Sterlite Industries (India) Limited Unaudited Consolidated Results for the First Quarter Ended 30 June 2013

  Sterlite Industries (India) Limited Unaudited Consolidated Results for the
  First Quarter Ended 30 June 2013

Business Wire

MUMBAI, India -- July 26, 2013

Sterlite Industries (India) Limited (“SIIL” or “Sterlite” or “the Company”)
today announced its unaudited consolidated results for the first quarter (Q1)
ended 30 June 2013.

Q1 FY 2014 Highlights

  *Mined metal production up 27% and integrated zinc production up 10% at
    Zinc India
  *Power generation up 34% at the Jharsuguda 2400 MW Plant
  *Strong Balance sheet with cash & liquid investments of Rs. 25,890 crore
  *Merger of Sterlite and Sesa Goa Ltd has received approval of the High
    Court of Madras on July 25, 2013

                                                                     
Consolidated Financial Performance
                                                                    
                                      Q1                               Q4
Particulars (In Rs. crore, except as   FY2014  FY2013  % change YoY   FY2013
stated)
Net Sales/Income from operations       8,190    10,591   (23%)          12,609
EBITDA                                 2,173    2,337    (7%)           3,323
Interest expense                       362      242      50%            276
Foreign Exchange (loss)/gain           (230)    (217)    6%             78
Profit before Depreciation and Taxes   2,647    2,797    (5%)           3,907
Depreciation                           526      518      2%             453
Profit before Exceptional items        2,122    2,279    (7%)           3,454
Exceptional Items                      -        -        -              118
Taxes                                  357      334      7%             418
Profit After Taxes                     1,765    1,945    (9%)           2,918
Minority Interest                      571      577      (1%)           787
Share in Profit/(Loss) of Associate    (260)    (167)    56%            (206)
Attributable PAT after exceptional     934      1,202    (22%)          1,925
item
Basic Earnings per Share (Rs./share)   2.78     3.57     (22%)          5.73
Underlying Earnings per Share*         3.17     3.99     (21%)          5.77
(Rs./share)
Exchange rate (Rs./$) – Average        55.95    54.22    3%             54.17
Exchange rate (Rs./$) – Closing       59.70   56.31   6%            54.39

* Based on profit for the period after adding back exceptional items and other
gains and losses, and their resultant tax and minority interest effects

Mr. Anil Agarwal, Chairman: “We achieved a strong performance in the first
quarter of FY 2014, and delivered production growth at our world-class Zinc,
Silver, Power and Aluminium businesses despite global economic volatility and
lower metal prices. We remain focused on completing the merger with Sesa Goa,
and ramping up production from our growth projects across our world class
asset portfolio."

Revenues and EBITDA were lower primarily on account of a temporary closure of
the Tuticorin copper smelter, which was partially offset by higher power
generation at the Jharsuguda 2,400 MW power plant and higher production at
Zinc India. Temporary closure of the Tuticorin smelter negatively impacted
EBITDA by Rs. 180 crore.

Attributable PAT and Basic EPS were impacted by lower EBITDA and higher losses
at associate. Higher interest costs on borrowings was largely offset by
increase in other income.

Merger of Sterlite and Sesa Goa Limited and Vedanta Group Consolidation

The proposed Merger of Sterlite and Sesa Goa Limited and Vedanta Group
Consolidation has received the approval of the High Court of Madras on July
25, 2013 and the approval of the High Court of Bombay at Goa on April 3, 2013.

One of the shareholders of Sesa Goa has filed an appeal against the order
passed by the High Court of Bombay at Goa before the Division Bench of the
same court. The hearings before the Division Bench have been completed and the
order is awaited.


Zinc - India Business
                                                                    
                                     Q1                              Q4
Production (in’000 tonnes, or as       FY2014  FY2013  % change YoY   FY2013
stated)
Mined metal content                    238      187      27%            260
Refined Zinc – Total                   174      161      8%             182
Refined Zinc – Integrated              173      157      10%            181
Refined Lead - Total ^1                33       31       5%             35
Refined Lead – Integrated              29       29       1%             32
Refined Saleable Silver - Total (in    96       73       31%            108
tonnes) ^2
Refined Saleable Silver - Integrated   77       71       9%             91
(in tonnes)
                                                                    
Financials (In Rs. crore, except as                                  
stated)
Revenue ^3                             2,874    2,641    9%             3,820
EBITDA                                 1,440    1,349    7%             2,098
PAT                                    1,630    1,542    6%             2,174
Zinc CoP without Royalty (Rs./MT)      46,765   45,759   2%             44,901
Zinc CoP without Royalty ($/MT)        836      844      (1%)           829
Zinc CoP with Royalty ($/MT)           995      1,007    (1%)           998
Zinc LME Price ($/MT)                  1,840    1,928    (5%)           2,033
Lead LME Price ($/MT)                  2,049    1,974    4%             2,301
Silver LBMA Price ($/oz)              23.1    28.3    (18%)         30.1

   1.  Including captive consumption of 1,644 tonnes in Q1 FY 2014 vs.
           1,641 tonnes in Q1 FY 2013 and 1,777 tonnes in Q4 FY 2013.
      2.   Excluding captive consumption of 8.8 tonnes in Q1 FY 2014 vs. 8.6
           tonnes in Q1 FY 2013 and 9.2 tonnes in Q4 FY 2013.
      3.   Including zinc concentrate sale of nil in Q1 FY 2014 vs. nil in Q1
           FY 2013 and 61,097 tonnes metal in concentrate in Q4 FY 2013.
           

During Q1, mined metal production was 27% higher than the corresponding prior
quarter. The increase in production was in line with our plan to deliver 1
million tonne mined metal production for the year.

Integrated production of refined zinc was 10% higher, due to higher smelter
utilization. Integrated production of refined lead was in line with the
corresponding prior quarter. Integrated saleable silver production was 9%
higher driven by higher volumes from Sindesar Khurd and Zawar mines.

Revenues were higher by 9% on account of higher sales volume and depreciation
of Indian Rupee, partially offset by lower metal prices.

The zinc cost of production (COP) without royalty was 2% higher in Rupee terms
and 1% lower in US Dollar terms. The increase in Rupee COP was primarily due
to lower sulphuric acid credits and higher excavation costs, partially offset
by lower coal prices, lower specific coal consumption and the benefits of
higher volumes.

EBITDA was 7% higher on account of higher volume partially offset by higher
operating costs. PAT for the quarter was 6% higher at Rs. 1,630 Crore.


Zinc - International Business
                                                                    
                                     Q1                              Q4
Production (in’000 tonnes, or as       FY2014  FY2013  % change YoY   FY2013
stated)
Mined metal content- BMM and Lisheen   56       70       (21%)          65
Refined Zinc – Skorpion                34       36       (4%)           36
Total                                  90       106      (15%)          102
Financials (In Rs. crore, except as                                  
stated)
Revenue                                938      1,012    (7%)           1,130
EBITDA                                 298      337      (12%)          434
PAT                                    190      190      -              267
CoP – ($/MT)                           1,162    1,126    3%             1,121
Zinc LME Price ($/MT)                  1,840    1,928    (5%)           2,033
Lead LME Price ($/MT)                 2,049   1,974   4%            2,301
                                                                        

Zinc-Lead Metal in Concentrate (MIC) production was lower on account of
disruptions in production caused by accidents at Lisheen and BMM.

EBITDA was 12% lower on account of lower volumes, lower metal prices and
marginally higher COP.


Copper – India / Australia Business
                                                                    
                                     Q1                              Q4
Production (in’000 tonnes, or as       FY2014  FY2013  % change YoY   FY2013
stated)
Copper - Mined metal content           6        7        (13%)          7
Copper - Cathodes                      16       88       (82%)          86
Tuticorin power sales (million         137      -        -              35
units)
Financials (In Rs. crore, except as                                  
stated)
Revenue                                2,465    5,301    (53%)          5,860
EBITDA                                 (2)      265      (100%)         375
Foreign Exchange gain/(loss)           (273)    (219)    25%            14
Exceptional items                      -        -        -              (100)
PAT                                    (190)    96       (298%)         322
Tc/Rc (US¢/lb)                         13.9     12.4     12%            14.8
Net CoP – cathode (US¢/lb)             NM       5.4      -              10.7
Copper LME Price ($/MT)               7,148   7,869   (9%)          7,931

NM = Not Meaningful.

During Q1, mined metal production at Australia was 13% lower due to lower
grades. Copper cathode production was lower due to a temporary closure of the
Tuticorin smelter for most of the quarter.

EBITDA was lower due to fixed expenses of the Tuticorin smelter partially
offset by gains on sale of surplus power from the first 80 MW unit of
Tuticorin power plant. Contribution from Australian operations was affected by
lower sales volume, lower LME and higher COP.

Following the Tamil Nadu Pollution Control Board’s (TNPCB) order for closure
of the Tuticorin copper smelter on March 29, 2013, the National Green Tribunal
(NGT) after hearing company's appeal, passed an interim order on May 31, 2013
conditionally allowing the smelter to recommence operations, and the plant
restarted on June 23, 2013. On July 15, 2013, an expert committee confirmed
that the plant meets the prescribed standards, and the NGT in its order of
even date took cognizance of the findings of the expert committee and observed
that the company "is neither an existing pollutant nor is a threat of future
pollution (not violating prescribed standards) resulting in health hazards",
and declined to modify its earlier interim order dated 31st May, 2013,
enabling the plant to continue to operate. Separately, the TNPCB has also
filed an appeal against the NGT’s earlier interim order before the Supreme
Court.


Aluminium Business - BALCO
                                                                   
                                  Q1                                Q4
Production (in’000 tonnes, or as    FY2014   FY2013   % change YoY   FY2013
stated)
Aluminium                           61        60        1%             62
                                                                   
Financials (In Rs. crore, except                                    
as stated)
Revenue                             745       780       (5%)           954
EBITDA                              28        57        (51%)          85
PAT                                 (63)      (7)       -              20
CoP ($/MT)                          1,934     1,910     1%             1,930
CoP (Rs./MT)                        108,233   103,542   5%             104,532
Aluminum LME Price ($/MT)          1,835    1,978    (7%)          2,003
                                                                       

During Q1, the Korba-II aluminium smelter continued to operate at its rated
capacity.

Revenues were 5% lower on account of lower sales volume and fall in metal
prices, partially offset by the depreciation of Indian Rupee.

Net sales realization over LME was $ 445 per tonne during the quarter.

Aluminium COP was higher primarily on account of further tapering of coal
linkage as per the Coal Block policy and higher operating cost of captive
power plant due to maintenance shutdown of one of the units of 540 MW Captive
Power Plant (CPP). The increase in aluminium COP on account of further coal
tapering was Rs. 3,900 per tonne of aluminium in Q1 FY2014 as compared to Q1
FY2013.

The BALCO 1,200MW captive power plant is awaiting its consent to operate. We
expect to tap first metal at the 325 ktpa BALCO-III aluminium smelter in Q3
FY2014. Having obtained both stages of forest clearance for the BALCO coal
block, we are working on obtaining other approvals which are taking longer
than expected, and we expect to commence mining in Q1 FY2015.


Aluminium Business – Vedanta Aluminium Limited (Associate Company)
                                                                    
                                    Q1                               Q4
Production (in’000 tonnes, or as      FY2014  FY2013   % change YoY   FY2013
stated)
Alumina – Lanjigarh                   -        218       -              -
Aluminum – Jharsuguda                 134      124       8%             133
                                                                    
Financials (in Rs. crore except as                                   
stated)
Revenue                               1,630    1,681     (3%)           1,709
EBITDA                                260      306       (15%)          261
Interest Expense                      765      506       51%            542
Foreign Exchange gain/(loss)          (162)    (160)     1%             (205)
PAT                                   (881)    (565)     56%            (700)
SIIL Share (29.5%)                    (260)    (167)     56%            (206)
Aluminium CoP ($/MT)                  1,675    1,845     (9%)           1,799
Aluminium CoP (Rs./MT)                93,734   100,020   (6%)           97,496
Aluminium LME Price ($/MT)           1,835   1,978    (7%)          2,003
                                                                        

Aluminium production was 8% higher during the quarter. The Jharsuguda-I
smelter operated at 7% above its rated capacity, with significant improvements
in specific power consumption, throughput and other operational parameters
resulting in a COP lower than the corresponding prior quarter as well as Q4
FY2013. This was achieved despite running the smelter with third-party alumina
feed as operations of the Lanjigarh alumina refinery were temporarily
suspended. The refinery has subsequently recommenced its operations in July.

EBITDA was lower primarily on account of the fixed costs of the Lanjigarh
refinery during the quarter and lower Aluminium LME, partially offset by
higher volumes and lower COP.

Net sales realization over LME was $ 320 per tonne during the quarter.

PAT was lower by Rs. 316 crore primarily on account of higher interest cost.
Interest cost was higher due to cessation of interest capitalization
pertaining to the Jharsuguda-II smelter on account of delay in its
commissioning, in compliance with the relevant accounting standard.


Status of Investment in Vedanta Aluminium Limited as at 30 June2013
                                                        
Investment in VAL (Rs. crore)  Sterlite  Vedanta  External  Total
Equity                          563        1,391     -          1,954
Preference Shares               3,000      -         -          3,000
Quasi Equity / Debt             13,895     571       13,065     27,530
Total Funding                   17,458     1,962     13,065     32,484
Corporate Guarantees           2,287     22,602   -         24,889
                                                                

In view of the impending merger, the company borrowed Rs. 5,000 crore
externally and lent it to VAL, with an objective of optimizing the overall
cost of borrowings for VAL. This has resulted in retiring a part of the higher
cost project finance debt at VAL.


Power Business
                                                                    
                                     Q1                              Q4
Particulars (in million units)         FY2014  FY2013  % change YoY   FY2013
Total Power Sales                      2,953    2,458    20%            2,433
SEL 2400 MW Jharsuguda^1               2,604    1,938    34%            2,073
BALCO 270MW Power Sales                187      338      (45%)          282
HZL Wind Power                         162      182      (11%)          78
                                                                    
Financials (in Rs. crore except as                                   
stated)
Revenue                                1,144    857      33%            847
EBITDA                                 402      329      22%            330
PAT                                    139      83       68%            110
Average Cost of Generation             2.15     2.02     6%             1.81
(Rs./unit)
Net Average Realization (Rs./unit)     3.49     3.44     1%             3.16
SEL Cost of Generation (Rs./unit)      2.21     2.14     3%             1.76
SEL Net Realization (Rs./unit)        3.45    3.51    (2%)          3.09

1. Includes production under trial run of 202 MU in Q1 FY2013.

Power sales during the quarter were 20% higher on account of higher power
generation from Jharsuguda 2,400MW plant. The plant operated at PLF of 54% for
all four units during the quarter as compared with 50% for three units during
the corresponding prior period.

Power sales volumes at the BALCO 270 MW plant were lower due to diversion of
204 million units of power to the Korba-II smelter as one unit of BALCO 540 MW
CPP was under maintenance shutdown.

Average power realization increased to Rs. 3.49 due to higher sales volume
from open access. The power generation cost at SEL during the quarter was Rs.
2.21 per unit as compared with Rs. 2.14 per unit in corresponding prior
quarter.

EBITDA for the quarter was 22% higher, primarily on account of higher power
generation at Jharsuguda 2,400MW plant.

The first unit of the 1,980MW Talwandi Sabo power project is expected to be
synchronized in Q3 FY2014.

Cash, Cash Equivalents and Liquid Investment

As at 30 June 2013, the company has consolidated cash, cash equivalents and
liquid investments of Rs. 25,890 crore, out of which Rs. 15,369 crore was
invested in debt mutual funds, Rs. 2,217 crore in bonds, and Rs. 8,304 crore
in bank deposits. The company continues to follow a conservative investment
policy and invests in high quality debt instruments with the mutual funds,
bonds and fixed deposits with banks.

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

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. Sterlite Industries has a portfolio of world class
assets in India, Australia, Namibia, South Africa and Ireland. 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

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 mattersof 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.

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

Contact:

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