EX-99.1 2 d861316dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

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 2014

Attributable 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
1  Excludes 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)

 

FY2014
(Adjusted
Proforma)

          Q3     Q2     Nine months  
  

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 Depreciation and Taxes

     5,639        5,432        4 %      5,756        16,813        15,976        5 % 
  5,584      

Depreciation

     1,782        1,415        26 %      1,534        4,860        4,115        18 % 
  2,840      

Amortisation of goodwill

     546        678        -19 %      469        1,536        1,916        -20 % 
  13,514      

Profit before Exceptional items

     3,311        3,339        -1 %      3,753        10,417        9,944        6 % 
  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 after exceptional item

     1,588        1,780        -11 %      1,619        3,582        3,781        -5 % 
  5,172      

Attributable PAT before exceptional item

     1,588        1,780        -11 %      1,640        4,569        3,781        21 % 
  16.88      

Basic Earnings per Share (Rs./share)

     5.35        6.00        -11 %      5.46        12.08        12.75        -5 % 
  17.44      

Basic Earnings per Share without exceptional items (Rs./share)

     5.35        6.00        -11 %      5.53        15.41        12.75        21 % 
  60.5      

Exchange rate (Rs./$) – Average

     62.0        62.0        —          60.6        60.8        60.1        1 % 
  60.1      

Exchange rate (Rs./$) – Closing

     63.3        61.9        2 %      61.6        63.3        61.9        2 % 

 

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 production (up 13%); and weaker copper, zinc and lead and silver prices, mostly offset by higher production volumes of aluminium and zinc.

 

 

 

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

 

 

 

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 and EBITDA Margin

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 and Amortisation

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.

Finance Cost

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/Gain

In 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 corresponding quarter of the earlier year. Excluding the deferred tax asset, the current tax rate is comparable to that of Q3 FY 2014.

 

 

 

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

 

 

 

Borrowings and Investments

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.

Debt and Cash

(inRs. Crore)

 

Company

    31 December 2014     30 September 2014  
   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   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

¹ Maturity profile excludes working capital facilities of Rs.13,457 crore.

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   

   Unaudited Consolidated Results for the Third Quarter Ended 31 December 2014

 

 

 

Results Conference Call

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 Balwani

President – Group Communications, Sustainability& CSR

   

Tel: +91 22 6646 1000

gc@vedanta.co.in

Investor Relations

 

Ashwin Bajaj

Director – Investor Relations

 

Sheetal Khanduja

Associate 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.

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.

 

 

 

Registered Office: SesaGhor, 20 EDC Complex, Patto, Panaji (Goa) - 403 001    Page 6 of 6
CIN: L13209GA1965PLC000044