Sesa Sterlite Limited: Unaudited Consolidated Results for the Second Quarter and Half Year Ended 30 September 2013

  Sesa Sterlite Limited: Unaudited Consolidated Results for the Second Quarter
  and Half Year Ended 30 September 2013

Business Wire

MUMBAI, India -- November 1, 2013

Sesa  Sterlite Limited (“Sesa Sterlite” or “the Company”) today announced its
unaudited consolidated results for the second quarter (Q2) ended 30 September
2013.

Highlights of the quarter

  *Merger of Sterlite Industries (India) Limited and Sesa Goa Limited, and
    consolidation of Vedanta Group completed; merged company named “Sesa
    Sterlite Limited”

Operational Performance

  *Record oil & gas production
  *Increased production of refined zinc, lead and silver at Zinc India
  *Strong volume and cost performance at aluminium operations

Financial Performance*:

  *Revenue of Rs. 25,166 crore; Proforma Revenue of Rs. 18,026 crore
  *EBITDA of Rs.7,224 crore; Proforma EBITDA of Rs. 6,955 crore
  *Attributable PAT of Rs.2,394 crore; Proforma Attributable PAT of Rs.1,402
    crore
  *Interim dividend of Rs. 1.50 per share

*Proforma numbers represents consolidation of financials of all the businesses
for the full period irrespective of the effective dates of merger / stake
transfer and also one time impact of the adjustment & accelerated amortisation
at Lisheen mine. Please refer to explanation in consolidated financial
performance section.

Mr. Anil Agarwal, Chairman: “The merger of Sterlite Industries and Sesa Goa
has created one of the world’s largest global diversified natural resources
companies. Sesa Sterlite is the Indian flagship of our group and with its
world class assets, efficient operations and our strong track record, we are
well placed to deliver superior returns for shareholders.

Despite volatile commodity prices and temporarily suspended iron ore
operations at Goa and Karnataka, the company has delivered a strong
operational and financial performance during the quarter, with production
growth at our Oil & Gas, Zinc and Aluminium businesses. We expect to
recommence mining in Karnataka soon and are hopeful that the Goa mining
suspension will be resolved by the Supreme Court soon, which will be helpful
for the government exchequer and the local economy.”

Sesa Sterlite Limited – Global Diversified Natural Resource Major

The merger of Sterlite Industries (India) Ltd. and Sesa Goa Ltd., and the
consolidation of the Vedanta Group has created India’s largest and one of the
world’s top seven diversified natural resource majors by market capitalisation
and EBITDA. Sesa Sterlite has a portfolio of large, world-class, low cost,
scalable assets in close proximity to high growth markets. The company
operates in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Aluminium and
Commercial Power, and has a presence across four continents. A diversified
portfolio is expected to reduce volatility of earnings through commodity
cycles, lowering the cost of capital and enhancing value. The consolidation
will generate significant financial and operational synergies such as improved
fungibility of cash that will facilitate debt servicing, efficient cash
management, and tax efficiencies.

Merger Accounting

The scheme of amalgamation and arrangement amongst Sterlite Industries (India)
Limited (Sterlite Industries), Sterlite Energy Limited (SEL), Vedanta
Aluminium Limited (VAL), Ekaterina Limited (Ekaterina), Madras Aluminium
Company Limited (MALCO) and the Company have been approved by the respective
jurisdictional courts and made effective during the quarter as per the
following table:


Particulars                           Appointed Date   Effective Date
SEL                                    January 1, 2011   August 19, 2013
Sterlite                               April 1, 2011     August 17, 2013
Ekaterina                              April 1 , 2012    August 17, 2013
Malco (residual)                       August 17, 2013   August 17, 2013
VAL (aluminium business demerger)      April 1, 2011     August 19, 2013
Slump sale of VAL power division                        August 19, 2013
Acquisition of 38.68% in Cairn India                  August 26, 2013


The amalgamation has been accounted under the pooling of interest method as
per Indian Accounting Standard-14. All assets and liabilities of various
amalgamated companies have been recorded at the existing carrying value. The
net profit of the amalgamating companies from the appointed date till March
31, 2013, after alignment of accounting policies, has been transferred to the
surplus in Statement of Profit and Loss in the books of the Company upon
amalgamation. Since the effective date of the merger is in August 2013, merger
related profit and loss and tax impact for current year from April 2013 has
been taken into account in the current quarter.

By way of a slump sale agreement dated August 19, 2013 between VAL and the
Company, the power business consisting of 1,215 MW thermal power facility
situated at Jharsuguda and 300 MW co-generation facility (90MW operational and
210 MW under development) at Lanjigarh, has been purchased on a going concern
basis at its carrying value at a consideration of Rs 2,893 Crore.

Pursuant to the share purchase agreement, dated 25th February, 2012 between
Bloom Fountain Limited (BFL), a wholly owned subsidiary of the Company and
Vedanta Resources Holdings Limited (VRHL) a wholly owned subsidiary of Vedanta
Resources Plc, BFL acquired a 38.68% stake in Cairn India Limited and
associated debt of $ 5,998 million by way of acquisition of Twinstar Energy
Holding Limited (TEHL), for a nominal cash consideration of USD 1.
Consequently, with effect from August 26, 2013, TEHL, Twin Star Mauritius
Holdings Limited and Cairn India Limited (including all its subsidiaries) have
become subsidiaries of the Company. As a result of acquisition of Cairn India,
a goodwill amount of Rs 35,244 crores has been recognised in the consolidated
financial statements and as a conservative policy, this goodwill will be
amortised based on the unit of production method.

Consolidated Financial Performance

Since the merger has been effected in August 2013, the impact of merger
related profit and loss and the impact for the current financial year has been
given in Q2, hence, current quarter numbers are not reflective of Company's
performance in Q2 and is not comparable with corresponding Q2 of FY 2013. H1
actual financial numbers include results of all consolidating entities of Sesa
Sterlite Limited for the six months, except Cairn India, which is consolidated
from 26 August 2013. Hence company has drawn a proforma account for the
quarter and H1 to indicate the performance during the period, had the merger
been effected from beginning of the period. The proforma number excludes
impact of tax write back and accelerated amortisation for Lisheen mine.

The unaudited and unreviewed proforma financial numbers for Q1, Q2 and H1 FY
2014 have been prepared as if the restructuring and full consolidation had
taken place as of 1 April 2013, to illustrate the effects of the restructuring
on the profit from continuing operations. The proforma numbers for FY 2013
have been prepared on the same lines, as if the restructuring and full
consolidation had taken place as of 1 April 2012.

The proforma financial information has been prepared for illustrative purposes
only and, because of its nature, addresses a hypothetical situation and
therefore does not reflect the Group’s actual financial position or results.


                         Q2                    Q1         H1
FY2013      Particulars     FY2014                 FY2014      FY2014
(Adjusted   (In Rs.         (Adjusted  FY2014     (Adjusted   (Adjusted  FY2014
Proforma)   Crore, except   Proforma)   (Actual)   Proforma)   Proforma)   (Actual)
            as stated)
            Net
71,780      Sales/Income    18,026      25,166     14,361      32,387      25,529
            from
            operations
25,232      EBITDA          6,955       7,224      5,479       12,434      7,178
            EBITDA margin
48%         excl. custom    49%         38%        45%         47%         37%
            smelting ^1
            (%)
4,664       Finance cost    1,473       1,880      1,571       3,044       2,028
2,953       Other Income    459         914        600         1,059       920
(154)       Forex loss/     (235)       688        (218)       (453)       787
            (gain)
            Profit before
23,355      Depreciation    6,030       5,495      4,577       10,606      5,210
            and Taxes
4,948       Depreciation    1,398       1,780      1,303       2,700       1,819
2,620       Amortisation    654         1,066      584         1,238       1,066
            of goodwill
            Profit before
15,788      Exceptional     3,979       2,649      2,690       6,668       2,325
            items
139         Exceptional     62          62         -           62          62
            Items
1,024       Taxes           501         -924       310         811         -1,036
14,625      Profit After    3,416       3,511      2,379       5,795       3,300
            Taxes
7,373       Minority        2,014       1,573      1,779       3,793       1,573
            Interest
            Share in
-           Profit/(Loss)   -           456        -           -           1,082
            of Associate
            Attributable
7,252       PAT after       1,402       2,394      600         2,003       2,809
            exceptional
            item
            Basic
24.46       Earnings per    4.73        8.19       2.03        6.75        9.67
            Share
            (Rs./share)
            Underlying
7,649       attributable    1,405       1,880      673         2,078       2,369
            PAT
            Underlying
25.80       Earnings per    4.74        6.43       2.27        7.01        8.15
            Share ^2
            (Rs./share)
            Exchange rate
54.45       (Rs./$) –       62.13       62.13      55.95       59.11       59.11
            Average
            Exchange rate
54.39      (Rs./$) –      62.78      62.78     59.70      62.78      62.78
            Closing

1.  Excludes custom smelting from Zinc and Copper India operations
     Based on profit for the period after adding back exceptional items and
2.   other gains and losses, and their resultant tax and minority interest
     effects


Proforma Revenue for the quarter was Rs. 18,026 crore as compared with Rs.
14,361 crore in Q1. Revenue increased primarily on account of resumption of
operations at Tuticorin copper smelter, INR depreciation and higher volumes at
most of the businesses.

Proforma EBITDA for the quarter was Rs. 6,955 crore as compared with Rs. 5,479
crore in Q1. This increase was primarily on account of higher volumes and INR
depreciation. EBITDA increased at Cairn India by Rs. 570 crore, Zinc India by
Rs. 399 crore, Copper India by Rs. 336 crore and other business by Rs. 171
crore.

Proforma EBITDA margin (excluding custom smelting) remained strong in Q2 and
Q1 at 49%and 45%, respectively.

Proforma Finance cost is higher in H1 as compared with corresponding prior
period due to cessation of interest capitalization pertaining to the
Jharsuguda-II smelter, and impact of INR depreciation on interest charged on
foreign currency borrowings.

Due to the INR depreciation, company has a foreign exchange gain at proforma
level of Rs. 235 crore during the quarter. Currency gain on US dollar deposits
at Cairn India more than offset the MTM losses on account of INR depreciation
on foreign currency loans.

Proforma other income was lower during the quarter as compared with Q1 FY2014
and last year on account of mark to market losses on investments in mutual
funds due to high interest rate volatility during the quarter and
non-consideration of accrued interest on fixed maturity plan investments
amount of Rs. 230 crore, due to limited adoption of Accounting Standard-30.
This amount will accrue during the remaining maturity period.

Company incurred proforma amortisation cost of Rs. 654 crore during the
quarter on account of amortisation of goodwill on the basis of production, as
conservative accounting policy.

Proforma attributable PAT during the quarter was higher at Rs. 1,402 crore as
compared with Rs. 600 crore in Q1, primarily due to higher EBITDA.

Dividend

The Board has recommended an interim dividend of Rs. 1.50 per share. The
interim dividend outgo will be Rs. 446 crore. The record date for dividend
payment is 7 November, 2013.

Zinc - India Business


                Q2                        Q1      H1
                                    %                                   %
Particulars       FY2014  FY2013  change   FY2014   FY2014  FY2013  change
                                    YoY                                 YoY
Production
(in’000 tonnes,                                                   
or as stated)
Mined metal       222      190      16%      238      459      377      22%
content
Refined Zinc –    196      163      21%      174      370      324      14%
Total
Refined Zinc –    195      153      28%      173      368      310      19%
Integrated
Refined Zinc –    1        10       (84%)    1        2        14       (83%)
Custom
Refined Lead -    32       27       17%      33       64       58       11%
Total ^1
Refined Lead –    31       24       29%      29       60       53       13%
Integrated
Refined Lead –    1        3        (64%)    3        4        5        (13%)
Custom
Saleable Silver
- Total (in       90       84       7%       96       186      157      18%
tonnes) ^2
Saleable Silver
- Integrated      83       73       14%      77       160      144      12%
(in tonnes)
Saleable Silver
- Custom (in      6        11       (44%)    19       26       14       85%
tonnes)
                                                                 
Financials (In
Rs. crore,                                                        
except as
stated)
Revenue           3,460    2,746    26%      2,874    6,334    5,387    18%
EBITDA            1,844    1,408    31%      1,440    3,284    2,757    19%
Zinc CoP
without Royalty   50,522   46,757   8%       46,765   48,615   46,263   5%
(Rs./MT)
Zinc CoP
without Royalty   816      844      -3%      836      822      845      -3%
($/MT)
Zinc CoP with     975      999      -2%      995      981      1,005    -2%
Royalty ($/MT)
Zinc LME Price    1,859    1,885    -1%      1,840    1,850    1,906    -3%
($/MT)
Lead LME Price    2,102    1,975    6%       2,049    2,076    1,974    5%
($/MT)
Silver LBMA      21      30      -28%    23      22      30      -25%
Price ($/oz)

     Includes captive consumption of 3,344 tonnes in H1 FY 2014 vs 3,076
1.  tonnes in H1 FY 2013, and 1,700 tonnes in Q2 FY 2014 vs 1,435 tonnes in
     Q2 FY 2013
2.   Excludes captive consumption of 18 tonnes in H1 FY 2014 vs 16 tonnes in
     H1 FY 2013, and 9 tonnes in Q2 FY 2014 vs 8 tonnes in Q2 FY 2013.

Mined metal production was higher by 16% in Q2 and 22% in H1, as compared with
the corresponding prior periods respectively, due to higher production at
Rampura Agucha and restarting of Zawar mines.

Integrated refined zinc production increased by 28% in Q2 and 19% in H1, due
to improved operational efficiencies. Production of integrated refined lead
was higher by 29% in Q2 and 13% in H1, on account of improved utilization of
smelter capacity. Integrated saleable silver production was up 14% in Q2 and
12% in H1.

We expect to deliver approximately 950 kt of mined metal production during the
year. The momentum in integrated zinc lead production in H1 is expected to
continue in H2. Integrated saleable silver production is expected to be ~335
MT in FY 2014.

EBITDA increased by 31% in Q2, and by 19% in H1 from a year ago. The increase
was primarily driven by higher volumes and rupee depreciation, partially
offset by lower silver prices.

Zinc CoP before royalty during the quarter was 8% higher on account of
currency depreciation and lower by-product credits, partly offset by higher
production volume and operational efficiencies.

Zinc - International Business


                Q2                        Q1      H1
                                    %                                   %
Particulars       FY2014  FY2013  change   FY2014   FY2014  FY2013  change
                                    YoY                                 YoY
Production
(in’000 tonnes,                                                   
or as stated)
Refined Zinc –    35       37       -5%      34       69       73       -5%
Skorpion
Mined metal
content- BMM      71       77       -7%      56       127      147      -14%
and Lisheen
Total             106      114      -6%      90       196      220      -11%
Financials (In
Rs. crore,                                                        
except as
stated)
Revenue           1,147    1,125    2%       938      2,085    2,136    -2%
EBITDA            393      392      0%       298      691      730      -5%
CoP – ($/MT)      1,059    1,033    3%       1,162    1,122    1,090    3%
Zinc LME Price    1,859    1,885    -1%      1,840    1,850    1,906    -3%
($/MT)
Lead LME Price   2,102   1,975   6%      2,049   2,076   1,974   5%
($/MT)


Total production of refined zinc and mined zinc-lead metal in concentrate
(MIC) increased in Q2 as compared with Q1, as the operations stabilised after
the disruptions at Lisheen and BMM in Q1. In line with earlier guidance, we
expect to produce around 390 kt of refined zinc and mined zinc-lead metal in
concentrate in FY2014.

EBITDA for Q2 was in line with the corresponding prior period. The increase in
EBITDA in Q2 on account of currency depreciation was offset by lower volume
and marginally lower zinc prices. During H1, EBITDA was lower due to lower
volumes in Lisheen and BMM in Q1.

Cost of production was marginally higher in Q2 and H1 compared with
corresponding prior periods, due to lower volumes.

Oil & Gas Business


                 Q2 FY2014    Q2 FY2013    Q1 FY2014    H1 FY2014    Q2 & H1
Particulars     (Proforma)  (Proforma)  (Proforma)  (Proforma)  FY2014
                                                                     (Actual)*
Production (in
boepd, or as                                                     
stated)
Average Daily
Gross Operated   2,13,299     207,245      2,12,442     2,12,873     2,13,299
Production
Rajasthan        1,75,478     171,801      1,73,517     1,74,503     1,75,478
Ravva            29,151       28,614       28,253       28,704       29,151
Cambay           8,671        6,830        10,672       9,666        8,671
Average Daily
Working          1,32,862     129,431      1,32,087     1,32,477     1,32,862
Interest
Production
Rajasthan        1,22,835     120,261      1,21,462     1,22,152     1,22,835
Ravva            6,559        6,438        6,357        6,458        6,559
Cambay           3,468        2,732        4,269        3,866        3,468
Total Oil and
Gas (million                                                     
boe)
Oil & Gas-       19.62        19.07        19.33        38.96        7.60
Gross
Oil &
Gas-Working      12.22        11.91        12.02        24.24        4.77
Interest
Financials (In
Rs. crore,                                                       
except as
stated)
Revenue          4,650        4,443        4,063        8,713        1,855
EBITDA           3,619        3,311        3,029        6,668        1,411
Average Price
Realisation -    95.3         96.7         93.3         94.3         -
Oil & Gas
($/boe)
Brent Price     110         110         102         106         113
($/bbl)

Note:

  *Sesa Sterlite acquired a 38.7% stake in Cairn India Limited, effective
    26th August 2013. This has increased the company’s stake in Cairn India
    from 20.1% to 58.8%.
  *The average daily gross operated and working interest production numbers
    in the Q2 & H1 FY2014 actual column of the table above are for the
    complete quarter.
  *The total oil and gas production (in million boe) and Financials (in Rs.
    crore) in the Q2 &H1 FY2014 actual column of the table above are for the
    period from 26 August 2013, where as the proforma numbers are from April
    2013.

In Q2, average gross operated production and working interest production were
213,299 barrels of oil equivalent per day (boepd) and 132,862 boepd,
respectively, 3% higher than the corresponding prior period.

The gross production at the Rajasthan block was 2% higher at 175,478 boepd.
Production at Cambay was 27% higher in Q2 due to new infill wells and one work
over well that had been put into production in Q1. Production at Ravva was 2%
higher in Q2.

Revenue for the quarter was INR 4,650 crore on proforma basis, post profit
sharing with the GoI in all the producing blocks and the royalty expense in
the Rajasthan block, up 14% QoQ on account of better price realisation and
rupee depreciation. EBITDA on proforma basis for the quarter was INR 3,619
crore, higher than previous quarter mainly due to lower exploration charge.

Development

With the current production ramp up, Cairn India remains on track for its FY
2013-14 exit gross production target of over 225,000 boepd from all producing
assets including over 200,000 boepd from the Rajasthan block.

During the quarter Cairn India made significant progress in terms of its three
key drivers for production enhancement, viz Well Construction, Facility uptime
& cost efficiency and Government/JV approvals. With the focus on cost
optimisation and enhanced operational efficiencies, Cairn India maintained its
field direct operating cost within US$ 3/boe for the quarter.

In the Rajasthan block, Cairn India received the partner approval for the
Mangala polymer Enhanced Oil Recovery (EOR) project, for which the contracting
is in advanced stages and full field implementation is expected to commence in
FY15. Further, we continue to focus on the low permeability reservoirs within
the Barmer Hill formation through use of advanced technology in order to
monetize the significant resources.

Further on the regulatory front, the government issued a policy on the
Integrated Development Plan. The prime objective of the policy is to reduce
the time consumed from discovery to production.

Exploration

Cairn India is actively pursuing exploration and appraisal (E&A) activities in
all its assets.

Cairn India has drilled 6 E&A wells in the RJ block in H1 FY14. Out of these,
4 wells found hydrocarbons. A Declaration of potential commerciality has been
submitted for one of the discoveries. In Rajasthan, Cairn India plans to drill
several high impact exploration wells to drill out 50% of the 530 million
barrels of gross recoverable risked prospective resources by end FY 2013-14.

The appraisal drilling in the Krishna Godavari (KG-ONN- 2003/1) block
witnessed three-fold productivity increase post successful drilling and
fraccing, significantly improving the commerciality of the Nagayalanka
discovery. The Declaration of commerciality is expected to be submitted in
this financial year. Cairn India also plans to drill an exploration well in
the Ravva block within this financial year, besides further exploration
activities in other blocks in the India and International portfolios.

Iron Ore Business


                Q2                        Q1      H1
                                    %                                   %
Particulars       FY2014  FY2013  change   FY2014   FY2014  FY2013  change
                                    YoY                                 YoY
IRON ORE ^ 3
(in million dry                                                   
metric tonnes,
or as stated)
Sales             -        0.2      -        -        -        3.1      -
Goa               -        0.2      -        -        -        3.0      -
Karnataka^4       -        0.0      -        -        -        0.1      -
Production of     -        0.4      -        -        -        3.7      -
Saleable Ore
Goa               -        0.4      -        -        -        3.7      -
Karnataka         -        -0.0     -        -        -        0.0      -
Production                                                        
(‘000 tonnes)
Pig Iron          129      82       57%      110      238      121      97%
Financials (In
Rs. crore,                                                        
except as
stated)
Revenue           459      289      59%      363      822      2,014    -59%
EBITDA            -78      -10      -        -47      -125     642      -
Average Net
Sales            -       60      -       31      -       70      -
Realization
($/t)

During Q2, iron ore operations at Goa and Karnataka continued to be suspended.
Following the lifting of restriction on mining at Karnataka by the Supreme
Court, we are now awaiting final statutory clearances to restart mining. We
expect to resume mining at Karnataka soon. Regarding the suspension of mining
in Goa, the hearings have now commenced at the Supreme Court.

During the quarter, production of pig iron was 57% higher as compared with the
corresponding prior period, on account of the commissioning of new capacities
in Q2 FY2013.

At Liberia, we have established by extensive drilling, contours of large iron
ore deposits with further upside. We are reviewing the different phased
options, including the first phase of 2 mt.

Copper – India / Australia Business


                Q2                        Q1      H1
                                    %                                   %
Particulars       FY2014  FY2013  change   FY2014   FY2014  FY2013  change
                                    YoY                                 YoY
Production
(in’000 tonnes,                                                   
or as stated)
Copper - Mined    6        6        -4%      6        12       13       -8%
metal content
Copper -          82       87       -5%      16       98       175      -44%
Cathodes
Tuticorin power
sales (million    158      -                137      295      -        
units)
Financials (In
Rs. crore,                                                        
except as
stated)
Revenue           4,812    5,417    -11%     2,465    7,277    10,718   -32%
EBITDA            421      342      23%      7        428      608      -30%
Net CoP –
cathode           8.6      7.1      20%      95.8     13.8     6.3      120%
(US¢/lb)
Tc/Rc (US¢/lb)    14.7     11.3     30%      13.9     14.6     11.8     23%
Copper LME       7,073   7,706   -8%     7,148   7,110   7,785   -9%
Price ($/MT)

Following a temporary closure in Q1, the smelter had restarted in end June and
is now operating at normalized capacity. The copper anode production in Q2 was
90,000 tonnes, in line with the rated capacity. Copper cathode production was
82,000 tonnes in Q2 and 98,000 tonnes in H1.

Mined metal production at Australia was 6,000 tonnes in Q2.

EBITDA for Q2 was higher by 23% on account of higher Tc/Rc, contribution from
power plant and INR depreciation, partially offset by lower by-product
credits.

Aluminium Business


            Q2                            Q1        H1
                                    %                                         %
Particulars   FY2014    FY2013    change   FY2014     FY2014    FY2013    change
                                    YoY                                       YoY
Production
(in’000                                                                 
tonnes, or
as stated)
Alumina –     116        205        -43%     -          116        423        -73%
Lanjigarh
Aluminium –   137        134        2%       134        271        259        5%
Jharsuguda
Aluminium –   63         63         1%       61         124        123        1%
BALCO
Aluminium -   200        197        2%       195        395        382        3%
Total
                                                                       
Financials
(In Rs.
crore,                                                                  
except as
stated)
Revenue       2,799      2,559      9%       2,363      5,162      4,846      7%
EBITDA        469        320        47%      284        753        641        17%
Alumina CoP
– Lanjigarh   20,471     18,986     8%       -          20,471     18,605     10%
(Rs./MT)
Alumina CoP
– Lanjigarh   329        344        -4%      -          329        340        -3%
($/MT)
Aluminium
CoP           102,906    105,226    -2%      98,328     100,636    102,538    -2%
-(Rs./MT)
Aluminium     1,651      1,902      -13%     1,758      1,702      1,873      -9%
CoP -($/MT)
Aluminium
CoP -         99,734     1,05,300   -5%      93,734     96,760     1,02,600   -6%
Jharsuguda
(Rs/MT)
Aluminium
CoP -         1,602      1,902      -16%     1,676      1,637      1,874      -13%
Jharsuguda
($/MT)
Aluminum
CoP - Balco   1,09,768   1,05,071   4%       1,08,233   1,09,006   1,02,408   6%
(Rs/MT)
Aluminium
CoP - Balco   1,755      1,902      -8%      1,934      1,844      1,871      -1%
($/MT)
Aluminum
LME Price    1,781     1,918     -7%     1,835     1,807     1,947     -7%
($/MT)
* VAL number for the quarter and half year are on a 100% consolidation basis.


The Lanjigarh alumina refinery recommenced operations in July and produced
116,000 tonnes in Q2. During Q2, the refinery supplied 17% of the alumina
consumed by our smelters as compared with 100% import of alumina feed by the
smelters in Q1. We expect the refinery to ramp-up to its rated capacity in Q3
FY2014.

In Q2, the Jharsuguda-I and Korba-II smelters continued to operate above their
rated capacities. Around 60% of the total production was converted into value
added products in Q2, in line with the corresponding prior period.

Alumina COP for the quarter at Lanjigarh was Rs. 20,471 per tonne (USD 329 per
tonne).

We continue to improve our cost performance and maintain our position is
second quartile of global cost curve, despite purchased alumina and bauxite.
At Jharsuguda, aluminium COP was lower due to improved coal sourcing mix and
operational efficiencies partially offset by higher alumina cost. At Balco,
aluminium COP was higher on account of higher alumina cost and further
tapering of coal linkage, partially offset by lower specific power consumption
and other operational efficiencies.

EBITDA during the quarter was 47% higher on account of INR depreciation and
lower aluminium CoP, partially offset by lower metal prices.

We continue to evaluate the potential start-up date of the 1.25 million tonnes
smelter at Jharsuguda. We are currently working on completing the project.

We expect to tap first metal at the 325 ktpa BALCO-III Aluminium smelter in Q3
FY2014. The first unit of the 1200 MW Power plant at BALCO is expected to be
synchronized in Q4 FY2014. On receipt of remaining regulatory clearances, we
expect to commence mining at our BALCO coal block in Q1 FY2015.

Power Business


                     Q2                        Q1      H1
                                         %                                   %
Particulars            FY2014  FY2013  change   FY2014   FY2014  FY2013  change
                                         YoY                                 YoY
Production (in                                                         
million units)
Total Power Sales      1,910    2,695    -29%     3,177    5,087    5,364    -5%
2400 MW Jharsuguda     1,494    1,940    -23%     2,604    4,098    3,879    6%
power plant^1
270 MW BALCO power     44       346      -87%     187      231      684      -66%
plant
274 MW HZL Wind        151      188      -20%     162      313      370      -15%
power plants
100MW MALCO power      221      221      0%       224      445      431      3%
plant
                                                                      
Financials (in Rs.
crore except as                                                        
stated)
Revenue                793      1,017    -22%     1,273    2,066    2,006    3%
EBITDA                 286      333      -14%     441      727      694      5%
Average Cost of        2.35     2.37     -1%      2.26     2.30     2.28     1%
Generation(Rs./unit)
Net Average
Realization            3.77     3.63     4%       3.63     3.69     3.62     2%
(Rs./unit)
Jharsuguda Cost of
Generation             2.32     2.31     -        2.21     2.25     2.23     1%
(Rs./unit)
Jharsuguda Net
Realization           3.47    3.42    1%      3.45    3.46    3.47    -
(Rs./unit)

     Includes production under trial run of Nil units in H1 FY2014 vs. 339
1.  million units in H1 FY2013 and Nil units in Q2 FY2014 vs. 138 million
     units in Q2 FY2013.


Power sales were lower in Q2 and H1, primarily due to lower demand. Jharsuguda
power plant operated in Q2 at a PLF of 31% for all four units as compared with
41% during the corresponding prior period.

EBITDA for Q2 was lower due to lower volumes at Jharsuguda 2400 MW power plant
and BALCO 270 MW power plant.

Work at the Talwandi Sabo power project is progressing well and the first unit
is expected to be synchronized in Q3 FY2014.

Cash and Debt


Amount in Rs.       31 March 2013 (proforma)     30 September 2013 (Actual)
crore
Company              Debt    Cash &   Net Debt   Debt    Cash &   NetDebt
                              LI                            LI
Sesa Sterlite        37,148   2,687     34,461     41,450   3,687     37,763
Standalone
Cairn acquisition    27,782   54        27,727     31,977   95        31,882
SPV
Talwandi Sabo        3,840    5         3,834      4,536    13        4,523
Zinc International   -        1,071     (1071)     -        1,180     (1,180)
Zinc India           -        21,370    (21,370)   -        22,772    (22,772)
Cairn India          -        16,823    (16,823)   -        20,196    (20,196)
Balco                4,297    0         4297       5,019    86        4,933
Others*              620      54        566        1,081    111       970
Sesa Sterlite       73,687  42,065   31,622    84,063  48,140   35,923
Consolidated


Debt Maturity
Profile of Long      H2                                       FY19 &
term Loans          FY14    FY15   FY16   FY17   FY18   Later    Total

(Rs. crore)
Sesa Sterlite        782      6,187   2,330   2,596   4,023   9,634     25,552
Standalone
Sesa Sterlite        1,223    3,570   2,448   2,851   2,302   3,801     16,195
Subsidiaries
Total               2,005   9,757  4,778  5,447  6,325  13,435   41,747

Maturity profile excludes working capital facilities of Rs 17,872 crore and
inter-company debt from Vedanta Resources Plc of Rs 24,445 crore at Cairn
acquisition SPV

Gross debt at Sesa Sterlite was Rs 84,063 crore as at 30 September 2013. It
increased by around Rs. 7,500 crore on account of INR currency depreciation on
US dollar loan and marginally due to increase in rupee debt mainly for project
finance. This comprises long term loans of Rs. 66,192 crore and short term
working capital loans of Rs. 17,871 crore. Out of total loan of Rs. 84,063
crore, Rs. 41,450 crore loan is in Sesa Sterlite standalone and balance Rs.
42,613 crore in other subsidiaries. Of the total loan, 31% is in INR terms and
balance 69% is in US dollar terms. On a consolidated basis the debt equity
ratio is healthy at 0.8.

The company has consolidated cash, cash equivalents and liquid investments of
Rs. 48,140 crore, out of which Rs. 28,783 crore was invested in debt mutual
funds, Rs. 4,657 crore in bonds, and Rs. 14,700 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 Sesa Sterlite Industries

Sesa Sterlite Limited (“Sesa Sterlite”) is one of the world’s largest
diversified natural resource companies. Our business primarily involves
exploring, extracting and processing minerals and oil & gas. We produce zinc,
lead, silver, copper, aluminium, iron ore, oil & gas and commercial power and
have a presence across India, South Africa, Namibia, Ireland, Australia,
Liberia and Sri Lanka. Sesa Sterlite has a strong position in emerging markets
with over 80% of its revenues from India, China, East Asia, Africa and the
Middle East.

Sustainability is at the core of Sesa Sterlite’s strategy, with a strong focus
on health, safety and environment and on enhancing the lives of local
communities.

Sesa Sterlite is a subsidiary of Vedanta Resources Plc, a FTSE 100 company.
Sesa Sterlite is listed on the Bombay Stock Exchange and the National Stock
Exchange in India and has ADRs listed on the New York Stock Exchange.

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.

Contact:

For further information, please contact:
Sesa Sterlite Limited
Ashwin Bajaj, +91 22 6646 1531
Senior Vice President – Investor Relations
sterlite.ir@vedanta.co.in
 
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