Sterlite Industries Ltd. (SIL) recently demerged its telecom business into a separate company. However, this has not held it back from reporting growth rates similar to its new economy sibling (Sterlite Optical Technologies Ltd).
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (m)
Diluted Earnings per share*
The company has reported a sharp growth in turnover on the back of improved copper prices. Copper prices have been rallying since the beginning of FY00 and currently quote at $1,847/ tonne up from $1,300/ tonne in FY99. The company has also augmented their copper smelter capacity (up 20,000 tonnes) through debottlenecking. This may have had an impact on topline.
Operating profits are up handsomely, however, OPM is down 130 basis points. This could indicate that copper refining charges (TC/RC charges) have not increased in tandem with copper concentrate (ore) prices.
The company currently is trading at Rs 161 on 1QFY01 annualised earnings multiple of 3.1.
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