MUMBAI, India, July 29, 2014 /PRNewswire/ --
Attributable PAT* increased to
Rs. 1,341 crore
Sesa Sterlite Limited ("Sesa Sterlite" or the "Company") today
announced its unaudited consolidated results for the first quarter
(Q1) ended 30 June 2014.
(Logo:
http://photos.prnewswire.com/prnh/20140117/663814 )
Financial Highlights
- Q1FY 2015 Revenues up 19% at Rs. 17,056
crore
- EBITDA up 3% at Rs.5,670 crore; continued strong EBITDA margin of
47%[1]
- Attributable PAT (excluding exceptional items) doubled to Rs.
1,341 crore
- Strong balance sheet with Cash & Cash equivalents of over
Rs.47,500
crore
- Gross debt reduction by Rs.500
crore during the quarter
Operational Highlights
- Oil & Gas:
- Sustained production at ~220 kboepd; significant exploration
and appraisal activity underway at Rajasthan for continued
growth
- Significant extension of existing gas play at Rajasthan in and
around the Raageshwari Deep Gas (RDG) field
- Zinc-India: production in line
with mine-plan and higher mined metal expected in H2; optimizing
open pit and transition to underground
- Aluminium: First phase of 325kt Korba-II smelter commenced
production, Lanjigarh alumina refinery continues to operate above
90% utilization
Mr. Navin Agarwal,
Chairman: "The outlook for the natural resources sector and
for our Company is positive as the Government is
looking at formulating forward looking policies which will help
harness production and grow the potential of our businesses.
The natural gas development project pursued by Cairn
India is a good example of the Company's focus as a key
growth area for the future."
* Excluding exceptional items
[1] Excludes custom smelting
at Zinc and Copper India operations
Consolidated Financial Performance
The Sesa Sterlite merger and the Vedanta Group consolidation was
completed in August 2013, hence Q1 FY
2015 performance is compared with the adjusted proforma numbers of
Q1 FY 2014, which are more representative of the performance during
the period.
(In Rs. crore, except as
stated)
FY2014
(Adjusted
Proforma) Q1 Q4
FY2014 FY2014
FY2015 (Adjusted (Adjusted
Particulars (Actual) Proforma) Proforma)
72,591 Net Sales/Income from operations 17,056 14,361 20,784
25,665 EBITDA 5,670 5,479 6,665
47% EBITDA margin[1] 47% 45% 45%
6,111 Finance cost 1,537 1,571 1,537
2,210 Other Income 1,139 600 764
(505) Forex loss/ (gain) (141) (218) 30
21,999 Profit before Depreciation and Taxes 5,416 4,577 5,961
5,584 Depreciation 1,544 1,303 1,469
2,840 Amortisation of goodwill 520 584 924
13,576 Profit before Exceptional items 3,352 2,690 3,569
229 Exceptional Items[2] 1,627 - 167
1,000 Taxes 362 310 328
12,347 Profit After Taxes 1,363 2,379 3,074
7,342 Minority Interest 988 1,779 1,852
5,005 Attributable PAT after exceptional item 376 600 1,222
Attributable PAT before exceptional
5,207 item 1,341 600 1,389
16.88 Basic Earnings per Share (Rs./share) 1.27 2.02 4.12
Basic Earnings per Share without
17.58 exceptional items(Rs./share) 4.52 2.02 4.69
60.50 Exchange rate (Rs./$) - Average 59.77 55.95 61.79
60.10 Exchange rate (Rs./$) - Closing 60.09 59.70 60.10
- Excludes custom smelting at Zinc and Copper India
operations
- Exceptional items for the quarter is reflected net of
tax
Q1 Revenue were up 19% at Rs 17,056
crore as compared with Q1 FY2014. The increase was primarily
due to Sterlite Copper (Rs 2,650
crore higher) which was under temporary closure in Q1
FY2014. Cairn India also witnessed
increase in revenue (Rs 420 crore
higher) due to higher average oil prices though offset partially by
higher profit petroleum. Revenues in Aluminium were higher on
better premium, partially offset by a weaker market and lower
realisations in the power business. Operations at the Australian
copper mines were suspended since January
2014 and the mine has been put under care and maintenance in
July 2014. Other businesses were
almost flat compared to Q1 FY 2014.
Sequentially revenue for the quarter is lower than 4Q FY2014 by
Rs 3,729 crore. This is driven by
lower production at Sterlite Copper due to a planned maintenance
shutdown of 23 days during Q1 and lower volumes in Zinc businesses
& Cairn India. The impact of marginally higher LME and metal
premiums is partially offset by higher profit petroleum tranche
starting this quarter.
EBITDA at Rs. 5,670 crore is up 3%
compared with corresponding prior quarter with margin (excluding
custom smelting) continuing to remain strong at 47% (Q1 FY2014 at
45%). However, margins of 38% in Q1FY2014 including custom smelting
did not have the full impact of the smelting business given the
temporary closure of Sterlite Copper and was therefore higher than
the normal level of 33% in the current quarter. As a result the
EBITDA growth is not in line with the revenue growth.
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.
Profit before taxation (PBT) for the quarter before exceptional
item at Rs 3,352 crore was higher
than corresponding prior quarter by Rs 663
crore largely on due to higher other income. EBITDA, which
is marginally higher, is offset by higher depreciation.
Sequentially, PBT is lower by Rs. 217
crore, due to lower EBITDA of Rs. 995
crore, offset by higher other income of Rs 375 crore, lower amortisation and depreciation
charge of Rs. 329 crore, other
movements being relatively smaller and largely offsetting each
other.
Exceptional items, net of tax, were Rs. 1,627 crore (gross Rs. 2,128 crore, tax impact of Rs. 501 crore) represents the retrospective effect of
the 'depreciation accounting' change made by Cairn India to comply
with the guidance notes issued by the Institute of Chartered
Accountants of India, wherein
Cairn India has changed the method of depreciation on some of its
oil & gas assets from SLM to UOP method. This charge is for the
period upto 31st March
2014.
Tax charge in the current quarter of Rs
362 crore (tax rate 10.8% excluding exceptional items),
compared with Rs. 310 crore in Q1
FY2014 (tax rate 11.5%), is higher following higher PBT. The tax
rate is marginally lower. Sequentially Q4 FY2014 at Rs.
328 crore (tax rate 9.2%) was lower
despite a higher PBT and EBITDA, driven by the lower tax rate as
well, which was impacted by deferred tax credits in that
quarter.
As a result of all of the above, the Profit After Tax (PAT) for
the quarter at Rs. 1,363 crore (Rs
2,990 crore gross of exceptional items) compares to Rs.
2,379 crore and Rs 3,074 crore in corresponding prior quarter and
sequential quarter, respectively. PAT (gross of exceptional items)
shows a healthy growth of 26% over Q1 FY 2014.
Attributable PAT was Rs. 376 crore
(Rs 1,341 crore gross of exceptional
item) in Q1 FY 2015 as compared to Rs.600
crore in Q1 FY 2014. Before exceptional items the
attributable PAT has more than doubled Attributable Earnings per
Share (EPS) for the quarter was Rs. 1.27 per share as compared to
Rs. 2.02 per share in Q1 FY 2014. Excluding exceptional item
attributable EPS at Rs. 4.52 per share is more than double compared
to Q1 FY 2014
Gross debt was Rs. 80,028 crore, a
reduction of about Rs 500 crore from
March 2014. Out of the company's
cash, cash equivalents and liquid investments of Rs. 47,664 crore, Rs.32,524 crore was
invested in debt mutual funds, Rs.2,049 crore in
bonds, and Rs.13,090 crore in bank deposits. 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 have its long-term rating at
AA+/Stable from CRISIL. Net debt at Rs. 32,364 crore has increased by Rs. 2,595 crore largely on account of Rs.
1,120 crore of cash used for Cairn
buy back, dividends to minorities Rs 282
crore and Free Cash Flow (FCF) post capex being a deficit of
Rs 1,000 crore.
Oil and Gas Business
Full Year
FY2014
% Q4
Q1 FY2015 Q1 FY2014 change FY2014 (Adjusted
Particulars (Actual) (Proforma) YoY (Actual) Proforma)
Production (in boepd, or as stated)
Total Gross operated production* 2,26,597 2,20,088 3% 2,32,884 2,26,548
Average Daily Gross Operated
Production 2,17,869 2,12,442 3% 2,24,429 2,18,651
Rajasthan 1,83,164 1,73,517 6% 1,90,881 1,81,530
Ravva 23,940 28,253 -15% 24,225 27,386
Cambay 10,765 10,672 1% 9,323 9,735
Average Daily Working Interest
Production 1,37,907 1,32,087 4% 1,42,796 1,37,127
Rajasthan 1,28,215 1,21,462 6% 1,33,616 1,27,071
Ravva 5,386 6,357 -15% 5,451 6,162
Cambay 4,306 4,269 1% 3,729 3,894
Total Oil and Gas (million boe)
Oil & Gas- Gross 19.83 19.33 3% 20.20 79.81
Oil & Gas-Working Interest 12.55 12.02 4% 12.85 50.05
Financials (In Rs. crore, except as
stated)
Revenue 4,483 4,063 10% 5,049 18,762
EBITDA 3,120 3,029 3% 3,654 13,877
Average Price Realisation - Oil &
Gas ($/boe) 97.0 93.3 4% 94.4 94.5
Brent Price ($/bbl) 110 102 7% 108 108
* Includes internal gas consumption
During Q1, average daily gross production was 217,869 barrels of
oil equivalent (boe), 3% higher than the corresponding prior
period, driven by ramp-up at the Rajasthan block.
As compared to Q4 FY2014, production at Rajasthan in Q1 was
lower due to an unplanned outage at the Mangala Processing Terminal
(MPT) in May 2014, resulting in a
reduced facility uptime of c.96%. The MPT is scheduled to have a
10-day maintenance shutdown in August
2014, which will affect the average daily gross production
during Q2 FY2015. However, we would be utilizing this opportunity
to tie-in new facility enhancements related to the development
projects.
Revenue and EBITDA in Q1 were marginally higher due to higher
volumes and oil prices, offset by the shift to a higher profit
petroleum tranche at the Rajasthan block. The operating expense in
Rajasthan was US$ 4.2/bbl for Q1
FY2015. EBITDA in Q1 was lower than Q4 FY2014 largely due to the
increase in profit petroleum.
The Enhanced Oil Recovery (EOR) programs at the Mangala field is
on track to commence first polymer injection by the end of FY 2015.
Development projects at Barmer Hill (BH) and gas development at
Rajasthan Deep Gas (RDG) field continue to be on track. We have
also drilled 7 successful exploration and appraisal wells at
Rajasthan during the quarter.
We extended a significant existing gas play, with multi-TCF
potential, in and around the RDG field, and are acquiring equipment
to double RDG production volumes by Q4 FY2015. Front end
engineering and tendering for construction of new pipeline and
facilities for the gas development are underway. The Bhogat
terminal, marine facilities and the Salaya-Bhogat pipeline are
under pre-commissioning, and gas has been introduced into the
Bhogat terminal.
At BH and satellite fields, we undertook our largest tight oil
development activity to date. We pumped c.250,000lbs of proppant in
Northern BH and commenced production from the Mangala BH and
Aishwariya BH fields during the quarter.
Since resumption of exploration in March
2013, we have established 1.2bn boe of hydrocarbons in-place
against our 3-yeardrill-out target of 3bn boe with 8 discoveries at
Rajasthan. An additional ~0.6bn boe has been discovered and is
under evaluation. The current drilling activities are expected to
establish an additional 1.2bn boe of hydrocarbons in-place during
FY 2015-2016, enabling us to achieve target volumes significantly
ahead of plan. These new discoveries and prospect volumes will take
the total discovered hydrocarbons in-place at Rajasthan to over 7
billion boe. An additional un-risked prospect inventory of
approximately 3bn boe has been identified for drill-out commencing
FY2016.
In Q1 FY2015, production at Cambay was at 10,765 boepd, with an
uptime of 99.7%.Production was higher on account of successful well
intervention measures undertaken in the previous quarter.
Production at Ravva was at 23,940boepd, supported by volumes from 3
new 4D-infill wells, with a plant uptime of 99.7%.
Zinc India
Q1 Q4 Full Year
% change
Particulars FY2015 FY2014 YoY FY2014 FY2014
Production(in'000 tonnes, or as
stated)
Mined metal content 163 238 -31% 200 880
Refined Zinc - Total 141 174 -19% 182 749
Refined Zinc - Integrated 139 173 -20% 179 743
Refined Zinc - Custom 2 1 138% 4 6
Refined Lead - Total [1] 31 31 -1% 36 123
Refined Lead - Integrated 22 27 -21% 29 111
Refined Lead - Custom 9 3 157% 7 12
Saleable Silver - Total (in
tonnes) [2] 82 96 -15% 91 350
Saleable Silver - Integrated (in
tonnes) 56 77 -28% 68 301
Saleable Silver - Custom (in
tonnes) 27 19 39% 23 49
Financials (In Rs. crore, except
as stated)
Revenue 2,904 2,874 1% 3,559 13,281
EBITDA 1,296 1,440 -10% 1,711 6,804
Zinc CoP without Royalty (Rs./MT) 60,100 46,800 29% 55,500 51,100
Zinc CoP without Royalty ($/MT) 1,005 836 20% 899 844
Zinc CoP with Royalty ($/MT) 1,178 995 18% 1,068 1,005
Zinc LME Price ($/MT) 2,074 1,840 13% 2,029 1,909
Lead LME Price ($/MT) 2,096 2,049 2% 2,106 2,092
Silver LBMA Price ($/oz) 19.6 23.1 -15% 20.5 21.4
- Excludes captive consumption of 1,689 tonnes in Q1 FY 2015
vs 1,644 tonnes in Q1 FY 2014, 1,991 tonnes in Q4 FY 2014 and 7,262
tonnes in FY 2014.
- Excludes captive consumption of 9 tonnes in Q1 FY 2015
vs.9tonnes in Q1 FY 2014,10tonnes in Q4 FY 2014 and 38 tonnes in FY
2014.
During Q1, mined metal production was 31% lower than the
corresponding prior quarter, in line with our mine plan at Rampura
Agucha (RAM), which involves lower mined metal production in the
first half of the year as we excavate more waste than ore. With
improving open pit grade cycles, we expect to have higher
production in the second half of this year. The full year
production of mined metal is expected to be marginally higher than
FY 2014.
Integrated production of refined zinc, lead and silver was lower
than the corresponding prior period and in line with the mined
metal production in the quarter.
The zinc metal cost of production before royalty during the
quarter was Rs. 60,100 ($1,005),
which is 29% higher in Rupee and 20% higher in USD term from a year
ago. The costs were higher due to lower volumes, rupee
depreciation, planned shutdowns and higher mine development
costs.
EBITDA was lower at Rs. 1,296
crore, compared to corresponding prior period. The positive
impact of higher zinc and lead prices was more than offset by
higher COP and lower volumes.
During Q1, total underground mine development completed was 15%
higher across mines. The RAM and Sindesar Khurd shaft projects are
progressing well. At RAM, we continue to transition from open pit
to underground mining, which started production in FY2014 and is
currently ramping-up. We are also evaluating mine design and
planning for further extension of the open pit. Overall, the
expansion to 1.2mtpa of mined metal at Zinc-India is progressing
well.
Zinc International
Q1 Q4 Full Year
% change
Particulars FY2015 FY2014 YoY FY2014 FY2014
Production (in'000 tonnes, or as
stated)
Refined Zinc - Skorpion 33 34 -4% 33 125
Mined metal content- BMM and
Lisheen 51 56 -9% 50 239
Total 84 90 -7% 83 364
Financials (In Rs. crore, except as
stated)
Revenue 866 938 -8% 1,165 4,015
EBITDA 232 298 -23% 441 1,282
CoP - ($/MT) 1,272 1,162 9% 1,203 1,167
Zinc LME Price ($/MT) 2,074 1,840 13% 2,029 1,909
Lead LME Price ($/MT) 2,096 2,049 2% 2,106 2,092
Refined Zinc metal production at Skorpion was marginally lower
than the corresponding prior quarter. Zinc-Lead mined metal
production was lower due to drop in grades as per mine plan
sequencing and shutdown of mill for maintenance at BMM.
EBITDA at Rs. 232 crore was 23%
lower than the corresponding quarter due to lower volumes and
shifting of sale of metal and concentrate parcels to Q2, affecting
the EBITDA by Rs. 67 crore.
We are evaluating the installation of a roaster at the Skorpion
Refinery to treat sulphide ores from BMM and other neighbouring
mines, and the detailed feasibility study for the refinery
conversion is expected to be completed this financial year. We are
conducting feasibility studies on Gamsberg and Swartberg to extend
the mine life at the BMM mining complex.
Iron Ore
Q1 Q4 Full Year
% change
Particulars FY2015 FY2014 YoY FY2014 FY2014
IRON ORE (in million dry metric
tonnes, or as stated)
Sales 0.5 - - 0.0 0.0
Goa 0.0 - - - -
Karnataka 0.5 - - 0.0 0.0
Production of Saleable Ore 0.0 - - 1.5 1.5
Goa - - - - -
Karnataka 0.0 - - 1.5 1.5
Production ('000 tonnes)
Pig Iron 146 110 33% 133 510
Met Coke 126 85 49% 119 408
Financials(In Rs. crore, except
as stated)
Revenue 477 363 32% 545 1,662
EBITDA 47 (47) - (82) (230)
At Karnataka, the production was 0.01 million tonnes on account
of a slow pace of sales through the e-auction process. However,
e-auctions have picked up recently and we expect to produce at our
provisional annual capacity of 2.29 million tonnes during the
year.
At Goa, iron ore operations
continue to remain suspended. The Goa Government is working towards
formulation of its mining policy following the Supreme Court order
of March 2014, and we expect to start
operations in the second half of FY 2015 after obtaining the
necessary approvals.
Production of pig iron and metallurgical coke were 33% and 49%
higher at 146,000 tonnes and 126,000 tonnes, respectively as
compared with the corresponding prior period as production ramped
up.
EBITDA was positive at Rs. 47
crore due to higher contribution from the pig iron
businesses.
We have identified significant tailings at Bomi and soft
weathered cap ore at Mano. Initial studies indicate that these are
easy to mine and beneficiate resources. We continue to work with
the Liberia Government on infrastructure solutions for an early
phase of mining operations.
Copper India/Australia
Q1 Q4 Full Year
% change
Particulars FY2015 FY2014 YoY FY2014 FY2014
Production (in'000 tonnes, or as
stated)
Copper - Mined metal content - 6 - 1 18
Copper - Cathodes 66 16 - 98 294
Tuticorin power plant sales
(million units) 136 137 - 144 601
Financials (In Rs. crore, except
as stated)
Revenue 4,855 2,465 97% 6,718 20,594
EBITDA 90 7 - 356 1,176
Net CoP - cathode (USCent/lb) 8.9 - - 6.0 9.7
Tc/Rc (USCent/lb) 18.8 13.9 36% 18.5 16.6
Copper LME Price ($/MT) 6,787 7,148 -5% 7,041 7,103
Copper cathode production at the Tuticorin smelter was lower
than the preceding quarter at 66,000 tonnes, due to a planned
23-day maintenance shutdown and the smelter has ramped up well
subsequently. Revenue and EBITDA are not comparable as the smelter
was temporarily closed for most of the corresponding prior quarter.
EBITDA is lower compared to Q4 FY2014 due to lower volumes and
higher COP, driven by higher one time maintenance expenses, lower
acid realisation credits.
At our Australian mine, where production has been suspended
since January 2014, a rockfall
occurred in June, delaying the restart of the mine. The mine has
been put on care and maintenance in July, and can be reopened after
FY2016 if it is found to be technically and economically feasible
after the completion of a program for additional exploration which
involves drilling and exploring newly identified ore bodies.
Aluminium
Q1 Q4 Full Year
% change
Particulars FY2015 FY2014 YoY FY2014 FY2014
Production (in'000 tonnes, or as
stated)
Alumina - Lanjigarh 233 - - 227 524
Aluminium - Jharsuguda 132 134 -1% 135 542
Aluminium - Korba I 60 61 -1% 64 251
Aluminium - Korba II[1] 11 - - 1 1
Aluminium-Total 203 195 4% 200 794
Financials (In Rs. crore, except
as stated)
Revenue 2,917 2,363 23% 3,022 10,779
EBITDA - BALCO 89 24 279% 82 272
EBITDA - Vedanta Aluminium
Division 441 260 69% 447 1,444
Alumina CoP - Lanjigarh ($/MT) 365 - - 357 358
Alumina CoP - Lanjigarh (Rs./MT) 21,800 - - 21,100 21,700
Aluminium CoP -(Rs./MT) 1,02,000 98,300 4% 99,000 1,00,400
Aluminium CoP -($/MT) 1,699 1,758 -3% 1,602 1,658
Aluminium CoP- Jharsuguda (Rs/MT) 97,800 93,800 4% 95,300 96,900
Aluminium CoP - Jharsuguda($/MT) 1,636 1,676 -2% 1,542 1,602
Aluminum CoP - BALCO (Rs/MT) 1,09,600 1,08,200 1% 1,06,800 1,07,700
Aluminium CoP - BALCO ($/MT) 1,834 1,934 -5% 1,728 1,781
Aluminum LME Price ($/MT) 1,798 1,835 -2% 1,708 1,773
- Trial run production of 11 kt in Q1 FY2015 from Korba II 325
kt smelter
The Lanjigarh alumina refinery operated at 93% of its rated
capacity and produced 233,000 tonnes in Q1, which is higher by
6,000 tonnes as compared to Q4 last year. The numbers for the
corresponding prior period are not comparable as the plant was not
operational then.
In Q1, production at the 500kt Jharsuguda-I & 245kt Korba- I
smelters remained stable. The Jharsuguda-I smelter operated above
its rated capacity despite recent grid failures.
Hot Metal cost at Jharsuguda I was Rs. 97,800 per tonnes
(US$1,636) as compared to Rs. 93,800
per tonne earlier (US$1,676)
primarily on account of higher alumina cost.
Hot Metal cost at Korba I was Rs. 109,600 per tonne (US$1,834) compared to Rs. 108,200 per tonne
(US$1,934) earlier, primarily on
account of further tapering of linkage coal as per CIL policy.
Availability of domestic coal is expected to be lower with lower
e-auction volumes, which could result in higher imports, higher
coal prices and higher power costs of smelters in the coming
quarters.
EBITDA for the quarter was higher at Rs. 530 crore mainly due to improved metal premium
~$450 per tonne and rupee
depreciation as compare to corresponding previous period.
The production at the 325kt Korba-II smelter continues to ramp
up, and this smelter produced around 11,000 tonnes during Q1 with
74 pots online by the end of the quarter, and the balance 10 pots
were turned on in July 2014. We will
further ramp up this smelter to full capacity during FY2015
subsequent to the commissioning of the 1,200 MW power plant for
which we are working on the final stages of regulatory approvals,
which are expected to be received in Q2 FY2015.
During the year we plan to start the first phase of 50 pots of
the 1.25 mtpa Jharsuguda-II smelter with the available surplus
power from the 1,215 MW power plant, and subsequently ramp up
further capacity with power from the 2,400 MW power plant after
receiving necessary approvals.
Regarding the BALCO coal block, we have now received the forest
diversion and the Rehabilitation and Resettlement (R&R)
approvals, and are working with the State Government for execution
of the mining lease.
Power
Q1 Q4 Full Year
% change
Particulars FY2015 FY2014 YoY FY2014 FY2014
Production (in million units)
Total Power Sales 2,599 3,177 -18% 2,092 9,374
2400 MW Jharsuguda power plant 2,154 2,604 -17% 1,701 7,625
270 MW BALCO power plant 70 187 -63% 84 390
100MW MALCO power plant 229 224 2% 231 911
274 MW HZL Wind power plants 146 162 -10% 76 448
Financials (in Rs. crore except as
stated)
Revenue 872 1,273 -31% 733 3,574
EBITDA 338 441 -23% 50 1,025
Average Cost of
Generation(Rs./unit) 1.92 2.26 -15% 2.04 2.23
Average Realization (Rs./unit) 3.21 3.63 -12% 3.34 3.54
Jharsuguda Cost of Generation
(Rs./unit) 1.75 2.21 -21% 1.76 2.10
Jharsuguda Average Realization
(Rs./unit) 2.90 3.45 -16% 2.98 3.26
During Q1, power sales were 18% lower primarily due to lower
sales from Jharsuguda 2,400MW plant on account of lower power
realisation and transmission constraints. The Jharsuguda 2,400MW
plant operated at a Plant Load Factor (PLF) of 45% in Q1 as
compared with 54% during the corresponding prior period. Power
sales from the BALCO 270MW power plant were lower as it supplied
power for the ramp up of the 325kt Korba-II smelter.
At Jharsuguda 2,400 MW power plant, average power realizations
reduced to Rs. 2.9 per unit due to lower sales volume from open
access. The power generation cost during the quarter was
Rs.1.75 per unit as compared with Rs.
2.21 per unit in corresponding prior quarter, primarily on account
of an improved coal mix due to lower PLF.
EBITDA in Q1 was Rs. 338 crore
lower than the corresponding prior quarter due to lower volumes and
lower realisation partly offset by a one-time gain of Rs.
63 crore.
The first 660 MW unit of the Talwandi Sabo Power Plant is under
commissioning, with the reliability run of the unit planned during
Q2. The other two units are expected to be commissioned towards the
end of FY 2015.
Ports Business
In Q1 the company achieved 1.78 mn tonnes volume at the Vizag
port as compared to 1.11 mn tonnes a year ago. The performance of
the company was affected by severe shortage of Railway rakes
leading to poor evacuation of cargo and hence limited space
availability.
Vizag General Cargo Berth (VGCB) has good business opportunity
due to large demand of imported coal. However evacuation of coal
due to shortage of railway rakes is a bottleneck. VGCB has obtained
permission for road evacuation of 1MMT/Year from the AP Pollution
Control Board and this would help in attracting road bound
customers.
Corporate
The Equity Share Buyback program of Cairn India closed on 22nd
July, 2014. During the Buyback period, it bought back a total
of 36,703,839 shares for a total consideration of approximately Rs.
1,225 crore from the open market
through stock exchanges, of which Rs 1,120
crore was spent in the current quarter.
During the quarter, Cairn India Limited entered into an
intercompany facility to lend upto US$1.25
billion to a wholly owned overseas subsidiary of Sesa
Sterlite Limited for two years at arm's length terms and
conditions. It carries an annual interest rate of LIBOR + 300 bps.
Of this, US$800 million has been
disbursed as of 30 June 2014. The
wholly owned overseas subsidiary has repaid all of the accrued
interest, and a part of principal of the intercompany debt extended
from Vedanta Resources Plc to Sesa Sterlite.
Update on Asarco
The US Bankruptcy Court recently passed an order restraining the
company, amongst other things, from paying present and future
dividend payments to the company's ADS holders, pending the payment
of the judgment amount of US$82.75
mn. The Company is awaiting RBI approval for payment of the
judgement amount.
The Company has transferred the final dividend for FY 13-14 of
Rs 1.75 per share amounting to Rs.
519 crores including dividend to the
ADS holders to the specified dividend account as per the
requirements of the Companies Act within the stipulated
timeline.
Annexure
Debt and Cash
(in Rs. Crore)
Company 30 June 2014 31 March 2014
Debt Cash & LI Net Debt Debt Cash & LI Net Debt
Sesa Sterlite
Standalone 39,883 2,489 37,394 38,943 2,459 36,484
Zinc India - 24,611 (24,611) - 23,943 (23,943)
Zinc International - 965 (965) - 1,204 (1,204)
Cairn India 351 19,381 (19,030) - 23,017 (23,017)
BALCO 5,079 31 5,048 4,786 1 4,785
Talwandi Sabo 5,303 15 5,288 5,028 22 5,006
Cairn acquisition SPV
(1) 28,370 - 28,370 30,614 50 30,564
Others squared 1,042 172 870 1,195 101 1,094
Sesa Sterlite
Consolidated 80,028 47,664 32,364 80,566 50,797 29,769
- As on 30 June 2014, debt at
Cairn acquisition SPV comprises Rs.7,211 crore of
bank debt and Rs.21,159 crore of inter-company debt from
Vedanta Resources Plc. The accrued interest of Rs.2,560 crore on
the inter-company debt has been paid.
- Others include MALCO Energy, CMT, VGCB, Sesa Resources,
Fujairah Gold, and Sesa Sterlite investment
companies.
Debt Maturity Profile
(in Rs. Crore)
FY 2019 &
Particulars (1) FY 2015 FY 2016 FY 2017 FY 2018 Later Total
Sesa Sterlite
Standalone 7,506 2,616 3,194 5,068 10,206 28,590
Sesa Sterlite
Subsidiaries 6,364 2,500 2,753 2,203 3,704 17,524
Total 13,870 5,116 5,947 7,271 13,910 46,114
(1) Maturity profile excludes working capital facilities of
Rs.12,755
crore.
Debt numbers in the tables above are at book value
Note: Figures in previous
periods have been regrouped or restated, wherever necessary to make
them comparable to current period.
About Sesa Sterlite Limited
Sesa Sterlite Limited ("Sesa Sterlite") is one of the world's
largest diversified natural resources companies. Our business
primarily involves exploring, extracting and processing minerals
and oil & gas. We produce oil & gas, zinc, lead, silver,
copper, iron ore, aluminium and commercial power and have a
presence across India,
South Africa, Namibia, Ireland, Australia, Liberia and Sri
Lanka. Sesa Sterlite has a strong position in emerging
markets with over 80% of its revenues from India, China,
East Asia, Africa and the Middle East.
Sustainability is at the core of Sesa Sterlite's strategy, with
a strong focus on health, safety and environment and on enhancing
the lives of local communities.
Sesa Sterlite is a subsidiary of Vedanta Resources plc, a
London-listed company. Sesa
Sterlite is listed on the Bombay Stock Exchange and the National
Stock Exchange in India and has
ADRs listed on the New York Stock Exchange.
Disclaimer
This 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.
For further information, please contact:
Communications
Roma Balwani
Executive Vice President - Group Communications & CSR
Tel: +91-22-6646-1330
gc@vedanta.co.in
Investor Relations
Ashwin Bajaj
Senior Vice President - Investor
Relations
Sheetal Khanduja
Associate General Manager - Investor
Relations
Hitesh Dhaddha
Manager - Investor Relations
Tel: +91-22-6646-1531
sesasterlite.ir@vedanta.co.in
SOURCE Sesa Sterlite Limited