3QFY2012 Result Update | Base Metals

February 1, 2012

Sterlite Industries
Performance Highlights

BUY
CMP Target Price
3QFY11 % chg (yoy) 8,294 1,979 23.9 1,124 23.5 17.2 (123)bp 12.1 2QFY12 % chg (qoq) 10,134 2,482 24.5 1,022 1.1 (6.6) (187)bp 23.3

`119 `138
12 months

Particulars (` cr) Net sales EBITDA % margin Adjusted PAT

3QFY12 10,246 2,318 22.6 1,260

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Base Metals 40,099 1.46 189/86 828793 1 17,301 5,236 STRL.BO STLT@IN

Source: Company, Angel Research

For 3QFY2012, Sterlite Industries (Sterlite) reported consolidated net sales growth of 23.5% yoy. However, subdued performance from the aluminium segment dragged the companys profitability. Adjusted PAT for the quarter grew by 12.1% yoy. We continue to maintain our Buy rating on the stock. Robust 3QFY2012 sales performance: Sterlites net sales increased by 23.5%

yoy to `10,246cr in 3QFY2012, above our estimate of `8,798cr. Net sales growth was driven by higher zinc sales volumes from the zinc segment (+36.9% yoy to `3,755cr) and the power segment (+346.7% yoy to `591cr).
Aluminium segment dents Sterlites profitability: EBIT of the copper and power

segments grew by 67.8% and 178.3% yoy to `326cr and `53cr, respectively. However, EBIT of the aluminium segment reported loss of `23cr in 3QFY2012 compared to EBIT of `119cr in 3QFY2011. As a result, Sterlites EBITDA grew by 17.2% yoy to `2,318cr. Sterlites associate, Vedanta Aluminium also reported loss of `893cr in 3QFY2012 (Sterlites share of loss `264cr) compared to loss of `347cr in 3QFY2011. Other income grew by 83.6% yoy to `877cr, significantly above our estimate. Thus, adjusted net profit grew by 12.1% yoy to `1,260cr, above our estimate of `771cr.
Outlook and valuation: We expect Sterlite to benefit from the expansion of zinc-lead smelting capacity during FY2012-13. Furthermore, Sterlites expansion in the silver-rich Sindesar Khurd mine should result in net profit growth of 16.9% in FY2013. At the CMP, the stock is trading at 2.7x FY2012E and 2.1x FY2013E EV/EBITDA, a significant discount to its five-year historical average of 7.1x. Hence, we maintain our Buy rating on the stock with an SOTP-based target price of `138.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 53.2 8.9 12.4 25.5

Abs. (%) Sensex Sterlite

3m (1.0)
(3.3)

1yr (4.0)
(27.7)

3yr 87.3
72.8

Key financials (Consolidated)

Y/E March ( ` cr) Net sales % chg Net profit % chg FDEPS (`) OPM (%) P/E(x) P/BV(x) RoE(%) RoCE(%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010 24,501 15.9 3,744 5.8 11.9 25.7 10.1 1.1 12.0 11.8 1.0 4.1

FY2011 30,248 23.5 5,043 34.7 14.3 26.0 8.3 1.0 12.9 11.5 1.0 3.7

FY2012E 40,331 33.3 5,309 5.3 15.8 24.2 7.6 0.9 12.1 11.3 0.6 2.7

FY2013E 47,480 17.7 6,205 16.9 18.5 24.0 6.5 0.8 12.7 11.5 0.5 2.1

Bhavesh Chauhan
Tel: 022- 39357600 Ext: 6821 bhaveshu.chauhan@angelbroking.com

Please refer to important disclosures at the end of this report

Sterlite Industries | 3QFY2012 Result Update

Exhibit 1: 3QFY2012 performance (Consolidated)

Y/E March (` cr) Net Sales - Consumption of Raw Material (% of Net Sales) - Power & Fuel (% of Net Sales) - Staff Costs (% of Net Sales) - Other expenses (% of Net Sales) Total Expenditure (% of Net Sales) Operating income EBITDA EBITDA margin (%) Interest Depreciation Other Income Exceptional Items Profit before Tax (% of Net Sales) Tax (% of PBT) Profit after Tax Net profit Adj. net profit
Source: Company, Angel Research

3QFY12 10,246 4,921 48.0 1,057 10.3 415 4.1 1,592 15.5 7,985 77.9 57.5 2,318 22.6 157 458 877 (425) 2,155 21.0 505 23.4 1,650 920 1,260

3QFY11 8,294 4,409 53.2 562 6.8 258 3.1 1,125 13.6 6,354 76.6 38.1 1,979 23.9 71 249 478 (29) 2,133 25.7 421 19.8 1,711 1,101 1,124

% yoy 23.5 11.6 88.1 60.9 41.5 25.7 50.8 17.2

2QFY12 10,134 4,821 47.6 1,057 10.4 397 3.9 1,439 14.2 7,714 76.1 61.9 2,482 24.5 356

%qoq 1.1 2.1 0.0 4.5 10.7 3.5 (7.1) (6.6) (55.8) 2.8 46.8 (4.2) 0.1 (5.4) (7.8) 23.3

83.9 83.6 1.0 19.9 (3.6) (16.4) 12.1

445 597 (30) 2,248 22.2 505 22.5 1,744 998 1,022

Exhibit 2: 3QFY2012 Actual vs. Angel estimates

(` cr) Net sales EBITDA EBITDA margin (%) PBT Adj. net profit
Source: Company, Angel Research

Actual 10,246 2,318 22.6 2,155 1,260

Estimates 8,798 2,024 23.0 1,816 771

Variation (%) 16.5 14.6 (37)bp 18.7 63.4

February 1, 2012

Sterlite Industries | 3QFY2012 Result Update

3QFY2012 result highlights

For 3QFY2012, Sterlite reported net sales growth of 23.5% yoy to `10,246cr, above our estimate of `8,798cr. Growth was driven by higher zinc sales volumes from the zinc segment and power segment. Revenue of the zinc and power segments grew by 36.9% and 346.7% yoy to `3,755cr and `591cr, respectively. Sterlites EBITDA for the quarter grew by 17.2% yoy to `2,318cr. EBIT of the copper and power segments grew by 67.8% and 178.3% yoy to `326cr and `53cr, respectively. However, EBIT of the aluminium segment reported loss of `23cr in 3QFY2012 compared to EBIT of `119cr in 3QFY2011. Aluminium cost of production at Balco increased by 22.0% yoy to `98,234/tonne on account of higher prices of alumina and coal. Sterlites associate, Vedanta Aluminium also reported loss of `893cr in 3QFY2012 (Sterlites share of loss `264cr) compared to loss of `347cr in 3QFY2011. Other income grew by 83.6% yoy to `877cr, significantly above our estimate. The company reported exceptional items related to forex loss of `425cr in 3QFY2012, compared to `29cr in 3QFY2011. Hence, adjusted net profit increased by 12.1% yoy to `1,260cr, above our estimate of `771cr. Reported net profit decreased by 16.4% yoy to `920cr.

Segmental performance
Copper segments EBIT increases by 67.8% yoy
During 3QFY2012, copper cathode production at the Tuticorin smelter increased by 6.9% yoy to 87k tonnes, while mined metal from the Australian mine increased by 50.7% yoy to 6k tonnes. Thus, revenue for the copper segment increased by 10.9% yoy to `5,130cr. Copper TC/RCs increased by 42.6% yoy to USc15.9/lb. The company reported cost of production of USc2.4lb in 3QFY2012 compared to USc1.2/lb in 3QFY2011. Consequently, EBIT increased by 67.8% yoy to `326cr in 3QFY2012.

Exhibit 3: Copper EBIT stood at `326cr

350 300 250 7 6 5 4 3 2 1 0

(` cr)

200 150 100 50 0

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

EBIT (LHS)
Source: Company, Angel Research

EBIT margins (RHS)

February 1, 2012

3QFY12

(%)

Sterlite Industries | 3QFY2012 Result Update

Aluminium segment posts loss due to high costs

During the quarter, Balcos aluminium production declined to 63,000 tonnes (65,000 tonnes in 3QFY2011), while its revenue decreased by 0.2% yoy to `801cr.

Aluminium cost of production at Balco increased by 22.0% yoy to `98,234/tonne on account of higher prices of alumina and coal.
Consequently, the aluminium segments EBIT loss stood at `23cr compared to EBIT of `119cr in 3QFY2011.

Balco is now nearing regulatory approvals for its 211mn-tonne coal block. Approval of the coal block by regulatory authorities could potentially make Balcos operations profitable. Sterlite expects to get all the major clearances for
its Balco coal mine during FY2013.

Sterlites associate, Vedanta Aluminium also reported loss of `893cr in 3QFY2012 (Sterlites share of loss `264cr) compared to loss of `347cr in 3QFY2011. Exhibit 4: Aluminium segment reports EBIT loss of `23cr
240 200 160 27 24 21 18 15 12 9 6 3 0 (3) (6)

(`cr)

120 80 40 0

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

(40)

EBIT (LHS)
Source: Company, Angel Research

EBIT margins (RHS)

Zinc-lead segments EBIT grows by 3.9% yoy

Domestic zinc sales volumes grew by 6.5% yoy and 3.2% qoq to 190kt and lead sales volumes grew by 118.8% yoy and 83.9% qoq to 27kt due to ramp up in production from Dariba smelter (commissioned in June 2011). Silver sales volumes grew by 66.0% yoy and 18.2% qoq to 49kt. However, zinc realization decreased by 4.9% yoy and 2.4% qoq to `105,474/tonne and lead realizations decreased by 4.4% yoy and 5.0% qoq to `114,074/tonne. Despite LME zinc and lead prices falling by 17.6% and 16.7% yoy, INR depreciation against the USD muted the decline in overall realization. Silver realization increased by 33.1% yoy but decreased by 9.2% qoq to `52,449/kg. Overall, net sales of the zinc-lead segment (including international zinc business) grew by 36.9% yoy to `3,755cr. Cost of production for zinc (excluding royalty) stood at US$785/tonne in 3QFY2012 compared to US$790/tonne in 3QFY2011. Overall, EBIT of the zinc-lead segment (including international zinc business) grew by 3.9% yoy to `1,486cr.

February 1, 2012

3QFY12

(%)

Sterlite Industries | 3QFY2012 Result Update

Exhibit 5: Zinc segments EBIT grew by 3.9% yoy to `1,486cr

2,500 2,000 70 60 50 40 30 20 10

(`cr)

1,500 1,000 500 0

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

EBIT (LHS)
Source: Company, Angel Research

EBIT margins (RHS)

Investment rationale
Zinc-lead expansion and power sales to aid growth: Sterlite had commissioned a 100ktpa lead smelter at Rajpura Dariba in 1QFY2012. Expansion at the silver-rich Sindesur Khurd mine is expected to result in robust sales volume growth in FY2013. Further, we believe Sterlite will benefit from increased merchant power sales from Balco. SEL to reach full production capacity in FY2013: SEL has already commissioned two units of 600MW each at Jharsuguda. The third unit was under trial run during 4QFY2012 and the fourth unit will be synchronized in 4QFY2012, the benefits of which will be witnessed in FY2013.

February 1, 2012

3QFY12

(%)

Sterlite Industries | 3QFY2012 Result Update

Valuation
We expect Sterlite to benefit from the expansion of zinc-lead smelting capacity during FY2012-13. Furthermore, Sterlites expansion in the silver-rich Sindesar Khurd mine is expected to result in net profit growth of 16.9% in FY2013. While we expect aluminium segments profitability to remain under pressure, the current stock price factors this concerns. At the CMP, the stock is trading at 2.7x FY2012E and 2.1x FY2013E EV/EBITDA, a significant discount to its five-year historical average of 7.1x. Hence, we maintain our Buy rating on the stock with an SOTP-based target price of `138. A key catalyst for the stock could be the final approval from MOEF to Balcos coal mine.

Exhibit 6: SOTP valuation

Subsidiary Sterlite Standalone (including US$1.6bn raised) Balco Vedanta Aluminium Hindustan Zinc Sterlite Energy Tasmania Copper mines Target price (`)
Source: Angel Research

(` cr)
Valuation technique EV/EBIDTA EV/EBIDTA EV/EBIDTA EV/EBIDTA FCFE P/BV Target multiple (x) Equity value % Stake Sterlite's value Value/share 3.0 3.0 4.0 5.0 1.0 1.0 11,135 2,846 1,575 67,677 1,475 1,009 100% 51% 30% 65% 100% 100% 11,135 1,451 465 43,922 1,475 1,009 33 4 1 91 4 3 138

Exhibit 7: EPS Angel forecast vs. consensus

Year (%) FY2012E FY2013E
Source: Angel Research

Angel forecast 15.8 18.5

Bloomberg consensus 16.0 18.2

Variation (%) (1.3) 1.4

Exhibit 8: EV/EBITDA band

180,000 160,000 140,000 120,000
(`cr)

100,000 80,000 60,000 40,000 20,000 0 Apr-06 Sep-07 2.0x 5.0x Feb-09 8.0x 11.0x Jul-10 14.0x Dec-11

Source: Bloomberg, Angel Research

February 1, 2012

Sterlite Industries | 3QFY2012 Result Update

Exhibit 9: P/E band

450 400 350 300
(`)

250 200 150 100 50 0 Apr-06 Sep-07 5.0x Feb-09 10.0x 15.0x Jul-10 20.0x Dec-11

Source: Bloomberg, Angel Research

Exhibit 10: P/BV band

600 500 400 300 200 100 0 Apr-06
(`)

Sep-07 0.5x 1.5x

Feb-09 2.5x 3.5x

Jul-10

Dec-11

Source: Bloomberg, Angel Research

Exhibit 11: Recommendation summary

Company Hindalco Nalco Sterlite HZL CMP (`) 153 60 119 137 TP (`) Reco. Mcap Upside (` cr) 6 15 P/E (x) 8.7 15.5 7.6 10.6 7.6 12.7 6.5
9.0

P/BV (x) 0.9 1.3 0.9

2.1

EV/EBITDA (x) 0.8 1.2 0.8

1.7

RoE (%) 11.0 8.6 12.1

22.0

RoCE (%) 7.6 6.5 11.3

20.9

(%) FY12E FY13E FY12E FY13E FY12E FY13E FY12E FY13E FY12E FY13E 5.7 7.3 2.7
6.8

162 Accum. 29,263 - Neutral 15,373 138 Buy 40,099 - Neutral 57,887

5.3 4.4 2.1

5.0

11.3 9.9 12.7

21.3

7.9 9.5 11.5

20.4

Source: Angel Research

February 1, 2012

Sterlite Industries | 3QFY2012 Result Update

Profit & Loss Statement (Consolidated)

Y/E March (` cr) Net Sales Other operating income Total operating income % chg Total Expenditure Net Raw Materials Other Mfg costs Personnel EBITDA % chg (% of Net Sales) Depreciation& Amortization EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Recurring PBT % chg Extraordinary Inc/(Expense) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earnings of asso. Less: Minority interest (MI) Extraordinary Expense/(Inc.) PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E 24,705 21,144 24,501 30,248 1.3 (14.4) 182 16.7 180 23.3 24,705 21,144 24,682 30,429 16,837 16,440 18,207 22,379 11,771 10,634 12,139 14,389 4,407 659 7,868 (16.8) 31.8 595 7,273 (16.0) 29.4 319 1,566 18.4 8,521 (4.9) (52.8) 8,468 2,103 24.8 6,365 (4) 1,962 4,399 4,439 (2.1) 18.0 15.7 15.7 (22.9) 5,050 756 4,704 (40.2) 22.2 701 4,003 (45.0) 18.9 397 2,154 37.4 5,760 (32.4) 55.3 5,816 855 14.7 4,961 (154) 1,267 3,540 3,493 (21.3) 16.5 12.3 12.3 (21.3) 5,214 854 6,475 37.6 26.4 750 5,725 43.0 23.2 292 1,506 21.7 6,939 20.5 (297) 6,642 1,233 18.6 5,409 59 1,724 3,744 3,986 14.1 16.1 11.9 11.9 (3.8) 6,858 1,132 8,049 24.3 26.6 1,030 7,019 22.6 23.1 301 2,472 26.9 9,191 32.4 (57) 9,134 1,812 19.8 7,322 (285) 1,995 5,043 5,088 27.7 16.7 15.0 14.3 20.8 40,331 40,331 32.5 30,551 21,177 7,864 1,509 9,780 21.5 24.2 1,761 8,019 14.2 19.9 1,031 3,428 32.9 10,416 13.3 10,416 1,667 16.0 8,749 (816) 2,625 5,309 5,309 4.3 13.2 15.8 15.8 10.3 47,480 47,480 17.7 36,097 22,980 9,733 1,994 11,383 16.4 24.0 2,159 9,224 15.0 19.4 1,142 4,036 33.3 12,117 16.3 12,117 2,666 22.0 9,451 (600) 2,646 6,205 6,205 16.9 13.1 18.5 18.5 16.9

February 1, 2012

Sterlite Industries | 3QFY2012 Result Update

Balance Sheet (Consolidated)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Reserves& Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Investments Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Total Assets 14,564 4,588 9,975 2,461 16,294 10,663 2,454 3,314 4,896 5,040 5,623 34,354 15,387 5,155 10,232 6,979 16,206 11,636 5,505 2,715 3,416 4,205 7,431 40,847 18,179 5,913 12,266 11,084 20,304 17,511 3,338 10,499 3,674 4,932 12,580 56,234 31,189 9,791 21,397 12,150 12,955 27,939 9,912 11,277 6,750 8,813 19,126 65,629 36,689 11,552 25,136 12,050 12,955 36,364 15,923 11,277 9,164 10,564 25,800 75,942 43,189 13,712 29,477 13,550 12,955 40,623 18,528 11,277 10,818 12,038 28,585 84,567 142 22,161 22,303 5,623 5,075 1,354 34,354 142 25,471 25,613 6,813 7,014 1,408 40,847 168 36,844 37,012 8,410 9,260 1,552 56,234 336 41,100 41,436 10,291 11,729 2,174 65,629 336 45,787 46,123 12,916 14,729 2,174 75,942 336 51,266 51,602 15,563 15,229 2,174 84,567 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

February 1, 2012

Sterlite Industries | 3QFY2012 Result Update

Cash Flow Statement (Consolidated)

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Others Direct taxes paid Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Share of loss from Asso. Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2008 FY2009 8,468 595 (87) 2,103 4,907 (11,072) 8,051 464 283 10,489 1,340 1,113 2,454 5,816 701 1,244 855 5,484 88 1,939 248 2,819 3,051 2,454 5,505 FY2010 FY2011 FY2012E FY2013E 6,460 750 (7,316) 1,233 (2,822) (4,098) 7,653 2,246 449 (2,201) 11,651 (2,167) 5,505 3,338 8,849 1,030 (315) 1,735 5,855 8,964 (885) 2,563 502 (457) 1,604 6,575 3,338 9,912 10,416 1,761 (663) 1,667 9,848 (5,400) (5,400) 3,000 621 (816) 1,563 6,011 9,912 15,923 12,117 2,159 (180) 2,666 11,430 (8,000) (8,000) 500 726 (600) (826) 2,604 15,923 18,528

(1,966) (1,421)

(1,483) (1,974)

(2,984) (5,340)

(6,898) (5,349)

(14,056) (5,252) (10,996)

(2,257) (1,128)

February 1, 2012

10

Sterlite Industries | 3QFY2012 Result Update

Key Ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio (%) Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (EBIT / Int.) 0.1 0.3 22.8 0.0 0.1 10.1 0.1 0.7 19.6 0.0 0.1 23.3 (0.1) (0.3) 7.8 (0.1) (0.3) 8.1 1.8 71 23 29 46 1.4 54 15 52 44 1.5 59 8 57 83 1.2 83 19 89 111 1.2 83 19 89 86 1.2 83 19 89 77 27.2 31.6 27.5 10.6 13.9 14.6 11.8 16.3 12.7 11.5 16.4 13.0 11.3 17.5 12.1 11.5 18.4 12.7 29.4 75.2 0.8 18.6 4.9 0.1 20.0 18.9 85.3 0.7 12.0 5.6 0.0 12.2 23.2 81.4 0.6 11.2 2.9 0.1 12.2 23.1 80.2 0.7 12.9 2.3 0.0 13.1 19.9 84.0 0.8 14.0 14.0 19.4 78.0 0.9 13.7 13.7 15.7 15.7 17.8 1.6 78.6 12.3 12.3 14.8 1.4 90.4 11.9 11.9 14.1 1.3 110.1 15.0 14.3 18.2 1.8 123.3 15.8 15.8 21.0 1.8 137.2 18.5 18.5 24.9 2.2 153.5 7.6 6.7 1.5 1.4 0.8 2.6 0.6 9.7 8.1 1.3 1.2 0.9 4.1 0.5 10.1 8.5 1.1 1.1 1.0 4.1 0.5 8.3 6.6 1.0 1.5 1.0 3.7 0.4 7.6 5.7 0.9 1.5 0.6 2.7 0.3 6.5 4.8 0.8 1.8 0.5 2.1 0.3 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

February 1, 2012

11

Sterlite Industries | 3QFY2012 Result Update

Research Team Tel: 022 3935 7800

E-mail: research@angelbroking.com

Website: www.angelbroking.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.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Sterlite Industries No No No No

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.

Ratings (Returns) :

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

February 1, 2012

12