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Sterlite Industries (India) Limited Unaudited Consolidated Results for the Second Quarter and Six Months Ended 30 September



  Sterlite Industries (India) Limited Unaudited Consolidated Results for the
  Second Quarter and Six Months Ended 30 September 2012

Business Wire

MUMBAI, India -- October 23, 2012

Sterlite Industries (India) Limited (“Sterlite” or the “Company”) today
announced its results for the Second Quarter (Q2) and Half Year (H1) ended 30
September 2012.

Q2 Highlights

Operations

  * Strong integrated production of Silver and Lead at Zinc India, up 63% and
    40% respectively
  * Power sales from 2,400 MW Power Plant at Jharsuguda, up 53%
  * Consistent performance at Zinc International
  * Aluminium Cost of Production maintained in the 2nd quartile of the global
    cost curve

Financials

  * Basic EPS up 75% at Rs. 5.2 per share
  * Strong balance sheet with cash and liquid investments of Rs. 23,334 crore

Corporate

  * Interim dividend of Rs. 1.1 per share
  * Sesa Sterlite merger expected to complete by end CY 2012
  * Contribution of over Rs. 3,000 crore to Indian exchequer in taxes, duties
    and royalties in H1

Consolidated Financial Performance
                    Q2                           Q1       H1
Particulars                           %                                     %
(In Rs.             FY2013   FY2012   change     FY2013   FY2013   FY2012   change
Crore, except                         YoY                                   YoY
as stated)
Net
Sales/Income        11,029   10,135   9%         10,591   21,620   19,961   8%
from
operations
EBITDA              2,538    2,551    -          2,337    4,875    5,309    -8%
Interest            178      237      -25%       242      420      402      5%
expense
Forex               219      (246)    -          (217)    1        (189)    -
gain/(loss)
Profit before
Depreciation        3,416    2,724    25%        2,797    6,213    6,150    1%
and Taxes
Depreciation        522      446      17%        518      1,040    866      20%
Profit before
Exceptional         2,894    2,278    27%        2,279    5,173    5,284    -2%
items
Exceptional         -        30       -          -        -        34       -
Items
Taxes               511      505      1%         334      845      1,119    -25%
Profit After        2,383    1,744    37%        1,945    4,328    4,131    5%
Taxes
Minority            579      503      15%        577      1,156    1,145    1%
Interest
Share in
Profit/(Loss)       (61)     (243)    75%        (167)    (227)    (349)    35%
of Associate
Attributable
PAT after           1,743    998      75%        1,202    2,944    2,638    12%
exceptional
item
Basic
Earnings per        5.2      3.0      75%        3.6      8.8      7.8      12%
Share
(Rs./share)
Exchange rate
(Rs./$) –           55.2     45.8     21%        54.2     54.7     45.3     21%
Average
Exchange rate
(Rs./$) –           52.7     48.9     8%         56.3     52.7     48.9     8%
Closing

Strong production and sales volumes of silver and lead at Zinc India,
commercial power at Sterlite Energy Limited (SEL) and refined copper at Copper
India generated revenues of Rs. 11,029 crore in Q2, up 9% year-on-year and Rs.
21,620 crore in H1, up 8% year-on-year. The fall in metal prices was largely
offset by the depreciation of the Indian Rupee.

Q2 EBITDA was in line with the corresponding prior quarter at Rs. 2,538 crores
and marginally lower for H1 at Rs. 4,875 crore, reflecting improved
operational efficiencies, lower metal prices, higher metal premiums and
significant depreciation of the Indian Rupee.

Interest costs during Q2 was lower at Rs. 178 crore compared with the
corresponding prior quarter primarily due to rupee appreciation in the quarter
which resulted into lower foreign exchange loss being transferred to interest
cost.

During Q2, the company recorded a foreign exchange gain of Rs. 219 crore due
to appreciation of Indian Rupee from Rs. 56.30 per US dollar as on 30 June
2012 to Rs. 52.70 per US dollar as on 30 September 2012, which helped offset
the foreign exchange loss in Q1.

With the improved performance and lower foreign exchange losses at Vedanta
Aluminium Limited (VAL), Sterlite’s share of Loss of Associate decreased to
Rs. 61 crore in Q2 and Rs. 227 crore in H1 as compared with Rs. 243 crore and
Rs. 349 crore respectively, in the corresponding prior periods.

Depreciation cost during Q2 and H1 was higher at Rs. 522 crore and Rs. 1,040
crore compared with Rs. 446 crore and Rs. 866 crore respectively in the
corresponding prior periods due to capitalization of new plants at Zinc India
and SEL.

Attributable PAT and Basic EPS were Rs. 1,743 crore and Rs. 5.2 per share for
Q2, up 75% and were Rs. 2,944 crore and Rs. 8.8 per share for H1, up 12%.

The company continued to maintain a strong balance sheet with cash and liquid
investment of Rs. 23,334 crore as on 30 September 2012.

Merger of Sterlite and Sesa Goa Limited and Vedanta Group Consolidation

Further to the approval received from the Stock Exchanges in India, the
Competition Commission of India, Foreign Investment Promotion Board and the
equity shareholders during Q1, approval of the Supreme Court of Mauritius for
the merger of Ekaterina Limited with the Sesa Goa Limited was obtained during
Q2. The Schemes are now awaiting approval from the High Court of Madras and
High Court of Bombay at Goa.

Dividend

The Board has recommended an interim dividend of Rs. 1.1 per share. The
interim dividend outgo will be Rs. 370 crore. The record date for dividend
payment is 30 October 2012.

Zinc - India Business
                Q2                           Q1       H1
Production                        %                                     %
(in’000         FY2013   FY2012   change     FY2013   FY2013   FY2012   change
tonnes, or as                     YoY                                   YoY
stated)
Mined metal     190      210      -9%        187      377      398      -5%
content
Refined Zinc    163      185      -12%       161      324      378      -14%
– Total
Refined Zinc    153      185      -17%       157      310      376      -17%
– Integrated
Refined Zinc    10       -        -          4        14       2        -
– Custom
Refined Lead    27       17       60%        31       58       33       75%
- Total ^1
Refined Lead    24       17       40%        29       53       33       59%
– Integrated
Refined Lead    3        -        -          2        5        -        -
– Custom
Silver -
Total (in       92       49       86%        82       174      96       81%
tonnes) ^2
Silver -
Integrated      80       49       63%        79       160      96       66%
(in tonnes)
Silver –
Custom (in      12       -        -          3        14       -        -
tonnes)
                                                                         
Financials
(In Rs.                                                                  
crore, except
as stated)
Revenue         2,746    2,560    7%         2,641    5,387    5,344    1%
EBITDA          1,408    1,424    -1%        1,349    2,757    2,978    -7%
PAT             1,497    1,330    13%        1,542    3,039    2,809    8%
Zinc CoP
without         46,750   38,800   20%        45,800   46,300   39,000   19%
Royalty
(Rs./MT)
Zinc CoP
without         844      847      0%         844      845      861      -2%
Royalty
($/MT)
Zinc CoP with
Royalty         999      1,036    -4%        1,007    1,005    1,050    -4%
($/MT)
Zinc LME        1,885    2,224    -15%       1,928    1,906    2,236    -15%
Price ($/MT)
Lead LME        1,975    2,459    -20%       1,974    1,974    2,503    -21%
Price ($/MT)
Silver LBMA     30       39       -23%       28       30       38       -23%
Price ($/oz)

 1. Includes captive consumption of 3,076 tonnes in H1 FY2013 vs. 2,739 tonnes
    in H1 FY 2012, and 1,435 tonnes in Q2 FY2013 vs. 1,348 tonnes in Q2
    FY2012.
 2. Includes captive consumption of 16 tonnes in H1 FY2013 vs. 14 tonnes in H1
    FY 2012 and 8 tonnes in Q2 FY2013 vs. 7 tonnes in Q2 FY2012.

Mined metal production was 190,000 tonnes in Q2 and 377,000 tonnes in H1
compared with 210,000 tonnes and 398,000 tonnes in the corresponding prior
periods. The Sindesar Khurd (SK) mine continued to ramp-up well with mined
metal production up 39% at 45,000 tonnes in H1.

In line with the mined metal production, integrated production of refined zinc
was 153,000 tonnes in Q2 and 310,000 tonnes in H1. Integrated production of
refined lead was 24,000 tonnes in Q2, and 53,000 tonnes in H1, up 40% and 59%
respectively and the integrated production of silver was 80 tonnes in Q2 and
160 tonnes in H1, up 63% and 66% respectively, driven by the ramp-up of SK
mine and the new 100kt Dariba lead smelter.

In line with the mine plan and earlier guidance, production in H2 should more
than make up the shortfall in H1 production. The H2 production is expected to
progressively increase during Q3 and Q4. We expect the mined metal production
for the full year to be slightly higher than the previous year.

EBITDA for Q2 was in line with the corresponding prior quarter. During Q2, the
positive impact of higher lead-silver volumes and Rupee depreciation was
offset by lower zinc volumes, lower metal prices and higher COP (in Rupee
terms). PAT for Q2 was higher, despite stable EBITDA, on account of higher
investment income.

The Rampura Agucha underground mine and Kayar mine projects are progressing
well to deliver commercial production in FY2014. The Kayar mine produced
developmental ore in Q2.

Zinc - International Business
                Q2                           Q1       H1
Production                        %                                     %
(in’000         FY2013   FY2012   change     FY2013   FY2013   FY2012   change
tonnes, or                        YoY                                   YoY
as stated)
Refined
Zinc –          37       37       -          36       73       76       -4%
Skorpion
Mined metal
content-        77       77       -          70       147      157      -6%
BMM and
Lisheen
Total           114      114      -          106      220      233      -5%
Financials
(In Rs.
Crore,                                                                   
except as
stated)
Revenue^1       1,125    1,160    -3%        1,012    2,136    2,221    -4%
EBITDA          392      475      -17%       337      730      992      -26%
PAT             210      342      -39%       190      400      659      -39%
CoP –           1,053    1,242    -15%       1,111    1,087    1,164    -7%
($/MT)
Zinc LME
Price           1,885    2,224    -15%       1,928    1,906    2,236    -15%
($/MT)
Lead LME
Price           1,975    2,459    -20%       1,974    1,974    2,503    -21%
($/MT)

 1. Includes intercompany sales to Zinc India of Rs. 119 crore in Q2FY2012 and
    Rs. 151 crore in H1FY2012

Total production of refined zinc and mined zinc-lead metal in concentrate
(MIC) was 114,000 tonnes in Q2, in line with the corresponding prior period,
and 5% lower at 220,000 in H1, in line with the current year’s mine plan and
on account of lower grades, in line with earlier guidance.

EBITDA for Q2 was lower compared with the corresponding prior periods,
primarily on account of lower LME prices for Zinc and Lead, partially offset
by lower COP.

Copper – India / Australia Business
                Q2                           Q1       H1
Production                        %                                     %
(in’000         FY2013   FY2012   change     FY2013   FY2013   FY2012   change
tonnes, or as                     YoY                                   YoY
stated)
Copper -
Mined metal     6        5        14%        7        13       11       13%
content
Copper -        87       87       -          88       175      161      9%
Cathodes
                                                                         
Financials
(In Rs.                                                                  
crore, except
as stated)
Revenue         5,417    5,307    2%         5,301    10,718   9,939    8%
EBITDA          342      439      -22%       265      608      770      -21%
Foreign
Exchange        161      (104)    -          (219)    (58)     (106)    -
gain/(loss)
PAT             475      294      62%        96       570      687      -17%
Net CoP –
cathode         7.1      (3.7)    -          5.4      6.3      (3.3)    -
(US¢/lb)
Tc/Rc           11.3     13.0     -13%       12.4     11.8     13.4     -12%
(US¢/lb)
Copper LME      7,706    8,982    -14%       7,869    7,785    9,057    -14%
Price ($/MT)

Copper cathode production was 87,000 tonnes in Q2 and 9% higher at 175,000
tonnes in H1 on account of higher copper recovery. Mined metal production at
Australia was 14% higher at 6,000 tonnes in Q2 and 13% higher at 13,000 tonnes
in H1.

EBITDA for Q2 and H1 was lower on account of lower Tc/Rc and higher net COP
which were partially offset by improved production volumes. Net COP was higher
on account of lower sulphuric acid realisation and higher power costs.

The first 80MW unit of the 160MW captive power plant at Tuticorin was
synchronised at the end of Q2 and is currently under trial runs. This unit
will supply power to the copper smelter, which is expected to reduce the gross
COP significantly and further enhance cost competitiveness of the smelter.

Aluminium Business - BALCO
             Q2                            Q1        H1
Production                      %                                       %
(in’000      FY2013    FY2012   change     FY2013    FY2013    FY2012   change
tonnes, or                      YoY                                     YoY
as stated)
Aluminium    63        60       4%         60        123       121      1%
                                                                         
Financials
(In Rs.
crore,                                                                   
except as
stated)
Revenue      859       686      25%        780       1,640     1,442    14%
EBITDA       95        78       22%        57        153       269      -43%
PAT          32        (17)     -          (7)       26        128      -80%
CoP ($/MT)   1,970     2,133    -8%        1,910     1,940     2,036    -5%
CoP          108,800   99,300   10%        103,500   106,200   93,900   13%
(Rs./MT)
Aluminum
LME Price    1,918     2,399    -20%       1,978     1,947     2,495    -22%
($/MT)

The Korba-II smelter operated at its rated capacity and continues to convert
all of its primary metal into value added products.

EBITDA during Q2 was higher, compared with the corresponding prior quarter, on
account of higher metal premiums and depreciation of Indian Rupee which more
than offset the impact of higher COP in rupee terms and lower aluminium LME
prices.

Q2 aluminium COP in Rupee terms was higher on account of higher coal prices
due to tapering of coal linkage, higher rail freight and carbon cost.

Aluminium premiums have risen substantially year on year reflecting the
demand/supply gap of primary metal in the physical market. Premiums over LME
price on aluminium ingots went up by about $150/tonne during Q2 as compared to
the previous year.

Due to a delay in obtaining regulatory approvals, the first 300MW unit of the
BALCO 1,200MW captive power plant is now expected to be synchronized in the
current quarter, subject to receiving regulatory approvals. Thereafter, we
plan to tap the first metal at the 325 ktpa Korba-III aluminium smelter in Q4
FY2013. For the 211mt coal block at BALCO, we are progressing well towards
obtaining the second stage forest clearance, and thereafter we intend to
commence mining this year.

Aluminium Business – Vedanta Aluminium Limited (Associate Company)
              Q2                             Q1        H1
Production                        %                                        %
(in’000       FY2013    FY2012    change     FY2013    FY2013    FY2012    change
tonnes, or                        YoY                                      YoY
as stated)
Alumina –     205       228       -10%       218       423       451       -6%
Lanjigarh
Aluminum –    134       91        47%        124       259       203       27%
Jharsuguda
                                                                            
Financials
(in Rs.
crore                                                                       
except as
stated)
Revenue       1,819     1,198     52%        1,681     3,500     2696      30%
EBITDA        225       3         -          263       488       216       126%
Forex         280       (209)     -          (116)     164       (187)     -
gain/(loss)
PAT           (206)     (823)     -75%       (565)     (771)     (1183)    -35%
SIIL Share    (61)      (243)     -75%       (167)     (227)     (349)     -35%
(29.5%)
Aluminium     1,905     2,554     -25%       1,845     1,874     2,427     -23%
COP ($/MT)
Aluminium
COP           105,300   117,000   -10%       100,000   102,600   109,800   -7%
(Rs./MT)
Aluminium
LME Price     1,918     2,399     -20%       1,978     1,947     2,495     -22%
($/MT)

Alumina production at the Lanjigarh refinery was 205,000 tonnes in Q2 and
423,000 tonnes in H1, 10% and 6% lower than the corresponding prior periods
due to lower supply of third-party bauxite.

The Jharsuguda-I smelter operated above its rated capacity, with significant
improvement in specific power consumption. Aluminium production in Q2 was
134,000 tonnes, 47% higher year-on-year. H1 Aluminium production was also 27%
higher at 259,000 tonnes.

Q2 aluminium COP in Rupee terms was lower due to higher production, reduced
coal costs and better operational efficiencies.

Q2 EBITDA was significantly higher, compared with the corresponding prior
quarter, on account of higher production, better cost performance and higher
metal premiums. EBITDA margin at VAL also improved due to higher conversion of
primary metal into value added products, which increased by 35% in Q2 compared
with the corresponding prior period.

PAT during the quarter improved due to increase in EBITDA by Rs. 222 crore and
mark to market gain on foreign exchange of Rs. 280 crore as compared to a loss
of Rs. 209 crore in the corresponding prior period.

Status of Investment in Vedanta Aluminium Limited as at 30 September 2012

Investment in VAL           Sterlite       Vedanta       External       Total
(Rs. Crore)
Equity                      563            1,391         -              1,954
Preference Shares           3,000          -             -              3,000
Quasi Equity / Debt         7,129          2,289         18,470         27,887
Total Funding               10,692         3,680         18,470         32,841
Corporate Guarantees        4,538          23,121        -              27,659

Power Business
               Q2                            Q1       H1
Particulars                      %                                      %
(in million    FY2013   FY2012   change      FY2013   FY2013   FY2012   change
units)                           YoY                                    YoY
Total Power    2,474    1,748    42%         2,458    4,933    3,415    44%
Sales
SEL ^1         1,940    1,267    53%         1,938    3,879    2,404    61%
Balco 270MW    346      387      -10%        338      684      811      -16%
Power Sales
HZL Wind       188      94       99%         182      370      200      85%
Power
                                                                         
Financials
(in Rs.                                                                  
crore except
as stated)
Revenue ^2     885      601      47%         857      1,746    1,202    45%
EBITDA         300      134      124%        329      630      300      110%
PAT            113      23       391%        83       196      73       169%
Average
Power COP      2.22     2.59     -14%        2.02     2.12     2.53     -16%
(Rs./unit)
Average
Power          3.45     3.37     2%          3.44     3.44     3.48     -1%
Realization
(Rs./unit)
SEL COP        2.31     2.88     -20%        2.14     2.23     2.87     -22%
(Rs./unit)
SEL
realization    3.42     3.40     1%          3.51     3.47     3.53     -2%
(Rs./unit)

1. Includes production under trial run of 339 million units in H1 FY2013 vs.
288 million units in H1 FY2012, and 138 million units in Q2 FY2013 vs. 149
million units in Q2 FY2013.

2. Includes intercompany sale of Rs. 4 crore in H1 FY2013

Power sales were 2,474 million units in Q2 and 4,933 million units in H1, 42%
and 44% higher than the corresponding prior periods, respectively. This
significant increase was primarily due to higher power sales from three units
of the Jharsuguda 2,400MW power plant, operating at availability of over 80%
and plant load factor (PLF) of 50% in H1, with the fourth unit generating
under trial run. The PLF of the Jharsuguda 2,400MW power plant was constrained
due to a temporary evacuation limitations imposed following a power grid
failure in end August 2012.

Power sales were augmented by higher sales at HZL wind power, which was
expanded by 150MW to 274MW last year.

Power sales at Balco 270 MW were 10% lower at 346 million units in Q2 and 16%
lower at 684 million units in H1 due to lower demand in the spot market.

EBITDA for Q2 was higher due to higher volumes at SEL and wind power and lower
generation costs. During Q2, generation cost at SEL reduced on account of
lower coal costs and efficient plant operations.

We continue to augment our power evacuation capacity at SEL, and target to
enhance the same by an additional 1,000MW transmission by Q4 FY2013.

Work at the Talwandi Sabo power project is progressing well and the first unit
is now expected to be synchronized in Q2 FY2014.

Cash, Cash Equivalents and Liquid Investment

The company continues to follow a conservative investment policy and invests
in high quality debt instruments in the form of mutual funds, bonds and fixed
deposits with banks. As at 30 September 2012, the company has cash, cash
equivalents and liquid investments of Rs. 23,334 crore, out of which Rs.
12,977 crore was invested in debt mutual funds and bonds, and Rs. 10,357 crore
was in fixed deposits and bank balances.

Note: Figures in previous periods have been regrouped or restated, wherever
necessary to make them comparable to current period.

For further information, please contact:

Ashwin Bajaj                                   sterlite.ir@vedanta.co.in
                                              
Senior Vice President – Investor Relations     Tel: +91 22 6646 1531
                                                
Sheetal Khanduja                               sterlite.ir@vedanta.co.in

AGM – Investor Relations                       Tel: +91 22 6646 1531

About Sterlite Industries

Sterlite Industries (India) Limited is India’s largest diversified metals and
mining company. The company produces aluminium, copper, zinc, lead, silver,
and commercial energy and has operations in India, Australia, Namibia, South
Africa and Ireland. The company has a strong organic growth pipeline of
projects. Sterlite Industries is listed on the Bombay Stock Exchange and
National Stock Exchange in India and the New York Stock Exchange in the United
States. For more information, please visit www.sterlite-industries.com

Regd. Office: SIPCOT Industrial Complex, Madurai Bypass Road, TV Puram P.O.,
Tuticorin-628002, Tamil Nadu

Disclaimer

This press release contains “forward-looking statements” – that is, statements
related to future, not past, events. In this context, forward-looking
statements often address our expected future business and financial
performance, and often contain words such as “expects,” “anticipates,”
“intends,” “plans,” “believes,” “seeks,” “should” or “will.” Forward–looking
statements by their nature address matters that are, to different degrees,
uncertain. For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in interest
and or exchange rates and metal prices; from future integration of acquired
businesses; and from numerous other matters of national, regional and global
scale, including those of a political, economic, business, competitive or
regulatory nature. These uncertainties may cause our actual future results to
be materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking statements.

Contact:

Sterlite Industries (India) Limited
Ashwin Bajaj
Senior Vice President – Investor Relations
Tel: +91 22 6646 1531
sterlite.ir@vedanta.co.in
or
Sheetal Khanduja
AGM – Investor Relations
Tel: +91 22 6646 1531
sterlite.ir@vedanta.co.in
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