Sterlite surprises with bonus, stock-split

MUMBAI Mon Apr 26, 2010 7:06pm IST

A stockbroker uses his terminal to trade at a brokerage firm in Mumbai September 30, 2008. REUTERS/Punit Paranjpe/Files

A stockbroker uses his terminal to trade at a brokerage firm in Mumbai September 30, 2008.

Credit: Reuters/Punit Paranjpe/Files

Related Topics

MUMBAI (Reuters) - Indian non-ferrous metals producer Sterlite Industries on Monday surprised the market with a bonus share issue and a stock split, sending its shares soaring by their highest in more than two months.

Sterlite, a unit of London-listed Vedanta Resources also beat market forecasts as quarterly net profit more than doubled on the back of strong sales as prices and volumes moved up.

"The bonus and stock split is definitely a surprise. But it has been overdue--they have a very strong balance sheet," said Ajay Parmar, head of research for institutional equities at Mumbai brokerage Emkay Global.

Sterlite said on Monday its board had approved a 1-for-1 bonus share issue and a 2-for-1 stock split.

Shares in the company, valued at $15 billion, rose to 842.50 rupees, up 5.95 percent--its biggest gain since Feb 3, in a Mumbai market that rose 0.3 percent.

The stock has slipped 2.2 percent so far in 2010, compared to a 1.6 percent rise in the main index.

Sterlite, which produces aluminium, copper, zinc and lead, reported March quarter net profit jumped to 13.81 billion rupees from 5.98 billion a year ago. Net sales rose to 71.11 billion, from 43.4 billion a year ago.

A Reuters poll of 13 brokerages had forecast Sterlite's quarterly net profit at 11.5 billion rupees, on net sales of 55.8 billion rupees.

Its aluminium segment saw a turnaround, reporting a profit compared with a loss last year. The zinc and lead segment, which contributes a third of turnover, saw profits surge as prices nearly doubled from a year ago.

(Reporting by Prashant Mehra; Editing by Surojit Gupta)

(For more business news on Reuters Money visit www.reutersmoney.in)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Innovative Solution

Innovative Solution

Turning smog into jewels - a Dutch designer's solution to Beijing's pollution.  Video 

Insider Trading

Insider Trading

Rajaratnam's brother loses bid to dismiss insider trading charges.  Full Article 

Literary Giant Dies

Literary Giant Dies

Mourning and memories in Gabriel Garcia Marquez's languid hometown.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage