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Vedanta Resources (VED)

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Thursday 25 November, 2004

Vedanta Resources

Interim Results

Vedanta Resources PLC
25 November 2004



25 November 2004

                             Vedanta Resources plc
           Interim results for the six months ended 30 September 2004

Highlights

    • Group(1) EBITDA(1) up 17% to $160 million
        -  Attributable Profit(1) up 32% to $35 million, benefiting from
           reduction in minority interests

    • $2.2 billion growth pipeline making good progress
        -  $652 million invested to date

    • Economic Interest(1) in Sterlite(1) increased to 82% from 61% at Listing(1)

    • Successful acquisition of Konkola Copper Mines in November for $48.2 million
        -  Expected to be earnings enhancing in first year

    • Further significant steps since period end
        -  $100 million invested in Vedanta Alumina(1) which will increase
           Economic Interest to 95%
        -  Announcing offer to acquire minority holdings in MALCO(1)
        -  Credit rating announced of Baa3/BB
------------------------------------------------------------------------------
                                 Interim 2005   Interim 2004   Full Year 2004
                                                   (restated)       (restated)
------------------------------------------------------------------------------
Group Turnover ($ million)              677.4          576.8          1,289.5
Group EBITDA ($ million)                160.0          136.6            322.7
Group EBITDA margin(1)                   23.6%          23.7%            25.0%
Group operating profit ($ million)      120.1          103.1            237.1
Attributable Profit ($ million)          34.9           26.4             72.3
ROCE(1) (excluding project
capital work in progress)                24.2%          17.2%            24.1%
Dividend (2) (US cents per share)         5.5              -              5.5
------------------------------------------------------------------------------

Vedanta's(1) Chief Executive Anil Agarwal commented:

'We have delivered good growth in earnings and we have completed some key
achievements in our strategy. We have already invested $652 million of our $2.2
billion capital programme and further significant progress will made in the
remainder of this financial year. The demand outlook in India for all our metals
continues to be positive and our growth projects are well placed to serve this
rising demand. Commodity prices remain firm, though this is accompanied by some
high input costs. We remain confident of delivering good progress in the second
half of the year and look forward to reporting on the development of our
projects over the coming months'.

(1)       See Glossary and Definitions
(2)       The dividend for the full year 2004 of US 5.5 cents per share was
          based on the four month period following Vedanta's Listing

For further information, please contact:

John Smelt, Head of Investor Relations             Tel: +44 20 7499 5900
Vedanta Resources plc                                   +44 7879 642 675

James Murgatroyd/Robin Walker                      Tel: +44 20 7251 3801
Finsbury

CHIEF EXECUTIVE'S STATEMENT

Operational Summary

Over the first half of the year, the Company(1) has delivered good growth in
earnings and we have completed some key achievements in our strategy. Compared
to the first half of last year, turnover has increased by 17% to $677.4 million,
EBITDA by 17% to $160.0 million and Group operating profit was up 16% to $120.1
million. This is after adverse foreign exchange movements of $11 million. The
EBITDA margin was 24%, maintaining the level of the last financial year.
Attributable Profit has risen by 32% to $34.9 million, benefiting from a
reduction in minority interests to 51%.

As covered in the production report on 11 October 2004, the commissioning of our
new projects will create a significant rise in our production capability. The
existing aluminium plants are continuing to produce at capacity, while copper
and zinc production were slightly down on last year, following the planned
shutdowns in the first quarter of this financial year.

The main positive factor has been the rise in aluminium, copper and zinc prices,
but this was offset by the tariff cuts made by the Indian Government in January
and July 2004, which have reduced turnover and EBITDA by around $30 million. We
have continued to manage our operational costs tightly, but high energy prices,
mentioned in the first quarter results, have again been present in the second
quarter and have had an impact on costs across all Group operations. These
prices show no immediate sign of weakening. Treatment and Refining Charges ('TC/
RC(1)') in the copper smelting industry have started to recover, but the full
benefit of this will not be felt until the second half of the financial year.

Our growth projects are proceeding well with $652 million invested to date. This
is from a total planned expenditure of around $2.2 billion, which gives Vedanta
a growth pipeline unrivalled in the metals and mining industry. The new smelter
at Tuticorin has been ready for some time, but we are still waiting for the
final environmental clearance. The adjoining new facilities, such as the acid
and power plants, are already in use and operating well.

The economic backdrop in India remains positive, with industrial production
increasing at an annual rate of around 8%, during the period. The new
Government, elected earlier in the year, has consistently declared its
commitment to maintaining growth and creating an attractive environment for
investment.

Changes to Structure and Sterlite rights issue

One of the most significant changes over the period has been our increased
Economic Interest in Sterlite, our principal subsidiary in India, to 82%
compared to 61% at the time of the Listing. This was principally due to the
rights issue at Sterlite. This considerable increase enhances Attributable
Profit and moves us further towards our aim of a simpler Group structure.

We are making an offer, through a wholly owned subsidiary, to all the minority
shareholders in MALCO. The board of MALCO met today to initiate the process.
This should complete in the first half of calendar year 2005 and, if successful,
will lead to the shares being delisted from the applicable stock exchanges.

In May 2004 Vedanta injected $100 million into Vedanta Alumina, which has been
used to progress the development of the project. This investment, following an
independent valuation of the assets, will increase Vedanta's Economic Interest
to 95%. Following allotment of the shares, 70.5% will be held directly by
Vedanta, through a wholly owned subsidiary, and the balance retained by
Sterlite.

We continue to look for opportunities to consolidate the Group's structure.
Earlier this year we notified the Indian Government of our interest in
exercising our option over the remaining 49% of BALCO(1) that they own. As
mentioned in our last Annual Report, the Government will then appoint an
independent valuer and we hope to report on progress by the end of this
financial year.

CHIEF EXECUTIVE'S STATEMENT (CONTINUED)

Konkola Copper Mines

Earlier this month we completed the acquisition of Konkola Copper Mines ('KCM(1)
') in Zambia for a total consideration of $48.2 million. KCM produced 97,000
tonnes of finished copper in the first half of calendar year 2004 and generated
EBITDA of $59 million. This transaction should be earnings enhancing in its
first year. We believe that there are opportunities at KCM to increase output
and reduce unit costs. There are also many options to be considered to extend
and develop in the area over the medium term. We look forward to working with
our new colleagues in developing these assets and improving KCM's
competitiveness.

Credit Rating

We are today announcing that we have received a credit rating of Baa3/BB, which
is equivalent to the Indian sovereign rating ceiling. Obtaining a rating gives
us the potential to access other areas of funding.

Debt

We are today announcing our intention to raise additional financing through the
debt markets before the end of this year. This is an important part of managing
our debt and strengthening our maturity profile to support our capital
investment programme. Over the period, $200 million of additional debt
facilities have been added at BALCO, increasing the total facilities there to
around $400 million.

The Board(1)

In July, Michael Fowle became Chairman following the resignation of Brian
Gilbertson from the Board. Very sadly, just after the end of the period, Sir
David Gore Booth died. Sir David's considerable experience and good humour was
of great value to the Board(1) and we shall miss him as a friend and colleague.

We have appointed two further independent non-executive Directors to the Board,
Aman Mehta and Dr. Shailandra Kumar Tamotia, together with Navin Agarwal as 
Deputy Chief Executive. A separate announcement regarding these appointments has
been issued.

Dividend

At this interim stage we are proposing a dividend of US 5.5 cents per share.
This equates to one third of the last year's effective dividend of US 16.5 cents
per share, as set out in the 2004 Annual Report. The Board intends to pay
interim dividends which are one third of the previous year's full payment. The
overall dividend level for the year will then be determined at the year end and
the Board remains committed to a progressive dividend policy.

Outlook

We remain focused on the delivery of our strategy, which we set out at the time
of Listing. We have already invested $652 million of our $2.2 billion capital
programme and further significant progress will made in the remainder of this
financial year. The copper expansion is ready to start production on receipt of
environmental clearance and the zinc expansion is due to be commissioned in the
first half of the next financial year, followed by the expansions at BALCO and
Vedanta Alumina in 2006 and 2007 respectively. We now also have the potential of
KCM and we are evaluating the many exciting opportunities it offers.

The reduction in minority interests will make a noticeable impact in the second
half of the year. The demand outlook in India for all our metals continues to be
positive and our growth projects are well placed to serve this rising demand.
Commodity prices remain firm, though this is accompanied by some high input
costs. We remain confident of delivering good progress in the second half of the
year and look forward to reporting on the development of our projects over the
coming months.

Anil Agarwal
Chief Executive


OPERATING AND FINANCE REVIEW

Aluminium
------------------------------------------------------------------------------
                             Interim 2005      Interim 2004     Full Year 2004
------------------------------------------------------------------------------
Turnover ($ million)                122.8             107.7              223.4
EBITDA ($ million)                   33.8              24.4               53.6
Operating profit ($ million)         24.4              16.8               35.4

Production alumina (mt(1),000's)      130               134                270
Production aluminium (mt ,000's)       66                65                129

Unit cost ($ per mt)                1,328             1,120              1,238
LME(1) price ($ per mt)             1,694             1,408              1,433
------------------------------------------------------------------------------

The facilities at BALCO and MALCO continue to produce close to capacity. With
limited ability to raise production at this stage, volume is similar to the
first half of the last financial year. We continue to extract efficiencies and
raise profitability wherever possible, but the business will see a major step
change when the new production facilities, at BALCO, are commissioned in March
2006.

EBITDA has risen by 39% to $33.8 million. The main drivers were the increase in
metals prices and improved product mix. This was partly offset by the removal of 
the Special Additional Duty, of around 5% on aluminium, by the Indian Government, 
which took place in January. As mentioned in the first quarter results, costs 
have been affected by rising energy prices and increased water costs. Overall 
unit costs have increased by 19% to $1,328 per mt.

Demand for aluminium in India remains positive, with growth of over 10%, and all
of our production is sold into the domestic market. Rolled products, on which we
earn an attractive premium, represent around 30% of the Group's total aluminium
output. Within the existing rolling facilities there is potential to further
increase this output and earn additional premium.

The expansion at BALCO and the alumina development at Orissa remain on schedule
and we believe that the facilities will be well placed given the strong growth
in the Indian market. The aluminium expansion at BALCO is also progressing well
and we are working towards testing some of the new pots in the early part of the
next financial year, using imported anodes and power.

Copper
------------------------------------------------------------------------------
                                 Interim 2005   Interim 2004   Full Year 2004
------------------------------------------------------------------------------
Turnover ($ million)                    316.8          267.7            592.8
EBITDA ($ million)                       40.5           42.2             94.1
Operating profit ($ million)             25.7           27.8             65.6

Mined metal content (mt ,000's)            20             24               56
Copper cathode production (mt ,000's)      77             93              179
Copper rod production (mt ,000's)          53             59              123

Unit cost (US cents per lb)               8.5            8.6              7.8
LME price (US cents per lb)             127.9           77.0             80.7
TC/RC (US cents per lb)                   6.6            9.2              8.8
------------------------------------------------------------------------------

Turnover rose by 18% to $316.8 million, as a result of the rise in the copper
price, though this was largely offset by the matching rise in the purchase cost
of copper concentrate. EBITDA was flat compared to the corresponding period.
Import tariffs were reduced by the Government of India in January and July, from
30% to 15%. Copper consumption in India is growing at around 10% per annum,
driven mainly by power and automobile demand. Just over half of our output is
sold into the export market.

The Australian mines, which represent around 20% of our concentrate
requirements, benefited from the rising copper price. Copper TC/RC's were
notably weaker than last year but are now improving and the benefit of this
should come through in the second half. Costs have risen as a result of energy
prices and expenses related to the planned shutdown.

As mentioned in the Production Report for the period, released on 11 October
2004, copper production was reduced in the first quarter by the planned shutdown
at Tuticorin after a 24 month production period. In the second quarter, anode
production recovered to the level of last year, but cathode production at
Silvassa reduced due to unusual flooding during the monsoon. The material will
be processed during the second half of this financial year. We continue to
emphasise the output of value added product with around 70% of the cathode being
converted to rod.

At Tuticorin there is a new smelter with annual capacity of 300,000 tonnes,
which will replace the existing smelter of 180,000 tonnes. As previously
announced, the new smelter is mechanically complete. We are waiting for final
environmental licences from the State Government and the smelter will then be
commissioned.

Zinc
------------------------------------------------------------------------------
                             Interim 2005      Interim 2004     Full Year 2004
------------------------------------------------------------------------------
Turnover ($ million)                196.0             177.4              401.1
EBITDA ($ million)                   83.8              68.6              179.3
Operating profit ($ million)         71.2              59.4              155.7

Zinc mined metal content (mt ,000's)  167               152                331
Refined metal output (mt ,000's)      104               109                221

Cost ($ per mt)                       683               568                571
LME price ($ per mt)                1,003               797                828
------------------------------------------------------------------------------

In the first quarter, as a result of the planned shutdown at the Chanderiya
smelter, production of refined metal was around 4,000 tonnes lower. In the
second quarter production recovered to the level of last year, in line with
targets. This left refined metal output at 104,000 tonnes for the half year, a
slight decline on the same period last year.

Overall there was a rise in turnover of 10%, while EBITDA has shown a more
significant increase of 22%. Prices for zinc and lead are sharply higher than
last year, but this has been partly offset by tariff reductions in January and
July, moving from 30% to 15%. There were some sales of lead and zinc concentrate
which took advantage of higher metal prices and the business further benefited
from the release of a provision previously taken regarding potential duties on
electricity.

As elsewhere, there was a sharp rise in energy costs and, particularly for zinc,
prices of met coke, which is used in production. This was responsible for a rise
in unit costs of some 20% to just under $683 per tonne.
Demand for zinc in India continues to grow in excess of 10% per annum, driven by
the increased use of galvanised steel and well ahead of global trends. The
increase in production at HZL remains on track with commissioning of the smelter
due for June next year. Most of the new mining equipment has been commissioned
and our next milestone will be commissioning the new roaster, which we
anticipate happening by the end of the financial year.


Finance review

Profits

Profit before tax rose by 21% to $112.1 million after total exceptional item
costs of $1.2 million. The operating exceptional items included Voluntary
Retirement Scheme costs of $2.6 million, incurred at HZL(1), which was double
the amount incurred at BALCO in the same period last year, but considerably
below the levels of the second half of the last financial year. Net interest
payable was $8.6 million, after taking into account foreign exchange losses of
$5 million, which reversed some of the gains recorded in the second half of the
last financial year. EPS(1) on Underlying Profit (see note 6b (i)) has increased
by 32% to US 12.3 cents.

Tax

The anticipated tax rate for the year stands at 37%, compared to 33% for the
last financial year. The rate is sensitive to the mix of profits and it includes
1% for a payment within the Sterlite Employee Welfare Trust ('SEWT(1)'), which
is unlikely to recur. The figure does not include the impact of acquiring KCM,
which due to accumulated tax losses should bring the tax rate down to a similar
level to last year. We expect the Cash Tax Rate(1) to remain unchanged at 25%.

Minority Interest & Attributable Profit

The minority interest in profit was 51%, a decline from 59% seen in the
corresponding period. It is slightly higher than the figure for the second half
of last year, due to the mix of profits. Some divisions, such as zinc, carry a
higher minority charge.

The largest change in the minority interest has came about as a result of the
$434 million rights issue held by Sterlite, which closed in late September. In
addition to our own allotment, we took up those shares not purchased by minority
shareholders. The Sterlite rights issue took effect at the end of the period and
the impact of this on reducing the minorities will be seen in the second half of
this year.

As mentioned in the Chief Executive's Statement the assets of Vedanta Alumina
will be held 70.5% directly by Vedanta, through a wholly owned subsidiary, with
an overall Economic Interest of 95%. This will not impact earnings in the short
term, as the project is not due to be commissioned until March 2007.

The minority interest figures have been restated to take account of a new
accounting policy, which is required by UITF abstract 38 'Accounting for ESOP
trusts', which affects the SEWT's holding of 3.3% of the issued share capital of
Sterlite (see note 2). This requires that, own shares held by employee trusts
are reclassified from other investments and are recorded as a reduction in
shareholders' funds. From a Group perspective the shares are effectively treated
as cancelled, which raises Vedanta's Economic Interest.

Cashflow & Balance Sheet

There was a decrease in net cash of $308.6 million leaving a net cash position
of $113.7 million at 30 September 2004. The Group's capital expenditure for the
period was $370.1 million, however, when the project extended credit (which
forms part of debt) is considered, the net cash outflow in respect of capital
expenditure was $270.2 million. Since Listing, the Group has spent $652 million,
or 30%, of the $2.2 billion earmarked for our major investment programme.

Working capital rose by $66.3 million due to increased stock levels. Stock
levels in copper were reduced ahead of the planned shutdown and have been
rebuilt over the period in anticipation of commissioning the expansion at
Tuticorin. Working capital should reduce in the second half. As mentioned in the
2004 Annual Report we are seeking to dispose of certain non core assets and are
pursuing opportunities, which we hope we will complete within the current
financial year. This will release further funds.
ROCE, one of our key performance indicators, is higher than the same period last
year, at 24.2%. This excludes project capital work in progress, comprising the
substantial funds being invested and which are not yet producing revenue.
Overall Capital Employed(1) has increased by 30% to $1.3 billion.


CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2004

                                           Note    Six months ended Six months ended      Year ended
                                                       30 September     30 September   31 March 2004
                                                               2004             2003
                                                                           (restated)      (restated)
                                                          $ million        $ million        $ million
-----------------------------------------------------------------------------------------------------
Group and share of associate's turnover                       682.5            582.9         1,300.6
Less: associate's turnover                                     (5.1)            (6.1)          (11.1)
-----------------------------------------------------------------------------------------------------
Group turnover                                3               677.4            576.8         1,289.5
Cost of sales                                                (507.5)          (440.7)         (973.9)
-----------------------------------------------------------------------------------------------------
Gross profit                                                  169.9            136.1           315.6
Selling and distribution costs                                (18.7)           (13.9)          (35.6)
Administrative expenses                                       (40.8)           (28.0)          (60.1)
-------------------------------------------------------------------------------------------------------
|Normal                                                       (38.2)           (26.7)          (46.8) |
|Exceptional                                                   (2.6)            (1.3)          (13.3) |
-------------------------------------------------------------------------------------------------------
Other operating income                                          9.7              8.9            17.2
-----------------------------------------------------------------------------------------------------
Group operating profit                         3              120.1            103.1           237.1
-------------------------------------------------------------------------------------------------------
|Operating profit before operating                                                                    |
|exceptional items                              3             122.7            104.4           250.4 |
|Operating exceptional items                    4a             (2.6)            (1.3)          (13.3)|
------------------------------------------------------------------------------------------------------|
Share of operating loss in associate                           (0.8)            (0.5)           (1.2)
Profit/(loss) on disposal of fixed assets      4b               1.4              0.9            (1.2)
----------------------------------------------------------------------------------------------------
Profit on ordinary activities before 
interest and taxation                                         120.7            103.5           234.7
Investment income                                              20.3              7.5            39.7
Interest payable and similar charges                          (28.9)           (18.2)          (41.0)
----------------------------------------------------------------------------------------------------
Profit on ordinary activities before taxation  3              112.1             92.8           233.4
Tax on profit on ordinary activities           5              (41.5)           (27.9)          (76.0)
----------------------------------------------------------------------------------------------------
Profit on ordinary activities after taxation                   70.6             64.9           157.4
Equity minority interests                                     (35.7)           (38.5)          (85.1)
----------------------------------------------------------------------------------------------------
Profit for the financial period/year                           34.9             26.4            72.3
Dividends                                      7              (15.8)               -           (15.8)
----------------------------------------------------------------------------------------------------
Retained profit for the period/year            8               19.1             26.4            56.5
----------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------
|Dividend per share (US cents/share)           7                5.5                -             5.5  |
|Earnings per share (US cents/ share)                                                                 |
|Basic earnings per share for                                                                         |
|the period/year                               6a (i)          12.2              9.2            25.3  |
|Diluted earnings per share for                                                                       |
|the period/year                               6a (ii)         11.6              9.2            24.8  |
-------------------------------------------------------------------------------------------------------

There is no material difference between the profit on ordinary activities before
taxation and the profit for the period/year stated above, and their historical
cost equivalents.

All turnover and operating profit for the period/year are derived from
continuing operations.

------------------------------------------------------------------------------------------------------
| Non-statutory information                                                                          |
| Underlying Profit ($ million)                 6b              35.2             26.5           76.2 |
|                                                                                                    |
| Earnings per share thereon: (US cents/share)                                                       |
| Basic EPS on Underlying Profit for the                                                             |
| period/year                                   6b (i)          12.3              9.3           26.6 |
| Diluted EPS on Underlying Profit for the                                                           |
| period/year                                   6b (ii)         11.7              9.3           26.2 |
------------------------------------------------------------------------------------------------------

CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2004

                                                    As at            As at             As at        
                                             30 September     30 September          31 March 
                                                     2004             2003              2004
                                                                (restated)        (restated)
                                       Note     $ million        $ million         $ million
--------------------------------------------------------------------------------------------
Fixed assets
Intangible assets                                     3.3              3.6               3.6
----------------------------------------------------------------------------------------------
|Goodwill                                            11.2             12.4              12.2 |
|Negative goodwill                                   (7.9)            (8.8)             (8.6)|
----------------------------------------------------------------------------------------------
Tangible fixed assets                             1,520.2          1,020.7           1,268.4
Investment in associate                               5.1              3.8               2.7
Other investments                                    23.5             27.4              27.5
--------------------------------------------------------------------------------------------
                                                  1,552.1          1,055.5           1,302.2
--------------------------------------------------------------------------------------------
Current assets 
Stocks                                              263.6            177.4             199.9
Debtors                                             265.3            204.9             245.5
Current asset investments                           945.8             75.0           1,188.5
Cash at bank and in hand                             25.2             91.1              52.7
--------------------------------------------------------------------------------------------
                                                  1,499.9            548.4           1,686.6
--------------------------------------------------------------------------------------------
Creditors: amounts falling due
within one year
Short-term borrowings                              (247.5)          (322.9)           (295.3)
----------------------------------------------------------------------------------------------
|Loans                                             (198.0)          (322.9)           (245.8) |
|Convertible bonds                                  (49.5)               -             (49.5) |
----------------------------------------------------------------------------------------------
Other current liabilities                          (623.2)          (316.6)           (586.5)
--------------------------------------------------------------------------------------------
                                                   (870.7)          (639.5)           (881.8)
--------------------------------------------------------------------------------------------
Net current assets/(liabilities)                    629.2            (91.1)            804.8
--------------------------------------------------------------------------------------------
Total assets less current 
liabilities                                       2,181.3            964.4           2,107.0
--------------------------------------------------------------------------------------------
Creditors: amounts falling due 
after more than one year                           (621.9)          (226.1)           (529.9)
Provisions for
liabilities and charges                            (159.5)          (153.7)           (162.9)
Equity minority interests                          (443.7)          (442.5)           (423.3)
--------------------------------------------------------------------------------------------
Net assets                                 3        956.2            142.1             990.9
============================================================================================

--------------------------------------------------------------------------------------------
Capital and reserves
--------------------------------------------------------------------------------------------
Called up equity share capital             8         28.6                -              28.6
Shares to be issued                        8            -                -                 -
Share premium account                      8         18.6                -              18.6
Merger reserve                             8          4.4                -               4.4
Other reserves                             8          8.4             37.9               8.3
Profit and loss account                    8        896.2            104.2             931.0
--------------------------------------------------------------------------------------------
Equity shareholders' funds                 8        956.2            142.1             990.9
============================================================================================


CONSOLIDATED CASH FLOW STATEMENT

                                                    Six months       Six months        Year 
                                                         ended            ended       ended
                                                  30 September     30 September     31 March 
                                                          2004             2003         2004
                                            Note     $ million        $ million    $ million
--------------------------------------------------------------------------------------------
Net cash inflow from operating activities      9          96.8            128.3        496.3
--------------------------------------------------------------------------------------------

Returns on investments and servicing of finance
Interest receivedand other income                         33.1             10.7         34.6
Interest paid                                            (31.8)           (20.7)       (42.0)
Dividend received from fixed asset investments               -              2.5          0.8
Dividend paid to minority shareholders in 
subsidiary companies                                      (1.7)            (5.5)       (10.1)
Dividend paid to shareholders                            (15.8)               -            -
--------------------------------------------------------------------------------------------
                                                         (16.2)           (13.0)       (16.7)
--------------------------------------------------------------------------------------------

Taxation                                                 (15.0)           (17.8)       (57.5)
--------------------------------------------------------------------------------------------

Capital expenditure and financial investment
Payments to acquire tangible fixed assets               (270.2)          (124.8)      (349.0)
Proceeds from the sale of fixed assets                     1.6              1.9          2.8
Purchase of fixed asset investments                       (0.2)            (3.2)        (9.2)
Proceeds from sale of fixed asset investments              0.2                -          1.8
--------------------------------------------------------------------------------------------
                                                        (268.6)          (126.1)      (353.6)
--------------------------------------------------------------------------------------------

Acquisitions
Purchase of additional shareholding in 
subsidiary companies                                      (4.4)               -       (81.1)
--------------------------------------------------------------------------------------------
                                                          (4.4)               -       (81.1)
--------------------------------------------------------------------------------------------

Cash outflow before use of liquid
resources and financing                                 (207.4)           (28.6)      (12.6)
--------------------------------------------------------------------------------------------

Management of liquid resources
Sale/(purchase) of current asset investments 10          207.1              9.8     (1,065.0)
--------------------------------------------------------------------------------------------
                                                         207.1              9.8     (1,065.0)
--------------------------------------------------------------------------------------------

Financing
Issue of ordinary shares (net of share issue expenses)       -                -        825.3
Proceeds from rights issue in subsidiary company           0.6                -            -
Repayment of share application money pending allotment 
in SOVL                                                      -                -        (26.2)
(Decrease)/increase in short term borrowings 10         (195.8)            92.1        141.7
Increase/(decrease) in long term borrowings  10          169.0            (51.2)       120.8
--------------------------------------------------------------------------------------------
                                                         (26.2)            40.9      1,061.6
--------------------------------------------------------------------------------------------

(Decrease)/increase in cash in the
period/year                                  10          (26.5)            22.1        (16.0)
--------------------------------------------------------------------------------------------

At 30 September 2004, current asset investments included $18.0 million held by
the Sterlite Employee Welfare Trust ('SEWT') (30 September 2003 and 31 March
2004 - nil).


RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET CASH/(DEBT)

--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year 
                                                         ended            ended        ended
                                                  30 September     30 September     31 March 
                                                          2004             2003         2004
                                           Note      $ million        $ million    $ million
--------------------------------------------------------------------------------------------
(Decrease)/increase in cash in the
period/year                                  10         (26.5)             22.1        (16.0)
Decrease/(increase) in debt                  10          26.8             (40.9)      (262.5)
Cash (outflow)/inflow
from management of liquid resources          10        (207.1)             (9.8)     1,065.0
--------------------------------------------------------------------------------------------
(Decrease)/increase in net cash/(debt)
resulting from cash flows                              (206.8)            (28.6)       786.5

Non-cash movement in debt                    10         (99.9)                -            -
Foreign exchange differences                 10          (1.9)            (20.0)       (33.1)
--------------------------------------------------------------------------------------------
(Decrease)/increase in net cash/(debt)
in the period/year                           10        (308.6)            (48.6)       753.4
Net cash/(debt) at the beginning of
the period/year                              10         422.3            (331.1)      (331.1)
--------------------------------------------------------------------------------------------
Net cash/(debt) at the end of the
period/year                                  10         113.7            (379.7)       422.3
--------------------------------------------------------------------------------------------

The non-cash movement in debt of $99.9 million in the six months ended 30
September 2004 relates to the re-financing of project capital work in progress
creditors.



CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

--------------------------------------------------------------------------------------------
                                                    Six months       Six months        Year 
                                                         ended            ended        ended
                                                  30 September     30 September     31 March 
                                                          2004             2003         2004
                                                                      (restated)   (restated)
                                           Note      $ million        $ million    $ million
--------------------------------------------------------------------------------------------
Profit for the financial period /year 
----------------------------------------------------------------------------------------------
|Group                                                    36.7         27.9             75.6 |
|Associated undertaking                                   (1.8)        (1.5)            (3.3)|
----------------------------------------------------------------------------------------------
                                                          34.9         26.4             72.3

(Loss)/gain on reduction of minority 
interest due to increase in interest in 
subsidiary shareholding                       8          (19.5)           -              3.1
Repayment of share application money
pending allotment in SOVL                                    -            -            (26.2)
Foreign exchange differences on
foreign currency net investments              8          (34.3)          3.4            13.8
--------------------------------------------------------------------------------------------
Total recognised (loss)/gain
relating to the period/year                              (18.9)         29.8            63.0
--------------------------------------------------------------------------------------------
Prior year adjustment                         2            4.8
--------------------------------------------------------------
Total loss recognised since
last annual report                                       (14.1)
--------------------------------------------------------------


NOTES TO THE FINANCIAL INFORMATION

1. Basis of preparation

To provide information which is meaningful to the Company's shareholders, the
Directors believe that it is necessary to prepare the accounts on the basis that
the Group, excluding the assets sold to Twin Star International Limited, had
existed throughout the eighteen month period beginning 1 April 2003. The
Directors believe that this information reflects the ongoing operations of the
Group more clearly. Vedanta Resources plc (the 'Company' or 'Vedanta') and
Vedanta Resources Holdings Limited's ('VRHL') combination with the Twin Star
Holdings Group(1) has been accounted for as a group reconstruction under the
provisions of FRS 6 ('Mergers and Acquisitions') and is presented as if the
Company and VRHL had been the holding company and intermediate holding company,
respectively, of the Twin Star Holdings Group for each period presented.

2. Accounting policies

The financial information has been prepared in accordance with generally
accepted accounting principles in the UK. The accounting policies applied in
preparing the financial information are consistent with those adopted and
disclosed in the Group's statutory accounts for the year ended 31 March 2004,
with the exception of the Group's accounting policy in respect of employee
trusts.  The Group has reviewed its accounting policy for employee trusts in
light of UITF abstract 38 'Accounting for ESOP trusts', which has been adopted
for the first time this period. As required by this abstract, own shares held by
employee trusts have been reclassified from other investments and are now
recorded as a reduction in shareholders' funds. This has the effect of
increasing the Group's Economic Interest in Sterlite Industries (India) Limited
('Sterlite') by virtue of the change in treatment for the Sterlite shares held
by the Sterlite Employee Welfare Trust ('SEWT').  This change has been accounted
for as a prior year adjustment and previously reported figures have been
restated accordingly.

The effect on the profit and loss account of adopting this policy is as follows:

------------------------------------------------------------------------------
                                                 New     Previous   Difference
                                           treatment    treatment
Six months ended 30 September 2003         $ million    $ million    $ million
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Profit after tax                                64.9         64.9            -
Equity minority interests                      (38.5)       (41.1)         2.6
------------------------------------------------------------------------------
Profit for the financial period                 26.4         23.8          2.6
Dividends                                          -            -            -
------------------------------------------------------------------------------
Retained profit for the period                  26.4         23.8          2.6
------------------------------------------------------------------------------
------------------------------------------------------------------------------
                                                 New     Previous   Difference
                                           treatment    treatment
Year ended 31 March 2004                   $ million    $ million    $ million
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Profit after tax                               157.4        157.4            -
Equity minority interests                      (85.1)       (90.8)         5.7
------------------------------------------------------------------------------
Profit for the financial year                   72.3         66.6          5.7
Dividends                                      (15.8)       (15.8)           -
------------------------------------------------------------------------------
Retained profit for the year                    56.5         50.8          5.7
------------------------------------------------------------------------------

The adoption of this policy led to an increase in the net assets of the Group of
$4.8 million at 31 March 2004 (30 September 2003 - $10.0 million, 1 April 2003 -
$8.4 million).

Certain balances within the profit and loss comparatives before Group operating
profit for the six months ended 30 September 2003 have been reclassified to
ensure a consistent presentation in the Group's Financial Statements. Where
reclassifications have occurred, these are disclosed in the relevant notes.

The financial information for the year ended 31 March 2004 has been derived from
the Group's statutory accounts for that period as filed with the Registrar of
Companies. The auditors' report on the statutory accounts for the year ended 31
March 2004 was unqualified and did not contain statements under section 237(2)
of the Companies Act 1985 (regarding adequacy of accounting records and returns)
or under section 237(3) (regarding provision of necessary information and
explanations). The financial information in respect of the six months ended 30
September 2004 is unaudited but has been reviewed by the auditors and their
report is set out on page 21. The interim financial information does not
constitute statutory accounts as defined under section 240 of the Companies Act
1985.


The currency rates used in the preparation of the financial information set out
herein are as follows:
-------------------------------------------------------------------------------------------------------------------
                                           Six months                        Six months
One US Dollar               As at 30         ended 30         As at 30         ended 30     As at 31  Year ended 31
translates to         September 2004   September 2004   September 2003   September 2003   March 2004     March 2004
-------------------------------------------------------------------------------------------------------------------
Indian Rupee (INR)            46.160           45.577           45.875           46.620       43.390         45.916
Euro (€)                       0.812            0.824            0.862            0.884        0.817          0.853
Australian Dollar (A$)         1.388            1.407            1.476            1.539        1.312          1.445
UK Pounds Sterling (£)         0.553            0.551            0.600            0.619        0.545          0.591
-------------------------------------------------------------------------------------------------------------------

3. Segmental analysis

(a) By class of business
The segmental analyses by class of business set out below include a category
called 'Other' which comprises the results and balance sheet items for the
Company, VRHL, Vedanta Alumina Limited, Sterlite Paper Limited, Monte Cello
Corporation NV, Twin Star Holdings Limited and the aluminium conductor business
of Sterlite.

Group turnover
--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year 
                                                         ended            ended        ended
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
                                                                  (reclassified)
Class of business                                    $ million        $ million    $ million
--------------------------------------------------------------------------------------------
Aluminium                                                122.8            107.7        223.4
Copper                                                   316.8            267.7        592.8
Zinc                                                     196.0            177.4        401.1
Other                                                     41.8             24.0         72.2
--------------------------------------------------------------------------------------------
                                                         677.4            576.8      1,289.5
--------------------------------------------------------------------------------------------

Group operating profit
--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year 
                                                         ended            ended        ended
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
Class of business                                    $ million        $ million    $ million
--------------------------------------------------------------------------------------------
Aluminium                                                 24.4              16.8        35.4
Copper                                                    25.7              27.8        65.6
Zinc                                                      71.2              59.4       155.7
Other                                                      1.4               0.4        (6.3)
--------------------------------------------------------------------------------------------
Group operating profit before operating 
exceptional items                                        122.7             104.4       250.4

Operating exceptional items                               (2.6)             (1.3)      (13.3)
--------------------------------------------------------------------------------------------
Group operating profit                                   120.1             103.1       237.1
----------------------------------------------------------------------------------------------
|Aluminium                                                24.4              15.5        22.1 |
|Copper                                                   25.7              27.8        65.6 |
|Zinc                                                     68.6              59.4       155.7 |
|Other                                                     1.4               0.4        (6.3)|
----------------------------------------------------------------------------------------------


Earnings before interest, tax, depreciation, goodwill amortisation and exceptional items ('EBITDA')
--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year 
                                                         ended            ended        ended
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
Class of business                                    $ million        $ million    $ million
--------------------------------------------------------------------------------------------
Aluminium                                                 33.8              24.4        53.6
Copper                                                    40.5              42.2        94.1
Zinc                                                      83.8              68.6       179.3
Other                                                      1.9               1.4        (4.3)
--------------------------------------------------------------------------------------------
Group EBITDA                                             160.0             136.6       322.7

Goodwill amortisation                                     (0.2)             (0.2)       (0.5)
Depreciation                                             (37.1)            (32.0)      (71.8)
Operating exceptional items                               (2.6)             (1.3)      (13.3)
--------------------------------------------------------------------------------------------
Group operating profit                                   120.1             103.1       237.1
--------------------------------------------------------------------------------------------

Depreciation
--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year
                                                         ended            ended        ended
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
Class of business                                    $ million        $ million    $ million
--------------------------------------------------------------------------------------------
Aluminium                                                  9.4               7.7        18.1
Copper                                                    14.7              14.3        28.5
Zinc                                                      12.6               9.2        23.6
Other                                                      0.4               0.8         1.6
--------------------------------------------------------------------------------------------
                                                          37.1              32.0        71.8
--------------------------------------------------------------------------------------------

Profit on ordinary activities before taxation
--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year
                                                         ended            ended        ended
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
Class of business                                    $ million        $ million    $ million
--------------------------------------------------------------------------------------------

Aluminium                                                 23.9              18.7        22.8
Copper                                                    13.9              16.8        37.9
Zinc                                                      74.0              60.6       163.9
Other                                                      2.1              (1.8)       12.1
--------------------------------------------------------------------------------------------
                                                         113.9              94.3       236.7

Share of loss in associate before taxation                (1.8)             (1.5)       (3.3)
--------------------------------------------------------------------------------------------
Profit on ordinary activities before taxation            112.1              92.8       233.4
--------------------------------------------------------------------------------------------


Net assets
--------------------------------------------------------------------------------------------
                                                         As at            As at        As at
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
                                                                      (restated)   (restated)
Class of business                                    $ million        $ million    $ million
--------------------------------------------------------------------------------------------
Aluminium                                                533.7             253.6       353.9
Copper                                                   209.8             296.8       160.2
Zinc                                                     454.4             344.6       391.4
Other                                                     85.0              65.7        82.8
--------------------------------------------------------------------------------------------
Net assets before net cash/(debt), goodwill
and minority interests                                 1,282.9             960.7       988.3

Goodwill                                                   3.3               3.6         3.6
Net cash/(debt)                                          113.7            (379.7)      422.3
Equity minority interests                               (443.7)           (442.5)     (423.3)
--------------------------------------------------------------------------------------------
Net assets                                               956.2             142.1       990.9
--------------------------------------------------------------------------------------------

Net cash/(debt)
--------------------------------------------------------------------------------------------
                                                         As at            As at        As at
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
Class of business                                    $ million        $ million    $ million
--------------------------------------------------------------------------------------------

Aluminium                                               (264.5)              0.7       (75.8)
Copper                                                    76.8            (387.7)     (318.0)
Zinc                                                      10.6              16.2        43.9
Other                                                    290.8              (8.9)      772.2
--------------------------------------------------------------------------------------------
                                                         113.7            (379.7)      422.3
--------------------------------------------------------------------------------------------

At 30 September 2003 and 31 March 2004, copper net debt included loans of $87.2
million and $17.3 million respectively, which were raised to purchase the zinc
business, Hindustan Zinc Limited ('HZL').

(b) By location

Net assets/(liabilities)
--------------------------------------------------------------------------------------------
                                                         As at            As at        As at
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
                                                                      (restated)   (restated)
Location                                             $ million        $ million    $ million
--------------------------------------------------------------------------------------------
Australia                                                 11.6              23.7        11.9
India                                                  1,235.6             934.1       999.7
Other                                                     35.7               2.9       (23.3)
--------------------------------------------------------------------------------------------
Net assets before net cash/(debt), goodwill
and minority interests                                 1,282.9             960.7       988.3

Goodwill                                                   3.3               3.6         3.6
Net cash/(debt)                                          113.7            (379.7)      422.3
Equity minority interests                               (443.7)           (442.5)     (423.3)
--------------------------------------------------------------------------------------------
Net assets                                               956.2             142.1       990.9
--------------------------------------------------------------------------------------------


4. Exceptional Items

(a) Operating exceptional items
--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year
                                                         ended            ended        ended
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
                                                                      (restated)   (restated)
                                                     $ million        $ million    $ million
--------------------------------------------------------------------------------------------

Restructuring and redundancies                            (2.6)           (1.3)        (13.3)
--------------------------------------------------------------------------------------------
Gross effect of operating exceptional items               (2.6)           (1.3)        (13.3)

Taxation                                                   0.9             0.4           4.8
Minority interests                                         0.9             0.5           5.4
--------------------------------------------------------------------------------------------
Net effect of operating exceptional items                 (0.8)           (0.4)         (3.1)
--------------------------------------------------------------------------------------------

During the period ended 30 September 2004, HZL incurred Voluntary Retirement
Scheme ('VRS') costs of $2.6 million (30 September 2003 - $1.3 million in
BALCO). In the year ended 31 March 2004, HZL and BALCO incurred VRS costs of
$13.3 million.


(b) Non-operating exceptional items
--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year
                                                         ended            ended        ended
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
                                                                      (restated)   (restated)
                                                     $ million        $ million    $ million
--------------------------------------------------------------------------------------------

Profit on sale of fixed asset investment                     -                -          0.6
Profit/(loss) on disposal of tangible fixed assets         1.4              0.9         (1.8)
--------------------------------------------------------------------------------------------
Gross effect of non-operating exceptional items            1.4              0.9         (1.2)

Taxation                                                  (0.5)            (0.3)         0.4
Minority interests                                        (0.4)            (0.3)           -
--------------------------------------------------------------------------------------------
Net effect of non-operating exceptional items              0.5              0.3         (0.8)
--------------------------------------------------------------------------------------------

5. Tax on profit on ordinary activities

Reconciliation of Group tax charge
--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year
                                                         ended            ended        ended
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
                                                     $ million        $ million    $ million
--------------------------------------------------------------------------------------------

Tax charge/(credit) for the period/year
UK corporation tax at 30% (31 March 2004 - 30%)              -                -          4.6
Indian corporation tax at 36.59% 
(30 September 2003 and 31 March 2004 - 35.88%)            25.4             22.2         69.6
Adjustments in respect of prior year                         -             (2.4)        (4.9)
Minimum alternate tax                                      1.5              1.2          0.7
Current tax on exceptional items                           0.5                -         (1.2)
Dividend distribution tax on overseas subsidiaries         1.4                -            -
--------------------------------------------------------------------------------------------
Total current tax                                         28.8             21.0         68.8
--------------------------------------------------------------------------------------------

Deferred tax                                              13.6              7.0         11.2
Deferred tax on exceptional items                         (0.9)            (0.1)        (4.0)
--------------------------------------------------------------------------------------------
Total deferred tax                                        12.7              6.9          7.2
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
Total tax charge                                          41.5             27.9         76.0
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
Group effective tax rate                                  37.1%            30.1%       32.6%
--------------------------------------------------------------------------------------------


6. Earnings per Ordinary Share

(a) Earnings per share on the profit for the period/year

(i) Basic earnings per share on the profit for the period/year
--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year
                                                         ended            ended        ended
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
                                                                      (restated)   (restated)
--------------------------------------------------------------------------------------------

Profit for the financial period/year ($ million)          34.9             26.4         72.3
Weighted average number of shares of the Company 
in issue (millions)                                      286.4            286.0        286.0
--------------------------------------------------------------------------------------------
Earnings per share on profit for the period/
year (US cents/share)                                     12.2              9.2         25.3
--------------------------------------------------------------------------------------------

(ii) Diluted earnings per share on the profit for the period/year
--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year
                                                         ended            ended        ended
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
                                                                      (restated)   (restated)
--------------------------------------------------------------------------------------------

Profit for the financial period/year before dilutive
adjustments ($ million)                                   34.9             26.4         72.3
Adjustment in respect of convertible bond in
Sterlite ($ million)                                      (1.4)               -         (1.3)
--------------------------------------------------------------------------------------------
Profit for the financial period/year after dilutive
adjustments ($ million)                                   33.5             26.4         71.0
--------------------------------------------------------------------------------------------
Weighted average number of shares in the Company in 
issue after dilutive adjustments (millions)              288.4            286.0        286.2
--------------------------------------------------------------------------------------------
Diluted earnings per share on profit for
the period/year (US cents/share)                          11.6              9.2         24.8
--------------------------------------------------------------------------------------------

For the purposes of the 30 September 2003 and 31 March 2004 results, the
Earnings per share ('EPS') calculation has assumed that the number of Ordinary
Shares(1) in issue immediately after Listing (being 286,000,000) had been in
issue from 1 April 2003. The Directors believe that this pro-forma EPS provides
a more meaningful comparison of the Group's ongoing business than using the
statutory EPS which would only reflect shares issued at the date of Listing.

The only other issue of shares subsequent to the Listing were 388,000 Ordinary
Shares issued pursuant to the exercise of the first tranche of awards under the
Vedanta Resources Share Reward Plan ('Reward Plan') on 26 February 2004, and the
issue of these shares has been used in determining the 30 September 2004 and 31
March 2004 weighted average number of shares.

The second tranche of awards under the Reward Plan and the outstanding awards
under the Vedanta Resources Long Term Incentive Plan ('LTIP') are reflected in
the diluted EPS figure through an increased number of weighted average shares.


(b) Earnings per share based on Underlying Profit
The Group's Underlying Profit is the profit for the financial period/year after
adding back the operating and non-operating exceptional items and their
resultant tax and minority interest effects, as shown in the table below:

--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year
                                                         ended            ended        ended
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
                                                     $ million        $ million    $ million
--------------------------------------------------------------------------------------------

Profit for the financial period/year                      34.9             26.4         72.3

Net effect of operating exceptional items (Note 4a)        0.8              0.4          3.1
Net effect of non-operating exceptional items (Note 4b)   (0.5)            (0.3)         0.8
--------------------------------------------------------------------------------------------
Underlying Profit for the period/year                     35.2             26.5         76.2
--------------------------------------------------------------------------------------------

(i) Basic earnings per share on Underlying Profit for the period/year
--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year
                                                         ended            ended        ended
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
                                                                      (restated)   (restated)
--------------------------------------------------------------------------------------------

Underlying Profit for the financial period/year 
($ million)                                               35.2             26.5         76.2
Weighted average number of shares in the company 
in issue (millions)                                      286.4            286.0        286.0
--------------------------------------------------------------------------------------------
Earnings per share on Underlying Profit for
the period/year (US cents/share)                       12.3              9.3            26.6
--------------------------------------------------------------------------------------------

(ii)                 Diluted earnings per share on Underlying Profit for the period/year

--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year
                                                         ended            ended        ended
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
                                                                      (restated)   (restated)
--------------------------------------------------------------------------------------------

Underlying Profit for the financial
period/year before dilutive adjustments ($ million)      35.2              26.5         76.2
Adjustment in respect of convertible bond in 
Sterlite ($ million)                                     (1.4)                -         (1.3)
--------------------------------------------------------------------------------------------
Underlying Profit for the financial
period/year after dilutive adjustments ($ million)       33.8              26.5         74.9
--------------------------------------------------------------------------------------------
Weighted average number of shares in the Company 
in issue after dilutive adjustments (millions)          288.4             286.0        286.2
--------------------------------------------------------------------------------------------
Diluted earnings per share on profit for
the period/year (US cents/share)                         11.7               9.3         26.2
--------------------------------------------------------------------------------------------


7. Dividend

The Directors have declared an interim dividend of US 5.5 cents per ordinary
share (30 September 2003 - nil, 31 March 2004 - final dividend of US 5.5 cents
per share) equating to a total interim dividend of $15.8 million (30 September
2003 - nil, 31 March 2004 - $15.8 million).

8. Consolidated reconciliation of movement in equity shareholders' funds
--------------------------------------------------------------------------------------------------------------
                 Share capital   Share premium   Merger reserve   Other reserves   Profit and loss       Total
                                       account                                             account
                     $ million       $ million        $ million        $ million         $ million   $ million
--------------------------------------------------------------------------------------------------------------
Equity shareholders'
funds at 1 April 2004
(per annual report)       28.6            18.6             4.4               8.3             926.2       986.1
Prior year adjustment
(note 2)                     -               -               -                 -               4.8         4.8
--------------------------------------------------------------------------------------------------------------
Equity shareholders'
funds at 1 April 2004
(restated)                28.6            18.6             4.4               8.3             931.0       990.9
Retained profit for  
the period                   -               -               -                 -              19.1        19.1
Loss on reduction of
minority interest due
to increase in
interest in subsidiary
shareholding                 -               -               -                 -             (19.5)      (19.5)
Foreign exchange
differences                  -               -               -               0.1             (34.4)      (34.3)
--------------------------------------------------------------------------------------------------------------
Equity shareholders'
funds at 30
September 2004            28.6            18.6             4.4               8.4             896.2       956.2
--------------------------------------------------------------------------------------------------------------

9. Reconciliation of operating profit from to net cash inflow from operating activities

--------------------------------------------------------------------------------------------
                                                    Six months       Six months         Year
                                                         ended            ended        ended
                                                  30 September     30 September     31 March
                                                          2004             2003         2004
                                                     $ million        $ million    $ million
--------------------------------------------------------------------------------------------

Operating profit                                         120.1             103.1       237.1
Depreciation                                              37.1              32.0        71.8
Goodwill amortisation                                      0.2               0.2         0.5
Increase in stocks                                       (79.6)             (0.9)      (16.1)
Increase in debtors                                      (38.2)            (35.8)      (77.2)
Increase in creditors                                     51.5              33.4       263.1
Increase/(decrease) in other long term    creditors        5.5              (0.6)       (6.6)
Other non cash items                                       0.2              (3.1)       23.7
--------------------------------------------------------------------------------------------
Net cash inflow from operating activities                 96.8             128.3       496.3
--------------------------------------------------------------------------------------------

Net cash inflow from operating activities is stated after cash outflows relating
to operating exceptional items of $2.6 million in the six months ended 30
September 2004 (30 September 2003 - $1.3 million, 31 March 2004 - $13.3
million).


10. Analysis of net cash/(debt)
----------------------------------------------------------------------------------------------
                          At 1 April     Cash flow         Other        Foreign          At 30 
                                2004                    non-cash       exchange      September
                                                         changes    differences           2004
                           $ million     $ million     $ million      $ million      $ million
----------------------------------------------------------------------------------------------

Cash at bank and in hand        52.7        (26.5)             -           (1.0)          25.2
Debt due within one year      (295.3)       195.8         (165.3)          17.3         (247.5)
Debt due beyond one year      (523.6)      (169.0)          65.4           17.4         (609.8)
----------------------------------------------------------------------------------------------
                              (766.2)         0.3          (99.9)          33.7         (832.1)
----------------------------------------------------------------------------------------------

Current asset investments    1,188.5       (207.1)             -          (35.6)         945.8
----------------------------------------------------------------------------------------------
Net cash/(debt)                422.3       (206.8)         (99.9)          (1.9)         113.7
----------------------------------------------------------------------------------------------

INDEPENDENT REVIEW REPORT TO VEDANTA RESOURCES PLC

Introduction

We have been instructed by the Company to review the financial information for
the six months ended 30 September 2004 which comprises the consolidated profit
and loss account, the consolidated balance sheet, the consolidated cash flow
statement, the consolidated reconciliation of movement in equity shareholders'
funds and consolidated statement of total recognised gains and losses together
with the related notes 1 to 10. We have read the other information contained in
the interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.

This report is made solely to the Company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the Company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the Company, for our review work, for this report, or for the conclusions we
have formed.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
polices and presentation applied to the interim figures are consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of Group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom auditing standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2004.



Deloitte & Touche LLP
Chartered Accountants
London
United Kingdom

24 November 2004



NOTICE OF INTERIM DIVIDEND


Notice is hereby given that an interim dividend on the Company's Ordinary Share
Capital in respect of the year to 31 March 2005 will be payable as follows:

-----------------------------------------------------------------------------------------
Amount                                                    US 5.5 cents per Ordinary Share
-----------------------------------------------------------------------------------------
Currency conversion date                                                 24 November 2004
-----------------------------------------------------------------------------------------
Ex-dividend on the London Stock Exchange from the              Wednesday 15 December 2004
commencement of trading on                                               
-----------------------------------------------------------------------------------------
Record date                                                       Friday 17 December 2004
-----------------------------------------------------------------------------------------
Dividend warrants posted                                         Thursday 13 January 2005
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Payment date of dividend                                           Friday 14 January 2005
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Shareholders may elect to be paid their dividends in UK Pounds Sterling provided the UK 
Registrar receives such election by Friday 31 December 2004.  The equivalent of the 
dividend in UK Pounds Sterling will be 3.0 pence per ordinary share based on an exchange 
rate of $1 = £0.537

By order of the Board


Matthew Hird
Company Secretary

24 November 2004

GLOSSARY AND DEFINITIONS

Attributable Profit - Profit for the financial period/year before dividends to 
the shareholders of Vedanta Resources plc

BALCO - Bharat Aluminium Company Limited, a company incorporated in India

Board - The board of Directors of the Company

Capital Employed - Net assets before net cash/(debt) and equity minority interests

Cash Tax Rate -Current taxation as a percentage of profit before taxation

Company or Vedanta - Vedanta Resources plc

Directors - The directors of the Company

Dollar or $ - United States Dollars, the currency of the United States of America

EBITDA - Profit before interest, taxation, depreciation, goodwill amortisation
and exceptional items (see note 3)

EBITDA Margin - EBITDA as a percentage of turnover

Effective Holding and Economic Interest - The Group's Economic Interest in
operating companies is different to its Effective Holdings as a consequence of
the Sterlite shares owned by the SEWT. The Effective Holdings are derived by
combining the Group's direct and indirect shareholdings in the operating
companies. The SEWT is treated as an ESOP trust and its shares held in Sterlite
are recorded as a reduction in shareholders' funds, and are treated as if the
shares were cancelled. This has the effect of the Group's Economic Interest
being higher compared to its Effective Holdings. The Group's Economic Interest
is the basis on which the Attributable Profit and net assets are determined in
the consolidated accounts.

EPS - Earnings per share

Free Cash Flow - Cash flow arising from EBITDA after net interest, taxation,
sustaining capital expenditure and working capital movements

Gearing - Net debt as a percentage of Capital Employed

GoI - The Government of the Republic of India

Group - The Company and its subsidiary undertakings and, where appropriate, its
associated undertaking

GRZ - The Government of the Republic of Zambia

HZL - Hindustan Zinc Limited, a company incorporated in India

KCM - Konkola Copper Mines PLC, a company incorporated in Zambia

Listing - The listing of the Company's Ordinary Shares on the London Stock
Exchange on 10 December 2003

Listing Particulars - The listing particulars dated 5 December 2003 issued by
the Company in connection with its Listing

LME - The London Metal Exchange

MALCO - Madras Aluminium Company Limited, a company incorporated in India

mt - Metric tonnes

MW - Megawatts of electrical power

Ordinary Shares - Ordinary Shares of 10 US cents each in the Company

Return on Capital Employed or ROCE - Profit before interest, taxation, operating
and non-operating exceptional items, tax effected at the Group's effective tax
rate as a percentage of Capital Employed (excluding project capital work in
progress)

Reward Plan - The Vedanta Resources Share Reward Plan

SEWT - The Sterlite Employee Welfare Trust, a long term investment plan for
Sterlite senior management

SOVL - Sterlite Opportunities and Ventures Limited, a company incorporated in
India

Sterlite - Sterlite Industries (India) Limited, a company incorporated in India

TC/RC - Treatment charge/refining charge being the terms used to set the
smelting and refining costs

tpa - Metric tonnes per annum

Twin Star Holdings Group - Twin Star Holdings Limited, a company incorporated in
Mauritius and its subsidiaries and associated undertaking

Underlying Profit - Profit for the period/year after adding back operating and
non-operating exceptional items and their resultant tax and minority interest
effects (see note 6)

Vedanta or Company - Vedanta Resources plc

Vedanta Alumina - Vedanta Alumina Limited, a company incorporated in India

VRHL - Vedanta Resources Holdings Limited, a company incorporated in the United
Kingdom

                                     -ends-






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