Sterlite Ind expects volume growth in aluminium biz

Sterlite Industries came out with its Q3FY07 numbers recently. The company's net sales were up 94% at at Rs 6814.3 crore versus Rs 3511.4 crore, YoY. Its operating profit too was up 215.7% at Rs 2762.8 crore versus Rs 875.2 crore. 

OPM was recorded at 40.5 % versus 24.9%. CNBC-TV18's research analyst, Kanchi Gandhi reviews the numbers and the company's business.

If one looks at the company's copper business, the copper cathode production was the highest ever at 86,000 tonnes, up 15%. The increase in profitability was primarily on account of better TCRC realisation, increase in LME prices and a reduction in unit costs, explains Gandhi.  

So the factors that made an impact ont he company's numbers include enhanced volumes and higher realisations across all three businesses: aluminium, copper and zinc. Also, non-ferrous metal prices are high YoY, which will help EBITDA margin expansion. LME-dominated zinc prices were up 170%, YoY, which also helped the company's Q3 numbers.

Going forward, the company expects volume growth in its aluminium business.