Sesa Sterlite Limited: HZL Announces Results for the Third Quarter Ended 31 December 2013

 Sesa Sterlite Limited: HZL Announces Results for the Third Quarter Ended 31
                                December 2013

  PR Newswire

  MUMBAI, India, January 17, 2014

MUMBAI, India, January 17, 2014 /PRNewswire/ --

The following release was issued today by Sesa Sterlite Limited's subsidiary
Hindustan Zinc Limited.

                            Hindustan Zinc Limited

             Results for the Third Quarter Ended 31 December 2013

           "Record integrated zinc metal production; EBITDA up 21%"

Highlights for the quarter

Operational Performance

  *Integrated saleable zinc metal production - up 17%
  *Integrated saleable lead and silver metal production - up 21% and 35%
    respectively

 (Logo: http://photos.prnewswire.com/prnh/20140117/663814 )

Financial Performance

  *EBITDA up 21% to Rs 1,828 crore
  *PAT up 7% to Rs 1,723 crore

Mumbai: Hindustan Zinc Limited ("HZL" or the "Company") today announced its
results for the third quarter ended 31 December 2013.

Mr. Agnivesh Agarwal (Chairman,  Hindustan  Zinc)  - "The emerging global
demand-supply dynamics is leading to a consistent deficit scenario as
anticipated. We remain focused on driving growth while maintaining our cost
leadership."

Financial Summary

( In Rs Crore, except as stated )

                                                           Nine Months Ended
    Particulars                       Q3            Q2     December 31, 2013
                              2014   2013  Change  2014    2014   2013  Change
    Net Sales/

    Income from Operations
    Zinc                     2,650  1,975    34%    2,570  7,206  5,634   28%
    Lead                       352    371    -5%      453  1,207  1,054   15%
    Silver                     332    645   -49%      388  1,128  1,482  -24%
    Others                      76    149   -49%      110    329    505  -35%
    Total                    3,410  3,140     9%    3,521  9,870  8,675   14%

    EBITDA                   1,828  1,506    21%    1,904  5,238  4,419   19%
    Profit After Taxes       1,723  1,613     7%    1,640  5,023  4,734    6%
    Earnings per Share (Rs)   4.08   3.82     7%     3.88  11.89  11.20    6%

    Mined Metal Production
    ('000 MT)                  220    233    -5%      222    680    610   11%
    Refined Metal Production

    ('000 MT)
    Total Refined Zinc         196    171    15%     196     567    495   14%
    - Refined Zinc -
    Integrated                 196    168    17%     195     564    479   18%
    Total Refined Lead[1]       25     30   -17%      30      86     85    1%
    - Refined Lead -
    Integrated                  25     21    21%      29      81     70   16%
    Total Refined Saleable
    Silver[2],[3]

    (in MT)                     73    108   -33%      90     259    266   -3%
    - Refined Saleable
    Silver -Integrated          72     54    35%      83     233    197   18%
    Wind Power (in million
    units)                      59     62    -5%     151     372    432  -14%

    Zinc CoP without Royalty
    (Rs / MT)               52,014 44,926    16%  50,522  49,727 45,730    9%
    Zinc CoP without Royalty
    ( $ / MT)                  840    829     1%     816     828    838   -1%

    Zinc LME ($ / MT)        1,907  1,947    -2%   1,859   1,869  1,920   -3%
    Lead LME ($ / MT)        2,111  2,199    -4%   2,102   2,088  2,051    2%
    Silver LBMA ($ / oz.)     20.8   32.7   -36%    21.4    21.7   30.7  -29%
    USD-INR                   62.0   54.1    15%    62.1    60.1   54.5   10%

(1)  Excluding captive consumption of 1,927 MT in Q3 and 5,271 MT in nine
months, as compared with 1,647 MT and 4,723 MT respectively in corresponding
prior periods.

(2)  Excluding captive consumption of 10.1 MT in Q3 and 27.9 MT in nine
months, as compared with 8.4 MT and 24.6 MT in corresponding prior periods.

(3)  Silver occurs in Lead & Zinc ore and is recovered in the smelting and
silver-refining processes.

Operational Performance

Mined metal production was 220,126 MT in Q3, as compared with 232,926 MT a
year ago. For the nine month period, our mined metal production was 679,597 MT
as compared to 610,059 MT in the corresponding prior period. This is the
highest ever mined metal production for the nine month period and was driven
by higher production at Rampura Agucha and Zawar mines.

Integrated refined zinc production was up 17% to 196,478 MT in Q3 and up 18%
to 564,292 MT in the nine month period compared to corresponding prior
periods. The increase was due to improved operational efficiencies at our
smelters. Production of integrated refined lead was up by 21% and 16% to
24,984 MT in Q3 and 81,429 MT in the nine month period respectively compared
to previous year due to improved utilization of smelter capacity. Integrated
saleable silver production was up 35% y-o-y to 72 MT in Q2 and 18% y-o-y to
233 MT in the nine month period.

We expect mined metal production of ~900,000 MT in FY 2014 reflecting slower
than expected ramp up of underground mining projects and some change in mining
sequence wherein preference has been given to primary mine development during
this period. Integrated saleable silver production is projected to be in the
range of 290 - 300 MT in FY 2014.

Financial Performance

Revenues were up 9% to Rs. 3,410 crore in Q3 and 14% to Rs. 9,870 crore in the
nine month period, as compared with the corresponding prior periods. The
increase was driven by higher zinc sales volume and rupee depreciation,
partially offset by lower silver and acid prices.

EBITDA increased by 21% to Rs 1,828 crore in Q3, and was 19% higher at Rs.
5,238 crore in the nine month period from a year ago. The increase was driven
by higher integrated sales volume and rupee depreciation, partially offset by
lower silver price and higher costs in rupee terms.

Net profit was up 7% to Rs. 1,723 crore in Q3 and 6% to Rs. 5,023 crore in the
nine month period as compared to previous year. The positive impact of higher
EBITDA was partly offset by lower other income and higher tax during the
quarter.

The zinc metal cost of production before royalty during the quarter was Rs.
52,014 ($840), 16% higher in Rupee and 1% higher in USD terms from a year ago.
The increase in rupee costs was primarily due to lower by-product sulphuric
acid prices, higher diesel costs and rupee depreciation, partly offset by
higher volumes and operational efficiencies.

Expansion Projects

Mine development is progressing well at all our underground projects. Kayad
mine has become operational during the quarter. Our project capex will be in
line with our guidance of $ 250 Million per year.

Liquidity and investment

As on 31 December 2013, the Company had cash and cash equivalents of Rs.
24,095 crore, out of which Rs. 19,111 crore was invested in debt mutual funds,
Rs. 1,972 crore in bonds and Rs 3,000 crore were in fixed deposits with banks.
The Company follows a conservative investment policy and invests in high
quality debt instruments.

About Sesa Sterlite Limited

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 oil &
gas, zinc, lead, silver, copper, iron ore, aluminium 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 London listed
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.

Registered Address: Sesa Sterlite Limited, Sesa Ghor, 20 EDC Complex, Patto,
Panjim, Goa - India - 403 001

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.

For further information, please contact:

AshwinBajaj SeniorVicePresident-Investor Relations Tel:+91-22-6646-1531
sterlite.ir@vedanta.co.in