Sterlite Industries - Q4FY13 Result Review - Angel Broking

Sterlite Industries (Sterlite) reported better than expected 4QFY2013 results both on both top line and net profit front. Net sales increased 17.2% yoy to Rs. 12,609cr above our estimate of Rs. 11,334cr. Net sales growth was driven by increase in all the segments. Aluminium, Copper and Zinc segment revenues grew 9.8%, 16.9% and 21.6% yoy to Rs. 953cr, Rs. 5783cr and Rs. 4,950cr, respectively. On the operating front, Sterlite's EBITDA grew 14.6% yoy at Rs. 3,306cr and EBITDA margin was 26.2% (above our estimate of 23.1%) mainly due to higher profitability from all the segments and hence, adjusted net profit increased by 19.7% yoy to Rs. 2,041cr, which was above our estimate of Rs. 1,522cr.

We maintain our Accumulate rating on the stock with a target price of Rs. 98.

Source : Equity Bulls

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