27 February 2012
Update | Sector: Metals
Sesa Sterlite
BSE SENSEX
S&P CNX
17,446
5,281
CMP: INR204
TP: INR218
Neutral
+
Bloomberg
Equity Shares (m)
SESA IN
869.1
Sesa Goa-Sterlite merger: EPS-accretive, but value-dilutive
Vedanta Plc should have paid USD3b for exiting VAL
Sesa Goa (SESA) and Sterlite Industries (STLT) announced the merger and
acquisition of Vedanta Plc's (VED) stake in Malco and VAL (Vedanta
52-Week Range (INR)
331/149
1,6,12 Rel. Perf. (%)
-6/-10/-27
Aluminum) as part of an exercise to simplify the group structure. The new
M.Cap. (INR b)
177.3
merged entity would be called Sesa-Sterlite (SS) and have 2.96b shares where
M.Cap. (USD b)
3.6
the promoter's holding will be 58.3%.
The simplification of the group structure was overdue, but it is at the cost of
STLT and SESA shareholders because VED sells its 70.5% stake in the loss-
Y/E March
FY11 FY12E FY13E
Sales (INR b) 92
86
741
making and highly indebted VAL for a consideration of INR16b (at our target
EBITDA (INR b) 52
35
270
price of INR218 for SS, discussed later) by way of 72m shares of SS. On the
NP (INR b)
43
30
109
other hand, STLT has paid INR94b and SESA INR10b by way of cancelled inter
EPS (INR)
49
34
37
corporate deposits (ICDs) to VAL. Since VAL's outstanding debt is INR197b
EPS Gr. (%)
62
-30
8
and STLT had invested INR6.7b in equity, the total EV paid by SS is INR307b
BV/Sh (INR)
147
177
212
for acquiring 100% stake in VAL. In our view, VED should have paid USD3b (or
P/E(x)
4.2
6.0
5.6
664m shares), instead of getting 72m shares in SS valued at INR16b.
P/BV(x)
1.4
1.2
1.0
We expect STLT to get re-rated because of the removal of uncertainties
EV/Sales (x)
1.0
2.3
1.3
regarding the restructuring and introduction of a play on oil prices. Although
EV/EBITDA (x) 1.7
5.6
4.9
VAL's valuation is very disappointing, it is better than earlier situation where
RoE (%)
33
21
19
STLT was largely funding the loss-making projects, while its claim on upside
RoCE (%)
41
25
24
was only to the extent of 29.5%. Further, part of the burden of restructuring
RoIC (%)
159
115
51
would now being borne by SESA. Our target price for STLT based on exchange
ratio of 0.6x of SS is now 10% lower at INR131.
We expect SESA to get de-rated in the near-term because it now has to
Shareholding pattern (%)
Sesa Sterlite - Post merger
unexpectedly share part of the burden of VAL's restructuring. Our target
price for SESA is now 17% lower at INR218.
Promoter
Over the longer term, we expect the stock to get re-rated because a simplified
58.3
group structure would reduce the cost of capital and cash flows become
more fungible. However, cash cows (CAIR and HZ) are still listed and cash
flows are not fungible. Since the loss-making VAL has been merged with the
Others,
profitable copper smelter and iron ore business, USD200m of annual savings
41.7
are expected though reduced tax outgo and reduction in cost of capital.
According to our estimates for FY13, the merged standalone entity
(TcRc+VAL+SEL+SESA) of SS will have a gross debt of INR673b and cash
equivalents of INR61b, while the EBITDA will be INR55b.
Stock performance (1 year)
Excluding the non-fungible cash of CAIR and HZ, the group (SS) will have pro
forma debt of INR733b, cash of INR107b, while the pro forma EBITDA will be
Ses a Goa
Sens ex - Rebas ed
INR79b. Thus, the net debt to EBITDA is implied at 7.9x, which is more relevant
400
from the point of view of servicing loans indicating stress on balance sheet.
325
The transaction is EPS accretive for both SESA and STLT because of increased
250
consolidation of CAIR earnings, which has been acquired at very high
leverage. Overall, we believe that valuations are attractive for STLT/SESA
175
because the merged entity will have multi-commodity play. Though VAL's
100
and SEL's businesses are hardly generating any cash flows presently, there
remains potential of significant upsides as and when these assets turn around.
We maintain
Buy
on
STLT
and
Neutral
on
SESA.
Sanjay Jain
(SanjayJain@MotilalOswal.com);Tel:+9122 39825412
Pavas Pethia
(Pavas.Pethia@MotilalOswal.com); +9122 39825413

Sesa Sterlite
Merger will result in 3 billion shares, while promoter's holding will be 58.3%
All the entities are merging in Sesa Goa.
SESA's share holders will get 1 share of SS for every share they hold. This will
result in 869.1m shares of SS.
STLT share holder will get 0.6 shares of SS for every share they hold. This will
increase 2016.7m shares of SS.
VED is selling its 70.5% stake in VAL to SS for 72m shares. This will increase 72m
shares of SS.
Malco's share holders will be issued 79m shares, but 72m shares will be
extinguished to eliminate cross holding. This will increase a net of 7m shares of
SS.
Thus, there will a total of 2965m shares in the merged entity called Sesa-Sterlite
(SS).
Promoters holding will be 58.3% in SS.
Calculations for issue of shares
New shares Promoters shares
(million) stake(%)
(mn)
869.1
55.1
478.9
2,016.7
58.2 1,173.7
79.0
72.0
7.0
100.0
7.0
72
100.0
5.2
58.3
72.0
4.1
1,727.5
Source: Company/MOSL
Remarks
unchanged
exchange at 0.6x
Sesa's no. of shares
Sterlite's new shares
Malco's new shares
Malco's existing shares cancelled
Malco's net new shares
Vedanta plc get's new shares for VAL stake
Less: minority interest in Malco
Total no. of shares
INR1.5b valuation for
alum. and CPP assets
70.5% equity in VAL
valued at INR16b
2,964.8
Vedanta should have paid USD3b (or 664m shares) instead of getting 72m
shares for exiting VAL
VAL has been valued at INR346b (USD7b) or at EV/EBITDA of 26.8x as discussed in
following table.
We differ from management's version of valuation that the present value of future
cash flows will USD7b provided bauxite mines becomes available in 3 years.
Bauxite mine can only reduce cost of production of Alumina from USD323/ton
presently to USD175/t in an optimistic scenario, in our view. We would like to note
that Nalco's cost of production of alumina is ~USD260/ton with the help of 100%
captive bauxite mines. In our assumptions, we are factoring the efficiencies of
Vedanta operations.
As a result, the CoP of aluminum is likely to fall only to USD1723/ton vs guidance
of USD1350-1400/t.
According to our calculations, the present value of future cash flows is likely to be
only USD1.8b assuming phase 2 is completed and bauxite is available after 3 years
for 25 years. We are keeping LME assumptions at USD2400/ton.
Since the NPV of future cash flows at USD1.8b is significantly lower than the cost
of project at USD6.6b, there is value erosion of USD4.8b.
2
27 February 2012

Sesa Sterlite
VED's share in value erosion is USD3.36b. Since VED had made initial equity
investment of USD288m, VED's share in value erosion is USD3.07b or INR150.6b.
VED should have paid USD3b for exit in VAL or 664m Sesa's shares valued at INR227
(the closing price of SESA on the day of announcement) for fair treatment to all
minorities.
VAL has been valued at INR346b or EV/EBITDA of 27x
(INR Billion)
94.0
10.0
197.0
6.7
15.8
323.4
6.6
22.4
345.8
12.9
26.8
Price paid by Sesa-Sterlite
A. ICD Cancellation by Sterlite
B. ICD Cancellation by Sesa
C. Outstanding Debt tranfer
D. Initial equity contribution of Sterlite in VAL
E. Cost of acquistion of 70.5% stake from Vedanta PLC based on our TP of 218
F. Total Cost for Sesa Sterlite =(A+B+C+D+E)
Equity valuation as per transaction
G. equity valuation of 29.5% stake based on E
H. total equity value (E+G)
The implied Enterprise value: EV = (F+H)
G. FY13 VAL EBITDA
H. Implied EV/EBITDA (x)
Captive Bauxite mines can reduce CoP to USD1,723/T only
Latest CoP (As report in 3QFY12)
Cost of production of Aluminum (A)
Cost of production of Alumina
Cost reduction whenever bauxite starts
CoP of Alumina with Captive bauxite
Savings per ton of Alumina
Consumption ratio per ton of Aluminium
Savings per ton of Aluminum (B)
Resultant cost of production of Aluminum with captive bauxite (A-B)
USD/ton
2,004
323
175
148
1.9
281
1,723
Discounted value of cash flows amount to USD1.8B only
EBITDA per ton
LME assumption
Cost of production
EBITDA per ton
CapEx per ton per annum
Cash flow per ton per annum
A. Post tax per ton cash flow per annum
Annual cash flows potential with captive bauxite mine, in our view
B. Annual full production after phase 2 expansion (mtpa)
Annual cash flows generation (AxB)
DCF valuation of cash flows
Availability of bauxite after (years)
Life of the project (years) after bauxite mines starts
Discount rate (%)
NPV (USD million) of future cash flows of VAL operations
(USD/ton)
2400
1723
677
80
597
478
(USD million)
1.5
717
3
25
22
1,781
27 February 2012
3

Sesa Sterlite
VED should have paid USD 3 billion instead of getting 72m shares in Sesa
Cost of investment
Cancelation of ICD
Outstanding Debt
Initial equity investment
Total cost of project
Value of expected future cash flows
Value erosion
Vedanta Plc's share in value erosion
Vedanta Plc's initial contribution in equity
Net share of VED in impairment of assets
(USD Million)
2,122
4,019
408
6,550
1,781
4,769
3,362
288
3,074
Source: Company/MOSL
We value merged Sesa-Sterlite at INR218 (or INR182 with 20% holdco
discounts) based on FY13 earnings; Ex-non-fungible cash flows, the balance
sheet is still stressed.
Post merger, SS will hold 100% stake in Copper smelter, Zinc-international, Sterlite
Energy (SEL), VAL, CMT and iron ore businesses. SS will hold 51% stake in unlisted
Balco. SS will also hold 64.9% in Hindustan Zinc and 58.9% in Cairn India, the listed
entities.
We are extinguishing ICD of INR94b from debt of VAL. Please note that we have
never valued STLT and SESA's ICDs to VAL in cash and equivalents in SOTP because
of stress on VAL's balance sheet.
Also, USD5.9b of debt transfer from VED in exchange of 38.5% stake in CAIR will
also add to the consolidated debt.
Consolidated gross debt will be INR746b, while there will be cash and equivalents
of INR507b.
On attribute basis, the EBITDA will be INR194b, while net debt will be INR355b.
Based on SOTP, we value SS at INR218/share. If we were to apply holding company
(Holdco) discount of 20% to listed entities, the SOTP will reduce to INR182.
Although, Net debt/EBITDA is healthily at 0.8x, the ratio looks stressed if non
fungible cash flows are taken out. For standalone and unlisted wholly owned
INR million
SEL
10,248
100
10,248
7.9
80,702
66,788
4,199
62,589
6.1
18,113
6
VAL
12,881
100
12,881
6.5
83,728
-94,000
227,000
14,883
212,117
16.5
-128,389
-43
Mines Iron ore
Cairn
Consol
4,910 20,903 118,561
269,522
100
100
58.9
4,910 20,903 69,833
193,705
5.0
5.0
5.0
24,549 104,516 352,112 1,000,689
289,100
1,490 32,495 13,500
746,609
0 12,151 138,675
506,966
1,490 20,343 215,372
354,526
0.3
1.0
-1.1
0.9
23,059 84,173 136,740
646,163
2,965
8
28
46
218
23,059
8
84,173 109,392
28
37
S/A+unlisted
79,167
SESA-STLT (merged entity in FY13)
Cu TcRc Zinc-Int. Hind Zinc
Balco
EBITDA
11,357 15,012 71,794
3,856
stake (%)
100
100
64.9
51
Attributable EBITDA 11,357 15,012 46,594
1,967
EV/EBITDA x
5.0
3.5
5.0
6.5
Target EV
56,787 52,541 232,971 12,782
Acquisition debt
Gross Debt
57,610
0
4 58,622
Gross Cash
29,375 45,545 261,042
1,096
Attributable Net Debt 28,235 -45,545 -169,414 29,338
Net Debt to EBITDA
2.5
-3.0
-3.6
14.9
Attrib. Equity Value
28,552 98,086 402,385 -16,556
No. of shares
SOTP
10
33
136
-6
With 20% holding company discount
Attrib. Equity Value
28,552 98,086 321,908 -16,556
SOTP
10
33
109
-6
27 February 2012
733,105
107,249
625,856
7.9
18,113 -128,389
6
-43
538,338
182
Source: Company/MOSL
4

Sesa Sterlite
subsidiaries, the net debt/EBITDA ratio is still high at 7.9x. SS will have to depend
upon high dividend payouts from cash cows (CAIR and HZ).
Vedanta Resources
Source: Company/MOSL
Attributable EBITDA
Source: Company/MOSL
Standalone balance sheet stretched as cash cows (HZ and CAIR) cash not
fungible
Over longer term, the stock may get re-rated as a simplified group structure reduces
cost of capital and cash flows become more fungible. However, the two cash cows
(CAIR and HZ) are still listed and the cash flows are not fungible.
As per our FY13 estimates, the merged standalone entity (TcRc+VAL+SEL+SESA) of
SS will have net debt of INR607b, while EBITDA will be INR55b.
In order to service high level of debt both HZ and CAIR will need to be more
accommodating with their dividend policies. Management of CAIR has already
27 February 2012
5

Sesa Sterlite
indicated that they are going to give onetime special dividend along with starting
of regular dividend from CAIR.
Excluding the non-fungible cash of CAIR and HZ, the group (SS) will have Performa
debt of INR733b, cash and equivalents of INR107b, while the Performa EBITDA
will be INR79b. Thus, Net debt to EBITDA is implied at 7.9x, which is more relevant
from the point of view of servicing loans. The balance sheet stress still remains.
Also, around USD3b and USD2.3b of debt is maturing in FY13 and FY14 respectively.
Sterlite Industries' SOTP is cut 10% to INR131
Based on target price of INR218 for SS, the implied STLT target price works out at
INR131 per share i.e. 60% of INR218. This target price is 10% lower than our earlier
TP of INR145.
If we were to apply holding company discount of 20% to listed companies, the
SOTP for SS will be lower at and INR182 and corresponding TP for STLT will be at
INR109.
The value erosion is essentially because of VED exiting loss making and highly
indebted VAL at positive valuation. STLT now has to bear part of VED's share of
burden in VAL.
Sterlite Industries
Sterlite S/A
Stake (%)
100
Net Sales
179,786
EBITDA
11,357
Attributable EBITDA
11,357
PAT
10,272
Gross Debt
57,610
Cash and equivalents
29,375
Net Debt
28,235
Attrib. net debt
28,235
Net Worth (exl. Invest in subs)
134,499
Investment (sub + asso.)
95,575
Zinc-Int.
100
41,874
15,012
15,012
9,402
0
45,545
-45,545
-45,545
94,234
Hind Zinc
64.9
129,118
71,794
46,594
65,332
4
261,042
-261,038
-169,414
213,184
Balco
51
41,214
3,856
1,967
-1,776
58,622
1,096
57,526
29,338
20,422
SEL
100
44,000
10,248
10,248
1,811
66,788
4,199
62,589
62,589
14,782
VAL
29.5
61,552
12,881
3,800
(11,362)
321,000
14,883
306,117
90,305
27,332
Mines
100
4,910
4,910
1,282
1,490
1,490
1,490
(INR million)
Consol
93,888
74,962
149,375
-3,002
SOTP
Valuation basis
EV/EBITDA EV/EBITDA EV/EBITDA EV/EBITDA
Multiple
5.0
3.5
5.0
6.5
Target EV
56,787
52,541
358,970
25,063
Stake (%)
100
100
64.9
51
No. of shares
3,361
Promoter's share (%)
58.2
Sterlite group's EV
56,787
52,541
232,971
12,782
Sterlite group's equity value
28,552
98,086
402,385
-16,556
TP (pre merger, w/o holdco discount)
Sterlite's equity value
28,552
98,086
321,908
-16,556
TP (pre merger with 20% holdco discount)
Post merger implied TP
Reduction in TP (%)
Post merger implied TP (with 20% holdco discount)
Reduction in TP (%)
PE (x) EV/EBITDA EV/EBITDA
10
6.5
5.0
18,113
83,728
24,549
100
29.5
100.0
Consol
80,702
18,113
18,113
24,700
-65,605
-65,605
485,032
488,034
145
23,059
407,557
121
131
10
109
10
Source: Company/MOSL
6
24,549
23,059
27 February 2012

Sesa Sterlite
Sesa Goa's SOTP is cut 17% to INR218
Based on target price of INR218 for SS, the implied SESA target price works out at
INR218 i.e. same as SS. This target price is 17% lower than our earlier TP of INR263.
If we were to apply holding company discount of 20% to listed companies, the
SOTP for SS will be lower at and INR182 and corresponding TP for SESA will also be
at INR182.
The value erosion is essentially because of VED exiting loss making and highly
indebted VAL at positive valuation. SESA now has to bear part of VED's share of
burden in VAL.
Sesa Goa
Stake (%)
Net Sales
EBITDA
Attributable EBITDA
PAT
Gross Debt
Cash & equivalents
Net Debt
Attrib. net debt
Net Worth (exl. Invest in subs)
Investment (sub + asso.)
Iron ore
100
90,516
20,903
20,903
11,498
32,495
12,151
20,343
20,343
59,494
153,771
CAIRN
20
152,577
118,561
23,712
89,915
13,500
138,675
-125,175
-25,035
532,285
(INR million)
Consol
44,616
-104,832
-4,692
SOTP
Valuation basis
EV/EBITDA
Multiple
5.0
Target EV
104,516
Stake (%)
100
No. of shares
869
Promoter's share (%)
55.1
Sesa Group's EV
104,516
Sesa group's Equity value
84,173
Target Price (pre merger)
263
Sesa's equity value
84,173
TP (pre merger with holdco discount)
230
Post merger implied TP
218
Reduction in TP (%)
17
Post merger implied TP *
182
Reduction in TP (%)
21
*with 20% holdco discount
597,813
20
1,903
119,563
144,598
115,678
Source: Company/MOSL
EPS accretive for both STLT and SESA on leverage play on CAIR
The transaction is EPS accretive for both SESA and STLT because of increased
consolidation of CAIR earnings, which has been acquired at a very high leverage.
Post merger the implied EPS of STLT will increase by 37% to INR22/share while for
SESA it will increase by 8% to INR36.7/share.
Net debt to equity ratio for SESA will increase from 0.1x to 0.4x for the consolidated
entity i.e. SS. Average weighted cost of additional debt (USD5.9b) from Vedanta
Plc CAIR acquisition is low at 5.2% pa. At current exchange rate of INR49/USD, the
cost of CAIR asset transfer is at ~INR392/share which results in P/E of 7.4X FY13E.
So implied earnings return on CAIR assets is 13.4% for FY13 while cost of acquired
debt is low at 5.2%pa which is resulting in EPS accretion.
27 February 2012
7

Sesa Sterlite
Sesa-Sterlite Consolidated
Cons. Sesa-Sterlite
Net Sales
EBITDA
Interest
Depreciation
Other Income
PBT
Tax rate
PAT
Minority Interest
Adjusted PAT
EPS
Gross Debt
Gross Cash
Net Fixed Asset
Net Worth
2013E
740,638
269,522
45,177
53,743
27,329
197,932
15
168,664
59,850
108,814
36.7
728,382
275,362
550,356
627,335
Sesa Goa
Net Sales
EBITDA
2013E
90,516
20,903
Sterlite Industries 2013E
Net Sales
435,992
EBITDA
117,177
Adjusted PAT
29,481
EPS
33.9
New implied EPS
36.7
EPS accretion (8%)
8
Adjusted PAT
54,161
EPS
16.1
New implied EPS
22
37
Source: Company/MOSL
EBITDA (Attribute) split into entities
Earnings per share split into entities
Source: Company/MOSL
27 February 2012
8

Sesa Sterlite
Financials and Valuation (Sesa Sterlite)
Income Statement (Consolidated)
Y/E March
Net Sales
Change (%)
Total Expenses
EBITDA
Change (YoY %)
As % of Net Sales
Depn. & Amortization
EBIT
Net Interest
Other income
PBT
Tax
Rate (%)
PAT
Adj. PAT
Minority interests
Share in Asso.
Attrib. PAT
Change (YoY %)
FY10
58,583
18.1
27,097
31,486
53.7
53.7
745
30,741
555
4,260
34,446
8,056
23.4
26,390
26,390
99
0
26,291
32.2
FY11
92,051
57.1
39,988
52,063
65.4
56.6
964
51,099
553
5,399
55,946
13,372
23.9
42,573
42,573
0
0
42,573
61.9
FY12E
85,555
-7.1
50,479
35,076
-32.6
41.0
1,234
33,841
2,584
2,317
33,575
9,233
27.5
24,342
24,342
0
5,279
29,621
-30.4
(INR Million)
FY13E
740,638
765.7
471,116
269,522
668.4
36.4
53,743
215,779
45,177
27,329
197,932
29,268
14.8
168,664
168,664
59,850
108,814
267.4
Balance Sheet (Consolidated)
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liability
Capital Employed
Net Fixed Assets
Goodwill
Capital WIP
Investments
Curr. Assets
Inventory
Account Receivables
Cash and Bank Balance
Loans and advances
FY10
831
78,346
79,177
433
19,606
750
99,966
21,770
0
787
1
89,808
5,009
3,381
69,566
11,851
FY11
869
127,235
128,104
0
9,995
682
138,781
24,156
0
7,287
0
124,594
7,438
6,830
96,968
13,358
FY12E
869
153,297
154,166
0
32,495
682
187,343
24,922
0
15,287
135,788
30,745
8,204
7,032
12,151
3,358
19,399
14,064
5,335
11,346
0
187,343
(INR Million)
FY13E
33,331
594,004
627,335
453,311
728,382
38,991
1,848,018
550,356
253,193
345,019
411,176
431,417
69,238
42,754
275,362
44,063
144,084
83,371
60,713
287,333
943
1,848,018
Curr. Liability & Prov.
12,400
17,256
Account Payables
7,451
11,921
Provisions & Others
4,949
5,335
Net Curr. Assets
77,408
107,338
Misc Exp
0
0
Appl. of Funds
99,966
138,781
E: MOSL Estimates; FY12E pre-merger; FY13E post-merger
27 February 2012
9

Sesa Sterlite
Financials and Valuation (Sesa Sterlite)
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
Return Ratios (%)
EBITDA Margins
RoE
RoCE (pre-tax)
RoIC (pre-tax)
Working Capital Ratios
Fixed Asset Turnover (x)
Debtor (Days)
Inventory (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/EBITDA
Net Debt/Equity
FY10
30.3
31.1
91.1
3.2
FY11
49.0
50.1
147.4
3.5
FY12E
34.1
35.5
177.4
3.5
FY13E
36.7
54.8
211.6
3.5
6.7
6.6
2.2
2.2
4.0
2.7
4.2
4.1
1.4
1.0
1.7
3.0
6.0
5.7
1.2
2.3
5.6
3.0
5.6
3.7
1.0
1.3
4.9
3.0
53.7
40.8
47.3
134.0
56.6
33.2
40.7
159.3
41.0
21.0
25.4
115.4
36.4
18.9
23.9
51.4
2.1
21
31
3.0
27
29
2.6
30
35
1.0
21
34
7.2
55.4
-1.6
-0.6
7.2
92.5
-1.7
-0.7
1.6
13.1
0.6
0.1
3.0
4.8
0.8
0.4
Cash Flow Statement
Y/E March
EBITDA
Non cash expenditure (income)
(Inc)/Dec in Wkg. Cap.
Tax paid
CF from Op. Activity
FY10
31,486
0
7,641
-8,056
31,071
FY11
52,063
0
-2,347
-13,372
36,344
-37,935
0
3,779
-18,693
-52,849
9,376
-9,611
-3,559
-553
-4,347
FY12E
35,076
5,974
1,175
-9,233
32,992
-10,000
-135,788
1,622
10,000
-134,166
0
22,500
-3,559
-2,584
16,357
-84,817
96,968
12,151
(INR Million)
FY13E
269,522
-13,218
2,862
-29,268
229,899
-130,594
-695,887
19,131
-2,083
-809,434
(Inc)/Dec in FA + CWIP + Goodwill 37,754
(Pur)/Sale of Investments
-392,616
Interest & Dividend Income
2,982
Loans and advances
-37,606
CF from Inv. Activity
-389,486
Equity raised/(repaid)
Debt raised/(repaid)
Dividend (incl. tax)
Interest paid
CF from Fin. Activity
8,999
-9,611
-3,160
-555
-4,326
695,887
-12,141
-45,177
638,570
59,035
216,326
275,362
(Inc)/Dec in Cash
-362,741
-20,852
Add: Opening Balance
69,566
96,968
Closing Balance
69,566
96,968
E: MOSL Estimates; FY12E pre-merger; FY13E post-merger
27 February 2012
10

Sesa Sterlite
N O T E S
27 February 2012
11

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