Sesa Sterlite Releases Strong First Annual Consolidated Results

       Sesa Sterlite Releases Strong First Annual Consolidated Results

  PR Newswire

  MUMBAI, India, April 29, 2014

MUMBAI, India, April 29, 2014 /PRNewswire/ --

Sesa Sterlite Limited ("Sesa Sterlite" or "the Company") today announced its
audited consolidated results for the fourth quarter (Q4) and full year ended
31 March 2014 (FY 2014). The Sesa Sterlite merger and the Vedanta Group
consolidation was completed in August 2013 and hence the actual Q3, Q4 and FY
2014 numbers are not comparable with those of the corresponding prior periods.

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

 FinancialHighlights

  *Q4 FY 2014 Revenues 7% higher at Rs.20,784 crore, as compared with
    Rs.19,414 crore in Q3, on account of higher volumes across businesses
  *FY 2014 Proforma Revenues remained strong at Rs.72,591 crore, on account
    of higher volumes at Zinc India, Oil & Gas, Aluminium businesses and INR
    depreciation
  *FY 2014 Proforma EBITDA at Rs.25,665 crore; strong EBITDA margin of 47%
    ^[ ^1 ^]
  *FY 2014 Proforma Attributable PAT at Rs.5,005 crore
  *Contribution of Rs.31,100 crore to the Indian Exchequer during the year,
    in terms of taxes, duties, royalties and profit petroleum
  *Strong balance sheet with Cash & Cash equivalents of over Rs.50,000 crore
  *Gross debt reduced by Rs.3,400 crore during the quarter
  *Final dividend of Rs.1.75 per share, taking the total dividend for FY 2014
    to Rs.3.25 per share

 OperationalHighlights

  *Record oil and gas production at Rajasthan- achieved milestone of over
    200kbopd in March 2014 and cumulative production of over 215 million
    barrels till end of FY 2014
  *Achieved reserve replacement ratio of 100% for Oil and Gas business
  *On-going oil and gas exploration program in Rajasthan led to establishment
    of 6 discoveries and addition of over 1 billion barrels of oil in place
    resources
  *Record mined and integrated metal production at Zinc India
  *Continued strong operating performance at Aluminium business
  *Strong utilization at the Tuticorin copper smelter
  *Iron Ore mining ban in Goa lifted by the Honourable Supreme Court, with an
    interim state-wide annual production cap of 20 mt, with conditions
  *First metal tapped at BALCO 325kt aluminium smelter during Q4
  *2nd 80MW unit of power plant at Tuticorin commissioned during Q4

Mr. Navin Agarwal, Chairman: " The Sesa Sterlite merger was completed last
year, we have reconstituted the board, and the merged entity has delivered a
strong performance in FY 2014. We are focused on optimizing our assets,
growing production with continued cost control, and generating strong cash
flows across all businesses. I am confident that Sesa Sterlite will continue
to create value for all stakeholders. "

^[ ^1 ^] Excludes custom smelting at Zinc and Copper  India  operations

 ConsolidatedFinancialPerformance

The Sesa Sterlite merger and the Vedanta Group consolidation was completed in
August 2013, hence the adjusted proforma numbers are more representative of
the performance during the quarter and full year.

Full year actual financial numbers include results of all consolidating
entities of Sesa Sterlite Limited for the full year, except Cairn India, which
is consolidated from 26 August 2013. Hence, the company has drawn an adjusted
proforma account for FY 2014 to indicate the performance during the period,
had the merger been effected from beginning of the period. The adjusted
proforma numbers also excludes the impact of a one-time tax benefit during Q2,
at the time of the merger. Similarly, 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.

In line with the Q3 adjusted proforma numbers, Q4 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. However, an additional amount of Rs.298 crore for goodwill of Lisheen
mine has been provided in Q4 adjusted proforma to align the full year
amortisation charge between actual and adjusted proforma numbers.

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.

(In Rs. crore, except as stated) 


    FY2013
    (Adjusted
    Proforma)                                     Q4            Q3         Full Year
                                                      FY2014    FY2014             FY2014
                                            FY2014 (Adjusted (Adjusted   FY2014 (Adjusted
              Particulars                 (Actual) Proforma) Proforma) (Actual) Proforma)
              Net Sales/Income from
       71,780 operations                    20,784    20,784    19,414   65,733    72,591
       25,232 EBITDA                         6,665     6,665     6,565   20,407    25,665
          48% EBITDA margin[1]                 45%       45%       48%      43%       47%
        4,664 Finance cost                   1,537     1,537     1,530    5,094     6,111
        2,953 Other Income                     764       764       390    2,074     2,210
        (154) Forex loss/ (gain)                30        30      (82)      735     (505)
              Profit before Depreciation
       23,355 and Taxes                      5,961     5,961     5,432   16,604    21,999
        4,948 Depreciation                   1,469     1,469     1,415    4,702     5,584
        2,620 Amortisation of goodwill         525       924       678    2,180     2,840
              Profit before Exceptional
       15,788 items                          3,968     3,569     3,339    9,721    13,576
          139 Exceptional Items                167       167         -      229       229
        1,024 Taxes (Credits)                  328       328     (139)    (847)     1,000
       14,625 Profit After Taxes             3,473     3,074     3,478   10,339    12,347
        7,373 Minority Interest              1,852     1,852     1,698    5,123     7,342
              Share in Profit/(Loss) of
            - Associate                          -         -         -    1,082         -
              Attributable PAT after
        7,252 exceptional item               1,622     1,222     1,780    6,299     5,005
              Basic Earnings per Share
        24.46 (Rs./share)                     5.47      4.12      6.00    21.46     16.88
              Underlying attributable
        7,649 PAT[2]                         1,676     1,277     1,650    6,911     5,020
              Underlying Earnings per
        25.80 Share[2] (Rs./share)            5.71      4.31      5.57    23.54     16.93
              Exchange rate (Rs./$) -
        54.45 Average                        61.79     61.79     62.03    60.50     60.50
              Exchange rate (Rs./$) -
        54.39 Closing                        60.10     60.10     61.90    60.10     60.10

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 

Revenues during Q4 were 7% higher compared with Q3, on account of higher
volumes across businesses. During FY 2014 adjusted proforma revenue remained
strong on account of higher volumes at Zinc India, Oil & Gas, aluminium
business and INR depreciation despite temporary closure of Copper India
operations in Q1, suspension of iron ore mining operations and lower commodity
prices.

EBITDA during Q4 was up 2% compared with Q3, with a consistent EBITDA margin
of 45%. Adjusted proforma EBITDA for FY 2014 was up 2% with a strong EBITDA
margin of 47%, on account of better operating performance at Cairn India, Zinc
India and Jharsuguda aluminium smelter, partially offset by lower EBITDA due
to reduced volumes at the Iron Ore business, Australian copper mines and Zinc
International. The INR depreciation helped to mitigate the impact of lower
commodity prices. 

Depreciation during Q4 was broadly in line with Q3. Depreciation and
amortisation for FY 2014 was higher on account of capitalisation of wells at
the Oil and Gas business and accelerated goodwill amortisation at Lisheen.

Interest cost for Q4 was in-line with Q3. Adjusted proforma interest cost was
higher for FY 2014 on account of cessation of interest capitalization for the
Jharsuguda-II smelter, higher cost on refinancing of Cairn acquisition related
borrowings and impact of INR depreciation on interest charged on foreign
currency borrowings.

Other income during Q4 was higher compared with Q3, on account of higher
recognition of income on maturity of Investments at Cairn India and Zinc
India. Other income for FY 2014 was lower on account of non-consideration of
accrued interest on Fixed Maturity Plans (FMPs). Most of these FMPs are
maturing in the first half of FY 2015, where the interest income will now be
recognised .

During Q4, there were exceptional items charge of Rs.167 crore, which included
Rs.67 crore on account of idle assets at the Lanjigarh alumina refinery
relating to the Niyamgiri mining project and Rs.100 crore on account of
payment of land tax to the Goa state government for mining dumps pertaining to
earlier years. During the year we had an additional exceptional charge of
Rs.62 crore on account of voluntary retirement expenses at Zinc India.

During Q4, there was a forex loss of Rs.30 crore. A marginal INR appreciation
led to a loss on US dollar deposits at Cairn India, which was more than offset
by the MTM gain on the foreign currency loans. During FY 2014, there was a net
forex gain of Rs.505 crore. The INR depreciation resulted in a gain on the US
dollar deposits at Cairn India, which was partially offset by the MTM loss on
foreign currency loans.

Profit after tax for FY 2014 was lower due to higher depreciation and
amortisation; higher finance cost and lower other income despite higher
EBITDA. Minority interest percentage was higher during FY 2014 on account of
higher profits from Zinc India and Cairn India.

Balance Sheet 

We continue to have a strong balance sheet with cash and liquid investments of
Rs.50,797 crore as on 31 March 2014 which is mostly invested in debt related
mutual funds, bank deposits and bonds. Gross debt at Sesa Sterlite was
Rs.80,566 crore as at 31 March 2014. This comprises long term loans of
Rs.68,381 crore and short term working capital loans of Rs.12,185 crore. The
loan in INR currency is Rs.26,809 crore and the balance Rs.53,757 crore is in
US dollar. Average rate of borrowing was 8.3% in FY 2013-14. Average debt
maturity is 3.4 years. On a consolidated basis, the debt equity ratio is
healthy at 0.8. The Company continues to have its long-term rating at
AA+/Stable from CRISIL. 

Dividend 

The Board has declared a final dividend of Rs.1.75 per share. The total
dividend, including the interim dividend for FY 2014 is Rs.3.25 per share. The
total dividend outgo for the year will be Rs.963 crore.

Corporate 

The Board has approved the merger of Goa Energy Limited and Sterlite Infra
Limited with Sesa Sterlite Limited. Both Goa Energy Limited and Sterlite Infra
Limited are wholly owned subsidiaries of Sesa Sterlite Limited. Hence, no
shares are proposed to be issued under the merger. The merger is subject to
the approval of jurisdictional High Courts and other statutory authorities as
may be applicable.

 ZincIndiaBusiness


                                           Q4              Q3          Full Year
                                               % change                       % change
    Particulars                  FY2014 FY2013    YoY    FY2014 FY2014 FY2013    YoY
    Production (in'000 tonnes,
    or as stated)
    Mined metal content             200    260     (23%)    220    880    870        1%
    Refined Zinc - Total            182    182         -    196    749    677       11%
    Refined Zinc - Integrated       179    181      (1%)    196    743    660       13%
    Refined Zinc - Custom             4      0         -      -      6     17         -
    Refined Lead - Total [1]         38     35       10%     27    130    125        4%
    Refined Lead - Integrated        31     32      (2%)     27    118    107       10%
    Refined Lead - Custom             7      3         -      -     12     18         -
    Saleable Silver - Total (in
    tonnes) [2]                      91    108     (16%)     73    350    374      (6%)
    Saleable Silver - Integrated
    (in tonnes)                      68     91     (25%)     72    301    288        4%
    Saleable Silver - Custom (in
    tonnes)                          23     17       34%      1     49     86     (43%)

    Financials (In Rs. crore,
    except as stated)
    Revenue                       3,559  3,820      (7%)  3,388 13,281 12,324        8%
    EBITDA                        1,711  2,098     (18%)  1,810  6,804  6,339        7%
    Zinc CoP without Royalty
    (Rs./MT)                     55,500 44,900       24% 52,000 51,100 45,500       12%
    Zinc CoP without Royalty
    ($/MT)                          899    829        8%    840    844    835        1%
    Zinc CoP with Royalty ($/MT)  1,068    998        7%  1,000  1,005    998        1%
    Zinc LME Price ($/MT)         2,029  2,033        0%  1,907  1,909  1,948      (2%)
    Lead LME Price ($/MT)         2,106  2,301      (8%)  2,111  2,092  2,113      (1%)
    Silver LBMA Price ($/oz)         20     30     (32%)     21     21     31     (30%)

1.Includes captive consumption of 1,991 tonnes in Q4 FY 2014 vs. 1,777
    tonnes in Q4 FY 2013, and 7,262 tonnes in FY 2014 vs. 6,500 tonnes in FY
    2013 
2.Excludes captive consumption of 10 tonnes in Q4 FY 2014 vs. 9 tonnes in Q4
    FY 2013, and 38 tonnes in FY 2014 vs. 34 tonnes in FY 2013 

Operational Performance 

Mined metal production for the year was 880,000 tonnes, marginally higher than
the previous year, and a record. Production in H2 was lower than what we had
planned initially due to slower than expected ramp up of underground mining
projects and changes in the mining sequence, wherein preference was given to
the primary mine development.

Integrated production of refined metal during the year was highest ever due to
operational efficiencies and higher availability of smelters. Full year
integrated production of refined zinc, lead and silver were higher by 13%, 10%
and 4% respectively.

The zinc metal cost of production before royalty in FY 2014 was 12% higher in
INR terms and 1% higher in USD terms as compared with the previous year. The
increase in INR terms was driven by currency depreciation of 11%,
significantly lower acid credits and higher mine development and diesel costs.

The cost of production for Q4 FY 2014 was 24% higher in INR terms and 8%
higher in USD terms as compared with the corresponding prior periods. The
increase in INR terms was due to 14% currency depreciation, lower mined metal
production and higher mine development cost.

Financial Performance 

FY 2014 EBITDA was up 7% due to higher integrated metal volumes and INR
depreciation, partially offset by lower metal prices. Q4 EBITDA was 18% lower
mainly due to lower volumes and lower metal prices.

Expansion Projects 

The Kayad and Rampura Agucha (RA) underground mine projects commenced
commercial production during the year and after initial difficulties, are now
ramping up well. We are also evaluating optimizing the RA open pit, to ensure
consistent output from the mine. The Sindesar Khurd expansion project is as
per schedule.

During the year, total mine development increased by over 75%, marking the
beginning of transition from open-cast to underground mining.

Capital expenditure for the year was US$243 million and is expected to be
c.US$250 million in FY 2015.

Reserves and Resources 

In FY 2014, there was a gross addition of 26.1 million tonnes to reserves and
resources, prior to a depletion of 9.3 million tonnes. The contained zinc-lead
metal increased by 1.1 million tonnes, prior to depletion of 0.9 million
tonnes. Total reserves and resources at March 31, 2014 were 365.1 million
tonnes containing 35.2 million tonnes of zinc-lead metal and 28,804 tonnes of
silver. Overall mine life continues to be 25+ years. 

Outlook 

Rampura Agucha will continue to provide the majority of mined metal in FY
2015. The Rampura Agucha underground mine is now developing as per
expectations. In FY 2015, mined metal and integrated refined metal production
including silver, is expected to be marginally higher from FY 2014. The cost
of production is expected to remain stable.

 Zinc-InternationalBusiness


                                          Q4              Q3          Full Year
                                              % change                       % change
    Particulars                 FY2014 FY2013    YoY    FY2014 FY2014 FY2013    YoY
    Production (in'000 tonnes,
    or as stated)
    Refined Zinc - Skorpion         33     36      (9%)     23    125    145     (14%)
    Mined metal content- BMM
    and Lisheen                     50     65     (24%)     62    239    280     (15%)
    Total                           83    102     (19%)     84    364    426     (15%)
    Financials (In Rs. crore,
    except as stated)
    Revenue                      1,165  1,130        3%    764  4,015  4,331      (7%)
    EBITDA                         441    434        2%    149  1,282  1,603     (20%)
    CoP - ($/MT)                 1,203  1,121        7%  1,257  1,167  1,092        7%
    Zinc LME Price ($/MT)        2,029  2,033        0%  1,907  1,909  1,948      (2%)
    Lead LME Price ($/MT)        2,106  2,301      (8%)  2,111  2,092  2,113      (1%)

Operational Performance 

During Q4 FY 2014, refined zinc production at Skorpion was higher than Q3 by
10,000 tonnes consequent to ramp up after an unplanned shutdown in Q3 FY 2014.
However, this was offset by lower mined metal production at BMM and Lisheen
due to lower ore grades. Total production in Q4 remained in line with Q3,
though the full year production was 15% lower on account of disruptions in
production caused by accidents at Lisheen and BMM in Q1 FY 2014 and the
unplanned shutdown at Skorpion in Q3 FY 2014. COP for the year was higher due
to the lower volumes.

Financial Performance 

EBITDA for Q4 was higher despite lower production due to higher inventory
sales. Full year EBITDA was 20% lower due to lower volumes, higher COP and
marginally lower LME prices.

Outlook 

The Lisheen mine is scheduled for closure in CY 2015 and we are looking at
further exploration opportunities. At Skorpion and BMM, we are conducting
studies to extend the mine life. We are also evaluating installing a roaster
at the Skorpion Refinery to treat sulphide ores from BMM and other
neighbouring mines.

We expect FY 2015 volumes at Zinc International to remain in line with FY
2014, with a drop in Lisheen production expected to be compensated by Skorpion
and BMM.

 Oil&GasBusiness

- International Business 


                                                                         Full
                                                                         Year
                                                           Full Year    FY2014
                                           Q4       Q3       FY2014
                                         FY2014   FY2014   (Adjusted   (Actual)
    Particulars                         (Actual) (Actual)  Proforma)     (1)
    Production (in boepd, or as stated)
    Average Daily Gross Operated
    Production                          2,24,429 2,24,493     2,18,651 2,18,651
    Rajasthan                           1,90,881 1,86,359     1,81,530 1,81,530
    Ravva                                 24,225   27,857       27,386   27,386
    Cambay                                 9,323   10,277        9,735    9,735
    Average Daily Working Interest
    Production                          1,42,796 1,40,830     1,37,127 1,37,127
    Rajasthan                           1,33,616 1,30,451     1,27,071 1,27,071
    Ravva                                  5,451    6,268        6,162    6,162
    Cambay                                 3,729    4,111        3,894    3,894
    Total Oil and Gas (million boe)
    Oil & Gas- Gross                       20.20    20.65        79.81    40.45
    Oil & Gas-Working Interest             12.85    12.96        50.05    30.58
    Financials (In Rs. crore, except as
    stated)
    Revenue                                5,049    5,000       18,762   11,904
    EBITDA                                 3,654    3,555       13,877    8,620
    Average Price Realisation - Oil &
    Gas ($/boe)                             94.4     94.9         94.5     94.9
    Brent Price ($/bbl)                      108      109          108      109

Note: 

¹   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 'Twelve Months FY 2014 (Actual)' are for the
period from 26 August 2013. However, the average daily gross operated and
working interest production numbers in 'Twelve Months FY 2014 (Actual)'are on
proforma basis for twelve months. 

Operational Performance 

Cairn achieved average gross production of 218,651 barrels of oil equivalent
per day (boepd) for FY 2014, 6% higher than the previous year. During the
year, the Company's operations helped reduce nation's dependence on oil
imports by US$ 7.5 billion and contributed Rs.24,299 crore to the government
exchequers.

In Rajasthan, the Company successfully achieved its target FY 2014 exit rate
of production of 200,000 boepd. During the quarter, the Rajasthan Block
produced 17.2 mmboe of oil equivalent, achieving record total production for
the year of 66.3 mmboe. In the process, the Block also reached a landmark
cumulative crude oil production milestone of 200 mmbbls.

A total of 129 new wells were brought on production during the year, with 45
wells added in Q4 FY 2014. This has led to the Rajasthan Block achieving gross
average production of 181,530 boepd for FY 2014, up 7% YoY.

In FY 2014, Development Area (DA)-1, comprising the Mangala, Aishwariya,
Saraswati and Raageshwari oil & gas fields, produced a gross average of
156,662 boepd, up 6% YoY with the Mangala field being the largest contributor
and the Aishwariya field adding to the volume growth. During the year, DA 2,
comprising the Bhagyam field, produced a gross average of 24,867 boepd, up 15%
YoY as a result of the infill drilling program.

In FY 2014, production at Cambay was 44% higher yoy at 9,735 boepd, due to the
infill drilling campaign that was completed in FY 2013. Production at Ravva
was lower in FY 2014 at 27,386 boepd though recovery rates continue to be over
47%.

Financial Performance 

Revenue for Q4, post profit sharing with the Government of India and the
royalty expense in the Rajasthan block, was up 1% QoQ driven by higher
entitlement revenue.The operating expense during Q4 was higher due to
maintenance activities carried out. Expenditure on Cess was lower on account
of reversal of levy of Education Cess and SHE cess of 3% on Oil Cess following
the order of Central Bureau of Excise & Customs. Consequently, EBITDA for the
quarter was up 3% QoQ.

Revenue for FY 2014, post profit sharing with the GoI and the royalty expense
in the Rajasthan block, was up 7% YoY driven by increase in working interest
volume and benefit from INR depreciation. This increase has been partly offset
by higher profit sharing with GoI in DA1 consequent to tranche change.

EBITDA FY 2014 was up 7% compared to the previous year. The operating
expenses for the year increased primarily due to increase in production from
Rajasthan block and increased maintenance and operation activities. Employee
benefit expense for the year was higher primarily due to change in measurement
of outstanding stock option liabilities using the Fair value method
(Black-Scholes) as against the previously followed intrinsic value method.

Exploration 

Rajasthan - During the year, Cairn India has added significant oil in place
resources of over 1 billon boe to the existing 4.2 billion boe. Out of the 17
wells drilled since resumption of exploration in 2013, over 80% have shown
hydrocarbons and the company has established 6 discoveries (2 in the Q4 FY
2014 and 1 in April 2014) and opened up 5 new play types. In addition, 266
square km (14%) of the planned 1900 square km of 3D seismic data acquisition
has been completed.

Ravva - The drilling of a 'high temperature, high pressure' prospect reached a
depth of 2720m. The campaign has witnessed some weather and operational
challenges. However, the Company expects to complete the drilling activity
before the onset of monsoons.

KG Onshore - The extended flow test on Nagayalanka-1z-ST appraisal well was
completed in March 2014 and the maximum combined flow rate achieved was ~850
bopd.

Other Indian assets - In KG Offshore, 1,050 square km of 3D seismic data is
expected to be acquired over the course of FY 2015. A tender has been awarded
for acquisition of ~2,000 line-km of 2D seismic in Mumbai Offshore block.

International assets - In Sri Lanka, discussions are ongoing with the Sri
Lankan Government regarding commercial terms to monetize the discovered gas
resources on the block. In South Africa, acquisition of 1,981 sq km of 3D
seismic and 3,000 line km of 2D seismic data has been completed and processing
is underway.

Development 

The ongoing capex program is focused on exploration and development activities
across all the assets with 87% of the capex planned to be invested in the
Rajasthan Block in next three years. As part of this program, plans for
redevelopment of Raageshwari Deep Gas field, implementation of full field
polymer flood EOR in the Bhagyam field and better reservoir performance of
the Aishwariya field have led to a net addition of ~50mmboe to 2P reserves
resulting in a 2P Reserve Replacement Ratio of ~100% for FY 2014.

The company is embarking on the implementation of three major development
projects in the Rajasthan Block with a net Capex of US$ 2.4 bn over the next 3
years

  *Enhanced oil recovery (EOR) Project including drilling campaign and
    facilities upgrade: Net Capex - US$ 1.6 bn

       *Targeting first polymer injection in the Mangala field EOR project,
         within this fiscal and have awarded all contracts for the execution.
       *Polymer flood EOR plan is in place for Bhagyam field, JV alignment
         underway and plans are being prepared to extend polymer flood EOR to
         Aishwariya field
       *Alkaline Surfactant Polymer pilot at Mangala commenced

  *Barmer Hill development: Net Capex - US$ 0.6 bn

       *Exploration results confirm BH potential across the block
       *Replicating North American development model to scale up the
         development
       *Satellite fields to be put in production through Integrated Block
         Development Policy (IDP): Raag-S-1, the 26th discovery in DA 1, was
         brought on test production within a year of discovery

  *Gas development: Net Capex - US$ 0.2 bn

       *Development of Raageshwari Deep Gas field is underway
       *Upgrading RDG terminal to higher capacity and plans to create higher
         capacity pipeline infrastructure are ongoing to monetize additional
         gas potential in the block

Outlook 

The company shall continue to focus on key development projects to enhance
recovery with overall planned net capex of US$3 billion by FY 2017. It shall
target to achieve reserve replacement ratio of 150% in next 3 years, subject
to PSC extension till 2030, and a 3 year production CAGR of 7-10% from known
discoveries with flat production in FY 2015 at Rajasthan.

Further exploration activity across the portfolio provides additional value
upside and momentum while technology adoption supports low cost operations and
development.

The industry is looking forward to PSC extension policy, fiscal model for the
next round of auctions and shale gas policy for Pre-NELP and NELP blocks for
future growth opportunities in India. 

 IronOreBusiness


                                          Q4              Q3          Full Year
                                              % change                       % change
    Particulars                 FY2014 FY2013    YoY    FY2014 FY2014 FY2013    YoY
    IRON ORE (1) (in million
    dry metric tonnes, or as
    stated)
    Sales                        0.0     -        -       -     0.0    3.1       -
    Goa                           -      -        -       -      -     3.0       -
    Karnataka                    0.0     -        -       -     0.0    0.1       -
    Production of Saleable Ore   1.5     -        -       -     1.5    3.7     (60%)
    Goa                           -      -        -       -      -     3.7       -
    Karnataka                    1.5     -        -       -     1.5     -        -
    Production ('000 tonnes)
    Pig Iron                       133    104       28%    139    510    308       66%
    Financials (In Rs. crore,
    except as stated)
    Revenue                        545    287       90%    290  1,662  2,725     (39%)
    EBITDA                        (82)   (82)         -   (23)  (230)    524    (144%)

1.Iron Ore sales include internal consumption of nil in Q4 FY 2014 vs nil in
    Q4 FY 2013 and nil in FY 2014 vs 0.17 million tonnes in FY 2013 

Operational Performance - Goa 

The Honorable Supreme Court has lifted the ban on mining in the State of Goa
subject to certain conditions, vide its order dated 21 April, 2014. The
Honorable Supreme Court has imposed an interim state-wide cap of 20 mtpa,
subject to determination of final capacity by an Expert Committee.

Further, in its order, the Supreme Court has held that all mining leases in
the State of Goa, including those of Sesa Sterlite, have expired in 2007.
Consequently, no mining operations can be carried out until renewal/execution
of mining lease deeds by the State government. We are working towards
securing the necessary permissions for commencement of operations at the
earliest.

The Supreme Court has also directed that the entire sale value arising out of
e-auction of inventories be appropriated to various purposes specified in the
order with only the average cost of excavation of iron ores paid to the mining
lessees.

Further, for all fresh production of iron ore, a payment of 10% of sale price
shall be made by all lessees towards the Goa Iron Ore Permanent Fund.

At Goa, we participated in e-auctions of inventory and sold 0.3 million tonnes
during the quarter but these were not accounted for as sales since the
dispatches did not take place during the quarter.

Operational Performance - Karnataka 

We resumed mining on December 28, 2013 and optimized our approved annual
capacity of 2.29mtpa, which resulted in a production of 1.5mt this year.
However, only 27 kt was sold during the year.

Liberia Project 

We are currently working with the government of Liberia on Infrastructure
solutions for evacuation of the ore.

Reserve & Resources 

We have identified significant, potentially low cost, "start-up" ores at all
three Liberian projects, with tailings at Bomi and soft weathered cap ore at
Bea and Mano. Initial studies indicate that these are easy to beneficiate
resources. These resources have potential for further enhancement with more
exploration.

 Copper-India/AustraliaBusiness


                                         Q4              Q3          Full Year
                                              % change                       % change
    Particulars                FY2014 FY2013       YoY FY2014 FY2014 FY2013       YoY
    Production (in'000 tonnes,
    or as stated)
    Copper - Mined metal
    content                         1      7     (85%)      5     18     26     (32%)
    Copper - Cathodes              98     86       14%     99    294    353     (17%)
    Tuticorin power sales
    (million units)               144     35         -    162    601     42         -
    Financials (In Rs. crore,
    except as stated)
    Revenue                     6,718  5,860       15%  6,599 20,594 21,742      (5%)
    EBITDA                        356    375      (5%)    392  1,176  1,217      (3%)
    Net CoP - cathode
    (USCent/lb)                   6.0   10.7     (44%)    9.6    9.7    8.7       12%
    Tc/Rc (USCent/lb)            18.5   14.8       25%   16.6   16.6   12.8       30%
    Copper LME Price ($/MT)     7,041  7,931     (11%)  7,153  7,103  7,853     (10%)

Operational Performance 

The Tuticorin copper smelter has been performing well at significantly higher
utilisation levels for the last two quarters. It operated at 98% utilisation
in Q4. However, the full year production was 17% lower due to the temporary
closure of the smelter in Q1 FY 2014.

In Q4, net unit cost of conversion at Copper- India was 6.0 US cents/lb
compared with 10.7 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. Full year net unit cost of conversion was 12% higher at 9.7 US
cents/lb due to temporary shutdown in Q1 and lower by product credits.

Tc/Rc in the current quarter increased to 18.5 US cents/lb, which was 25%
higher as compared to the corresponding prior period. Tc/Rc is expected to
remain robust on the back of rising global mine supply from brownfield and
greenfield expansions.

As announced earlier, production at our Australian mine remained suspended due
to a mud rush at one of the stopes in January 2014. We are working with Work
Safe Tasmania to resume modified operations.

Financial Performance 

EBITDA in Q4 was 5% lower due to Australian mine closure, although EBITDA from
Tuticorin Smelter was higher on account of higher Tc/Rc and higher
contribution from the 80 MW power plant, partially offset by lower by-product
credit.

Projects 

The company received the final regulatory approval for the second unit of the
2x80MW power plant in March 2014. Subsequently, we commissioned and
capitalized this unit and generated 25 million units during Q4. The power
generated at this plant will be sold externally.

Outlook 

At Copper India, the Tuticorin smelter is currently undergoing a planned
maintenance shutdown which started on 26 April 2014 and will last for 22 days.
This shutdown will improve plant availability and reliability.

 AluminiumBusiness


                                           Q4               Q3           Full Year
                                                       %                                 %
                                                  change                            change
    Particulars                   FY2014   FY2013    YoY   FY2014   FY2014   FY2013    YoY
    Production (in'000 tonnes,
    or as stated)
    Alumina - Lanjigarh              227        -      -      181      524      527   (1%)
    Aluminium - Jharsuguda           135      133     1%      136      542      527     3%
    Aluminium - BALCO                 65       62     5%       64      252      247     2%
    Aluminium - Total                200      195     2%      200      794      774     3%

    Financials (In Rs. crore,
    except as stated)
    Revenue                        3,022    2,618    15%    2,594   10,779   10,024     8%
    EBITDA - BALCO                    82       85    -3%       73      272      301  (10%)
    EBITDA - Vedanta Aluminium
    Division                         447      261    71%      357    1,444      971    49%
    Alumina CoP - Lanjigarh
    ($/MT)                           357        -      -      352      358      353     1%
    Alumina CoP - Lanjigarh
    (Rs./MT)                      21,100        -      -   21,800   21,700   19,241    13%
    Aluminium CoP -(Rs./MT)       99,000   99,700   (1%) 1,01,100 1,00,400 1,02,300   (2%)
    Aluminium CoP -($/MT)          1,602    1,840  (13%)    1,629    1,659    1,879  (12%)
    Aluminium CoP - Jharsuguda
    (Rs/MT)                       95,300   97,500   (2%)   98,700   96,900 1,01,800   (5%)
    Aluminium CoP - Jharsuguda
    ($/MT)                         1,542    1,799  (14%)    1,591    1,602    1,869  (14%)
    Aluminum CoP - BALCO
    (Rs/MT)                     1,06,800 1,04,500     2% 1,06,200 1,07,700 1,03,500     4%
    Aluminium CoP - BALCO
    ($/MT)                         1,728    1,926  (10%)    1,709    1,781    1,901   (6%)
    Aluminum LME Price ($/MT)      1,708    2,003  (15%)    1,769    1,773    1,974  (10%)

Operational Performance 

The Lanjigarh alumina refinery operated at 91% of its rated capacity and
produced 227,000 tonnes in Q4 FY 2014, 25% higher than Q3. Full year
production was 524,000 tonnes, after restarting the refinery in July 2013.
This resulted in a steady increase of alumina feed from Lanjigarh to our
smelters, contributing to 28% of the smelters' alumina requirements in FY 2014
and 49% in Q4.

In Q4, production at the Jharsuguda Plant I and Korba Plant II smelters
continued to remain stable and both these plants operated above their rated
capacities.

Financial Performance 

EBITDA was higher in Q4 and FY 2014, mainly on account of lower average COP,
improved premiums, higher volumes and INR depreciation, partially offset by
lower LME.

During FY 2014, COP in INR terms, at Jharsuguda, was 5% lower, primarily due
to improved efficiencies, reduced power cost, better coal quality and higher
proportion of linkage coal. COP in INR terms, at BALCO, was 4% higher, on
account of higher coal cost due to tapering of coal linkage, partially offset
by operational efficiencies.

During FY 2014, we further improved our cost performance on account of higher
efficiency as well as INR depreciation. We continue to maintain our cost
position in the second quartile of the global cost curve, despite purchased
bauxite and alumina. Our Aluminum Business has delivered an increased EBITDA
margin of 16% in FY 2014.

Projects 

We commenced the Korba-III 325kt smelter, achieving first metal tapping in Q4.
We produced around 900 tonnes of aluminium with power sourced from the BALCO
810MW power plants. Out of the first 84 pots, 36 pots had been started as of
31 March 2014. We can facilitate upto 84 pots with  the existing power plants
at BALCO. We expect to commission the balance lines consequent to the
commissioning of the 1,200MW power plant, for which we expect to receive
regulatory approvals in Q1 FY 2015.

Outlook 

We are focused on operationalising the new capacities and the associated power
plants. We are also working on feed stock security in terms of bauxite
sourcing, alumina sourcing and the coal block start up at BALCO.

 PowerBusiness


                                            Q4             Q3          Full Year
                                                % change                      % change
    Particulars                   FY2014 FY2013 YoY      FY2014 FY2014 FY2013 YoY
    Production (in million units)
    Total Power Sales              2,092  2,638    (21%)  2,196  9,374 10,129      (7%)
    2400 MW Jharsuguda power
    plant[1]                       1,701  2,073    (18%)  1,827  7,625  7,530        1%
    270 MW BALCO power plant          84    282    (70%)     75    390  1,241     (69%)
    100MW MALCO power plant          231    204      13%    236    911    847        8%
    274 MW HZL Wind power plants      76     78     (3%)     59    448    511     (12%)

    Financials (in Rs. crore
    except as stated)
    Revenue                          733    967    (24%)    775  3,574  3,619      (1%)
    EBITDA                            50    352    (86%)    247  1,025  1,245     (18%)
    Average Cost of
    Generation(Rs./unit)            2.04   1.89       8%   2.27   2.23   2.14        4%
    Average Realization
    (Rs./unit)                      3.34   3.20       4%   3.39   3.54   3.33        6%
    Jharsuguda Cost of Generation
    (Rs./unit)                      1.76   1.76        -   2.09   2.10   2.08        1%
    Jharsuguda Average
    Realization (Rs./unit)          2.98   3.09     (4%)   3.07   3.26   3.33      (2%)

1.Includes production under trial run of Nil units in Q4 FY 2014 vs. Nil
    units in Q4 FY 2013 and Nil units in FY 2014 vs. 795 million units in FY
    2013. 

Operational Performance 

Power sales were 21% lower in Q4 and 7% lower in FY 2014, as compared with the
corresponding prior periods, primarily due to lower sales at our Jharsuguda
2,400MW and BALCO 270MW power plants on account of weak market demand and
evacuation constraints. The Jharsuguda 2,400MW operated at a plant load factor
of 36% during the quarter.

Financial Performance 

The power generation cost at Jharsuguda during Q4 remained stable at Rs.1.76
per unit, However, cost of generation for the year at Jharsuguda increased
marginally as compared with the corresponding prior periods.

Projects 

The boiler light up of the first 660MW unit of the 1,980MW Talwandi Sabo power
plant was achieved in Q3 and the synchronization was completed subsequently.
Coal logistics were established in Q4 and we expect to commence trial runs in
Q1 FY 2015.

Outlook 

We are focused on commissioning and ramp-up of Talwandi Sabo power plant.

 PortBusiness

We commissioned the Vizag General Cargo Berth (VGCB) in Q4 FY 2013. There has
been a continuous increase in the tonnage handled at VGCB. During FY 2014, we
handled 4.7 million tonnes and generated an EBITDA of Rs.24 crore.

VGCB is one of the deepest coal terminals on the eastern coast of India, which
enables docking of large cape size vessels.

 Annexure

Debt and Cash 

(in Rs. Crore) 


    Company                      31 March 2014            31 December 2013
                              Debt Cash & LI Net Debt   Debt Cash & LI NetDebt
    Sesa Sterlite
    Standalone              38,943     2,459   36,484 40,960     3,667   37,293
    Zinc India                   -    23,943 (23,943)      -    22,834 (22,834)
    Zinc International           -     1,204  (1,204)      -     1,137  (1,137)
    Cairn India                  -    23,017 (23,017)    566    22,108 (21,542)
    BALCO                    4,786         1    4,785  5,014        44    4,970
    Talwandi Sabo            5,028        22    5,006  4,996        26    4,970
    Cairn acquisition SPV
    (1)                     30,614        50   30,564 31,529       105   31,424
    Others squared           1,195       101    1,094    953       135      818
    Sesa Sterlite
    Consolidated            80,566    50,797   29,769 84,018    50,056   33,962

1.As on 31 March 2014, debt at Cairn acquisition SPV comprises Rs.7,212
    crore of bank debt and Rs.23,402 crore of inter-company debt from Vedanta
    Resources Plc. There was an accrued interest payable of Rs.2,430 crore on
    the inter-company debt. 
2.Others includes CMT, VGCB, Fujairah Gold, and Sesa Sterlite investment
    companies. 

Debt Maturity Profile 

    (in Rs. Crore ) 


                                                        FY 2019 &
    Particulars (1)     FY 2015 FY 2016 FY 2017 FY 2018      Later  Total
    Sesa Sterlite
    Standalone            7,655   2,376   2,759   4,819     10,603 28,213
    Sesa Sterlite
    Subsidiaries          5,744   2,361   2,754   2,204      3,704 16,767
    Total                13,399   4,737   5,513   7,023     14,307 44,979

¹  Maturity profile excludes working capital facilities of Rs.12,185 crore.

Debt numbers in the tables above are at book value

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 resources 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.

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: 

   Communications RomaBalwani
ExecutiveVicePresident- GroupCommunications&CSR
 Tel:+912266461330  gc@vedanta.co.in   InvestorRelations
AshwinBajaj SeniorVicePresident-Investor Relations  
SheetalKhanduja Assoc.GeneralManager-Investor Relations  
HiteshDhaddha 
Manager-InvestorRelations  Tel:+912266461531 
sesasterlite.ir@vedanta.co.in




 
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