital allocation, coupled with deferred and phased development spending in Zinc, Oil & Gas and other businesses which will help optimize our assets and drive strong cash flow in the near future."
*Excluding exceptional items
1Excludes custom smelting at Zinc and Copper India operations
Registered Office: Sesa Ghor, 20 EDC Complex, Patto, Panaji, Goa - 403001. CIN: L13209GA1965PLC000044
Unaudited Consolidated Results for the Third Quarter Ended 31 December 2014
Consolidated Financial Performance
The Sesa Sterlite merger and the Vedanta Group consolidation was completed in August
2013, hence Q3 and nine months FY2015 performance is compared with the adjusted proforma numbers of respective periods, which are more representative of the
performance during the period.
(In Rs. crore, except as stated)
Q3 Q2 Nine months
FY2014 (Adjusted Proforma)
Particulars
FY2015 (Actual)
FY 2014 (Adjusted Proforma)
% Change
FY2015
(Actual)
FY
2015
Actual
FY 2014 (Adjusted Proforma)
% Change
72,591 | Net Sales/Income from operations | 19,128 | 19,414 | -1% | 19,448 | 55,632 | 51,807 | 7% |
25,603 | EBITDA | 6,234 | 6,565 | -5% | 6,336 | 18,240 | 18,937 | -4% |
47% | EBITDA margin1 | 43% | 48% | - | 45% | 45% | 47% | - |
6,111 | Finance cost | 1,329 | 1,530 | -13% | 1,472 | 4,338 | 4,574 | -5% |
2,210 | Other Income | 429 | 390 | 10% | 686 | 2,325 | 1,448 | 61% |
505 | Forex gain | 393 | 82 | - | 260 | 795 | 535 | 67% |
21,937 | Profit before | 5,639 | 5,432 | 4% | 5,756 | 16,813 | 15,976 | 5% |
Depreciation and | ||||||||
Taxes | ||||||||
5,584 | Depreciation | 1,782 | 1,415 | 26% | 1,534 | 4,860 | 4,115 | 18% |
2,840 | Amortisation of | 546 | 678 | -19% | 469 | 1,536 | 1,916 | -20% |
goodwill | ||||||||
13,514 | Profit before | 3,311 | 3,339 | -1% | 3,753 | 10,417 | 9,944 | 6% |
Exceptional items | ||||||||
167 | Exceptional Items2 | - | - | 45 | 1,673 | - | - | |
1,000 | Taxes | 478 | -139 | - | 560 | 1,399 | 673 | 108% |
12,347 | Profit After Taxes | 2,834 | 3,478 | -19% | 3,148 | 7,345 | 9,271 | -21% |
7,342 | Minority Interest | 1,246 | 1,698 | -27% | 1,528 | 3,763 | 5,490 | -31% |
5,005 | Attributable PAT | 1,588 | 1,780 | -11% | 1,619 | 3,582 | 3,781 | -5% |
after exceptional | ||||||||
item | ||||||||
5,172 | Attributable PAT | 1,588 | 1,780 | -11% | 1,640 | 4,569 | 3,781 | 21% |
before exceptional | ||||||||
item | ||||||||
16.88 | Basic Earnings per | 5.35 | 6.00 | -11% | 5.46 | 12.08 | 12.75 | -5% |
Share (Rs./share) | ||||||||
17.44 | Basic Earnings per Share without | 5.35 | 6.00 | -11% | 5.53 | 15.41 | 12.75 | 21% |
exceptional items | ||||||||
(Rs./share) | ||||||||
60.5 | Exchange rate | 62.0 | 62.0 | - | 60.6 | 60.8 | 60.1 | 1% |
(Rs./$) - Average | ||||||||
60.1 | Exchange rate | 63.3 | 61.9 | 2% | 61.6 | 63.3 | 61.9 | 2% |
(Rs./$) - Closing |
1. Excludes custom smelting at Zinc and Copper India operations
2. Exceptional items for the quarter is reflected net of tax
Revenue
Revenue in Q3 was at Rs 19,128 crore. Revenue for the quarter decreased marginally q-o-q by 2%,driven by the decline in oil prices (down ~25%) partly offset by higher oil
Registered Office: SesaGhor, 20 EDC Complex, Patto, Panaji (Goa) - 403 001 Page 2 of 6
CIN: L13209GA1965PLC000044
Unaudited Consolidated Results for the Third Quarter Ended 31 December 2014
production (up 13%); and weaker copper, zinc and lead and silver prices, mostly offset by higher production volumes of aluminium and zinc.
Revenue was marginally down by 1%(Rs. 300 crore) in the quarter as compared to Q3 FY
2014. It was driven by decline in prices: oil 29%, copper 7%, lead 5%, and silver 21%, whereas Zinc and Aluminium prices were stronger by 17% and 11% respectively. The premia in Aluminium and Zinc were higher as compared to corresponding prior period.
EBITDA margin (excluding custom smelting) in Q3 was strong at 43% with EBITDA at Rs.
6,234 crore on the back of higher volumes and lower cost. The better operating
performance and benefit of currency depreciation was more than offset by lower brent and commodity prices.
Depreciation was higher at Rs. 1,782 crore compared with Rs. 1,415 crore in Q3FY2014, and Rs. 1,534 crore in Q2 FY 2015. Most of the increase is 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 in line with Indian Company's Act requirement. Also, Capitalisation of one unit of Talwandi Sabo Power Limited (TSPL) and
84 pots at the Korba-II aluminium smelter, had impact on increase of depreciation in Q3
FY 2015.
During the quarter there was lower amortisation of goodwill by Rs. 132 crore due to lower charge by Rs. 100 crore in Lisheen at Zinc International as it was amortised in previous year at accelerated rate. Amortisation was lower at CMT as there was no production from the Australian mines. Sequentially, it is higher with better volume at Oil & Gas business.
Foreign Currency Convertible bonds (FCCB) of US$717 million were repaid in the month of October through a combination of internal cash and refinancing leading to reduction in cost. Further, project loans in aluminium business were refinanced at lower interest rates in the first half of the year and started accruing benefits in finance cost during the quarter.
Non-Operational Forex Loss/GainIn Q3, rupee depreciated by 2.8% and closed at Rs.63.3 on 31st December 2014. This resulted in higher forex gain in Cairn India on dollar denominated investments and debtors.
Tax
Tax rate in Q3 was 14.4% similar to that in Q2 FY 2015. However, it is higher than Q3 FY
2014, on account of one time deferred tax asset of Rs. 452 crore being created in the
Registered Office: SesaGhor, 20 EDC Complex, Patto, Panaji (Goa) - 403 001 Page 3 of 6
CIN: L13209GA1965PLC000044
Unaudited Consolidated Results for the Third Quarter Ended 31 December 2014
corresponding quarter of the earlier year. Excluding the deferred tax asset, the current tax rate is comparable to that of Q3 FY 2014.
Gross debt reduced by ~Rs. 1,470 crore to Rs. 79,096 crore as on 31 December 2014 which was at Rs. 80,566 crore as on 31 March 2014.
Out of total loan of Rs. 79,096 crore the loan in INR currency is Rs.35,219 crore and balance Rs. 43,877 crore is in US dollar. The short term loans maturing by March 2015 taken at lower interest rates have been largely used for project finance and with easing interest rate scenario, these will be refinanced and will be converted gradually to long term maturity.
Out of the company's cash, cash equivalents and liquid investments of Rs. 46,806 crore, Rs.
34,745 crore was invested in debt mutual funds, Rs. 7,895 crore in bonds, and Rs. 4,166
crore in bank deposits. Net debt was marginally lower at Rs. 32,290 crore.
The company continues to follow a conservative investment policy and invests in high quality debt instruments with the mutual funds, bonds and fixed deposits with banks.
The Company has its long-term rating at AA+/Negative from CRISIL.
(inRs. Crore)
Company | 31 December 2014 | 30 September 2014 | ||||
Company | Debt | Cash & LI | Net Debt | Debt | Cash & LI | Net Debt |
Sesa Sterlite Standalone | 38,480 | 693 | 37,787 | 40,187 | 3,143 | 37,044 |
Zinc India | - | 26,355 | (26,355) | - | 25,412 | (25,412) |
Zinc International | - | 1,398 | (1,398) | - | 1,169 | (1,169) |
Cairn India | 158 | 18,079 | (17,921) | - | 16,164 | (16,164) |
BALCO | 5,508 | 2 | 5,506 | 5,309 | 28 | 5,281 |
Talwandi Sabo | 6,343 | 20 | 6,323 | 5,840 | 9 | 5,831 |
Cairn acquisition SPV ¹ | 27,145 | 116 | 27,029 | 26,979 | 1,021 | 25,958 |
Others ² | 1,462 | 143 | 1,319 | 1,211 | 161 | 1,050 |
Sesa Sterlite Consolidated | 79,096 | 46,806 | 32,290 | 79,526 | 47,107 | 32,419 |
1. As on 31 December 2014, debt at Cairn acquisition SPV comprises Rs.10,766 crore of bank debt and Rs.16,378 crore of inter- company debt from Vedanta Resources Plc. The accrued interest of Rs 120 crore on inter-company debt as on 31 December 2014
2. Others include MALCO Energy, CMT, VGCB, Sesa Resources, Fujairah Gold, and Sesa Sterlite investment companies.
Debt Maturity Profile(inRs. Crore)
Particulars ¹ | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2019 & Later | Total |
Sesa Sterlite Standalone | 2,833 | 2,747 | 3,233 | 6,456 | 6,563 | 5,448 | 27,280 |
Sesa Sterlite Subsidiaries | 5,019 | 3,135 | 3,221 | 3,245 | 4,186 | 3,173 | 21,979 |
Total | 7,852 | 5,882 | 6,454 | 9,701 | 10,749 | 8,621 | 49,259 |
Note: Debt numbers in the tables above are at book value. Figures in previous periods have been regrouped or restated, wherever necessary to make them comparable to current period.
Registered Office: SesaGhor, 20 EDC Complex, Patto, Panaji (Goa) - 403 001 Page 4 of 6
CIN: L13209GA1965PLC000044
Results Conference CallUnaudited Consolidated Results for the Third Quarter Ended 31 December 2014
Please note that the results presentation is available in the Investor Relations section of the company website www.sesasterlite.com
The results call will be at 6:00 PM (IST) on Thursday, 29 January 2015, where we will refer to the abovementioned presentation. The dial-in numbers for the call are:
Event | Telephone Number |
India - 6:00 PM (IST) | Mumbai main access +91 22 3938 1088 Mumbai standby access +91 22 6746 8388 |
Singapore - 8:30 PM (Singapore Time) | Toll free number 800 101 2045 |
Hong Kong - 8:30 PM (Hong Kong Time) | Toll free number 800 964 448 |
UK - 12:30 PM (UK Time) | Toll free number 0 808 101 1573 |
US - 07:30 AM (Eastern Time) | Toll free number 1 866 746 2133 |
For online registration | http://services.choruscall.in/diamondpass/registration?confirmationNumber=8317 984 |
Replay of Conference Call (29 January 2015 to 8 February 2015) | Mumbai +91 22 3065 2322 Passcode: 63835 |
For further information, please contact:
Communications
Roma BalwaniPresident - Group Communications,
Sustainability& CSR
Tel: +91 22 6646 1000 gc@vedanta.co.in
Investor Relations
Ashwin BajajDirector - Investor Relations
Sheetal KhandujaAssociate General Manager - Investor Relations
Tel: +91 22 6646 1531 sesasterlite.ir@vedanta.co.in
Registered Office: SesaGhor, 20 EDC Complex, Patto, Panaji (Goa) - 403 001 Page 5 of 6
CIN: L13209GA1965PLC000044
Unaudited Consolidated Results for the Third Quarter Ended 31 December 2014
About Sesa Sterlite Limited (Formerly known as Sesa Goa Limited)Sesa Sterlite Limited (SSLT) is one of the world's largest diversified natural resources companies, whose business primarily involves exploring and processing minerals and oil & gas. SSLT produces oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power and has a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka. Sustainability is at the core of SSLT's strategy, with a strong focus on health, safety and environment and on enhancing the lives of local communities.
SSLT is a subsidiary of Vedanta Resources Plc, a London-listed company. SSLT is listed on the Bombay Stock
Exchange and the National Stock Exchange in India and has ADRs listed on the New York Stock Exchange.
DisclaimerThis press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
Registered Office: SesaGhor, 20 EDC Complex, Patto, Panaji (Goa) - 403 001 Page 6 of 6
CIN: L13209GA1965PLC000044
distributed by |