India's Sterlite Posts 55% Fall in Quarterly Net

MUMBAI -- Sterlite Industries India Ltd. on Tuesday reported a 55% fall in fourth-quarter net profit as metal prices fell. The mining company said net profit in the three months ended March 31 dropped to 5.98 billion rupees ($119.3 million) from 13.18 billion rupees a year earlier. Net sales fell 36% to 43.36 billion rupees from 67.66 billion rupees, the company said in a statement to the Bombay Stock Exchange. A Dow Jones Newswires survey of seven analysts had forecast a net profit of 5.10 billion rupees on net sales of 39.55 billion rupees. The company said it had a one-time gain of 798.5 million rupees in the January to March quarter, compared with a charge of 527.9 million rupees last year. "During Q4 and FY 2009, average zinc prices declined to $1,174 per ton and $1,563 per ton, respectively, compared with $2,426 per ton and $2,992 per ton in the corresponding prior periods," the company said. Most London Metal Exchange prices have fallen significantly since the fourth quarter of the 2008 fiscal year, with aluminum down about 50%, resulting in lower realizations for mining companies. During the quarter, Sterlite's aluminum production fell 7.6% to 85,000 tons, while copper cathode production dropped 2.2% to 88,000 tons. However, the company said refined zinc production rose 11.1% to 150,544 tons. Sterlite's revenue from the aluminum business fell 27% to 8.13 billion rupees, while that from the copper business fell 33% to 22.60 billion rupees. The company said consolidated cash, cash equivalents and liquid investments as of March 31, 2009 was 192.87 billion rupees. Out of that, 137.82 billion rupees was in debt mutual funds and 55.05 billion rupees was in fixed deposits with banks, the statement added.