Sterlite Industries Posts Decent Numbers For Q4FY13

Promoted by the Vedanta Group, Sterlite Industries has reported better-that-estimated numbers for the March 2013 quarter. During the quarter, the company's topline grew by 17.14% to Rs 12673.76 crore on a yearly basis. This growth in the topline is led by a strong revenue growth of 17% YOY in its copper segment.

The higher volumes also helped the operating margins, which improved by 109 basis points to 26.09% in Q4FY13 to stand at 21.70%. In Q4FY13, the production of copper cathode stood at 86,000 tonnes, as against the street expectations of around 82,000 tonnes. Indian Zinc and lead business, which comes under Hindustan Zinc, accounting for about 30% of total revenues, also aided the strong operating performance of the company.

Zinc reported 21% growth followed by 49% growth in silver. Silver volumes have grown by 33% to 117 tonnes in Q4FY13 on a YoY basis. This increase in volumes along with an improvement in margins helped the company to post strong growth of 40% YoY in its net profit to Rs 1924.63 crore. Another important fact that needs to be mentioned is that the company’s debt to equity ratio stands at a mere 0.20x and the cash and cash equivalents stand at Rs 9432 crore.

The company has declared a dividend of Rs 1.10 per share and combined with the interim dividend of Rs 1.20 per share, the total dividend stands at Rs 2.30 per share. At the current market price of Rs 94.25 (+2.76% on the BSE), the dividend yield stands at 2.44%. Backed by better results, the stock may witness a further north bound move in today’s trade.