Vedanta Res PLC VED Vedanta FY 2013 Interim Results

  Vedanta Res PLC (VED) - Vedanta FY 2013 Interim Results

RNS Number : 5144Q
Vedanta Resources PLC
07 November 2012




7
                                November 2012

                                      

                            Vedanta Resources plc

          Interim Results for the Six Months Ended 30 September 2012

Financial Highlights

n Revenue of US$7.5 billion, up 14%

n EBITDA of US$2.6 billion, up 49%; EBITDA margin^1 of 47%

n Underlying EPS^2 of US$0.97, up 40%

n Interim dividend of 21 US cents per share, up 5%

n Free cash  flow of  US$1.4 billion before  growth capex  and US$484  million 
after growth capex

n Strong balance sheet with Cash and Liquid Investments of US$7.2 billion

Business Highlights

n Group consolidation and simplification - on track for completion in CY 2012

n Record production at Cairn India,  driven by 35% higher output at  Rajasthan 
block

n 23% increase in integrated production at Copper Zambia

n Strong cost performance despite industry inflationary trends

n Cairn India  farm-in agreement signed  with Petro  SA for Block  1 in  South 
Africa

n Temporary state-wide restriction on iron ore mining in Goa


                     (in US$millions, except as stated)

                                                         H1       H1
Consolidated Group Results                       FY2012-13 FY2011-12 % Change
Revenue                                            7,451.9   6,552.6       14
EBITDA                                             2,562.5   1,721.2       49
 EBITDA Margin (%)                             34.4      26.3        -
 EBITDA margin excluding custom Smelting       46.8      37.2        -
(%)
Operating Profit                                   1,424.1   1,171.4       22
Attributable Profit                                  171.2      27.8      516
Underlying Attributable Profit^2                     264.2     189.4       40
Basic Earnings per Share (US cents)                   62.8      10.2      516
Earnings per Share on Underlying Profit (US           96.9      69.4       40
cents)
ROCE (excluding project capital work in progress     17.2%     17.1%        -
and exploration assets)
Total Dividend (US cents per share)                   21.0      20.0        5

1 Excludes custom smelting at Copper and Zinc-India operations

2 Based on  profit for  the period,  after excluding  special items  and 
other gains and losses, and their resultant tax and minority interest  effects 
(refer tonote 6 of Consolidated financial statements)

Mr Anil  Agarwal,  Chairman  of  Vedanta  Resources  plc  said,  "Vedanta  has 
delivered a strong  financial performance driven  by production growth  across 
the portfolio and strong  cost performance, especially  at the newly  acquired 
oil and  gas  business  which has  significantly  ramped-up  production  since 
acquisition. Our growth capex is now largely invested, which will continue  to 
drive production and cash flow growth.  This, combined with our proximity  to 
fast growing  markets  and  the simplification  of  our  corporate  structure, 
positions the Group well for the future."

For further information, please contact:

Investors                            

Ashwin Bajaj                         ir@vedanta.co.in

Senior Vice President - Investor     Tel: +44 20 7659 4732 / +91 22 6646 1531
Relations

Vedanta Resources plc


Media                                

Gordon Simpson                       Tel: +44 20 7251 3801

Faeth Birch

RLM Finsbury



About Vedanta Resources plc

Vedanta Resources  plc ("Vedanta")  is a  London listed  FTSE 100  diversified 
global natural resources  major. The group  produces aluminium, copper,  zinc, 
lead, silver,  iron  ore,  oil  &  gas  and  commercial  energy.  Vedanta  has 
operations  in  India,  Zambia,  Namibia,  South  Africa,  Ireland,   Liberia, 
Australia and  Sri Lanka.  With  an empowered  talent pool  globally,  Vedanta 
places strong emphasis on  partnering with all its  stakeholders based on  the 
core values of entrepreneurship, excellence, trust, inclusiveness and  growth. 
For more information, please visit www.vedantaresources.com.

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.

                             CHAIRMAN'S STATEMENT

              Vedanta Half Year Report FY2012-13, September 2012

Overview

In the first  half of the  financial year (H1  FY2013), Vedanta has  delivered 
strong operational and  financial results driven  by production growth  across 
the portfolio and strong  cost performance. The  Cairn India acquisition  that 
was completed in December last year has been performing well and has delivered
significant increase in production. Further,  the simplification of our  Group 
structure is  progressing well,  laying the  foundation for  a more  efficient 
corporate and capital structure. I would like to thank our employees for their
contribution to  these  results  and  our  shareholders  for  their  continued 
support.

Financial results

Vedanta has consistently delivered strong profitability across business cycles
with EBITDA margins^1  consistently above 32%  since IPO in  FY 2004. We  have 
delivered strong  EBITDA margins^1  of  47% driven  by production  growth  and 
improved operating costs.  EBITDA increased  49% to US$2.6  billion and  free 
cash flow after capex was positive at $484 million ($1.4 billion of free  cash 
flow before growth capex).

Our net debt was marginally lower at  $9.8bn compared to $10.0 bn at 31  March 
2012, with $7.2bn of cash and  liquid investments and $3.1 billion in  undrawn 
lines of  credit, and  we  remain committed  to maintaining  investment  grade 
credit metrics.  Overall,  our balance  sheet  remains strong  and  we  remain 
focused on reducing our gearing.

Operating Performance

We delivered significant production growth across the portfolio in H1.

At our  Copper  Zambia segment,  we  delivered 23%  higher  integrated  copper 
volumes and achieved a  major milestone with the  commissioning of the  bottom 
shaft loading facilities in October 2012. Ramp-ups of the Sindesar Khurd  mine 
and the Dariba  lead smelter drove  higher silver and  lead production in  H1, 
while zinc production  at Zinc  India was  in line  with the  mine plan.  Both 
Zinc-India and  Zinc-International had  strong  cost performances  with  costs 
going down year on year. 

Gross oil and gas  production was a record  207,105 barrels of oil  equivalent 
per day (boepd) in H1, driven by 35% higher production at our Rajasthan block.
Commercial power sales  were 64%  higher, driven  by higher  volumes from  the 
2,400MW power plant at Jharsuguda.

Our aluminium smelters at VAL and BALCO had a strong half year with production
at rated capacity and substantially lower costs although alumina production at
our Lanjigarh refinery was constrained by availability of third party bauxite.
Iron ore volumes were affected by state-wide mining bans in Karnataka and Goa.
We are working  closely with  the regulatory authorities  to obtain  necessary 
approvals to resume mining in Karnataka and Goa.

Market conditions

Global economic  conditions remain  challenging, with  subdued growth  in  the 
developed markets. Growth rates in emerging markets seem to have softened from
the highs of the last decade, but remain firmly in the positive territory with
fundamental demand drivers (industrialisation and urbanization) still  intact. 
The quality of our tier-1 assets with low operating costs positions us well to
take advantage of these markets conditions, and deliver strong results  across 
business cycles. We  remain the  market leader across  various commodities  in 
India where growth is forecast to recover to 6% in 2013 and the global  growth 
at 3.6% (source: IMF Sept 2012).

Key strategic developments

Growth

We continued to build  on our track record  of successful project  executions, 
delivering production ramp-ups in H1. Our Oil and Gas operations at  Rajasthan 
ramped  up  by  40%  since   acquisition  last  December  to  175,000   boepd, 
representing more than 20% of India's domestic oil production. At Zinc  India, 
ramp-ups of the  2mtpa silver-rich Sindesar  Khurd mine and  the 100kt  Dariba 
lead smelter drove  higher silver and  lead production, and  we are  currently 
evaluating the next  phase of  growth. At the  Konkola Deeps  in Zambia,  the 
commissioning of the bottom  shaft loading provides a  platform for growth  in 
mined metal from Konkola. We synchronized  the first 80MW unit of the  captive 
power plant at Tuticorin, India which  will further reduce operating costs  at 
the efficient Tuticorin  copper smelter.  Overall, our  well invested  asset 
base coupled with  the project  ramp-ups is  driving positive  free cash  flow 
after growth capex.

Following  our  acquisition  of  iron  ore  deposits  in  Liberia  last  year, 
aeromagnetic studies and initial drilling have indicated significant upside to
the resource base estimate of  1 billion tonne, and  the first shipment is  on 
track for FY 2014. Cairn India remains focused on realizing the full potential
of  its  world-class  Rajasthan  asset  through  exploration  and  fast  track 
development to realize its basin potential of producing at 300,000 bopd. Cairn
India also signed a farm-in agreement  with PetroSA, the national oil  company 
of South Africa,  to explore  crude oil and  natural gas  in the  geologically 
proven Orange basin off the west coast of South Africa.

Long-term value

In line with  our strategy, the  simplification of the  Group structure is  on 
track for completion by the end of CY 2012, creating a more efficient  capital 
and corporate structure and delivering significant synergies. Shareholder  and 
other regulatory  approvals  have  been  obtained  and  we  are  now  awaiting 
approvals from the  High Courts  in India.  Separately, we  have submitted  an 
offer to the Government of India to buy out their minority shareholding in HZL
and BALCO.

Sustainability

Sustainability is core to our philosophy and operations, and I have personally
set the  goal to  embed sustainability  into all  our business  decisions  and 
processes. We have rolled out a Sustainability Framework across the group and
recently completed a Group-wide self-assessment process with improvement plans
to address any gaps. Our efforts are broadly categorized in three areas:

n Responsible stewardship

n Building strong relationships and

n Adding and sharing value

Safety is our top priority. We have  continued to reduce our lost time  injury 
frequency rate (LTIFR) to 0.87  for the last 12 months  from 0.99 in the  last 
financial  year,  and  remain  committed  to  reduce  injuries  and  eliminate 
fatalities.

Dividends

In line with  our progressive dividend  policy, we have  announced an  interim 
dividend of 21 US cents per share.

Outlook

We are operating in challenging market conditions with tapering global growth,
and emerging markets  continue to be  the major contributor  to growth.  With 
well invested assets and a diversified  portfolio across metals and oil &  gas 
we are  strongly  positioned to  deliver  industry leading  production  growth 
across our portfolio of diversified

Tier 1 assets. In the near term,  our strong free cash flow from  operations, 
would drive deleveraging and deliver long-term value to shareholders.



Anil Agarwal

Chairman

6 November 2012

          Interim Results for the Half Year Ended 30 September 2012

Consolidated Group


                  (In US$ million unless otherwise stated)

                              Six months to Six months to          Year ended
                                    30.09.12      30.09.11 % Change   31.03.12
Key Financial Results                                                    
Revenue                             7,451.9       6,552.6       14   14,005.3
EBITDA                              2,562.5       1,721.2       49    4,026.3
 EBITDA Margin (%)              34.4          26.3               28.7
 EBITDA Margin                  46.8          37.2               40.6
excluding custom smelting
(%)^1
Operating Profit                    1,424.1       1,171.4       22    2,387.7
Attributable Profit                   171.2          27.8      516       59.8
Underlying Attributable               264.2         189.4       40      387.2
Profit ^2
Free Cash Flow                      1,438.0         745.7       93    2,533.8
Free Cash Flow after Project          483.7       (449.5)        -      135.6
Capex
Basic Earnings per Share (US           62.8          10.2      516       21.9
cents) ^2
Underlying Earnings per Share          96.9          69.4       40      142.0
(US cents) ^2
EBITDA Interest Cover (times)           8.7          11.0     (22)        5.3
^1
ROCE (Excluding capital work           17.2          17.1               11.3
in progress and
exploration assets)(%) ^1
Gearing^1                              34.3          36.9      (7)       35.3
Net Debt                            9,835.4       7,165.6       37   10,064.4
Interim Dividend (US cents               21            20                  -
per share)

1 Refer to Glossary and Definitions section

2 Refer to note 6 of Condensed financial statements

Highlights:

n EBITDA up by 49% to US$2.6  billion, EBITDA margin at 47% (excluding  custom 
smelting).

n Strong free  cash flow up  by 93% at  US$1.4 billion; Free  cash flow  after 
project capital expenditure of US$0.5 billion.

n Strong performance  driven by  a diversified portfolio  of world-class,  low 
cost, scalable assets

n Significant contribution from Cairn India.

n Achieved record  production of Oil  & Gas, Copper  in Zambia and  commercial 
power.

n Strong cost performance despite global inflationary pressures.

n Iron Ore  operation impacted by  state-wide restriction on  iron ore  mining 
announced in Goa.

n Cash and liquid investments of  US$7.2 billion (March 2012: US$6.9  billion) 
and net debt  of US$9.8 billion  as at 30  September 2012 (March2012:  US$10.0 
billion)

n Interim dividend of US21 cents per share, 5% increase over interim  dividend 
of FY2011-2012

Vedanta has once again delivered  a strong set of  financial results in H1  FY 
2012-13 underpinned  by our  diversified portfolio  of low  cost, world  class 
assets. Most  of  our  businesses including  recently  acquired  Cairn  India, 
delivered improved  operational and  cost performances  despite a  challenging 
economic environment. The production  at Cairn India Oil  & Gas operation  has 
increased by  21% compared  to  same period  last  year, reflecting  the  high 
quality of the asset  we have acquired and  smooth integration of the  Company 
into the Vedanta Group.  Integrated production at  Copper Zambia increased  by 
23%, reflecting the  planned ramp  up in  capacity. Aluminium  assets both  at 
Korba and  Jharsuguda performed  ahead of  their rated  capacity. Strong  cost 
management and  better  premiums enabled  Vedanta  Aluminium to  maintain  its 
double digit EBITDA margin despite falling prices. Our robust approach to cost
control helped us to improve and maintain our competitive cost positioning  in 
most sectors despite inflationary pressures.

The ongoing  European  sovereign  debt  crisis and  fears  of  Chinese  growth 
moderating, have  built pressure  on  the global  economy  over the  past  few 
quarters. Though growth rates  in the Chinese and  Indian economies have  been 
stronger than in the rest of the world, slowing demand in China combined  with 
unrelenting inflation have put pressure on profitability for mining  companies 
across the world. We consider ourselves  to be geographically well placed  and 
in the medium to long  term, we remain positive  on the outlook for  commodity 
markets.  Urbanisation   and   industrialisation,  primarily   in   developing 
countries, will continue  to fuel  consumption of  basic commodities.  Limited 
availability of quality assets  in a number of  commodities will also  support 
prices and will ensure appropriate returns.

The unprecedented growth of  the commodity sector in  the last decade has  run 
parallel  to  changing  regulations,  growing  activism  against  mining   and 
increasing complex social issues.  These are clearly  reflected by the  recent 
developments in South Africa, Australia, Chile, Indonesia and India. While  no 
one can be immune to these developments  we believe these to be temporary  and 
transitionary and will eventually  help strengthening the  sector in the  long 
run. Our Iron  Ore mining  operations in India  is passing  through a  similar 
phase. Iron Ore mining in Goa has been suspended with effect from 11 September
2012 and our Karnataka  mine is awaiting the  final approval from the  Supreme 
Court before recommencing  production. Despite these  issues affecting  mining 
companies globally, we believe that we are well positioned over the long  term 
to sustain and grow the business.

The Lanjigarh alumina refinery is operating at a capacity of 1 mtpa, which  is 
presently constrained by bauxite supply, however we are in active  discussions 
with the Orissa State Government  for allotment of alternative bauxite  mines. 
Work on  the  alumina  refinery  expansions is  on  hold  pending  environment 
clearance from MoEF. Please refer to Aluminium section later in the report for
more details.

On the Tuticorin smelter, the company has complied with all the directions  of 
the TNPCB and the consent to operate the plant has been renewed till 31  March 
2013. The Supreme Court  completed all the hearings  on 6th November 2012  and 
has asked all parties to file written submissions within three weeks and  have 
reserved the judgment in this matter.

Maintaining a strong credit profile has always  been a priority for us and  we 
remain focused on  this particularly  in the  current market  scenario. In  H1 
FY2012-13, we  generated  US$0.5  billion  free  cash  after  project  capital 
expenditure. Our project  capital expenditure reached  an inflection point  as 
the majority of our major expansion programmes are nearing completion.

First Half Performance

Our financial performance in the first half of the year reflects volume growth
across most of  our businesses  with the exception  of Iron  Ore. This  volume 
growth has been driven by the ramp up of production volumes in our zinc, lead,
silver, aluminium and power businesses where our expansion projects have  been 
successfully executed.  Our  Oil  &  Gas operations  and  Copper  Zambia  have 
delivered record production  in the first  half of the  year. Global  economic 
concern and uncertainties have driven down commodity prices. In the commercial
power sector, sales prices weakened,  however the impact was partly  mitigated 
by the lower  cash costs  of power generation.  We achieved  EBITDA of  US$2.6 
billion in the first half  of the year 49%, higher  than the same period  last 
year (H1  FY 2011-12  US$1.7  billion). Cairn  India's  first full  half  year 
results contributed US$1.3 billion to this increase in EBITDA.

In line with our strategy to maintain long mine life of our assets and  target 
to add more than we mine, we continue to focus on our exploration programmes -
on both brown field and green field sites. As a result, extensive  exploration 
work is going on in Cairn India, Zinc India, Zinc International, Iron Ore, and
Copper Zambia.

The initiative to simplify and consolidate the group structure is  progressing 
well and is on track  for completion by the end  of CY 2012. We have  received 
approval from  Vedanta,  Sterlite  and Sesa  shareholders  and  have  received 
approvals from the Supreme Court of Mauritius while the necessary hearings  in 
Indian High Courts are in progress.

Strategic Priorities

n Deliver industry-leading production growth across our portfolio complemented
by strategic acquisitions of large-scale  proven assets to drive growth  going 
forward.

n Continue to add reserves and resources to drive long-term value by extending
resources at a faster rate than we  deplete them through a continued focus  on 
drilling and exploration program.

n Reduce gearing from cash flow as capital expenditure reaches inflection  and 
deleverage the balance sheet.

n  Complete  the   simplification  of   the  Group   structure  to   eliminate 
cross-holding, bring  debt  near to  the  cash flow  and  deliver  significant 
synergies.

n Complete minority buyouts at HZL and BALCO with an objective to improve  the 
attributable profit of the company and fungibility of the cash.

Finance Review

Basis of presentation of financial information

Our interim  financial report  is prepared  in accordance  with  International 
Financial Reporting Standards ('IFRS'), as adopted by the European Union.  Our 
reporting currency is US dollar.

Consolidated Group Results


                      (in US$million, except as stated)

Consolidated Revenue                                                      
                        Six months to   Six months to              Year ended
                              30.09.12        30.09.11 % Change       31.03.12
Zinc                          1,375.6         1,666.4     (17)        3,206.8
 India                   984.2         1,177.8     (16)        2,316.1
 International           391.4           488.6     (20)          890.7
Oil & Gas*                    1,628.6             0.0        -          882.5
Iron Ore                        345.0           627.5     (45)        1,690.9
Copper                        2,822.3         3,120.4     (10)        5,915.0

India/Australia                1,956.9         2,197.9     (11)        4,205.2
 Zambia                  865.4           922.5      (6)        1,709.8
Aluminium                       936.1           932.4        -        1,873.5
Power                           317.9           227.4       40          458.3
Others                           26.4          (21.5)      223         (21.7)
Total Group Revenue           7,451.9         6,552.6       14       14,005.3



Consolidated EBITDA                             
Zinc                      638.4   871.4 (27) 1,610.8
 India             503.5   657.7 (23) 1,244.8
 International     134.9   213.7 (37)   366.0
Oil & Gas*              1,290.1       -       713.0
Iron Ore                  114.8   307.0 (63)   721.4
Copper                    293.1   405.7 (28)   685.9
 India/Australia   107.8   161.5 (33)   298.0
 Zambia            185.3   244.2 (24)   387.9
Aluminium                 105.6    91.0   16   182.5
Power                     121.0    50.7  139   122.0
Others                    (0.5)   (4.6)   89   (9.3)
Total Group EBITDA      2,562.5 1,721.2   49 4,026.3



Consolidated Operating Profit                         
Zinc                            476.7   691.7 (31) 1,255.8
 India                   451.0   596.8 (24) 1,126.6
 International            25.7    94.9 (73)   129.2
Oil & Gas*                      632.6       -    -   366.3
Iron Ore                         56.0   221.1 (75)   481.3
Copper                          176.6   306.4 (42)   384.9
 India/Australia          85.9   138.9 (38)   164.0
 Zambia                   90.7   167.5 (46)   220.9
Aluminium                         9.7  (25.1)  139  (40.3)
Power                            74.5    12.4  501    40.3
Others                          (2.0)  (35.1)   94 (100.6)
Total Group Operating Profit  1,424.1 1,171.4   22 2,387.7

*Acquired on 8 December 2011

Operating Profit Variance

Consolidated Group


                               (In US$ million)

Operating Profit for Six months to 30.09.11         1,171
New Acquired Assets(Cairn India)                        
 EBITDA                                 1,290     
 Depreciation and amortisation of Cairn (657)  633
Sale Price                                          (539)
 LME                                    (632)     
 Premium                                   93     
Foreign Exchange fluctuation                          170
Volume                                                  
 Iron Ore                              (110)  (53)
 Rest of the business                      57     
Cash cost of production                              (26)
Special Items                                          41
Depreciation *                                       (26)

Amortisation*                                          53
Operating Profit for Six months to 30. 09.12        1,424

*Excluding Cairn

New and Acquired Operations

Assets are reported as new and acquired operations until there is a full  year 
period for comparison.  Our diversification  into the  high margin  oil &  gas 
sector through our acquisition of Cairn India on 8 December 2011,  contributed 
US$633 million to the total operating profit of US$1,424 million in the  first 
half of  the year.  EBITDA for  Cairn India  in the  first half  was  US$1,290 
million after  netting  off depreciation  and  amortisation charge  of  US$657 
million resulted in a net gain of US$633 million to the operating profit.

Prices

During the  reporting period  we  witnessed a  moderation in  prices.  Average 
prices of aluminium in the  first half of the year  fell by about 22%. In  the 
same period, average lead  prices were down by  21%, average zinc prices  were 
down by 15%, average copper prices fell  by 14% and we experienced lower  iron 
ore prices as the  index reduced by  26% (at 56% grade).  In India, where  our 
Commercial Power business is situated, demand continues to exceed supply  with 
the precarious  health of  power  distribution companies  frequently  creating 
downward pressure  on energy  prices. These  lower average  prices across  all 
commodities (except oil  & gas)  had a negative  impact of  US$539 million  on 
operating profits.

Exchange Rates

Exchange rate volatility  increased during  the first  half of  the year.  The 
depreciation of the Indian rupee against  the US dollar had a positive  impact 
on our operating  profit of US$170  million. Higher sales  realisation due  to 
depreciation of the rupee, net off EBITDA translation accounted for this gain.

Volumes

During the first half of the year, record integrated copper cathode production
was achieved  at Copper  Zambia  along with  strong integrated  production  of 
silver and lead at Zinc India. Record sales of power were also achieved during
this period. Finished aluminium production was  up by 18%. These increases  in 
volume contributed a positive variance of US$57 million to operating  profits. 
The mining ban and other logistic restrictions reduced volume in our Iron  Ore 
business contributing  a  negative variance  of  US$110 million  to  operating 
profits compared with H1 FY 2011-12.

Costs

The  cost-inflationary  environment  prevailing  in  the  sector  was  largely 
mitigated by  our presence  in India  and Zambia,  higher production  volumes, 
operational efficiencies and the depreciation of the Indian rupee against  the 
US dollar in  which most of  our costs are  denominated. These cost  increases 
reduced operating profits  by US$26  million including the  impact related  to 
commodities prices of US$18 million during the first half of the year.

The following exchange rates against the US dollar have been applied:

                                                                             

                         Average       Average
                       Half year     Half year    As at   As at   As at
                    ended 30.9.12 ended 30.9.11 30.9.12 30.9.11 31.3.12
Indian Rupee                54.7          45.3     52.7    48.9    51.2
Australian dollar           0.98          0.95     0.96    1.02    0.96
South African Rand           8.2           7.0      8.3     7.9     7.7
Kwacha                     5,165         4,895    5,208   4,929   5,361



Special Items

Special items relating to voluntary redundancy charges and acquisition related
costs amounting to US$48 million were  incurred in H1 FY 2011-12, as  compared 
with US$7 million in H1 FY 2012-13.

Depreciation

The depreciation  charge in  H1 FY  2012 -13  was US$389  million compared  to 
US$363 million in H1 FY 2011-12.  The capitalisation of major growth  projects 
at Copper Zambia, Zinc  India and Sterlite Energy  in FY 2011-12, resulted  in 
higher depreciation charges of US$26 million.

Amortisation

The mining reserves related to our acquisitions are being amortised based on a
unit of  production  basis  over  the  total  estimated  remaining  commercial 
reserves.

The amortisation charge in H1 FY 2012-13 was US$85 million compared to  US$138 
million in  H1  FY  2011  -  12.  Lower  volume  resulted  in  a  decrease  in 
amortisation charges by US$53 million in  the Iron Ore and Zinc  International 
businesses.

Income Statement


                  (in US$million, unless otherwise stated)

                              Six months to Six months to          Year ended
                                    30.09.12      30.09.11 % Change   31.03.12
Revenue                             7,451.9       6,552.6       14   14,005.3
EBITDA                              2,562.5       1,721.2       49    4,026.3
EBITDA margin (%)                      34.4          26.3        -       28.7
EBITDA margin (excluding
custom smelting) (%)                    46.8          37.2        -       40.6
Operating special items               (7.0)        (48.3)     (86)    (230.2)
Depreciation                        (663.5)       (363.2)       83    (927.3)
Acquisition related
amortisation                         (467.9)       (138.3)      238    (481.1)
Operating profit                    1,424.1       1,171.4       22    2,387.7
Net interest (expense)/income       (235.6)       (110.4)      113    (420.3)
Other Gains and losses              (129.1)       (193.6)     (33)    (314.2)
Share in Consolidated profit
of associate                               -          48.8        -       92.2
Profit before tax                   1,059.4         916.2       16    1,745.4
Income tax expense                  (121.9)       (335.5)     (64)    (516.7)
Tax rate (%)                           11.5          36.6               29.6
Minority Interest                   (766.3)       (552.9)       40  (1,168.9)
Attributable Profit                   171.2          27.8      516       59.8
Attributable profit %                  18.3           4.8                4.9
Underlying attributable
Profit                                 264.2         189.4       40      387.2
Basic EPS (US cents)                   62.8          10.2      516       21.9
Underlying EPS(US cents)               96.9          69.4       40      142.0



Revenue

Revenue for the first half of the year was US$7,452 million up by 14%  largely 
as a result of incremental revenues of US$1,629 million from Cairn India,  the 
oil & gas business  acquired in December 2011.  Across other businesses,  with 
the exception of Power, revenue decreased due to significantly lower commodity
prices despite higher volumes of lead, silver, aluminium and copper. Iron  Ore 
revenue was  significantly impacted  by  the mining  restrictions in  Goa  and 
Karnataka.

EBITDA Margin

Our EBITDA margin was 34% in H1 FY 2012-13 compared with 26% in H1 FY 2011-12.
Our EBITDA margin,  excluding custom smelting  operations and profit  sharing, 
was 47% in H1 FY 2012-13 as compared  with 37% in H1 FY 2011-112. Despite  the 
weaker commodity  price  environment  in  the  period,  the  strength  of  our 
diversified portfolio  and Tier  1  assets further  benefitted from  the  high 
margins in newly acquired  Oil & Gas business,  helping us to improve  overall 
margin performance.

Depreciation and Amortisation

The additional depreciation  charge of US$300  million in H1  FY 2012- 13  -13 
included US$275  million  from  Cairn  India  with  the  balance  due  to  the 
capitalisation of major growth projects at KCM, Zinc India and Sterlite Energy
commissioned in FY  2011-12. The Cairn  India acquisition amortisation  charge 
was US$383 million  in H1  FY 2012  -13 which  was partially  offset by  lower 
amortisation costs of US$53 million for previous acquisitions by our Iron  Ore 
business and Zinc International.

Net Interest

Net interest expense was US$236 million in H1 FY 2012-13 compared with  US$110 
million in H1 FY 2011-12, primarily due to additional debt for the Cairn India
acquisition, partially offset  by higher  income received on  cash and  liquid 
investments.

Gross finance  costs increased  to US$680  million in  H1 FY  2012-13 up  from 
US$527 million in H1 FY 2011-12. The interest capitalised in H1 FY 2012-13 was
US$134 million (H1 FY 2011-12 US$132  million). As a result the finance  costs 
charged to the income statement increased  to US$546 million in H1 FY  2012-13 
up from US$395 million in H1 FY 2011-12.

The average debt in H1 FY 2012-13  was US$16,778 million, compared with H1  FY 
2011-12 levels of US$12,030 million. The average debt maturity at 30 September
2012 was 3.23 years.

Other Gains and Losses

Other gains and  losses include  the impact of  mark to  market (MTM)  foreign 
currency borrowings,  primarily at  our Indian  businesses and  also from  the 
periodical valuation of embedded derivatives relating to the foreign  currency 
convertible bonds at Sterlite and Sesa Goa.

The other losses in H1 FY 2012-13 were US$129 million, as compared with a loss
of US$194  million in  H1 FY  2011-12. During  H1 FY  2012-13, MTM  losses  on 
foreign  currency  borrowings  were  US$142  million  (H1  FY  2011-12  US$253 
million), which was mainly due to the depreciation of the Indian Rupee against
the US dollar. The gain on MTM of embedded derivatives of US$13 million (HI FY
2011-12 US$59 million) was related to the foreign currency convertible bond at
Sterlite and Sesa Goa.

Taxation

The effective tax rate for H1 FY 2012-13 was 12%, significantly lower than 37%
in H1 FY 2011-12, largely due to negative tax rates at Cairn India at the back
of tax  holiday in  the Rajasthan  oil  fields and  reversal of  deferred  tax 
liabilities on acquisition related amortisation costs.

The effective tax  rate excluding  Cairn India  was 45%  in H1  FY 2012-13  as 
compared to 37% in  H1 FY 2011-12 mainly  reflecting higher interest costs  on 
increased debt at the standalone Vedanta level and change in profit mix.

Attributable Profit

Attributable profit in H1 FY 2012-13 was US$171 million, significantly  higher 
compared with  US$28  million  in  H1 FY  2011-12,  primarily  due  to  higher 
attributable profit  at Cairn  India  and lower  losses at  VAL.  Attributable 
profit also  increased due  to comparatively  lower losses  on MTM  of  dollar 
borrowings at our Indian businesses in particular at VAL. Underlying profit in
the first half  of the  year, excluding  the impact  of MTM  losses, gains  on 
embedded derivatives  and  special  items  was higher  at  US$264  million  as 
compared with US$189 million in H1 FY 2011-12.

Earnings per Share ('EPS') and Dividend

Basic EPS in H1 FY 2012-13 was 63 US cents per share compared with 10 US cents
per share in H1  FY2011-12. Diluted EPS  in H1 FY2012-13 was  62 US cents  per 
share against 10 US cents per share in H1 FY 2011-12.

The underlying EPS for the first half of the year excluding the impact of  MTM 
losses and gains on embedded derivatives and special items, was 97 US cents as
compared with 69 US cents in H1 FY 2011-12.

The Board declared an interim dividend of 21 US cents per share.



Balance Sheet


                     (In US$million, except as stated)

                            30 September 2012 30 September 2011 31 March 2012
Goodwill                                 16.4              12.2          16.6
Tangible assets                      34,137.7          17,050.0      34,598.2
Investments in Associates                   -           3,849.0             -
Other non-current assets                880.2             364.1         757.5
Cash and liquid investments           7,163.0           5,889.2       6,885.3
Other current assets                  4,229.3           3,635.5       3,676.9
Debt                               (17,006.0)        (13,056.3)    (16,955.4)
Other current and                  (10,585.3)         (5,420.7)    (10,559.6)
non-current liabilities
Net assets                           18,835.3          12,323.0      18,419.5
Shareholders' equity                  4,591.2           4,649.6       4,650.6
Minority interests                   14,244.1           7,673.4      13,768.9
Total equity                         18,835.3          12,323.0      18,419.5



Shareholders equity was US$4,651 million at 31 March 2012 compared to US$4,591
million at 30 September  2012 reflecting the  increase in attributable  profit 
due to equity holders  during the period offset  by currency losses  following 
the depreciation of the Indian Rupee against the US dollar.

Minority interests increased to  US$14,244 million at  30 September 2012  from 
US$13,769 million as at  31 March 2012,  due to an  increased share of  profit 
partially offset by currency losses.

Tangible Fixed Assets

During the  half  year, we  added  US$1,128  million to  property,  plant  and 
equipment comprising  of  US$954  million on  our  expansion  and  improvement 
projects; and US$174 million spent on sustaining capital expenditure.

We continue to maintain a strong financial profile with US$7.2 billion as cash
and liquid investments plus a further US$3.1 billion unused line of credit.

Net Debt

At 30 September 2012, net debt  was US$9,835 million (31 March 2012  US$10,064 
million), a reduction of US$229 million  resulting from strong cash flow.  The 
cash and liquid investments were US$7,163 million at 30 September 2012.  There 
was external debt of US$17,006 million  (31 March 2012 US$16,955 million)  and 
after netting off debt  related derivatives of US$8  million resulted in  debt 
and debt  related  derivatives of  US$16,998  million. External  debt  at  our 
operating subsidiaries was US$7,747 million  (31 March 2012 US$7,692  million) 
and debt at Vedanta Resources Plc was US$9,259 million (31 March 2012 US$9,263
million). Of the US$17,006  million total debt,  US$2,340 million consists  of 
convertible bonds.  Near  term debt  maturities  of US$3,293  million  due  in 
FY2012-13 are scheduled to be repaid  partly through cash generation and  also 
through refinancing of loans, majority of which is in place.

Our cash  and  liquid investments  portfolio  continues to  be  conservatively 
invested in debt mutual funds and in  cash and fixed deposits with the  banks. 
Additionally,  the   investments  portfolio   at   our  Indian   entities   is 
independently reviewed by CRISIL Limited and our investment portfolio has been
rated as "Very Good".

Cash Flows


                     (in US$million, except as stated)

                                             H1 2012-13 H1 2011-12 FY 2011-12
EBITDA                                          2,562.5    1,721.2    4,026.3
Special items                                     (7.1)     (48.3)    (230.2)
Working capital movements                       (422.8)    (347.8)      375.1
Changes in long term creditors and                 15.7     (40.0)       35.8
non-cash
items
Sustaining capital expenditure*                 (174.2)    (179.1)    (386.2)
Sale of tangible fixed assets                      40.9        2.9       23.6
Net interest paid and dividend received         (158.2)      (8.5)    (394.8)
Tax paid                                        (418.8)    (354.7)    (915.8)
Free Cash Flow                                  1,438.0      745.7    2,533.8
Expansion capital expenditure*                  (954.3)  (1,195.2)  (2,398.2)
Sale/ (Purchase) of fixed asset investments         9.3          -      (3.9)
Acquisition of minorities                             -     (63.8)     (60.3)
Investment in Associate                               -  (4,187.1)          -
Acquisitions, net of cash and liquid                  -    (102.5)  (7,115.7)
investments
acquired
Purchase of mining assets                             -          -    (131.8)
Dividends paid to equity shareholders            (95.9)     (89.1)    (144.0)
Dividends paid to minority shareholders          (77.1)    (113.4)    (219.7)
Others movements**                               (91.0)    (189.9)    (554.3)
Movement in net cash/(debt)                       229.0  (5,195.3)  (8,094.1)

* On an accruals basis.

** Includes foreign exchange movements

Free cash flow before growth capital expenditure in H1 FY 2012-13 was US$1,438
million which represents 56% of EBITDA as  compared to 43 % in H1 FY  2011-12. 
We have incurred US$174 million in  on-going capital expenditure during H1  FY 
2012-13.

The Company's  capital  expenditure programme  has  started tapering  off  and 
reached an inflection point, where we expect substantial cash generation  from 
our well diversified  and well  invested asset  portfolio which  will be  used 
largely to deleverage the balance sheet.



PROJECTS

Projects under execution (in US$ million, except as stated)

                                                        Spent
                                                Capex   up to   Spent Unspent
Capex in                                         (US$   March      H1   as on
Progress         Capacity Completion Time        Mn)    2012 2012-13 30.9.12
Copper Sector                                                            
                           1st unit
160 MW CPP at             synchronised in Q2
Tuticorin        160 MW    FY 2012-13            132.8   125.4    17.4       
KCM KDMP
Project          7.5mtpa   Q3 FY 2012-13         973.0   830.2    36.5   106.3
Aluminium
Sector                                                                  
BALCO - Korba             Ist Metal tapping
II Smelter       325ktpa   by Q4 FY 2012-13      720.0   596.1    70.5    53.5
                           Ist unit
                           synchronisation in
                           Q3 FY
                           2012-13,thereafter
BALCO - Korba             one unit every
1200 MW CPP      1200 MW   quarter             1,100.0   803.8    44.6   251.6
Balco - Coal
Block            211mt                          150.0    12.0     1.2   136.8
Power Sector                                                           
                           4th unit under
Sterlite Energy 2,400 MW  Trial run           1,900.0 1,651.7    60.7   187.6
                           Ist unit
Talwandi 1980             synchronisation in
MW IPP           1,980 MW  Q2 FY 2013-14       2,150.0   973.5   253.3   923.2
Zinc Sector                                                              
                           SK mine work
HZL - Zinc &              progressing,
Lead Dariba                Smelter & CPP
Project                    completed             900.0   799.8    16.6    83.6
Iron Ore                                                                 
Pig Iron
Expansion        375 ktpa  Completed             150.0   138.7     7.7     3.6
Infrastructure                                                           
Vizag General
Coal Berth                                       150.0    58.7    44.8    46.5
Paradeep Multi
Cargo Berth                                       88.0       -       -    88.0
Total Capex in
Progress                                       8,413.8 5,989.8   553.3 1,880.7



                                              Capex Spent up   Spent Unspent
                                 Completion     (US$  to March      H1   as on
Capex Flexibility     Capacity Time           Mn)      2012 2012-13 30.9.12
Copper Sector                  
SIIL Smelter          400 ktpa  EC awaited    367.2     109.8     5.4   252.1
Aluminium Sector                                                       
                                 Approval
VAL - Lanjigarh                 pending, on
Debottlenecking        1.0 mtpa  hold          150.0      73.7     1.4    74.9
VAL - Lanjigarh                 Approval
Refinery (Phase II)    3.0mtpa   pending     1,570.0     825.2       -   744.8
VAL - Jharsuguda
(Smelter II)           1.25mtpa             2,920.0   2,280.8    99.6   539.6
Iron Ore                                                               
                                 Approval
Sesa Iron Ore mine              pending, on
Expansion              36mt      hold          500.0     128.9    17.7   353.4
Total Capex with
Flexibility                                  5,507.2   3,418.4   124.1 1,964.8





                                                                         To be
                                                      Spent up   Spent   spent
Improvement and               Completion Capex (US$  to March      H1   as on
Enabling Capex       Capacity Time              Mn)     2012 2012-13 30.9.12
KCM                                           306.7     249.5    29.8    27.4
Zinc India                                    291.2     120.8    94.0    76.4
Zinc Intl - Gamsberg                           24.0       0.0     2.6    21.4
Western Cluster-                               97.1      27.5    14.5    55.1
Liberia
Total Improvement and                         719.0     397.8   140.9   180.3
Enabling Capex
Total Capex (Excluding                     14,640.0   9,806.0   818.3 4,025.8
Cairn)

Total amount  committed  but  not spent  towards  above  mentioned  expansion 
projects at 30 September 2012 was $2.8 billion.



                                                                         To be
                                                      Spent up   Spent   spent
                               Completion Capex (US$  to March      H1   as on
                     Capacity Time              Mn)     2012 2012-13 30.9.12
Cairn India                                 2,260.5     161.2   136.0 1,963.3
Total Capex                                16,900.5   9,967.2   954.3 5,989.1
(Including Cairn)



Interim Results for the Half Year Ended 30 September 2012

Operational Performance:

Zinc - India

Production Performance

                                                                      

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Production(kt)                                                           
Total mined metal                       377           398      (5)        831
 Zinc                            329           355      (7)        739
 Lead                             48            43       11         92
Zinc Refined metal- Total               324           378     (14)        759
 Integrated                      310           376     (17)        753
 Custom                           14             2        -          6
Lead Refined metal - Total^1             58            33       75         99
 Integrated                       53            33       59         89
 Custom                            5             -        -         10
Saleable Silver Total (in m            5.58
oz) ^2                                                3.09       81       7.78
 Integrated                     5.14          3.09       66       7.62
 Custom                         0.44             -        -       0.16

1 Including captive consumption of 3kt each in H1 FY13 vs H1 FY12

2 Including captive consumption of 0 52 million ounces in H1 FY 2013 vs 0
46 million ounces in H1 FY 2012

Mined metal production was 377,000 tonnes in  the first half of FY 2012-13  in 
line with our mine plan, compared with 398,000 tonnes in the same period  last 
year. Sindesar Khurd (SK) mine production was up by 39% at 45,000 tonnes.

In line with the mined metal production, integrated production of refined zinc
was 310,000 tonnes in the first  half of FY 2012-13. Integrated production  of 
refined lead was up by 59% at 53,000  tonnes in the first half of FY  2012-13, 
reflecting the ramp-up of the SK mine and the new Dariba lead smelter.

Integrated production of silver was 5.14  million ounces in the first half  of 
FY 2012-13, up 66%.  This was driven by  the ramp-up of the  SK mine, the  new 
Dariba lead smelter and the new silver refinery.

Markets

In line with  sector trends, global  zinc consumption is  expected to grow  at 
around 4%  in 2012,  led by  demand in  the construction,  infrastructure  and 
automotive sectors. Developing economies are driving this growth.

On the supply side,  in 2012 refined zinc  production is expected to  contract 
marginally, leading to a deficit situation in the year.

In the medium to  long term, despite some  concerns surrounding the near  term 
outlook for the global economy, the zinc market will continue to be  dominated 
by the structural issue of whether  the incremental demand will be matched  by 
growth in mine production.  While the stock overhang  continues to impact  the 
price, we expect the price  to be governed by  marginal cost of production  in 
the near term.


(US$ per tonne)

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Average Zinc LME cash
settlement prices                      1,906         2,236     (15)      2,098
Average Lead LME cash
settlement prices                      1,974         2,503     (21)      2,269



LME zinc prices averaged US$1,906 per tonne compared to US$2,236 per tonne  in 
the same period in 2011.

Zinc demand in India is estimated to maintain a near double digit growth rate.
We are well positioned  to participate in this  growth. Indian consumption  is 
expected  to  rise  above  700  kt  per  annum  by  2015,  largely  driven  by 
construction and infrastructure.

Unit Costs

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Unit costs                                                               
 Zinc (US$ per tonne)          1,005         1,050      (4)      1,010
 Zinc excluding
royalty (US$ per tonne)                  845           861      (2)        834



Unit costs of production excluding  royalties were marginally lower at  US$845 
per tonne in the first half of the  year as compared with US$861 per tonne  in 
the first  half of  last year.  We expect  the cost  of production  (excluding 
-royalty) to reduce in the second half of FY 2012-13, driven by higher volumes
and improved operating efficiencies. The  business remains in the lowest  cost 
quartile compared with  the global  producers, backed by  high quality  assets 
like Rampura Agucha and the SK mine.

Financial Performance


                  (in US$million, unless otherwise stated)

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Revenue                               984.2       1,177.8     (16)    2,316.1
EBITDA                                503.5         657.7     (23)    1,244.8
EBITDA Margin (%)                      51.2          55.8               53.7
Depreciation and amortisation          52.5          54.7      (4)      109.2
Operating Profit                      451.0         596.8     (24)    1,126.6
Share in Group Operating
Profit (%)                              31.7          50.9               47.2
Capital expenditure                   136.2         101.8       34      220.8
 Sustaining                     25.5          25.8      (1)       53.4
 Growth                        110.6         75.9       46     167.4



EBITDA for H1 FY 2012-13  was US$504 million, 23%  lower than the same  period 
last year. The positive impact of higher lead-and silver volumes was offset by
lower zinc  volumes  and lower  metal  prices. On  the  back of  the  rise  in 
integrated silver  volumes, the  contribution of  the silver  business in  H1, 
EBITDA was US$140 million compared to US$92 million H1 FY 2011-12.

Outlook

In line  with the  mine plan  and earlier  stated guidance,  production in  H2 
should more than  make up  the shortfall in  H1 production.  H2 production  of 
mined and finished metal 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. We remain on track to deliver earlier projected
growth in integrated silver  and lead production  for the year  as a whole  at 
about 100,000 tonnes of  lead and about  11 million ounces  of silver, on  the 
back of increased  throughput at  the SK mine,  and lead  and silver  refining 
facilities.

Exploration

During FY 2012-13  we have 95,000m  of drilling planned.  Existing mine  block 
areas at Rampura Agucha, Zawar, Kayar and the Rajpura Dariba Belt continue  to 
be our exploration  priority. Overall the  Company's strategy is  to add  more 
reserves and resources than depletion at the existing mines. Additionally  the 
Company continues to work on several large scale prospecting licences.

Projects

The Rampura Agucha underground  mine and Kayar  mine projects are  progressing 
well towards delivering commercial  production in FY  2013-14. The Kayar  mine 
produced developmental ore in Q2.

Zinc International

Production Performance

                                                                      

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Production - Zinc (kt)                                                   
 Mined metal content
BMM and Lisheen                         108           112      (4)        215
Refined metal Skorpion                   73            76      (4)        145
Production - Lead (kt)                                                   
 Mined metal content              39            45     (13)         84



Total production  of refined  zinc and  mined zinc-lead  metal in  concentrate 
('MIC') was marginally lower at 220,000 tonnes in the first half, in line with
the current year's mine plan largely due to lower grades.

Market


                               (US$ per tonne)

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Average LME zinc cash
settlement prices                      1,906         2,236     (15)      2,098
Average LME lead cash
settlement prices                      1,974         2,503     (21)      2,269



Unit Costs


                               (US$ per tonne)

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Zinc Wt. Avg. Cost (US$ per
tonne)                                 1,087         1,164      (7)      1,165

Production costs were US$1,087  per tonne compared to  US$1,164 per tonne  for 
the same period last year.  Stable volume, improving operational  efficiencies 
and a stronger US dollar against the South African rand resulted in lower cash
cost of production.



Financial Performance


                  (in US$million, unless otherwise stated)

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Revenue                               391.4         488.6     (20)      890.7
EBITDA                                134.9         213.7     (37)      366.0
EBITDA Margin (%)                      34.5          43.8               41.1
Depreciation                           66.2          61.1        8      119.0
Acquisition related
amortisation                            43.0          57.7     (25)      117.8
Operating Profit                       25.7          94.9     (73)      129.2
Share in Group Operating
Profit (%)                               1.8           8.1                5.4
Capital expenditure                    17.7          24.4     (27)       41.7
 Sustaining                     15.1          24.4     (38)       41.7
 Growth                         2.6            -       -          -



EBITDA for H1 was US$135 million, primarily  due to lower LME prices for  zinc 
and lead, despite lower cash costs.

Outlook

We remain on track to  deliver a production volume  of 400,000 tonnes of  zinc 
and lead. Overall, the strategy of the businesses is to increase the mine life
of all three  assets through our  exploration programme, alongside  developing 
the Gamsberg project, where a feasibility study is being carried out. Gamsberg
is a 186 million tonne zinc  deposit, one of the largest undeveloped  deposits 
in the  world  with a  mine  life  of 20  years  and 400,000  tonnes  of  zinc 
production capacity.

Oil & Gas

Production Performance

                                                                      

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Gross Production (boepd)            207,105       170,867       21    172,887
Rajasthan                           169,486       125,189       35    128,267
Ravva                                30,591        36,997     (17)     36,379
Cambay                                7,028         8,680    (19)      8,242
Gross Production (boe)                 37.9          31.3       21   20.5 
Working Interest Production                                               
(boe)                                   23.5          18.2       29   12.1



In H1, average  daily gross  operated production  was 207,105  barrels of  oil 
equivalent (boepd),  21%  higher  than  the same  period  last  year.  Working 
interest production was 29%  higher at 128,335 barrels  of oil equivalent  per 
day (boepd). The increase  was driven by the  ramp-up at the Rajasthan  block, 
which delivered a 35%  higher gross production of  169,486 bopd from the  four 
producing fields. This included gross production from the Mangala and  Bhagyam 
fields of  146,060  bopd  and  22,944  bopd,  respectively.  Work  to  enhance 
production from the block continues to remain our primary focus.

Cairn  India  signed  a  farm-in  agreement  with  the  Petroleum  Oil  &  Gas 
Corporation of South Africa Ltd. (PetroSA), the national oil company of  South 
Africa,  for  the   19,922  sq   km  off-shore   Block  1,   located  in   the 
geologically-proven Orange Basin in South Africa. Cairn India will hold a  60% 
interest in the block and  will be the operator.  The agreement was signed  in 
August 2012 and  the closure of  the transaction is  subject to South  African 
regulatory approvals.  It  is  a  step in  the  right  direction  towards  our 
strategic goal of growing our resource  base by building a balanced  portfolio 
with a long term vision.

Market


                              (US$ per barrel)

                     Six months to     Six months to                Year ended
                         30.09.12          30.09.11 % Change         31.03.12
Average Brent
Prices                       108.9             114.8      (5)            114.4



Crude oil prices were marginally lower than the same period last year.

Crude oil  sales arrangements  are in  place with  public sector  and  private 
refiners for volumes in  excess of 175,000bopd. The  crude is currently  being 
supplied to four refineries Rajasthan crude is well established in the market,
generating higher demand  and increased  value for its  stakeholders. We  have 
enough demand for the crude in the current pipeline route. In accordance  with 
the RJ-ON-90/1 PSC, the crude is benchmarked to Bonny Light, West African  low 
sulphur crude  that  is frequently  traded  in the  region,  with  appropriate 
adjustments for crude  quality. The implied  crude sales price  lies within  a 
10%-15% discount to Brent.

Financial Performance


                     (in US$millions, except as stated)

                                Six months to 30.09.12  Year ended 31.03.12
Revenue                                        1,628.6                882.5
EBITDA                                         1,290.1                713.0
EBITDA Margin (%)                                 79.2                 80.8
Depreciation                                     274.7                180.2
Acquisition related                                    
amortisation                                       382.8                 166.5
Operating Profit                                 632.6                366.3
Share in Group Operating                               
Profit (%)                                            44                    15
Capital expenditure                             136.0                161.2
 Sustaining                                   -                    -
 Projects                                 136.0                161.2



EBITDA for H1  FY 2012-13 was  US$1,290 million backed  by higher volumes  and 
strong oil prices.

In Cairn India, the oil & gas reserve created on acquisition is amortised on a
unit of  production  basis  over  the  total  estimated  remaining  commercial 
reserves. Unit  of  production  is  calculated  as the  ratio  of  oil  &  gas 
production in the period to  the estimated quantities of commercial  reserves. 
Commercial reserves are proven and probable (2P) oil & gas reserves, which are
estimated quantities of crude oil, natural gas and natural gas liquids with  a 
specified  degree  of  certainty  to  be  recoverable  in  future  from  known 
reservoirs and which are considered commercially producible.

During H1  FY  2012-13, Cairn  India  transferred 10%  Participating  Interest 
('PI') in KG-DWN/98  to Oil and  Natural Gas Corporation  ('ONGC'). The  total 
sale consideration was US$38.3  million and an amount  of US$14.2 million  has 
been recognised  as a  gain after  writing  off the  carrying value  of  US$24 
million.

Exploration

A comprehensive review of the resource potential in the block was carried  out 
by Cairn  India through  detailed studies  involving the  usage of  innovative 
technologies and  advanced geosciences.  Based  on Cairn  India's  assessment, 
Rajasthan's potential  resource for  the  block is  now  estimated to  be  7.3 
billion boe in place. This is primarily due to an increase in the  exploration 
upside with the prospective resource base now estimated at 3.1 billion boe  in 
place from an earlier estimate of 2.5 billion boe in place.

Rajasthan recoverable prospective  resources increased from  250 mmboe to  530 
mmboe on a risked basis, primarily  due to the generation of additional  leads 
and prospects.

Cairn India  and ONGC  are working  with the  Government of  India ('GoI')  to 
obtain the necessary approvals required  to conduct exploration and  appraisal 
activity in the block.

Sri Lanka

We have completed the acquisition  of 600 sq km of  3D seismic data under  the 
Phase 2  exploration  programme; preparatory  work  is on-going  to  drill  an 
exploration well in mid CY 2013.

Outlook

Since April this year we have  been consistently producing about 175,000  bopd 
from Rajasthan Block, with main the production coming from Mangala at  150,000 
bopd and Bhagyam  at approximately  25,000 bopd. Currently  we are  optimizing 
production from Mangala, Bhagyam,  Raageshwari and Saraswati and  cumulatively 
reach production rate of around 175,000.  Our mature assets, Ravva and  Cambay 
continue to  be our  pillars of  strength and  we will  embark on  a  drilling 
campaign in both  the assets targeting  additional resources with  the aim  of 
extending their economic life.

Iron Ore

Production and Sales

                                                                      

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Production                                                               
 Saleable ore(mt)                3.7           5.5     (32)       13.8
 Goa                             3.7           4.6     (18)       12.8
 Karnataka                       0.0           0.9     (98)        1.0
 Pig iron(kt)                    121           126      (3)        249
Sales                                                                    
 Iron Ore(mt)                    3.1           5.8     (47)       16.0
 Goa                             3.0           4.0     (24)       13.3
 Karnataka                       0.1           1.8     (97)        2.7
 Pig iron(kt)                    117           123      (4)        251
Average Net Sales Realisation            70            80     (13)         76



Sales of iron ore were 3.1 million tonnes in the first half, as compared  with 
5.8 million tonnes in the same period last year. Our iron ore operations  were 
affected by the mining ban in  Karnataka, a temporary restriction on iron  ore 
extraction in Goa and transportation restrictions in South Goa.

On 12 September, the Supreme Court  allowed some mines in Karnataka to  resume 
mining operations in line  with the recommendations  of the Central  Empowered 
Committee ('CEC'), and has now commenced the process for other mines including
our mine in Karnataka. The CEC has approved our Reclamation and Rehabilitation
plan at  a  provisional production  capacity  of  2.29mtpa and  we  expect  to 
commence mining in Karnataka, subject  to receiving the Court's approval.  The 
next date of hearing is 30 November 2012.

The Goa State Government ordered a  temporary suspension on extraction of  ore 
across the State of Goa from 11 September 2012 pending verification of various
approval documents,  but  stated  that  the ore  already  mined-out  could  be 
transported and sold after inspection  and clearance by the State  Government. 
Further to  this, the  Ministry of  Environment and  Forests (MoEF)  suspended 
existing environmental clearances of mines across the State from 14  September 
2012 and  is verifying  documents related  to environmental  clearances. On  5 
October 2012, the Supreme Court ruled that the ban on mining activities in Goa
continue, and asked the CEC to file  a preliminary report in four weeks.  From 
this date, the Court  has also restricted  any movement of  ore from mines  or 
stockyards. We are working closely with the regulatory authorities to complete
the review processes.

Market

Whilst the year  started with record  levels of steel  production in China  in 
April and May, the  strength of demand  from downstream industries  eventually 
slowed down the  pace of steel  consumption. As the  year progressed,  overall 
market  sentiments  improved  with  positive  developments  in  infrastructure 
spending in China and  quantitative easing in the  United States which  buoyed 
commodities prices across  the board and  briefly supported a  sharp rally  in 
Chinese steel prices and spot iron ore delivered into the country.

Iron ore  prices in  H1 of  FY 2012-13  were on  a downward  trend and  prices 
dropped by around US$40, partially recovering  towards the end of the  period. 
The iron ore price slump caused project plan uncertainties, with many  leading 
miners scaling back their investment plans.

Financial Performance


                      (in US$million, except as stated)

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Revenue                               345.0         627.5     (45)    1,690.9
EBITDA                                114.8         307.0     (63)      721.4
EBITDA Margin (%)                      33.3          48.9               42.7
Depreciation                           18.6          14.9     (25)       49.7
Acquisition related
amortisation                            36.5          71.0     (49)      176.6
Operating Profit                       56.0         221.1     (75)      481.3
Share of Group Operating
Profit (%)                               3.9          18.9               20.2
Capital expenditure                    51.8          88.6     (42)      166.0
 Sustaining                     11.9          16.3     (27)       32.3
 Growth                        39.9         72.3    (45)      133.7



EBITDA in H1 FY 2012-13 was down  at US$115 million, due to both lower  volume 
and lower prices.

Exploration

For the current year,  73,000m drilling is planned  for Goa and Karnataka.  In 
Liberia a total of 98,000m drilling is planned.

Projects

Expansion of pig iron  capacity to 625 ktpa  and the associated  metallurgical 
coke capacity was successfully commissioned during Q2.

At our Liberian iron ore project, exploration activities are progressing  well 
with over  31,000 meters  of  drilling completed  by  30 September  2012.  The 
drilling in Liberia at  the Bomi project area  has given encouraging  results. 
The Banded Magnetite Quartzite ('BMQ') ore encountered at Bomi is expected  to 
have iron grade of 36%. Preliminary results of beneficiation studies conducted
on the BMQ have  indicated a yield  of 44 to 51%  weight recovery of  magnetic 
concentrate with an excellent iron grade of 66 to 68%.

We remain on track to deliver the first shipment in FY 2013-14.



Outlook

We are hopeful of seeing  an early resolution of  the mining ban in  Karnataka 
with the Supreme Court currently reviewing the category B mines. On  temporary 
restriction on ore  mining in Goa,  we believe, considering  the situation  in 
Goa, the Supreme  Court and  CEC will  take a  pragmatic view  and will  allow 
resumption of legal mining as soon as possible.

Copper

Copper India/Australia

Production Performance

                                                                      

                              Six months to Six months to          Year ended
                                    30.09.12      30.09.11 % Change   31.03.12
Production (kt)                                                          
Australia - mined metal
content                                   13            11       13         23
India - cathode                         175           161        9        326



Copper cathode production was 9% higher at 175,000 tonnes in the first half of
FY 2012-13,  driven by  operational efficiency  despite an  eight day  planned 
shutdown during the period.

Mined metal production at Australia  was 13% higher in  the first half of  the 
year at 13,000 tonnes.

Market

                                                                      

                              Six months to Six months to          Year ended
                                    30.09.12      30.09.11 % Change   31.03.12
Average LME cash settlement
prices (US$ per
tonne)                                7,785         9,057     (14)      8,475
Realised TC/RCs (US cents per
lb)                                     11.8          13.4     (12)       14.5



Average LME copper prices fell by 14%  and Tc/Rc by 12% during the six  months 
to September 2012 from  the average price  level for at  the same period  last 
year.

Tc/Rcs received in the first  half of FY 2012-13 were  lower at 11.8 US  cents 
per lb compared with 13.4  US cents per lb in  the first half of the  previous 
year.

Unit Cost

                                                                      

                              Six months to Six months to          Year ended
                                    30.09.12      30.09.11 % Change   31.03.12
Unit conversion costs - US
cents per lb                            6.27        (3.31)      289       0.00



Net unit conversion cost at Copper India was 6.27 US cents per lb in the first
half of the year, compared  with a negative 3.3 US  cents per lb in the  first 
half of FY  2011-12 largely  due to reduced  sulphuric acid  sales and  higher 
power costs.



Financial Performance


                      (in US$million, except as stated)

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Revenue                             1,956.9       2,197.9     (11)    4,205.2
EBITDA                                107.8         161.5     (33)      298.0
EBITDA Margin (%)                       5.5           7.3                7.1
Depreciation and amortisation          21.9          22.6      (3)       45.4
Operating Profit                       85.9         138.9     (38)      164.0
Share in Group Operating
Profit (%)                               6.0          11.9                6.9
Capital expenditure                    50.4          73.9     (32)      110.5
 Sustaining                     24.9          16.2       53       31.2
 Growth                         25.6          57.7     (56)       79.3



EBITDA for  H1 was  lower  reflecting lower  sulphuric acid  credit  partially 
offset by improved production volumes.

Higher copper  recovery,  higher  copper  rod  production,  a  well  developed 
by-product management strategy coupled with recently added captive power plant
will further reinforce the global cost positioning of this business.

Projects

The first  80MW  unit  of the  160MW  captive  power plant  at  Tuticorin  was 
synchronised in  Q2, which  will  predominantly provide  power to  the  copper 
smelter.

The 400 ktpa copper smelter expansion project at Tuticorin is on hold, as  the 
project is awaiting consent from the  State Pollution Control Board while  the 
MoEF clearance is in place.

Outlook

We expect stable operation during the remaining period of the financial year.

Copper Zambia

Production Performance

                                                                             

                       Six months to    Six months to              Year ended
                             30.09.12         30.09.11 % Change       31.03.12
Production(kt)                                                           
Mined metal                       86               76       14            142
Cathode                          110              102        8            200
 Integrated                83               68       23            139
 Custom                    27               34     (21)             61



Mined metal production was 14% higher at 86,000 tonnes in the first half of FY
2012-13 as compared to the same period last year. The increase was driven by a
production ramp-up  at  Konkola due  to  faster mine  development  and  higher 
throughput from the newly commissioned Nchanga concentrator. The commissioning
of a  high  speed  tramming  facility  helped  accelerate  the  pace  of  mine 
development at Konkola.

Higher mined  metal  production  contributed  to  a  robust  23%  increase  in 
integrated production to 83,000 tonnes in the first half of FY 2012-13.  Total 
production of copper cathode was up by 8% at 110,000 tonnes in the first  half 
of the year.

Production from custom smelting  was affected by  lower availability of  third 
party concentrate.

Market

                                                                      

                              Six months to Six months to          Year ended
                                    30.09.12      30.09.11 % Change   31.03.12
Average LME cash settlement
prices (US$ per
tonne)                                7,785         9,057     (14)      8,475



Average LME copper prices for the six  months to September 2012 had fallen  by 
14% from the average price level of the previous year for the same period.

Unit Costs

                                                                      

                    Six months to     Six months to                Year ended
                          30.09.12          30.09.11 % Change         31.03.12
Unit costs (US
cents per lb)                225.7             224.4        1            236.8



Unit Costs

Unit cash costs of integrated production in H1 FY 2012-13 was 226 US cents per
lb, equivalent to the same period last year, on the back of a growth in volume
despite inflationary  pressures  from increased  wages,  higher  pre-stripping 
costs and a rise in input prices.

Ongoing continuous improvement  initiatives and expected  growth in volume  in 
the forthcoming quarters will help to push down unit cash costs.

Financial Performance


                      (in US$million, except as stated)

                              Six months to Six months to          Year ended
                                    30.09.12      30.09.11 % Change   31.03.12
Revenue                               865.4         922.5      (6)    1,709.8
EBITDA                                185.3         244.2     (24)      387.9
EBITDA margin (%)                      21.4          26.5              22.69
Depreciation and amortisation          93.5          67.4       39      142.6
Operating Profit                       90.7         167.5     (46)      220.9
Share of Group Operating
Profit (%)                               6.4          14.3                9.3
Capital expenditure                   136.4         248.5     (45)      402.9
 Sustaining                     72.9          79.1      (8)      158.7
 Growth                        63.5        169.4    (63)      244.2



EBITDA in H1  FY 2012-13  was US$185  million, 24%  lower than  the EBITDA  of 
US$244 million in H1 FY 2011-12,  primarily due to lower LME prices  partially 
offset by higher integrated production volume.

Exploration

During FY 2012-13,  an extensive plan  to undertake surface  drilling in  open 
pits at Nchanga has been initiated. A total of 11,600m have been drilled  with 
the  aim  of  maintaining   our  track  record   of  reserves  and   resources 
replacement.

Projects

At the Konkola Deep Mine Project  ('KDMP'), the bottom-shaft loading has  been 
commissioned and waste  hoisting has  commenced ahead of  schedule. The  3mtpa 
Nchanga West Mill has been commissioned and production is ramping up.

Outlook

We expect to deliver a planned 175,000 tonnes of integrated production  volume 
in the current financial year.

Aluminium

Production and Sales

                                                                      

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Production (kt)                                                          
Alumina - Lanjigarh                     423           451      (6)        928
Aluminium - Jharsuguda                  259           203       27        430
Aluminium - Korba                       123           121        1        246
Total Aluminium                         382           324       18        675
Surplus power sales (Million
units)                                   867           984     (12)      2,045



Alumina production at the Lanjigarh refinery  was 423,000 tonnes in the  first 
half of the  year, 6%  lower than the  same period  last year due  to a  lower 
availability of third-party bauxite.

The Jharsuguda-I and Korba-II smelters operated above their rated  capacities, 
with significant improvements in specific power consumption and throughput  at 
Jharsuguda-I. Aluminium production  was 18%  higher at 382,000  tonnes in  the 
first half  of the  year. Total  production of  value-added products  was  11% 
higher at 215,000 tonnes in the first half of FY 2012-13. Power sales at 270MW
BALCO CPP were lower due to a shortfall in demand.

Market

                                                                      

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Average LME cash settlement
prices (US$per
tonne)                                1,947         2,495     (22)      2,314
Power sales realisation (US
cents/kwh)                               5.4           7.2     (25)        6.6



Average LME prices  of aluminium  for the six  months to  September 2012  have 
fallen by 22% from the average price  level during the same period last  year. 
While the price in the LME has been falling since April, market premiums  have 
been escalating, representing around 15% of producers' prices during September
2012, up from less than 10% at the beginning of the financial year.

Global primary aluminium  production in H1  FY 2012-13 stood  at 23.8  million 
tonnes and is expected to  be 48.8 million tonnes  in FY 2012-13 projecting  a 
total growth of  5.6% over  FY 2011-12. Global  primary aluminium  consumption 
however, is expected to be 48.6 million tonnes in FY 2012-13, a growth of 7.7%
year-on-year. Aluminium is  expected to continue  to lead the  metals pack  in 
term of consumption growth rates.

Due to  low  LME aluminium  prices  and the  marginal  cost of  production  of 
aluminium, some  announcements regarding  capacity  reduction have  been  made 
which may be implemented in the next 6-12 months.

Unit Costs

                                                                      

                       Six months to    Six months to              Year ended
                             30.09.12         30.09.11 % Change       31.03.12
Aluminium Business             1,873            2,282     (18)          2,091
BALCO Production
Cost                            1,871            2,036      (8)          1,922
BALCO Smelting
Cost^1                          1,170            1,230      (5)          1,175
Jharsuguda
Production Cost                 1,874            2,427     (23)          2,188
Jharsuguda Smelting
Cost^1                          1,152            1,544     (25)          1,362

1.  Smelting cost comprises production cost excluding alumina cost

Unit costs of  production decreased  to US$1,873 per  tonne in  H1 FY  2012-13 
compared with US$2,282 per tonne in H1 FY 2011-12, primarily due to lower coal
costs and  better operating  efficiencies at  VAL Jharsuguda.  Even without  a 
captive bauxite  source, our  aluminium  operations were  ranked in  the  2^nd 
quartile of the global cost curve in H1 FY 2012-13, and our cash costs were in
line  with  leading  fully  integrated  aluminium  producers,  reflecting  the 
operational efficiencies of our plants.

Financial Performance


                      (in US$million, except as stated)

                               Six months to Six months to          Year ended
                                   30.09.12      30.09.11 % Change   31.03.12
Revenue                               936.1         932.4        -    1,873.5
EBITDA                                105.6          91.0       16      182.5
EBITDA Margin (%)                      11.3           9.8                9.7
Depreciation and amortisation          95.9         114.8     (16)      221.5
Operating Profit                        9.7        (25.1)      139     (40.3)
Share of Group Operating
Profit (%)                               0.7         (2.1)              (1.7)
Capital expenditure                   241.2         442.1     (45)      779.9
 Sustaining                     24.0          16.8       43       68.5
 Projects                     217.2        425.3    (49)     711.4



EBITDA in the period  was US$106 million, an  increase over the US$91  million 
generated in  H1  FY 2011-12  due  to improved  operational  efficiency.  This 
resulted in higher production volumes, lower costs and higher sales  premiums, 
despite the negative impact of a 22% drop in LME prices.

Supply of bauxite by Orissa Mining Corporation (OMC) from Niyamgiri mines

After granting Stage I approval for forest clearance and also the  environment 
clearance for Niyamgiri  mining project  in 2009,  the final  Stage II  forest 
clearance approval was not granted until 2010 and the environmental  clearance 
originally granted was withdrawn . OMC has challenged the decision of the MoEF
in the Supreme Court where the hearing for the final decision is in  progress. 
All preliminary  submissions and  hearings have  already been  completed.  The 
matter was heard on 5 October and  12 October 2012 consecutively and the  next 
hearing is scheduled for 23 & 26 November 2012.

Expansion Project

With regard  to the  expansion project  at Lanjigarh,  following VAL's  Review 
Petition, the Honourable Orissa High Court found that the clarification issued
by the MoEF on November 16 2010  with regard to the granting of  environmental 
clearance lacked statutory authority. VAL has now re-applied for environmental
clearance and  the application  is  under process.  The  MoEF has  now  sought 
certain clarification from the Government of Orissa and following this it will
advise on  the public  hearing  for the  proposed  expansion project.  In  the 
meantime, VAL has put  the expansion activity on  hold. On 6 September  62012, 
due to the scarcity of bauxite, VAL has given a Temporary Closure (Stoppage of
Work) notice , to the Government of Orissa with effect from 5 December 2012.

Projects

The first 300MW unit of the BALCO  1,200MW captive power plant is expected  to 
be synchronised in  the current  quarter. Following this  we plan  to tap  the 
first metal at the 325 ktpa Korba-III  aluminium smelter in Q4 FY 2012-13.  We 
are progressing well towards obtaining  the second stage forest clearance  for 
the 211mt coal block  at BALCO, and  once this has been  secured we intend  to 
commence mining this year.

Outlook

We continue to  evaluate the  start-up of the  1.25 million  tonne smelter  at 
Jharsuguda and in the meantime are working on completing the project ready for
operations. . Until then we will continue to sell surplus power.

Power

Production and Sales

                                                                      

                              Six months to Six months to          Year ended
                                    30.09.12      30.09.11 % Change   31.03.12
Total Power Sales (million
units)                                 4,680         2,851       64      6,554
MALCO and HZL Wind Power                801           446       80        916
SEL                                   3,879         2,404       61      5,638

* Includes SEL trial run production of 339 million units in H1 FY  2013 
vs 288 million units in H1 FY 2012

Power sales were  4,680 million units,  64% higher than  the same period  last 
year. This significant increase was primarily  due to higher power sales  from 
three units of the Jharsuguda 2,400MW power plant, operating with availability
of over 80%  and a  plant load  factor ('PLF') of  50%, with  the fourth  unit 
generating power under trial running The  PLF of the Jharsuguda 2,400MW  power 
plant was constrained due to power transmission limitations imposed  following 
a grid  failure  at the  end  of August  2012.  We continue  to  work  towards 
debottlenecking our transmission capacity which  is currently at 1,850 MW  and 
aim to enhance it by adding an additional 1,000MW transmission capacity by  Q4 
FY 2012-13.

Power sales  were augmented  by higher  sales  at HZL  wind power,  which  was 
expanded by  150MW  to 274MW  last  year, and  higher  sales at  MALCO,  which 
operated at 109% PLF.

Market

The power supply deficit in India stood  at 9% and peak load deficit stood  at 
11% during FY 2011-12 and this situation  is likely to prevail in the  current 
year. A sustained and  healthy GDP growth rate  will maintain pressure on  the 
demand/supply gap.

                                                                      

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