2QFY2012 Result Update | Base Metals

October 24, 2011

Sterlite Industries
Performance Highlights

BUY
CMP Target Price
2QFY11 % chg (yoy) 6,029 1,529 25.4 1,013 68.1 62.3 (87)bp 0.9 1QFY12 % chg (qoq) 9,824 2,758 28.1 1,640 3.2 (10.0) (358)bp (37.7)

`116 `154
12 months

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

2QFY12 10,134 2,482 24.5 1,022

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 38,973 1.3 196/104 799885 1 16,939 5,098 STRL.BO STLT@IN

Source: Company, Angel Research

Sterlite Industries (Sterlite) consolidated net sales for 2QFY2012 grew by 68.1% yoy. However, subdued performance from the aluminium and energy segments dragged the companys profitability. Adjusted PAT grew by 0.9% yoy to `1,022cr. Robust 2QFY2012 sales performance: For 2QFY2012, Sterlites net sales increased by 68.1% yoy to `10,134cr, slightly above our estimate of `9,726cr. Net sales growth was driven by higher zinc sales volumes as well as higher realization of zinc, lead and copper. Revenue of the copper, zinc and power segments grew by 76.5%, 66.3% and 282.3% yoy, respectively. Aluminium and power segments dent profitability: EBIT of the copper and zinc segments grew by 95.8% and 64.5% yoy, respectively. However, EBIT of the aluminium and power segments declined by 93.9% and 6.9% yoy, respectively. Aluminium cost of production at Balco increased by 22.0% yoy to US$2,133/tonne on account of increased prices of alumina and carbon. Sterlites associate, Vedanta Aluminium (VAL) reported loss of `624cr in 2QFY2012 compared to loss of `196cr in 2QFY2011. Thus, adjusted net profit increased by 0.9% yoy to `1,022cr, significantly below our estimate of `1,641cr. Outlook and valuation: Sterlite is currently trading at 3.1x and 2.3x FY2012E and FY2013E EV/EBITDA, respectively. We expect Sterlite to benefit from the expansion of zinc-lead smelting capacity during FY2012-13. Furthermore, Sterlites expansion in the silver-rich Sidearm Khurd mine should result in robust bottom-line growth. We maintain our Buy rating on the stock with an SOTP-based target price of `154.

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

1yr

3yr 94.7
122.3

(9.5) (16.0)
(31.3) (31.1)

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 9.8 1.1 12.0 11.8 1.0 3.9

FY2011 30,248 23.5 5,043 34.7 14.3 26.0 8.1 0.9 12.9 11.5 0.9 3.5

FY2012E 36,843 21.8 4,895 (2.9) 14.6 23.0 8.0 0.8 11.2 9.6 0.7 3.1

FY2013E 43,285 17.5 6,233 27.3 18.5 25.1 6.3 0.7 12.6 11.0 0.6 2.3

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

Please refer to important disclosures at the end of this report

Sterlite Industries | 2QFY2012 Result Update

Exhibit 1: 2QFY2012 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

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 24.5 356 445 597 (30) 2,248 22.2 505 22.5 1,744 998 1,022

2QFY11 6,029 2,771 46.0 574 9.5 223 3.7 988 16.4 4,555 75.6 55.4 1,529 25.4 (0) 212 578 (21) 1,874 31.1 456 24.3 1,418 1,008 1,013

% yoy 68.1 74.0 84.0 78.4 45.6 69.3 11.7 62.3

1QFY12 9,824 4,526 46.1 764 7.8 385 3.9 1,428 14.5 7,102 72.3 36.7 2,758 28.1 174

%qoq 3.2 6.5 38.3 3.1 0.8 8.6 68.6 (10.0) 104.5 6.0 (29.0) (25.1) (17.7) (27.0) (39.2) (37.8)

109.6 3.4 20.0 10.8 23.0 (1.0) 0.9

420 842 (4) 3,002 30.6 614 20.4 2,388 1,640 1,643

Exhibit 2: 2QFY2012 Actual vs. Angel estimates

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

Actual 10,134 2,482 24.5 2,248 1,022

Estimates 9,726 2,708 27.8 2,960 1,641

Variation (%) 4.2 (8.3) (335)bp (24.0) (37.7)

October 24, 2011

Sterlite Industries | 2QFY2012 Result Update

2QFY2012 result highlights

For 2QFY2012, Sterlites net sales increased by 68.1% yoy to `10,134cr, slightly above our estimate of `9,726cr. Net sales growth was driven by higher zinc sales volumes as well as higher realization of zinc, lead and copper. Revenue of the copper, zinc and power segments grew by 76.5%, 66.3% and 282.3% yoy, respectively. EBIT of the copper and zinc segments grew by 95.8% and 64.5% yoy, respectively. However, EBIT of the aluminium and power segments declined by 93.9% and 6.9% yoy, respectively. Aluminium cost of production at Balco increased by 22.0% yoy to US$2,133/tonne on account of higher prices of alumina and carbon. VAL reported loss of `624cr in 2QFY2012 compared to loss of `196cr in 2QFY2011. Thus, adjusted net profit increased by 0.9% yoy to `1,022cr in 2QFY2012, significantly below our estimate of `1,641cr.

Segmental performance
Copper segments EBIT increases by 95.8% yoy
During 2QFY2012, copper cathode production at the Tuticorin smelter increased by 28.0% yoy to 87,000 tonnes, while mined metal from the Australian mine declined by 28.5% yoy to 5,000 tonnes. Nevertheless, revenue for the copper segment increased by 58.1% yoy to `5,575cr due to higher metal prices. Copper TC/RCs increased by 11.0% yoy to USc13.00/lb. The company reported cost of production of USc(3.70)lb in 2QFY2012 compared to USc7.30/lb in 2QFY2011. Lower cost of production was mainly on account of higher operational efficiency and higher realization of by-products. Consequently, EBIT increased by 95.8% yoy to `309cr in 2QFY2012.

Exhibit 3: Copper EBIT improves by 95.8% yoy

350 300 250 200 7 6 5 4 2 1 0

(` cr)

100 50 0

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

EBIT (LHS)
Source: Company, Angel Research

EBIT margins (RHS)

October 24, 2011

2QFY12

(%)

150

Sterlite Industries | 2QFY2012 Result Update

High costs dent aluminium segments profitability

During the quarter, Balcos aluminium production declined to 60,000 tonnes (64,000 tonnes in 2QFY2011), while its revenue decreased by 4.5% yoy to `686cr. Aluminium cost of production for Balco increased by 22.0% yoy to US$2,133/tonne in 2QFY2012 mainly due to increased cost of alumina and coal. Consequently, the aluminium segments EBIT decreased by 93.9% yoy to `8cr. During the quarter, VAL reported a 21.9% yoy increase in alumina production to 228,000 tonnes. Aluminium production decreased by 8.2% yoy to 89,000 tonnes. VALs aluminium cost of production increased by 37.8% yoy to US$2,544/tonne due to higher bauxite transportation costs and lower bauxite quality. Consequently, VALs net profit stood at `(823)cr compared to `(84)cr.

Exhibit 4: Aluminium segments EBIT declined to `8cr

240 200 160 27 24 21 18 15 12 9 6 3 0

(`cr)

80 40 0

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

EBIT (LHS)
Source: Company, Angel Research

EBIT margins (RHS)

Zinc-lead EBIT grew by 64.5% yoy

For 2QFY2012, the zinc segments revenue increased by 66.3% yoy to `3,569cr on account of higher sales volume and realization. Zinc, lead and silver sales volumes grew by 5.0%, 1.6% and 12.4% yoy to 184kt, 15kt and 41,454kg, respectively. Average zinc, lead and silver realization increased by 7.4%, 14.2% and 96.6% yoy, respectively. Cost of production for zinc (excluding royalty) stood at US$847/tonne in 2QFY2012 compared to US$874/tonne in 1QFY2012, reflecting the qoq INR depreciation against the USD. EBIT grew by 64.5% yoy to `1,650cr.

October 24, 2011

2QFY12

(%)

120

Sterlite Industries | 2QFY2012 Result Update

Exhibit 5: Zinc segments EBIT grew by 64.5% yoy to `1,650cr

2,500 2,000 70 60 50 40 20 10 0

(`cr)

1,500 1,000 500 0

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

EBIT (LHS)
Source: Company, Angel Research

EBIT margins (RHS)

Sterlite optimistic on securing clearances on coal mine

Sterlite expects to get all the major clearances for its Balco coal mine by the end of FY2012 and aims to commence production by 1QFY2013. However, there could be procedural delays in getting the clearances, in our view.

Investment rationale
Zinc-lead expansion and power 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. SEL will synchronize the remaining two units of 600MW each at the Jharsuguda power plant during 3QFY2012 and 4QFY2012, respectively, the benefits of which will be witnessed in FY2013.

October 24, 2011

2QFY12

(%)

30

Sterlite Industries | 2QFY2012 Result Update

Valuation
Sterlite is currently trading at 3.1x and 2.3x FY2012E and FY2013E EV/EBITDA, respectively. 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 robust bottom-line growth. We maintain our Buy rating on the stock with an SOTP-based target price of `154.

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 3.5 3.5 4.0 5.0 1.0 1.0 11,876 3,748 1,575 67,286 3,821 1,009 100% 51% 29.5% 64.9% 100% 100% 11,876 1,912 465 43,668 3,821 1,009 35 6 1 97 11 3 154

Exhibit 7: EPS Angel forecast vs. consensus

Year (%) FY12E FY13E
Source: Angel Research

Angel forecast 14.6 18.5

Bloomberg consensus 18.7 21.6

Variation (%) (22.1) (14.2)

Exhibit 8: EV/EBITDA band

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

14x 11x 8x 5x 2x

80,000 60,000 40,000 20,000 0

Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11

Source: Bloomberg, Angel Research

October 24, 2011

Sterlite Industries | 2QFY2012 Result Update

Exhibit 9: P/E band

450 400 350 300

20x 15x 10x 5x

(`)

250 200 150 100 50 0

Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11

Source: Bloomberg, Angel Research

Exhibit 10: P/BV band

600 500 400
(`)

3.5x

2.5x

300 200 100 0 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11

1.5x

0.5x

Source: Bloomberg, Angel Research

Exhibit 11: Recommendation summary

Company Hindalco Nalco Sterlite Hindustan Zinc CMP (`) 123 61 116 121 TP (`) 184 154 139 Buy Buy Buy Reco. Mcap Upside (` cr) 23,634 38,967 51,252 49 33 15 P/E (x) 5.7 10.2 8.0 8.6 5.2 8.8 6.3 8.0 P/BV (x) 0.9 1.4 0.8 1.8 0.7 1.4 0.7 1.5 EV/EBITDA (x) 4.3 5.0 3.1 4.9 4.1 4.1 2.3 3.7 RoE (%) 16.2 13.7 11.2 23.7 15.3 15.7 12.6 20.9 RoCE (%) 10.4 13.1 9.6 22.7 10.2 15.1 11.0 20.0 (%) FY12E FY13E FY12E FY13E FY12E FY13E FY12E FY13E FY12E FY13E

- Neutral 15,605

Source: Angel Research

October 24, 2011

Sterlite Industries | 2QFY2012 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 Other EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Share in profit of Asso. 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) 181.9 16.7 180.4 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) 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 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 (56.8) 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 36,843 36,843 21.1 28,362 19,800 7,184 1,378 8,480 5.4 23.0 1,761 6,719 (4.3) 18.2 891 3,132 35.0 8,960 (2.5) 8,960 1,434 16.0 7,526 (750.0) 1,882 4,895 4,895 (3.8) 13.3 14.6 14.6 1.7 43,285 43,285 17.5 32,401 20,950 8,873 1,818 10,883 28.3 25.1 2,159 8,724 29.8 20.2 1,030 3,679 32.3 11,373 26.9 11,373 2,502 22.0 8,871 (420.0) 2,218 6,233 6,233 27.3 14.4 18.5 18.5 27.3

55.3 (297.0)

October 24, 2011

Sterlite Industries | 2QFY2012 Result Update

Balance Sheet (Consolidated)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Reserves& Surplus Shareholders Funds Share Warrants Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off 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 13,792 31,022 11,269 11,277 8,476 10,212 20,810 74,156 43,189 13,712 29,477 13,550 13,605 35,477 14,454 11,277 9,746 11,366 24,111 84,027 142 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 45,994 46,330 12,923 12,729 2,174 74,156 336 52,228 52,564 15,561 13,729 2,174 84,027 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

October 24, 2011

Sterlite Industries | 2QFY2012 Result Update

Cash Flow Statement (Consolidated)

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Less: Other income 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 Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2008 FY2009 8,468 595 (87) (1,966) 2,103 4,907 (2,984) (11,072) 8,051 464 283 (2,257) 10,489 1,340 1,113 2,454 5,816 701 1,244 (1,421) 855 5,484 (5,340) 88 1,939 248 (1,128) 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 9,912 427 1,357 9,912 11,269 271 547 11,269 11,817 8,960 1,761 (326) (2,632) 1,434 6,330 (5,400) (5,400) 1,000 573 11,373 2,159 (116) (2,638) 2,502 8,277 (8,000) (8,000) 1,000 729

(1,483) (1,974)

(6,898) (5,349)

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

October 24, 2011

10

Sterlite Industries | 2QFY2012 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 0.0 0.1 7.5 (0.0) (0.1) 8.5 1.8 71 23 29 46 1.4 54 15 52 44 1.5 59 8 57 83 1.2 83 19 89 111 1.1 83 19 89 93 1.1 83 19 89 81 27.2 31.6 27.5 10.6 13.9 14.6 11.8 16.3 12.7 11.5 16.4 13.0 9.6 14.2 11.2 11.0 16.3 12.6 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 18.2 84.0 0.7 11.1 6.1 0.0 11.2 20.2 78.0 0.8 12.1 12.1 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 14.6 14.6 19.8 1.7 137.8 18.5 18.5 25.0 2.2 156.4 7.4 6.5 1.5 1.4 0.8 2.4 0.6 9.4 7.8 1.3 1.2 0.9 3.9 0.4 9.8 8.2 1.1 1.2 1.0 3.9 0.4 8.1 6.4 0.9 1.5 0.9 3.5 0.4 8.0 5.9 0.8 1.5 0.7 3.1 0.4 6.3 4.6 0.7 1.9 0.6 2.3 0.3 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

October 24, 2011

11

Sterlite Industries | 2QFY2012 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%)

October 24, 2011

12