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

Back to Investors

REUTERS SHOWCASE

Health Reforms

Health Reforms

India reviews state hospitals to end widespread corruption.  Full Article 

New Rules

New Rules

RBI says all companies must apply 2-step payments for credit cards.  Full Article 

Still Popular

Still Popular

Indians keep faith with Modi, best hope for economy - poll.  Full Article 

New Adviser

New Adviser

Arvind Subramanian likely to be chief econ adviser.  Full Article 

Pricing Mechanism

Pricing Mechanism

Govt sets up a four-member panel to re-examine gas pricing.  Full Article 

Royalty Rates

Royalty Rates

India to hike iron ore royalty, miners may struggle to pass on extra cost.  Full Article 

Diesel Deregulation

Diesel Deregulation

Oil ministry to seek Cabinet nod on diesel deregulation - sources  Full Article 

Commodities

Commodities

Gold near two-month low; set for weekly drop on interest rate fears  Full Article 

Helping Regional Mills

Helping Regional Mills

Govt raises sugar import duty to 25 pct from 15 pct.  Full Article 

Reuters India Mobile

Reuters India Mobile

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