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Sesa Sterlite clocks Rs 376-cr quarterly net profit in Q1

The net profit was lower in the quarter due to an exceptional outgo of Rs 1,627 crore on account of shift to IFRS based accounting policy and it is just a technical matter, Sesa Sterlite CEO Tom Albanese said.He further said that in real terms, which is basically before one time exceptional item, the net profit of Sesa Sterlite has more than doubled to Rs 1,341 crore. The company had posted Rs 600 crore as the attributable profit after tax after exceptional items in the same quarter a year ago.

‘This is a technical matter on account to conversion to IFRS...The profit after tax before exception items more than doubled on an equivalent quarter basis from the first quarter of 2013-14,’ Albanese said.

In June 2014 quarter, exceptional items, net of tax, were Rs 1,627 crore (gross Rs 2,128 crore, tax impact of Rs 501 crore) represents the retrospective effect of the 'depreciation accounting' change made by Cairn India, the company said. This is due to changes made in the method of depreciation on some of its oil and gas assets. Since the merger of Vedanta Group firms creating Sesa Sterlite came into effect from the quarter ended 30 September, 2013, the results for the quarter are not comparable with previous corresponding period. Revenues of the company stood for the reporting quarter (April-June 2014) at Rs 17,056 crore as a result of higher contribution from copper, oil & gas and aluminium businesses.

Its copper business clocked a 97 per cent rise in revenue to Rs 4,855 crore. It was higher by 10 per cent for Cairn India at Rs 4,483 crore. Revenue in Aluminium was up by 23 per cent at Rs 2,917 crore on better premium while it was almost flat in other businesses compared to Q1 FY14.
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