For the third quarter ended December 2009, Sterlite Industries (India) Ltd announced that its consolidated net profit after exceptional items grew 42.35% to Rs 731.3 crore on account of sturdy zinc prices and higher power tariffs.

India's biggest zinc producer had recorded a consolidated net profit of Rs 514 crore in the corresponding period of the last year (2008).

The company's net sales during the third quarter rose 50% to Rs 6,677 crore as against Rs 4,446 crore in 2008.

Revenue for zinc during the period under review rose to Rs 2,203 crore, while the operating profit came up to Rs 1,370 crore as against Rs 274 crore in 2008.

The company said, "The impact of higher LME (London Metal Exchange) prices, production volume and operational efficiency was partially offset by a fall in by-product prices and impact of a long-term wage agreement."

Increasing demand for steel used to make ACs and cars is strengthening sales of zinc, utilized to rust-proof the metallic element, said analysts tracking the stock.

The average price of aluminum was also higher during the same quarter (Dec 2009) as compared to the same period of 2008.

On a standalone basis, the company's net profit after exceptional items dropped 77% to Rs 46.6 crore for the three month period ended December 2009 as against Rs 204 crore during the same period of 2008.

The company has offered Rs 273.5 crore as an exceptional item to cover up a loss on the ASARCO agreement, after the US bankruptcy court asked Asarco to cease the contract with Sterlite.