4QFY2012 Result Update | Base Metals

April 25, 2012

Sterlite Industries
Performance Highlights

ACCUMULATE
CMP Target Price
4QFY11 % chg (yoy) 10,000 3,051 30.5 1,957 7.6 (11.3) (537)bp (29.6) 3QFY12 % chg (qoq) 10,246 2,414 23.6 1,345 5.0 12.1 158bp 2.4

`108 `123
12 months

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

4QFY12 10,763 2,705 25.1 1,377

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 Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others Abs. (%) Sensex STLT 3m 0.9 (3.0)

Base Metals 36,227 1.4 186/86 1,272,575 1 17,151 5,202 STRL.BO STLT@IN

Source: Company, Angel Research

For 4QFY2012, Sterlite Industries (Sterlite) reported consolidated net sales growth of 7.6% yoy. However, subdued performance from the aluminium segment dragged the companys profitability. Adjusted PAT for the quarter decreased by 29.6% yoy. We recommend Accumulate on the stock. Top-line growth driven by zinc and power segments: For 4QFY2012, Sterlites consolidated net sales increased by 7.6% yoy to `10,763cr, in-line with our estimate of `10,912cr. Net sales growth was driven by increase in power segment sales (+230.4% yoy to `737cr). Aluminium segment dents Sterlites profitability: Despite net sales growth of 7.6% yoy, Sterlites EBITDA decreased by 11.3% yoy to `2,705cr mainly due to a decline in profits from the aluminium segment. EBIT of the aluminium segment declined to `23cr in 4QFY2012 compared `195cr in 4QFY2011. Sterlites

53.3 9.5 19.6 17.6 1yr (12.3) (41.3) 3yr 51.4 8.4

associate, Vedanta Aluminium also reported loss of `542cr in 4QFY2012 (Sterlites share of loss `160cr) compared to loss of `268cr in 4QFY2011. Sterlite reported exceptional items related to net incidental damages payable to Asarco of `423cr and exchange gain of `331cr in 4QFY2012. Adjusted net
profit decreased by 29.6% yoy to `1,377cr, in-line with our estimate of `1,311cr. Outlook and valuation: We expect Sterlite to benefit from the expansion of zinc-lead smelting capacity during FY2013-14. While we expect the aluminium segments profitability to remain under pressure, the current stock price factors these concerns. At the CMP, the stock is trading at an inexpensive valuation of 3.4x FY2013E and 2.7x FY2014E EV/EBITDA. Considering the ongoing process of group restructuring by the promoter, Vedanta Resources, valuation of Sterlite will mirror the valuation of consolidated company, Sesa Sterlite. We value Sterlite at `123, based on the SOTP methodology and recommend Accumulate on the stock.

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

FY2011 30,248 23.5 5,043 34.7 14.3 26.0 7.5 0.9 12.9 11.5 1.2 4.5

FY2012E 40,967 35.4 4,921 (2.4) 15.5 24.3 6.9 0.8 11.1 11.9 0.9 3.6

FY2013E 45,805 11.8 5,553 12.8 16.5 21.2 6.5 0.7 11.5 9.6 0.7 3.4

FY2014E 49,029 7.0 6,434 15.9 19.1 23.5 5.6 0.6 12.0 10.5 0.6 2.7

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

Vinay Rachh
Tel: 022- 39357600 Ext: 6841 Vinay.rachh@angelbroking.com

Please refer to important disclosures at the end of this report

Sterlite Industries | 4QFY2012 Result Update

Exhibit 1: 4QFY2012 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

4QFY12 10,763 4,854 45.1 991 9.2 415 3.9 1,854 17.2 8,113 75.4 56.1 2,705 25.1 328 507 704 (100) 2,473 23.0 487 19.7 1,987 1,277 1,377

4QFY11 10,000 4,527 45.3 685 6.8 368 3.7 1,426 14.3 7,005 70.0 55.9 3,051 30.5 118 352 747 (32) 3,296 33.0 566 17.2 2,730 1,925 1,957

% yoy 7.6 7.2 44.7 13.0 30.0 15.8 0.5 (11.3)

3QFY12 10,246 4,825 47.1 1,057 10.3 415 4.1 1,592 15.5 7,890 77.0 57.5 2,414 23.6 157

% qoq 5.0 0.6 (6.2) 0.1 16.4 2.8 (2.4) 12.1 108.5 10.9 (19.8) 14.8 (3.7) 20.4 38.8 2.4

44.1 (5.8) (25.0) (14.1) (27.2) (33.7) (29.6)

458 877 (425) 2,155 21.0 505 23.4 1,650 920 1,345

Exhibit 2: 4QFY2012 Actual vs. Angel estimates

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

Actual 10,763 2,705 25.1 1,377

Estimates 10,912 2,488 22.8 1,311

Variation (%) (1.4) 8.7 234bp 5.1

April 25, 2012

Sterlite Industries | 4QFY2012 Result Update

4QFY2012 result highlights

For 4QFY2012, Sterlite reported consolidated net sales growth of 7.6% yoy to `10,763cr, in-line with our estimate of `10,912cr, driven by higher net sales power segment. Revenue of the power segment grew by 230.4% yoy to `737cr. However, Sterlites EBITDA decreased by 11.3% yoy to `2,705cr. EBIT of the power segments grew by 218.5% yoy to `151cr, respectively. However, EBIT of the aluminium segment declined to `23cr in 4QFY2012 compared `195cr in 4QFY2011. Sterlites associate, Vedanta Aluminium also reported loss of `542cr in 4QFY2012 (Sterlites share of loss `160cr) compared to loss of

`268cr in 4QFY2011.
The company reported exceptional items related to net incidental damages payable to Asarco of `423cr and exchange gain of `331cr in 4QFY2012. Excluding these exceptional items, adjusted net profit decreased by 29.6% yoy to `1,377cr, slightly above our estimate of `1,311cr. Reported net profit decreased by 33.7% yoy to `1,277cr during the quarter.

Segmental performance
Copper segments TC/RCs increase by 36.8% yoy
During 4QFY2012, copper cathode production at the Tuticorin smelter was flat yoy at 80k tonnes. Mined metal from the Australian mine was also flat yoy at 5k tonnes. Thus, revenue of the copper segment increased marginally by 2.0% yoy to `5,399cr during the quarter. Copper TC/RCs increased by 36.8% yoy to USc15.3/lb. The company reported cost of production of USc4.1lb in 4QFY2012 compared to USc1/lb in 4QFY2011. The copper business had an exceptional item of `423cr related to an unfavorable ruling by the U.S. court in connection with the cancellation of the share purchase agreement entered with ASARCO in 2009. Consequently, the copper segments PAT decreased by 56.1% yoy to `139cr in 4QFY2012. However, PAT, excluding exceptional item, increased by 15.4% to `404cr during the quarter.

Exhibit 3: Copper segments EBIT stood at `273

350 300 250 7.0 6.0 5.0

(` cr)

150 100 50 0

3.0 2.0 1.0 0.0

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

EBIT (LHS)

EBIT margins (RHS)

Source: Company, Angel Research

April 25, 2012

4QFY12

(%)

200

4.0

Sterlite Industries | 4QFY2012 Result Update

Aluminium segments EBIT decreases on a yoy basis

During the quarter, Balcos aluminium production was flat on a yoy basis at 62kt, while its revenue decreased by 4.6% yoy to `800cr. Aluminium cost of production

at Balco increased by 7.7% yoy to `96,857/tonne on account of higher prices of alumina and coal. Consequently, the aluminium segments EBIT stood at `23cr
in 4QFY2012 compared to EBIT of `195cr in 4QFY2011.

Sterlites associate, Vedanta Aluminium also reported loss of `542cr in 4QFY2012 (Sterlites share of loss `160cr) compared to loss of `268cr in 4QFY2011. Exhibit 4: Aluminium segments EBIT declines to `23cr
250 200 30.0 25.0 20.0 15.0 10.0 5.0 0.0

(` cr)

100 50 0

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

(50)

4QFY12

(5.0)

EBIT (LHS)
Source: Company, Angel Research

EBIT margins (RHS)

Zinc-lead segments EBIT declines by 22.0% yoy

Refined zinc production for 4QFY2012 declined by 2.0% yoy to 190kt tonnes. Refined lead production grew by 110.0% to 37kt and refined silver production increased by 77.0% to 88k tonnes during the quarter. Cost of production for zinc (excluding royalty) stood at US$828/tonne in 4QFY2012 compared to US$784/tonne in 4QFY2011. Overall, EBIT of the zinc-lead segment (including international zinc business) declined by 22.0% yoy to `1,705cr.

April 25, 2012

(%)

150

Sterlite Industries | 4QFY2012 Result Update

Exhibit 5: Zinc segments EBIT declines by 22.0% yoy

2,500 2,000 70.0 60.0 50.0 30.0 20.0 10.0 0.0 40.0

(` cr)

1,000 500 0

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

EBIT (LHS)
Source: Company, Angel Research

EBIT margins (RHS)

Investment rationale
Zinc-lead expansion to aid growth: Sterlite had commissioned a 100ktpa lead smelter at Rajpura Dariba in 1QFY2012, the full benefits of which will be witnessed in FY2013. Moreover, expansion at the silver-rich Sindesur Khurd mine is expected to result in robust lead and silver sales volume growth in FY2013 and FY2014. SEL to reach full production capacity in FY2013: SELs fourth unit of 600MW has been synchronized during 4QFY2012 and is likely to commence commercial production from 2QFY2013, the benefits of which will be reflected in FY2014.

April 25, 2012

4QFY12

(%)

1,500

Sterlite Industries | 4QFY2012 Result Update

Valuation
We expect Sterlite to benefit from the expansion of zinc-lead smelting capacity during FY2013-14. Sterlites expansion in the silver-rich Sindesar Khurd mine is expected to result in net profit growth of 6.3% in FY2013 and 15.9% in FY2014. While we expect the aluminium segments profitability to remain under pressure, the current stock price factors these concerns. At the CMP, the stock is trading at an inexpensive valuation of 3.4x FY2013E and 2.7x FY2014E EV/EBITDA. Considering the ongoing process of group restructuring by the promoter, Vedanta Resources, valuation of Sterlite will mirror the valuation of consolidated company, Sesa Sterlite. We value Sterlite at `123, based on the SOTP methodology and recommend Accumulate on the stock.

Exhibit 6: SOTP valuation of Sterlite

Subsidiary Sterlite Industries Balco Vedanta Aluminium Hindustan Zinc (20% holding company discount) Sterlite Energy Tasmania Copper mines International Zinc MALCO Sesa Goa Cairn India (20% holding company discount) less : Cairn debt Net equity value Fair value for Sesa Sterlite (`) Fair value for Sterlite (`)
Source: Angel Research

(` cr)
Valuation technique EV/EBITDA EV/EBITDA EV/EBITDA EV/EBITDA FCFE P/BV EV/EBITDA BV EV/EBITDA DCF Target multiple (x) 3.0 3.0 4.0 4.0 1.0 1.0 2.0 3.5 Equity value 12,337 1,888 (7,054) 58,521 1,421 1,009 2,948 11,571 72,347 % Stake 100% 51% 100% 65% 100% 100% 100% 100% 100% 59% Value 12,337 963 (7,054) 30,384 1,421 1,009 2,948 1,712 11,571 34,032 (28,797) 60,526 204 123

Exhibit 7: EPS Angel forecast vs. consensus

Year (%) FY2013E FY2014E
Source: Angel Research

Angel forecast 16.5 19.1

Bloomberg consensus 17.9 20.0

Variation (%) (7.7) (4.3)

April 25, 2012

Sterlite Industries | 4QFY2012 Result Update

Exhibit 8: EV/EBITDA band

160,000 140,000 120,000 100,000
(`cr)

80,000 60,000 40,000 20,000 0 Apr-06 Jan-07 Oct-07

2.0x

Jul-08
5.0x

Apr-09
8.0x

Jan-10
11.0x

Oct-10
14.0x

Jul-11

Apr-12

Source: Bloomberg, Angel Research

Exhibit 9: P/E band

450 400 350 300 250 200 150 100 50 0 Apr-06 Dec-06 Aug-07 Apr-08
5.0x

(`)

Dec-08

Aug-09

Apr-10
15.0x

Dec-10
20.0x

Aug-11

Apr-12

10.0x

Source: Bloomberg, Angel Research

Exhibit 10: P/BV band

600 500 400
(`)

300 200 100 0 Apr-06 Dec-06 Aug-07 Apr-08 Dec-08 Aug-09 Apr-10 Dec-10 Aug-11 Apr-12 0.5x 1.5x 2.5x 3.5x

Source: Bloomberg, Angel Research

April 25, 2012

Sterlite Industries | 4QFY2012 Result Update

Exhibit 11: Recommendation summary

Company Hindalco Nalco Sterlite HZL CMP (`) 120 60
108

TP (`)

Reco.

Mcap Upside (` cr) (%) 14 (14)

14

P/E (x) FY13E 7.9 23.5

6.5

P/BV (x) FY14E 0.6 1.2

0.6

EV/EBITDA (x) FY13E 5.2 11.0

3.4

RoE (%) 8.7 5.6

11.5

RoCE (%) 9.2 7.4 6.7 3.2

9.6

FY14E FY13E 6.9 17.0

5.6

FY14E FY13E FY14E FY13E FY14E 4.9 8.5

2.7

136 Accum. 22,945 51 Reduce 15,347

123 Buy 36,227

0.7 1.3
0.7

7.2 5.6
10.5

12.0

126

139 Accum. 53,133

10

8.5

7.6

1.7

1.4

4.5

3.3

21.2

19.9

20.5

19.5

Source: Angel Research

April 25, 2012

Sterlite Industries | 4QFY2012 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 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 21,144 24,501 30,248 (14.4) 182 16.7 180 23.3 21,144 24,682 30,429 16,440 18,207 22,379 10,634 12,139 14,370 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 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) 6,877 1,132 8,050 24.3 26.6 1,030 7,020 22.6 23.1 351 2,522 27.4 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 40,967 212 41,179 35.3 31,010 18,844 10,554 1,612 10,169 26.3 24.8 1,830 8,339 18.8 20.3 852 3,163 29.7 10,650 15.9 (473) 9,872 2,111 21.4 7,761 (772) 2,161 4,828 5,225 2.7 12.7 14.4 15.5 8.5 45,805 45,805 11.2 36,085 22,170 11,992 1,924 9,720 (4.4) 21.2 2,116 7,604 (8.8) 16.6 1,066 3,893 37.3 10,431 (2.1) 10,431 2,295 22.0 8,136 (387) 2,197 5,553 5,553 6.3 12.1 16.5 16.5 6.3 49,029 49,029 7.0 37,512 23,632 11,821 2,059 11,517 18.5 23.5 2,406 9,112 19.8 18.6 1,101 4,020 33.4 12,031 15.3 12,031 2,647 22.0 9,384 (323) 2,628 6,434 6,434 15.9 13.1 19.1 19.1 15.9

April 25, 2012

Sterlite Industries | 4QFY2012 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 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 11,621 25,068 12,050 12,955 35,695 15,114 11,277 9,303 10,668 25,027 75,100 43,189 13,737 29,451 10,050 12,955 42,202 20,198 11,277 10,727 11,959 30,243 82,700 51,189 16,143 35,045 8,050 12,955 47,872 25,369 11,277 11,226 12,414 35,458 91,508 142 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 45,409 45,745 12,452 14,729 2,174 75,100 336 50,312 50,648 14,649 15,229 2,174 82,700 336 55,993 56,329 17,277 15,729 2,174 91,508 FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

April 25, 2012

10

Sterlite Industries | 4QFY2012 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 FY2009 5,816 701 1,244 (1,421) 855 5,484 (5,340) FY2010 FY2011 FY2012E FY2013E FY2014E 6,460 750 (7,316) (1,483) 1,233 (2,822) (6,898) 8,849 1,030 (315) (1,974) 1,735 5,855 (5,349) 8,964 (885) 2,563 502 (457) 1,604 6,575 3,338 9,912 9,965 1,830 (698) 2,111 8,986 (5,400) (5,400) 3,000 611 (772) 1,616 5,202 9,912 15,114 10,431 2,116 (133) 2,295 10,120 (4,500) (4,500) 500 650 (387) (537) 5,083 15,114 20,198 12,031 2,406 (43) 2,647 11,747 (6,000) (6,000) 500 753 (323) (575) 5,171 20,198 25,369

88 (4,098.3) (5,252) (10,996) 1,939 248 (1,128) 2,819 3,051 2,454 5,505 7,653 2,246 449 (2,201) 11,651 (2,167) 5,505 3,338

April 25, 2012

11

Sterlite Industries | 4QFY2012 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.) 0.0 0.1 10.1 0.1 0.7 19.6 0.0 0.1 20.0 (0.0) (0.2) 9.8 (0.1) (0.5) 7.1 (0.2) (0.9) 8.3 1.4 54 15 52 44 1.5 59 8 57 83 1.2 83 19 89 111 1.2 83 19 89 85 1.1 83 19 89 80 1.0 83 19 89 75 10.6 13.9 14.6 11.8 16.3 12.7 11.5 16.4 13.0 11.9 18.2 12.0 9.6 15.1 11.5 10.5 16.5 12.0 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 2.7 0.0 13.1 20.3 78.6 0.9 13.7 13.7 16.6 78.0 0.9 11.3 11.3 18.6 78.0 0.8 12.2 12.2 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 14.4 15.5 21.0 1.8 136.1 16.5 16.5 22.8 1.9 150.7 19.1 19.1 26.3 2.2 167.6 8.8 7.3 1.2 1.3 1.1 4.8 0.6 9.1 7.7 1.0 1.2 1.2 4.8 0.5 7.5 5.9 0.9 1.6 1.2 4.5 0.5 6.9 5.1 0.8 1.7 0.9 3.6 0.5 6.5 4.7 0.7 1.8 0.7 3.4 0.4 5.6 4.1 0.6 2.1 0.6 2.7 0.3 FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

April 25, 2012

12

Sterlite Industries | 4QFY2012 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%)

April 25, 2012

13