Sesa Sterlite Limited: Results for the Third Quarter and Nine Months Ended 31 December 2013

Sesa Sterlite Limited: Results for the Third Quarter and Nine Months Ended 31
                                December 2013

  PR Newswire

  MUMBAI, India, January 28, 2014

MUMBAI, India, January 28, 2014 /PRNewswire/ --

Sesa Sterlite Limited ("Sesa Sterlite" or "the Company") today announced its
unaudited consolidated results for the third quarter (Q3) and Nine Months
ended 31 December 2013.

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

Highlights of the Quarter

Operational

  *Increased production of integrated refined zinc, lead and silver at Zinc
    India
  *Record oil & gas production of 224 kboepd
  *Resumed iron ore mining operations at Karnataka

Financial

  *Adjusted proforma PAT of Rs.1,780 crore in Q3 vs. Rs.1,402 crore in Q2

Mr. Anil Agarwal, Chairman: "The Sesa Sterlite merger was completed a few
months ago, and the merged company has delivered a strong set of results,
benefiting from its scale and diversification. We have record production of
oil & gas and copper. We continue to focus on driving value-accretive growth
across our portfolio of long-life assets and this, combined with efficient
cost management has positioned us well to deliver superior returns for our
shareholders"

Consolidated Financial Performance

Q3 and nine months numbers are not comparable with the corresponding prior
periods of FY 2013 since the merger got effective in August 2013.

Merger related profit and loss and tax impact for current year from April 2013
has been taken into account in Q2. Q2 actual numbers included pre-merger Sesa
Goa Ltd and its subsidiaries; both Q1 and Q2 numbers of pre-merger Sterlite
Industries and its subsidiaries, VAL & MALCO power; and Cairn India from 26
August 2013. Nine months actual financial numbers include results of all
consolidating entities of Sesa Sterlite Limited for the nine months FY2014,
except Cairn India, which is consolidated from 26 August 2013. Hence, company
has drawn a unreviewed adjusted proforma account for the Q2 and nine months to
indicate the performance during the period, had the restructuring been
effected from 1 April 2013, to illustrate the effects of the restructuring on
the profit from continuing operations. The adjusted proforma Q2, Q3 and nine
months number excludes impact of tax write back and accelerated amortisation
for Lisheen mine.

In line with the Q2 adjusted proforma numbers, Q3 adjusted proforma have been
provided to reflect the goodwill amortisation on the basis of production at
Lisheen mine as compared to the accelerated amortisation carried out in Q2
actuals.

The adjusted 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 adjusted proforma financial information has been prepared for illustrative
purposes only and, because of its nature, addresses an assumed situation and
therefore does not reflect the Group's reported financial results.

     FY2013
    (Adjusted
    Proforma)                       Q3            Q2     Nine months period
              Particulars
              (In Rs.        FY2014             FY2014       FY2014
              Crore, except (Adjusted  FY2014  (Adjusted  (Adjusted  FY2014
              as stated)    Proforma) (Actual) Proforma)  Proforma) (Actual)

              Net
              Sales/Income
              from
       71,780 operations       19,414   19,414    18,026     51,807   44,949
       25,232 EBITDA            6,565    6,565     6,955     18,999   13,743
              EBITDA margin
              excl. custom
              smelting [1]
          48% (%)                 48%      48%       49%        48%      42%
        4,664 Finance cost      1,530    1,530     1,473      4,574    3,558
        2,953 Other Income        390      390       459      1,446    1,310
              Forex loss/
        (154) (gain)             (82)     (82)     (235)      (535)      705
              Profit before
              Depreciation
       23,355 and Taxes         5,432    5,432     6,030     16,038   10,642
        4,948 Depreciation      1,415    1,415     1,398      4,115    3,234
              Amortisation
        2,620 of goodwill         678      589       654      1,916    1,655
              Profit before
              Exceptional
       15,788 items             3,339    3,428     3,979     10,007    5,753
              Exceptional
          139 Items                 -        -        62         62       62
        1,024 Taxes             (139)    (139)       501        673  (1,175)
              Profit After
       14,625 Taxes             3,478    3,567     3,416      9,272    6,866
              Minority
        7,373 Interest          1,698    1,698     2,014      5,490    3,271
              Share in
              Profit/(Loss)
            - of Associate          -        -         -          -    1,082
              Attributable
              PAT after
              exceptional
        7,252 item              1,780    1,868     1,402      3,782    4,677
              Basic
              Earnings per
              Share
        24.46 (Rs./share)        6.00     6.30      4.73      12.76    15.99
              Underlying
              attributable
        7,649 PAT               1,650    1,739     1,405      3,728    5,235
              Underlying
              Earnings per
              Share [2]
        25.80 (Rs./share)        5.57     5.87      4.74      12.57    17.89
              Exchange rate
              (Rs./$) -
        54.45 Average           62.03    62.03     62.13      60.08    60.08
              Exchange rate
              (Rs./$) -
        54.39 Closing           61.90    61.90     62.78      61.90    61.90

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

Revenue for the quarter was Rs.19,414 crore as compared with revenue Rs.18,026
crore in Q2. Revenue increased primarily on account of higher volume of oil &
gas and copper. Copper India had a record production of copper cathodes during
the quarter.

EBITDA for the quarter was Rs.6,565 crore as compared with adjusted proforma
of Rs.6,955 crore in Q2. The EBITDA was lower primarily in Zinc International
due to lower production and sales volumes. At Cairn India contribution from
higher revenues was offset by increased exploration costs and one time charge
on account of adoption of fair value methodology for stock option valuation.

The company continues to maintain strong EBITDA margins (excluding custom
smelting) at 48% for the quarter.

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

There was tax credit in Q3 on account of reversal of higher tax provision made
in the previous quarter and consequently higher attributable profit.

Zinc - India Business

                                       Q3            Q2    Nine months period
                                              %                           %
                                            change                      change
    Particulars               FY2014 FY2013  YoY   FY2014 FY2014 FY2013  YoY

    Production (in'000
    tonnes, or as stated)
    Mined metal content          220    233   (5%)    222    680    610    11%
    Refined Zinc - Total         196    171    15%    196    567    495    14%
    Refined Zinc - Integrated    196    168    17%    195    564    479    18%
    Refined Zinc - Custom          -      3      -      1      3     14      -
    Refined Lead - Total [1]      27     32  (15%)     32     92     90     2%
    Refined Lead - Integrated     27     22    20%     31     87     75    15%
    Refined Lead - Custom          -     10      -      1      5     15      -
    Saleable Silver - Total
    (in tonnes) [2]               73    108  (33%)     90    259    266   (3%)
    Saleable Silver -
    Integrated (in tonnes)        72     54    35%     83    233    197    18%
    Saleable Silver - Custom
    (in tonnes)                    1     55      -      7     26     68      -

    Financials (In Rs. crore,
    except as stated)
    Revenue                    3,388  3,117     9%  3,460  9,722  8,504    14%
    EBITDA                     1,810  1,484    22%  1,844  5,093  4,241    20%
    Zinc CoP without Royalty
    (Rs./MT)                  52,000 44,900    16% 50,500 49,700 45,700     9%
    Zinc CoP without Royalty
    ($/MT)                       840    829     1%    816    828    838   (1%)
    Zinc CoP with Royalty
    ($/MT)                     1,000    993     1%    975    986    999   (1%)
    Zinc LME Price ($/MT)      1,907  1,947   (2%)  1,859  1,869  1,920   (3%)
    Lead LME Price ($/MT)      2,111  2,199   (4%)  2,102  2,088  2,051     2%
    Silver LBMA Price ($/oz)      21     33  (36%)     21     22     31  (29%)

1.Includes captive consumption of 1,927 tonnes in Q3 FY 2014 vs. 1,647
    tonnes in Q3 FY 2013, and 5,271 tonnes in nine months period FY 2014 vs.
    4,723 tonnes in nine months period FY 2013
2.Excludes captive consumption of 10 tonnes in Q3 FY 2014 vs. 8 tonnes in Q3
    FY 2013, and 28 tonnes in nine months period FY 2014 vs. 25 tonnes in nine
    months period FY 2013.

Mined metal production was 5% lower as compared with the corresponding prior
quarter. For the nine month period, mined metal production was 11% higher,
which 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 17% higher in Q3 due to improved
operational efficiencies at the smelters. Production of integrated refined
lead was 20% higher due to improved utilization of smelter capacity.

EBITDA for Q3 was up by 22% due to higher integrated sales volumes and Rupee
depreciation, partially offset by lower silver prices and higher cost of
production (COP). EBITDA from the silver business was Rs.294 crore during the
quarter. The zinc metal cost of production excluding royalty during the
quarter was Rs.52,000 ($840), 16% higher in Rupee terms from a year ago. The
increase in Rupee costs was primarily due to lower by-product sulphuric acid
prices, higher diesel and coal costs due to Rupee depreciation, higher mine
development expense, partly offset by higher volumes and operational
efficiencies.

Mined metal production is expected at around 900kt in FY 2014 reflecting
slower than expected ramp up of underground mining project and some change in
mining sequence wherein preference has been given to primary mine development
during this period. Integrated saleable silver production is expected to be in
the range of 290 - 300 tonnes in FY 2014.

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.

Zinc - International Business

                                       Q3            Q2    Nine months period
                                              %                           %
                                            change                      change
    Particulars               FY2014 FY2013  YoY   FY2014 FY2014 FY2013  YoY

    Production (in'000
    tonnes, or as stated)
    Refined Zinc - Skorpion       23     36  (37%)     35     92    109  (16%)
    Mined metal content- BMM
    and Lisheen                   62     68   (9%)     71    189    215  (12%)
    Total                         84    104  (19%)    106    281    324  (13%)
    Financials (In Rs. crore,
    except as stated)
    Revenue                      764  1,065  (28%)  1,147  2,849  3,201  (11%)
    EBITDA                       149    439  (66%)    393    841  1,169  (28%)
    CoP - ($/MT)               1,257  1,079    17%  1,059  1,169  1,071     9%
    Zinc LME Price ($/MT)      1,907  1,947   (2%)  1,859  1,869  1,920   (3%)
    Lead LME Price ($/MT)      2,111  2,199   (4%)  2,102  2,088  2,051     2%

Production at Zinc International was 19% lower in Q3 due to an unplanned
maintenance shutdown at Skorpion in November and December after a tank
failure. The operations are ramping up and we expect a total production of 90
kt in Q4 FY2014.

EBITDA for Q3 was 66% lower due to lower production; as well as lower
despatches from Skorpion and BMM, that had an EBITDA impact of approximately
Rs. 120 crore. These are expected to be despatched in Q4. COP was higher at
$1,257 per tonne as compared with $1,079 per tonne, due to the shutdown.

Z

- International Business

Oil & Gas Business

                                                                       Nine
                                                             Nine     months
                                         Q3                 months    FY2014
                                       FY2014  Q2 FY2014    FY2014
    Particulars                       (Actual) (Proforma) (Proforma) (Actual)*

    Production (in boepd, or as
    stated)
    Average Daily Gross Operated
    Production                        2,24,493   2,13,299   2,16,760  2,16,760
    Rajasthan                         1,86,359   1,75,478   1,78,469  1,78,469
    Ravva                               27,857     29,151     28,421    28,421
    Cambay                              10,277      8,671      9,870     9,870
    Average Daily Working Interest
    Production                        1,40,830   1,32,862   1,35,271  1,35,271
    Rajasthan                         1,30,451   1,22,835   1,24,928  1,24,928
    Ravva                                6,268      6,559      6,395     6,395
    Cambay                               4,111      3,468      3,948     3,948
    Total Oil and Gas (million boe)
    Oil & Gas- Gross                     20.65      19.62      59.61     28.25
    Oil & Gas-Working Interest           12.96      12.22      37.20     17.72
    Financials (In Rs. crore, except
    as stated)
    Revenue                              5,000      4,650     13,713     6,855
    EBITDA                               3,555      3,619     10,203     4,966
    Average Price Realisation - Oil &
    Gas ($/boe)                           94.9       95.3       94.5      96.7
    Brent Price ($/bbl)                    109        110        107       110

 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 total oil and gas production (in million boe) and Financials (in
Rs.crore) in the 'Nine Months FY2014 (Actual)' are for the period from 26
August 2013. However, the average daily gross operated and working interest
production numbers in 'Nine Months FY2014 (Actual)'are on proforma basis for
nine months.

In Q3, average gross operated production and working interest production were
224,493 barrels of oil equivalent per day (boepd) and 140,830 boepd,
respectively, 10% higher as compared with last year, driven primarily by the
production ramp-up at Rajasthan. In Rajasthan, 42 new wells were brought on
line during the quarter and have resulted in production increase of 10% to
186,359 boepd, as compared with last year. Development Area (DA1) produced
gross average of 160,975 boepd and DA2 a gross average of 25,384 boepd
respectively. The overall facility uptime was at 99%.

Production at Cambay was 51% higher yoy at 10,277 boepd, due to the infill
wells campaign that was completed in FY2013. Production at Ravva was
marginally lower in Q3 at 27,857 boepd though recovery rates continue to be
over 47%.

Revenue for the quarter was Rs.5,000 crore, post profit sharing with the GoI
in all the producing blocks and the royalty expense in the Rajasthan block, up
8% QoQ driven by higher volume. EBITDA for the quarter was Rs.3,555 crore,
lower than the previous quarter as the contribution from higher revenues was
primarily offset by increased exploration costs and one time charge on account
of adoption of fair value methodology of stock option valuation.

There have been encouraging results from the exploration programme across the
portfolio. Since resumption of exploration in Rajasthan, our drilling program
achieved over 50% success rate, opened up 3 new play types and added oil in
place resources of 500 - 600 MMbbls. With 4 rigs now dedicated to exploration
in Rajasthan and two high impact pact wells being drilled, we are on track to
drill out 50% of the gross risked prospective resources in the block by fiscal
year end. Aishwarya Barmer Hill was recognized as the 27 ^th Discovery, with
successful testing at 450 bopd. The 28 ^th Discovery, the V2Y Channel, opened
up multiple pay zones in the low permeability Barmer Hill formation; the zones
together have demonstrated a flow of 450 bopd.

At Ravva, we spudded a 'high value high risk' deep exploration prospect,
drilling for which is likely to be completed in the current quarter and
testing would follow thereafter.

The Declaration of Commerciality for the Nagayalanka discovery was submitted
during the quarter, and first oil is expected in 2017 at an expected
production rate of over 10,000 bopd. In addition, appraisal wells are yielding
early indications of potential resource accretion. This is expected to
strengthen the Eastern India portfolio.

Acquisition of seismic data is ongoing in other exploration assets, such as
South Africa, KG Offshore and Mumbai Offshore blocks.

Oil & Gas Business

Iron Ore Business

                                       Q3            Q2    Nine months period
                                              %                           %
                                            change                      change
    Particulars               FY2014 FY2013  YoY   FY2014 FY2014 FY2013  YoY

    IRON ORE [3] (in million
    dry metric tonnes, or as
    stated)
    Sales                          -      -      -      -      -     3.1     -
    Goa                            -      -      -      -      -     3.0     -
    Karnataka[4]                   -      -      -      -      -     0.1     -
    Production of Saleable
    Ore                            -      -      -      -      -     3.7     -
    Goa                            -      -      -      -      -     3.7     -
    Karnataka                      -      -      -      -      -     0.0     -
    Production ('000 tonnes)
    Pig Iron                     139     83    67%    129    377     204    85%
    Financials (In Rs. crore,
    except as stated)
    Revenue                      290    230    26%    459  1,116   2,437  (54%)
    EBITDA                      (23)   (84)  (73%)   (78)  (148)     558 (127%)

In Karnataka, following clearance from the Supreme Court of India and obtained
other statutory clearances, we have resumed mining operations from December
28, 2013 at a provisional capacity of 2.29 mtpa. We are ramping up production
to a run-rate of around 0.5 million tonnes per month.

In Goa, sale of the inventory through e-auction is expected to commence
shortly. These e-auctions will be conducted post verification of the
inventory, and will be monitored by a Committee appointed by the Supreme
Court. The Supreme Court has also set up a separate committee to conduct a
macro EIA study to arrive at a ceiling of annual excavation of iron ore in the
state of Goa. Both these committees are expected to separately submit their
reports to the court by February 15, 2014 for the Court's consideration.

EBITDA in Q3 was Rs. (23) crore as compared to Rs. (84) crore in the
corresponding prior quarter, due to higher contribution from the pig iron
business.

Copper - India / Australia Business

                                       Q3            Q2    Nine months period
                                                 %                           %
                                            change                      change
    Particulars               FY2014 FY2013    YoY FY2014 FY2014 FY2013    YoY

    Production (in'000
    tonnes, or as stated)
    Copper - Mined metal
    content                        5      6  (23%)      6     17     19  (13%)
    Copper - Cathodes             99     92     7%     82    197    267  (26%)
    Tuticorin power sales
    (million units)              162      7      -    158    457      7      -
    Financials (In Rs. crore,
    except as stated)
    Revenue                    6,599  5,164    28%  4,812 13,876 15,882  (13%)
    EBITDA                       392    234    68%    421    820    842   (3%)
    Net CoP - cathode
    (USCent/lb)                  9.6   10.8  (12%)    8.6   11.7    7.8    50%
    Tc/Rc (USCent/lb)           16.6   12.4    34%   14.7   15.6   12.0    30%
    Copper LME Price ($/MT)    7,153  7,909  (10%)  7,073  7,124  7,827   (9%)

In Q3, copper cathode production was 99,000 tonnes, highest ever for a
quarter.

Mined metal production at Australia was 5,000 tonnes in Q3, lower due to
disruption of operation caused by an accident at the mine. Q4 production will
remain affected due to a mud rush incident at one of the stopes.

Net unit cost of conversion at Copper- India was 9.6 US cents/lb compared with
10.8 US cents/lb in the prior period. Cost of production was lower due to
improved operational efficiency resulting from higher volumes, lower power
cost, partially offset by lower by-product (sulphuric acid) credits.

Tc/Rc in the current quarter further increased to 16.6 US cents/lb, which was
34% higher as compared to the corresponding prior period. Tc/Rc is expected to
remain high on the back of rising global mine supply from brownfield and
greenfield expansions.

EBITDA in Q3 was 68% higher due to higher Tc/Rc and higher contribution from
the 80 MW power plant, partially offset by lower by-product credit.

Aluminium Business

                               Q3               Q2       Nine months period
                                           %                                 %
                                      change                            change
    Particulars       FY2014   FY2013    YoY   FY2014   FY2014   FY2013    YoY

    Production
    (in'000 tonnes,
    or as stated)
    Alumina -
    Lanjigarh            181      104    74%      116      297      527  (44%)
    Aluminium -
    Jharsuguda           136      135     1%      137      407      394     3%
    Aluminium -
    BALCO                 63       62     1%       63      187      185     1%
    Aluminium -
    Total                199      197     1%      200      595      579     3%

    Financials (In
    Rs. crore,
    except as
    stated)
    Revenue            2,594    2,445     6%    2,799    7,757    7,291     6%
    EBITDA               430      312    38%      469    1,182      952    24%
    Alumina CoP -
    Lanjigarh
    (Rs./MT)             352      406  (13%)      329      355      353      -
    Alumina CoP -
    Lanjigarh
    ($/MT)            21,800   23,200   (6%)   20,500   21,300   19,200    11%
    Aluminium CoP
    -(Rs./MT)       1,01,100 1,04,600   (3%) 1,02,900 1,00,800 1,03,200   (2%)
    Aluminium CoP
    -($/MT)            1,629    1,931  (16%)    1,651    1,678    1,893  (11%)
    Aluminium CoP -
    Jharsuguda
    (Rs/MT)           98,700 1,04,400   (5%)   99,700   97,400 1,03,200   (6%)
    Aluminium CoP -
    Jharsuguda
    ($/MT)             1,591    1,928  (17%)    1,602    1,621    1,892  (14%)
    Aluminum CoP -
    BALCO (Rs/MT)   1,06,200 1,05,000     1% 1,09,800 1,08,000 1,03,300     5%
    Aluminium CoP -
    BALCO ($/MT)       1,709    1,939  (12%)    1,755    1,798    1,893   (5%)
    Aluminum LME
    Price ($/MT)       1,769    1,997  (11%)    1,781    1,794    1,964   (9%)

The Lanjigarh alumina refinery recommenced operations in July and has ramped
up well, producing 181,000 tonnes in Q3. It had a capacity utilization of 72%
in Q3 as compared with 46% in Q2 and is expected to further increase in the
current quarter. Alumina produced from our refinery has been able to meet 43%
of our total alumina requirement, as compared with 17% during Q2.

Jharsuguda-I and Korba-II smelters continued to operate above their rated
capacities with a consistent cost performance.

Aluminium COP at Jharsuguda and the Balco smelter was Rs. 98,700/tonne
(US$1591/tonne) and 1,06,200/tonne (US$1709/tonne), respectively. COP at
Jharsuguda was lower mainly due to improved efficiencies and reduced power
cost, on account of better quality of coal and lower e-auction coal. BALCO COP
increased due to higher coal cost on account of coal tapering, partially
offset by operational efficiencies in the plant.

EBITDA in Q3 was up 38% as compared with the corresponding period mainly on
account of lower COP and Rupee depreciation, partially offset by lower LME
price.

We expect to tap first metal at the 325 ktpa BALCO-III Aluminium in H1 FY2015.
We expect to synchronize the first unit of the BALCO 1,200 MW power plant in
Q1 after obtaining all regulatory approvals, which are progressing well. We
continue to evaluate the potential start-up date of the first of four lines of
the 1.25 mtpa Jharsuguda smelter.

Power Business

                                       Q3            Q2    Nine months period
                                            %                           %
                                            change                      change
    Particulars               FY2014 FY2013 YoY    FY2014 FY2014 FY2013 YoY

    Production (in million
    units)
    Total Power Sales          2,196  2,128     3%  1,910  7,282  7,491   (3%)
    2400 MW Jharsuguda power
    plant[1]                   1,827  1,578    16%  1,494  5,924  5,457     9%
    270 MW BALCO power plant      75    275  (73%)     44    306    959  (68%)
    274 MW HZL Wind power
    plants                        59     62   (5%)    151    372    432  (14%)
    100MW MALCO power plant      236    212    11%    221    681    643     6%

    Financials (in Rs. crore
    except as stated)
    Revenue                      775    646    20%    793  2,841  2,652     7%
    EBITDA                       247    198    25%    286    975    892     9%
    Average Cost of
    Generation(Rs./unit)        2.27   2.46   (7%)   2.35   2.29   2.32   (1%)
    Average Realization
    (Rs./unit)                  3.39   3.56   (5%)   3.77   3.60   3.60      -
    Jharsuguda Cost of
    Generation (Rs./unit)       2.09   2.22   (6%)   2.32   2.20   2.23   (1%)
    Jharsuguda Average
    Realization (Rs./unit)      3.07   3.20   (4%)   3.47   3.34   3.39   (1%)

1.Includes production under trial run of Nil units in Q3 FY2014 vs. 456
    million units in Q3 FY2013 and Nil units in 9M FY2014 vs. 795 million
    units in 9M FY2013.

Power sales were higher at 2,196 million units in Q3, up 3% over the previous
year, primarily due to higher power sales from the Jharsuguda 2,400MW power
plant which had a PLF of 38%. PLFs at Jharsuguda and BALCO 270 MW remained low
largely due to a combination of weak demand and evacuation constraints.

Average power realization in Q3 was at Rs. 3.39 per unit against Rs. 3.56 per
unit in the corresponding prior quarter. The power generation cost at
Jharsuguda during the quarter was lower at Rs. 2.09 per unit as compared with
Rs. 2.22 per unit in the corresponding prior quarter. The marginal decline in
realization during the quarter has been compensated by marginal decline in our
COP on account of improvement in the quality of coal and lower auxiliary
consumption.

EBITDA improved by 25% in Q3 primarily due to higher power sales from the
2,400MW Jharsuguda power plant as compared to a year ago.

The boiler light up of the first 660 MW unit of the 1,980 MW Talwandi Sabo was
achieved in Q3 and is expected to be synchronized in the next few months.

Cash and Debt

    Amount in Rs. Crore       30 September 2013          31 December 2013
    Company                  Debt Cash & LI Net Debt   Debt Cash & LI  NetDebt

    Sesa Sterlite
    Standalone             41,450     3,687   37,763 40,960     3,667   37,293
    Zinc India                  -    22,772 (22,772)      -    22,834 (22,834)
    Zinc International          -     1,180  (1,180)      -     1,137  (1,137)
    Cairn India                 -    20,196 (20,196)    566    22,108 (21,542)
    BALCO                   5,019        86    4,933  5,014        44    4,970
    Talwandi Sabo           4,536        13    4,523  4,996        26    4,970
    Cairn acquisition SPV
    (1)                    31,977        95   31,882 31,529       105   31,424
    Others squared          1,081       111      970    953       135      818
    Sesa Sterlite
    Consolidated           84,063    48,140   35,923 84,018    50,056   33,962

1.As on 31 December 2013, debt at Cairn acquisition SPV comprises Rs.7,428
    crore of bank debt and Rs.24,101 crore of inter-company debt from Vedanta
    Resources Plc. There was an accrued interest payable of Rs. 2,400 crore on
    the inter-company debt.
2.Others includes CMT, VGCB, Fujairah Gold, and Sesa Sterlite investment
    companies.

    Debt Maturity
    Profile
                                                                FY19 &
    (Rs. crore) (1)     Q4 FY14   FY15   FY16   FY17   FY18      Later  Total
    Sesa Sterlite
    Standalone              395  6,185  2,325  2,303  4,047     10,226 25,481
    Sesa Sterlite
    Subsidiaries            358  3,838  2,419  2,820  2,270      3,769 15,474
    Total                   753 10,023  4,744  5,123  6,317     13,995 40,955

1.Maturity profile excludes working capital facilities of Rs.18,962 crore
    and inter-company debt from Vedanta Resources Plc of Rs.24,101 crore at
    Cairn acquisition SPV.

Gross debt at Sesa Sterlite was Rs.84,018 crore as at 31 December 2013 at
similar level as on 30 September 2013.

This comprises long term loans of Rs.65,056 crore and short term working
capital loans of Rs.18,962 crore. Out of total loan of Rs.84,018 crore,
Rs.40,960 crore loan is in Sesa Sterlite standalone and balance Rs.43058 crore
in the other subsidiaries. The loan in INR currency is Rs.27,868 crore and
balance Rs.56,150 crore is in US dollar. 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.50,056 crore, out of which Rs.31,143 crore was invested in debt mutual
funds, Rs.5,423 crore in bonds, and Rs.13,490 crore in bank deposits.
Therefore, the net debt of the company was at Rs.33,962 crore. 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 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: Ashwin Bajaj Senior Vice President -
Investor Relations sesasterlite.ir@vedanta.co.in Tel: +91-22-6646-1531
 
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