Sterlite 2 qfy2011 271010

Please refer to important disclosures at the end of this report 1

Particulars (` cr) 2QFY2011 2QFY2010 % chg (yoy) 1QFY2011 % chg (qoq)
Net sales 6,029 6,085 (0.9) 5,925 1.8
EBITDA 1,474 1,322 11.5 1,452 1.5
EBITDA margin (%) 24.4 21.7 272bp 24.5 (6bp)
Net profit 1,008 959 5.1 1,008 (0.0)
Source: Company, Angel Research
Sterlite’s 2QFY2011 consolidated net revenue came in at `6,029cr, in line with
our estimates of `5,863cr. However, net profit at `1,008cr was marginally lower
than our estimates of `1,065cr.
No major surprises, results largely in line: Sterlite reported flat top-line growth, as
the positive impact of higher zinc-lead sales and increased realisations was
negated by lower copper cathode production and power tariff. Sterlite sold
414mn units of merchant power (higher by 23.4% yoy), but power tariff was down
by 15.4% yoy to `3.4/unit. On account of higher LME prices, EBITDA margin
during the quarter grew by 272bp yoy to 24.4% despite cost increases witnessed
in a) the zinc-lead segment (+21.1% yoy at US $977/tonne due to higher met
coke, coal and stripping costs), b) the aluminium segment (+16% yoy at US
$1,748/tonne due to alumina and coal costs) and c) lower TC/RC margins (down
18% to USc 11.8/lb). Consequently, EBITDA grew by 11.5% to `1,474cr. While
other income grew by 76.6% yoy to `578cr, depreciation expenses grew by
22.5% yoy to `212cr. Further, Vedanta Aluminium (VAL) posted loss of `24.7cr in
2QFY2011 v/s profit of `86.3cr in 2QFY2010, leading to mere 5.1% yoy net
profit growth to `1,008cr.
Outlook and valuation: Sterlite is currently trading at 7.3x FY2011E and 4.6x
FY2012E EV/EBITDA. We believe the company is well placed to capitalise on
strong metal demand through its expansion plans in the zinc-lead segment,
higher merchant power and silver sales. Moreover, the settlement of the Balco
and Hindustan Zinc (HZL) call option could provide a further upside to our target
price. However, we keenly wait for the revised capex plans of the company and
the outcome of the ongoing Tuticorin’s litigation. We maintain Accumulate on the
stock with an SOTP-based Target Price of `196.
Key financials (Consolidated)
Y/E March (` cr) FY2009 FY2010 FY2011E FY2012E
Net sales 21,144 24,410 27,064 34,036
% chg (14.4) 15.4 10.9 25.8
Net profit 3,540 3,744 4,500 6,409
% chg (19.5) 5.8 20.2 42.4
EPS (`) 12.3 11.9 13.4 19.1
EBITDA margin (%) 22.2 24.9 25.7 30.1
P/E (x) 14.0 14.6 12.9 9.1
P/BV (x) 1.8 1.5 1.3 1.2
RoE (%) 14.4 11.3 10.9 13.9
RoCE (%) 10.7 10.9 9.7 13.6
EV/Sales (x) 2.4 2.1 1.9 1.4
EV/EBITDA (x) 10.7 8.5 7.3 4.6
ACCUMULATE
CMP `173
Target Price `196
Investment Period 12 months
Stock Info
Sector
Bloomberg Code STLT@IN
Shareholding Pattern (%)
Promoters 52.8
MF / Banks / Indian Fls 8.3
FII / NRIs / OCBs 12.9
Indian Public / Others 26.0
Abs. (%) 3m 1yr 3yr
Sensex 10.7 22.3 4.0
Sterlite (1.7) (11.0) (27.5)
Face Value (`)
BSE Sensex
Nifty
Reuters Code
Base Metals
Avg. Daily Volume
Market Cap (` cr)
Beta
52 Week High / Low
1
20,005
6,013
STRL.BO
58,189
1.7
232/149
932174
Paresh Jain
Tel: 022-40403800 Ext: 348
pareshn.jain@angelbroking.com
Pooja Jain
Tel: 022-40403800 Ext: 311
pooja.j@angelbroking.com
Sterlite Industries
Performance Highlights
2QFY2011 Result Update | Base Metals
October 27, 2010

Sterlite Industries | 2QFY2011 Result Update
October 27, 2010 2
Exhibit 1: 2QFY2011 performance (Consolidated)
Y/E March (` cr) 2QFY11 2QFY10 % chg 1HFY11 1HFY10 % chg
Net sales 6,029 6,085 (0.9) 11,953 10,623 12.5
Consumption of raw
material
2,771 3,262 (15.1) 5,449 5,377 1.3
(% of net sales) 46.0 53.6 45.6 50.6
Power & fuel 574 464 23.9 1,133 931 21.7
(% of net sales) 9.5 7.6 9.5 8.8
Staff costs 223 206 8.1 506 379 33.6
(% of net sales) 3.7 3.4 4.2 3.6
Other expenses 988 833 18.7 1,940 1,635 18.6
(% of net sales) 16.4 13.7 16.2 15.4
Total expenditure 4,555 4,764 (4.4) 9,028 8,322 8.5
(% of net sales) 75.6 78.3 75.5 78.3
EBITDA 1,474 1,322 11.5 2,925 2,301 27.1
EBITDA margin (%) 24.4 21.7 24.5 21.7
Interest* (0) 58 - 141 129 9.1
Depreciation 212 173 22.5 429 347 23.7
Other income +
operating income
633 432 46.5 1,370 852 60.8
Exceptional items (21) (23) (21) (23)
Profit before tax 1,874 1,500 24.9 3,705 2,654 39.6
(% of net sales) 31.1 24.6 31.0 25.0
Tax 456 259 75.7 824 490 68.2
(% of PBT) 24.3 17.3 22.2 18.5
Profit after tax 1,418 1,240 14.3 2,881 2,164 33.1
Net income 1,008 959 5.1 2,016 1,632 23.6
Source: Company, Angel Research; Note: *Interest expense includes exchange gain of ` 71.5cr
during the quarter
Exhibit 2: 2QFY2011 – Actual v/s Angel estimates
(` cr) Actual Estimates Variation (%)
Net sales 6,029 5,863 2.8
EBITDA 1,474 1,539 (4.3)
EBITDA margin (%) 24.4 26.3 (181bp)
PBT 1,874 1,869 0.2
Net profit 1,008 1,065 (5.4)

October 27, 2010 3
Key conference call takeaways
Balco buyout in its last leg
Management indicated that Balco’s arbitration process is over and the final award
from the arbitration panel is expected by November 2010.
Investment in VAL
Management indicated that the total investment in VAL till date has been
`26,700cr, of which `13,500cr is through external loan. Sterlite has contributed
`6,200cr and the balance amount is provided by Vedanta Resources.
Deferment of capex plans – Gives an opportunity to sell power on merchant basis
Sterlite has temporarily deferred its aluminium expansion at Jharsuguda,
expansion of the Lanjigarh alumina refinery at VAL and Balco’s aluminium
expansion for the next 12–24 months. As a result, the total capex deferred is US
$1.5bn and management indicated that it is reworking on its capex plans.
However, the deferment of capex plans will allow the company to sell power in the
spot market. The commissioning of the first 300MW unit of the 1,200MW power
plant at Balco is expected by March 2011.
Sterlite Energy’s (SEL) 2,400MW power project
SEL’s first 600MW unit of the 2,400MW plant was synchronised in August 2010
and is expected to start commercial production in 3QFY2011E. The second unit of
600MW is expected to come on stream by 4QFY2011E.
Talwandi Sabo project
During the quarter, Sterlite received an approval from Punjab Government for
setting up another 660MW power plant in addition to the ongoing Talwandi Sabo
project of 1,980MW (3x660MW). Management expects to sell 85% of power from
this unit in the spot market.
Tuticorin’s copper operations
In September 2010, Sterlite’s copper business at Tuticorin was asked to shut down
by Madras High Court for violating environmental laws and causing pollution.
However, the Supreme Court has extended the stay on the Madras High Court’s
order and the next hearing is likely to take place in mid-December. The captive
power plant at Tuticorin is expected to be commissioned in 4QFY2012E. While the
MoEF clearance is received for the 400kt copper smelter expansion, the project is
being rescheduled as the consent from the State Pollution Control Board
is awaited.

October 27, 2010 4
2QFY2011 result highlights
Sterlite’s consolidated net revenue came in flat at `6,029cr, as the positive impact
of higher zinc-lead sales and increased realisations was negated by lower copper
cathode production and power tariff. The company sold 414mn units (336mn units
in 2QFY2010) of merchant power during the quarter (higher by 23.4% yoy), but
power tariff was down 15.4% yoy to `3.4/unit (`4.1/unit in 2QFY2010). As a
result, revenue from the power segment grew by mere 4.2% yoy to `143cr.
On account of higher LME prices, EBITDA margin expanded by 272bp yoy to
24.4% despite cost increases witnessed in a) the zinc-lead segment (+21.1% yoy at
US $977/tonne due to met coke, coal and stripping costs), b) the aluminium
segment (+16% yoy at US $1,748 due to alumina and coal costs) and c) an 18%
decline in TC/RC margins to USc 11.8/lb (USc 14.3/lb). Consequently, EBITDA
grew by 11.5% to `1,474cr. While other income grew by 76.6% yoy to `578cr,
depreciation expenses increased by 22.5% yoy to `212cr. Moreover, VAL reported
a loss of `24.7cr in 2QFY2011 v/s profit of `86.3cr in 2QFY2010, which led to
net profit growing by mere 5.1% yoy to `1,008cr.
Segmental performance
Copper segment affected by lower production
During 2QFY2011, copper cathode production was down by 25.8% yoy at
68,000 tonnes due to a planned maintenance shutdown at Tuticorin smelter.
Mined metal from the Australian mine was 7,220 tonnes during the quarter. As a
result, copper revenue declined by 15.3% yoy to `2,907cr despite LME prices
increasing by 25.3% yoy. Moreover, higher acid realisations partly negated the
impact of lower TC/RC margin, which declined to USc 11.8/lb (USc 14.3/lb).
Consequently, EBIT margin improved to 5.4% as compared to 5.0% in 2QFY2010.
Exhibit 3: Copper EBIT margin expanded by 42bp yoy
0
1
2
3
4
5
6
7
0
50
100
150
200
250
1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11
(%)
(`cr)
EBIT (LHS) EBIT margins (RHS)

October 27, 2010 5
Strong performance from the aluminium segment
Balco’s aluminium production was flat at 65,000 tonnes during the quarter,
whereas production at VAL was up by 74.5% at 97,000 tonnes. The aluminium
segment’s revenue grew by 14.1% yoy to `718cr. Despite higher alumina and coal
costs at Balco, EBIT margin increased to 17.5% in 2QFY2011 as compared to
11.0% in 2QFY2010 on account of higher LME prices. Consequently, the
aluminium segment’s EBIT increased by 82.0% yoy to `126cr.
Exhibit 4: Aluminium EBIT margin higher at 17.5%
Zinc-lead segment aided by higher volumes and prices
Revenue from the zinc-lead segment grew by 21.4% yoy to `2,146cr mainly on
account of higher realisations and sales volume. During the quarter, the
company’s silver sales grew by 8.6% to 44,000kg. However, EBIT margin fell to
46.7% yoy as compared to 56.1% on account of higher met coke, coal and
stripping costs.
Exhibit 5: EBIT margin affected by higher stripping cost
0
3
6
9
12
15
18
21
0
40
80
120
160
(%)
(`cr)
0
10
20
30
40
50
60
70
0
200
400
600
800
1,000
1,200
1,400
1,600
(%)
(`cr)

October 27, 2010 6
Investment rationale
Zinc-lead expansion and power to aid growth: The 100ktpa lead smelter at
Rajpura Dariba is expected to be commissioned by 3QFY2011E. We believe the
company is well poised to capitalise on strong metal demand as it expands its
zinc-lead capacity to 1.1mn tonnes and silver capacity to 500ktpa. Although, the
company has deferred its aluminium expansion, we believe it will benefit from
increased merchant power sale from Balco and SEL, benefits of which are likely to
be witnessed in FY2012E.
Balco and HZL minority stake buyout: Sterlite has been in the process of buying the
minority stake in Balco and HZL. As indicated by management, Balco’s arbitration
is over and we believe the buyout process is likely to be completed by March 2011.
Moreover, management indicated that once Balco’s case is settled, then HZL’s
case is likely to get decided along the lines of Balco. We believe any positive
development on this front would provide further upside to our target price.
Valuation
Sterlite is currently trading at 7.3x and 4.6x FY2011E and FY2012E EV/EBITDA,
respectively. We have revised our FY2011E and FY2012E estimates to factor in
higher prices at LME, lower sales volume from capex deferment, higher zinc sales
volume and other book-keeping changes. We maintain Accumulate on the stock
with an SOTP-based Target Price of `196.
Exhibit 6: Key assumptions
Earlier Revised
LME prices (US $/tonne) FY11E FY12E FY11E FY12E
Aluminium 2,100 2,100 2,100 2,100
Copper 6,500 6,500 7,200 7,500
Zinc 1,975 2,050 2,100 2,150
Lead 1,925 2,000 2,100 2,150
Silver (`/kg) 25,500 25,500 28,750 28,500
Sales volume (tonnes)
Aluminium 297,600 496,000 254,000 260,000
Copper 348,750 348,750 348,750 348,750
Zinc metal 682,100 747,150 708,720 791,100
Lead metal 80,100 125,450 80,100 125,450
Silver (kg) 180,000 270,000 180,000 270,000
Source: Company, Angel research

October 27, 2010 7
Exhibit 7: SOTP valuation (` cr)
Subsidiary
Valuation
method
Target multiple
(x)
Equity
value
% Stake
Sterlite's
value
Value/share
Sterlite standalone
(including US $1.6bn raised)
EV/EBIDTA 5.5 18,006 100 18,006 54
Balco EV/EBIDTA 7.0 8,131 51 4,147 12
Vedanta Aluminium EV/EBIDTA 4.0 6,502 29.5 1,918 6
Hindustan Zinc EV/EBIDTA 6.0 56,691 64.9 36,792 110
Sterlite Energy FCFE 1.0 4,130 100 4,130 12
Tasmania copper mines P/BV 1.0 1,009 100 1,009 3
Target price (`) 196
Source: Angel Research
Exhibit 8: Change in estimates
(` cr) Earlier estimates Revised estimates Upgrade/(downgrade) (%)
FY11E FY12E FY11E FY12E FY11E FY12E
Net sales 27,542 33,639 27,064 34,036 (1.7) 1.2
EBITDA 7,811 10,675 6,945 10,242 (11.1) (4.1)
EBITDA margin (%) 28.4 31.7 25.7 30.1 (270bp) (164bp)
PBT 8,375 11,324 7,864 11,127 (6.1) (1.7)
Net income 4,799 6,625 4,500 6,409 (6.2) (3.3)
Net margin (%) 17.4 19.7 16.6 18.8 (80bp) (86bp)
Diluted EPS (`) 14.3 19.7 13.4 19.1 (6.2) (3.3)
Exhibit 9: EPS - Angel forecast vs. consensus
Year (%) Angel forecast Bloomberg consensus Variation (%)
FY11E 13.4 15.3 (12.3)
FY12E 19.1 22.6 (15.8)
Source: Bloomberg, Angel Research
Exhibit 10: EV/EBITDA band
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Apr-06 Apr-07 Apr-08 Apr-09 Apr-10
(`cr)
14x
11x
8x
5x
2x

October 27, 2010 8
Exhibit 11: P/E band
Exhibit 12: P/BV band
Exhibit 13: Recommendation summary
Company CMP
Target
Price
Reco. Mcap Upside P/E (x) P/BV (x) EV/EBITDA (x) RoE (%) RoCE (%)
(`) (`) (` cr) (%) FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E
SAIL 213 - Neutral 87,998 - 14.1 12.4 2.3 2.0 9.2 8.0 17.9 17.6 16.3 16.9
Tata Steel 614 702 Accumulate 54,479 14.3 8.4 7.6 1.6 1.4 6.4 5.7 21.2 19.7 13.2 14.1
JSW Steel 1,278 - Neutral 32,651 - 23.0 13.1 1.7 1.5 8.9 6.2 10.4 12.5 10.3 12.6
Sesa Goa 331 - Neutral 29,477 - 7.2 8.1 2.2 1.8 4.0 3.3 38.4 24.3 38.7 30.9
NMDC 276 - Neutral 109,268 - 16.4 12.9 5.6 4.2 10.3 7.6 39.3 37.1 52.2 49.2
Hindalco 219 - Neutral 41,938 - 11.6 10.8 1.6 1.4 7.3 6.9 15.1 14.2 10.3 10.0
Nalco 396 316 Sell 25,515 (20.2) 25.0 21.2 2.3 2.2 14.4 11.2 9.7 10.7 10.7 12.5
Sterlite 173 196 Accumulate 58,189 13.2 12.9 9.1 1.3 1.2 7.3 4.6 10.9 13.9 9.7 13.6
Hindustan
Zinc
1,244 1,342 Accumulate 52,559 7.9 12.8 10.1 2.4 2.0 7.8 5.3 20.5 21.4 20.9 22.1
Source: Angel Research
0
50
100
150
200
250
300
350
400
450
(`)
5x
10x
15x
20x
0
50
100
150
200
250
300
350
400
450
500
(`)
3.5x
2.5x
1.5x
0.5x

October 27, 2010 9
Profit & Loss Statement (Consolidated)
Y/E March (` cr) FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E
Gross sales 26,193 26,872 22,774 26,533 30,071 37,818
Less: Excise duty 1,806 2,167 1,629 2,123 3,007 3,782
Net Sales 24,387 24,705 21,144 24,410 27,064 34,036
Other operating income - - - - - -
Total operating income 24,387 24,705 21,144 24,410 27,064 34,036
% chg 85.8 1.3 (14.4) 15.4 10.9 25.8
Total expenditure 14,928 16,837 16,440 18,339 20,120 23,794
Net raw materials 10,498 11,771 10,634 12,169 13,895 16,476
Other Mfg costs 3,881 4,407 5,050 5,316 5,142 5,956
Personnel 549 659 756 854 1,083 1,361
Other - - - - - -
EBITDA 9,459 7,868 4,704 6,072 6,945 10,242
% chg 156.3 (16.8) (40.2) 29.1 14.4 47.5
(% of net sales) 38.8 31.8 22.2 24.9 25.7 30.1
Depreciation 804 595 701 750 1,131 1,227
EBIT 8,655 7,273 4,003 5,322 5,814 9,015
% chg 173.6 (16.0) (45.0) 32.9 9.2 55.1
(% of net sales) 35.5 29.4 18.9 21.8 21.5 26.5
Interest charges 379 319 397 342 588 611
Other income 682 1,566 2,154 1,959 2,639 2,723
(% of PBT) 7.6 18.4 37.4 28.2 33.6 24.5
Share in profit of
associates
- - - - - -
Recurring PBT 8,958 8,521 5,760 6,939 7,864 11,127
% chg 174.6 (4.9) (32.4) 20.5 13.3 41.5
Extraordinary
inc/(expense)
(157) (53) 55 (297) - -
PBT (reported) 8,800 8,468 5,816 6,642 7,864 11,127
Tax 2,473 2,103 855 1,233 1,730 2,448
(% of PBT) 28.1 24.8 14.7 18.6 22.0 22.0
PAT (reported) 6,327 6,365 4,961 5,409 6,134 8,679
Add: Share of earnings of
associate
(0) (4) (154) 59 (100) (100)
Less: Minority interest 1,904 1,962 1,267 1,724 1,533 2,170
Extraordinary
expense/(inc.)
- - - - - -
Net Income 4,422 4,399 3,540 3,744 4,500 6,409
Adj. Net Income 4,536 4,439 3,493 3,986 4,500 6,409
% chg 170.3 (2.1) (21.3) 14.1 12.9 42.4
(% of net sales) 18.6 18.0 16.5 16.3 16.6 18.8
Basic EPS (`) 20.3 15.7 12.3 11.9 13.4 19.1
Fully Diluted EPS (`) 20.3 15.7 12.3 11.9 13.4 19.1
% chg (72.9) (22.9) (21.3) (3.8) 12.9 42.4

October 27, 2010 10
Balance Sheet (Consolidated)
SOURCES OF FUNDS
Equity share capital 112 142 142 168 168 168
Reserves & surplus 9,870 22,161 26,628 39,225 43,199 48,858
Shareholders’ funds 9,982 22,303 26,770 39,393 43,367 49,026
Share warrants - - - - - -
Minority interest 3,626 5,623 5,623 5,623 5,623 5,623
Total loans 4,610 5,075 7,075 10,575 13,075 13,575
Deferred tax liability 917 1,354 1,354 1,354 1,354 1,354
Total liabilities 19,135 34,354 40,822 56,944 63,418 69,578
APPLICATION OF FUNDS
Gross block 12,641 14,564 17,064 20,564 23,564 25,564
Less: Acc. depreciation 4,324 4,588 5,289 6,039 7,170 8,397
Net block 8,318 9,975 11,775 14,525 16,394 17,167
Capital work-in-progress 1,400 2,461 3,961 5,461 6,461 7,461
Goodwill - - - - - -
Investments 5,222 16,294 16,294 16,294 16,294 16,294
Current assets 9,059 10,663 13,861 25,949 29,763 34,679
Cash 1,113 2,454 5,883 17,375 20,658 24,375
Loans & advances 3,484 3,314 3,314 3,314 3,314 3,314
Other 4,462 4,896 4,665 5,261 5,792 6,990
Current liabilities 4,864 5,040 5,070 5,285 5,494 6,024
Net current assets 4,196 5,623 8,792 20,664 24,269 28,656
Mis. exp. not written off 0.0 0.0 0.0 0.0 0.0 0.0
Total assets 19,135 34,354 40,822 56,944 63,418 69,578

October 27, 2010 11
Cash Flow Statement (Consolidated)
Profit before tax 8,800 8,468 5,816 6,642 7,864 11,127
Depreciation 804 595 701 750 1,131 1,227
Change in working
capital
(1,567) (87) 261 (380) (322) (669)
Less: Other income (1,905) (1,966) (1,421) (1,665) (1,633) (2,270)
Direct taxes paid 2,473 2,103 855 1,233 1,730 2,448
Cash Flow from
operations
3,660 4,907 4,501 4,113 5,309 6,967
(Inc.)/ Dec. in fixed
assets
(1,840) (2,984) (4,000) (5,000) (4,000) (3,000)
(Inc.)/ Dec. in
investments
(2,727) (11,072) 0 - - -
(Inc.)/ Dec. in loans
and advances
- - - - - -
Other income - - - - - -
Cash Flow from
investing
(4,567) (14,056) (4,000) (5,000) (4,000) (3,000)
Issue of equity (171.7) 8,051 - 7,680 - -
Inc./(Dec.) in loans (555) 464 2,000 3,500 2,500 500
Dividend Paid (incl.
tax)
223 283 248 466 527 750
Others (1,856) (2,257) (1,176) (1,665) - -
Cash Flow from
financing
905 10,489 2,928 12,379 1,973 (250)
Inc./(Dec.) in cash (2) 1,340 3,429 11,492 3,283 3,717
Opening cash
balances
1,115 1,113 2,454 5,883 17,375 20,658
Closing cash balances 1,113 2,454 5,883 17,375 20,658 24,375

October 27, 2010 12
Key Ratios
Y/E March FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E
Valuation Ratio (x)
P/E (on FDEPS) 8.5 11.1 14.0 14.6 12.9 9.1
P/CEPS 7.2 9.8 11.7 12.3 10.3 7.6
P/BV 3.9 2.2 1.8 1.5 1.3 1.2
Dividend yield (%) 1.0 0.9 0.8 0.8 0.9 1.3
EV/Sales 1.7 2.1 2.4 2.1 1.9 1.4
EV/EBITDA 4.5 6.6 10.7 8.5 7.3 4.6
EV/Total assets 2.2 1.5 1.2 0.9 0.8 0.7
Per Share Data (`)
EPS (Basic) 20.3 15.7 12.3 11.9 13.4 19.1
EPS (fully diluted) 20.3 15.7 12.3 11.9 13.4 19.1
Cash EPS 23.9 17.8 14.8 14.1 16.8 22.7
DPS 1.7 1.6 1.4 1.4 1.6 2.2
Book Value 44.7 78.6 94.5 117.2 129.1 145.9
DuPont Analysis
EBIT margin 35.5 29.4 18.9 21.8 21.5 26.5
Tax retention ratio (%) 71.9 75.2 85.3 81.4 78.0 78.0
Asset turnover (x) 1.5 0.8 0.7 0.7 0.7 0.9
RoIC (post-tax) 37.4 18.6 11.0 12.7 12.5 18.6
Cost of Debt (post tax) 5.6 4.9 5.6 - - -
Leverage (x) 0.4 0.1 0.0 - - -
Operating RoE 49.5 20.0 11.1 12.7 12.5 18.6
Returns (%)
RoCE (Pre-tax) 52.7 27.2 10.7 10.9 9.7 13.6
Angel RoIC (pre-tax) 60.9 31.6 13.3 16.4 16.5 24.4
RoE 56.5 27.5 14.2 12.0 10.9 13.9
Turnover ratios (x)
Asset turnover (gross
block)
2.0 1.8 1.3 1.3 1.2 1.4
Inventory (days) 67.7 71.3 70.0 70.0 70.0 70.0
Receivables (days) 24.4 22.8 25.0 25.0 25.0 25.0
Payables (days) 21.9 29.0 30.0 30.0 30.0 30.0
WC capital cycle (days) 34.4 46.2 52.5 46.3 46.5 42.3
Solvency ratios (x)
Net debt to equity 0.4 0.1 0.0 (0.2) (0.2) (0.2)
Net debt to EBITDA 0.4 0.3 0.0 (1.4) (1.3) (1.1)
Interest Coverage 22.8 22.8 10.1 15.5 9.9 14.8

October 27, 2010 13
Disclosure of Interest Statement Sterlite Industries
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.
Ratings (Returns) : Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
Reduce (-5% to 15%) Sell (< -15%)
Research Team Tel: 022 - 4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com
DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,
nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While
Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,
compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or
other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in
the past.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please
refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and
its affiliates may have investment positions in the stocks recommended in this report.

Sterlite 2 qfy2011 271010

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