SLT Sterlite Ind.I. Adr/4 IR1

Hindustan Zinc Limited (“HZL” or the “Company”) today announced its unaudited results for the fourth quarter (“Q4”) and Full Year ended 31 March 2013 (“FY 2013”).

Highlights

Operational Performance -

• Record mined metal production - up by 16% and 5% in Q4 and FY 2013
• Record integrated Silver production - up by 20% and 36% in Q4 and FY 2013

Financial Performance -

• PAT up 53% in Q4 to Rs 2,166 Crore; and up 25% in FY 2013 to Rs 6,899 Crore

Reserves and Resources -

• Total R&R of 348.3 million tonnes on gross addition of 24.6 million MT against depletion of 8.6 million MT

Dividend -

• Final dividend of 75%, taking the total dividend for the year to 155%, the highest ever

Mr. Agnivesh Agarwal (Chairman, Hindustan Zinc) – “Our record performance has set the tone for future. We are now focusing on our next phase of growth, which will reinforce our global leadership and maintain our low-cost positioning.”

Financial Summary

(In Rs Crore, except as stated)

*financial and production numbers are rounded-off;

      Q4     Q3     FY Particulars     2013     2012     Change     2013     2013     2012     Change                                             Net Sales/Income from Operations                                           Zinc1     2,655     2,122     25%     1,975     8,289     8,265     0% Lead     443     415     7%     371     1,497     1,141     31% Silver     611     409     49%     645     2,093     1,232     70% Others     141     148     -5%     149     647     617     5% Total     3,850     3,094     24%     3,140     12,526     11,255     11%                                             EBITDA     2,127     1,649     29%     1,506     6,547     6,115     7% Profit After Taxes     2,166     1,413     53%     1,613     6,899     5,526     25% Earnings per Share (Rs)     5.13     3.34     53%     3.82     16.33     13.08     25%                                             Mined Metal Production ('000 MT)     260     223     16%     233     870     830     5% Refined Metal Production ('000 MT)                                           Total Refined Zinc     182     190     -4%     171     677     759     -11% - Refined Zinc – Integrated     181     189     -4%     168     660     752     -12% Total Refined Lead2     35     37     -6%     32     125     99     26% - Refined Lead – Integrated     32     31     2%     22     107     89     20% Total Refined Silver3 (in MT)     117     88     33%     117     408     242     69% - Refined Silver – Integrated     100     83     20%     62     322     237     36% Wind Power (in million units)     79     80     -1%     62     511     336     52%                                             Zinc CoP without Royalty (Rs / MT)     44,901     41,693     8%     44,926     45,461     40,003     14% Zinc CoP without Royalty ( $ / MT)     829     828     0%     829     835     834     0%                                             Zinc LME ($ / MT)     2,033     2,025     0%     1,947     1,948     2,098     -7% Lead LME ($ / MT)     2,301     2,093     10%     2,199     2,113     2,269     -7% Silver LBMA ($ / oz.)     30.1     32.6     -8%     32.7     30.5     35.3     -14% USD-INR     54.2     50.3     8%     54.1     54.5     48.0     14%

(1) Including Zinc MIC sale of 61kt and 61kt in Q4 and full-year, as compared with nil in corresponding prior periods, respectively.

(2) Including captive consumption of 1,777 tonnes and 6,500 tonnes in Q4 and full-year, as compared with 2,156 tonnes and 6,625 tonnes in corresponding prior periods, respectively.

(3) Including captive consumption of 9,226 Kgs and 33,832 Kgs in Q4 and full-year, as compared with 11,345 Kgs and 34,917 Kgs in corresponding prior periods, respectively.

Operational Performance

Mined metal production was 260kt in Q4 and 870kt in FY 2012-13, as compared with 223kt and 830kt in the corresponding prior periods. This was in line with our mine plan.

In line with the mined metal production trend during the year, integrated production of refined Zinc was up 8% sequentially to 181kt in Q4. However, integrated production of refined Zinc was down 4% in Q4 and 12% in FY 2012-13 from a year ago. The y-o-y decline in Zinc metal production was mainly on account of lower MIC production in the first half in comparison to that in second half. The surplus MIC was sold during the quarter.

Integrated production of refined Lead was 32kt in Q4 and 107kt in the full year, up 2% and 20% respectively from corresponding prior periods. Integrated refined Silver production was 100 tonnes in Q4 and 322 tonnes in the full year, up 20% and 36% respectively, driven by higher contribution from SK mine and Dariba Lead smelter.

Financial Performance

Revenues for Q4 FY 2012 were up 24% to Rs. 3850 Crore, compared with the corresponding prior quarter. The increase was driven by higher sales volume including Zinc MIC sales of 61kt and INR depreciation. Net profit for the quarter was up by 53% to Rs. 2,166 Crore driven by higher sales.

Revenues for FY 2013 were Rs. 12,526 Crore, an increase of 11%, compared to last year’s performance. The increase was primarily on account of increased Silver sales and INR depreciation, partially offset by lower metal prices and Zinc volume. The Company achieved record net profits of Rs. 6,899 Crore in FY 2013, up 25%, benefiting from higher sales and other income, partially offset by higher operating costs.

The Zinc metal cost, without royalty, during the quarter was Rs. 44,900 per MT ($829), 8% higher in INR and flat in USD terms from a year ago. The cost for FY 2013 was higher by 14% in INR and flat in USD term at Rs. 45,500 per MT ($835), compared with the previous year. The increase was due to higher strip ratio at Rampura Agucha and lower acid credits, partially offset by lower power costs.

Dividend

HZL’s Board of Directors has recommended a final dividend of 75% i.e. Rs. 1.50 per share on equity share of Rs 2.00 each. The total dividend for FY 2013 is 155% i.e. Rs. 3.10, against FY 2012 dividend of 120% and is the highest ever dividend proposed by the company. The FY 2013 payout ratio is 22% as compared to 21% in FY 2012, inclusive of dividend distribution tax.

Expansion projects

During the year, we announced our next phase of growth plan, which will increase our mined metal production capacity to 1.2 mtpa. Rampura Agucha underground mine and Kayad mine produced development ore in the second half of FY 2013 and will start commercial production in FY 2014.

Reserves and Resources

In FY 2013, there was a gross addition of 24.6 million tonnes to reserves and resources, prior to a depletion of 8.6 million tonnes. Total reserves and resources at 31 March 2013 were 348.3 million tonnes containing 35.1 million tonnes of zinc-lead metal and 910 million ounces of silver. Our mine life continues to be 25+ years.

Outlook

Mined metal production in FY 2014 is projected to increase by 15% to 1.0 mtpa. Integrated saleable Silver production is projected to be about 360 tonnes in FY 2014.

Liquidity and investment

The Company follows conservative Investment Policy and invests in high quality Debt instruments in Mutual Fund and Fixed Deposit with Bank. As on 31 March 2013, the Company had cash and cash equivalents of Rs. 21,479 Crore, out of which Rs. 12,276 Crore was invested in debt mutual funds, Rs. 2,151 Crore in bonds, Rs 6,893 Crore were in fixed deposits with Banks and Rs 159 Crore in others.

For further information, please contact:

HZL Investor Relationshzl.ir@vedanta.co.in+91 22 6646 1531

About Hindustan Zinc

HZL is the world’s largest integrated producer of Zinc-Lead. It has a metal production capacity of 1,064,000 tonnes per annum with its smelter operations situated in Chanderiya, Debari, Dariba and Visakhapatnam. HZL has Lead-Zinc mines in Rampura Agucha, Sindesar Khurd, Rajpura Dariba and Zawar. HZL has over 6,500 employees. The Company is a subsidiary of the NYSE listed, Sterlite Industries (India) Limited (NYSE: SLT) and London listed FTSE 100 diversified metals and mining major, Vedanta Resources plc.

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 behavior 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.