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Friday 28 April, 2006

Vedanta Resources

Hindustan Zinc Ltd Results

Vedanta Resources PLC
28 April 2006



                             Hindustan Zinc Limited
                                        
        Audited financial results for the Fourth Quarter and Year Ended
                                 March 31, 2006


Highlights

Hindustan Zinc Limited ('HZL') today announced that it continues its strong
growth momentum on account of increased volumes and zinc prices as it announced
its results for the fourth quarter and year ended March 31, 2006.

• Net sales for the fourth quarter and year ended March 31, 2006 
  at Rs. 1,774 crores and Rs. 3,877 crores, an increase of 142 % and 76%, respectively

• Profits Before Depreciation, Interest and Taxes for the fourth quarter 
  and year ended March 31, 2006 at Rs. 1,296 crores and Rs. 2,417 crores, 
  up by 242% and 136%, respectively

• Net Profit for the fourth quarter and year ended March 31, 2006 
  at Rs. 802 crore and Rs. 1,472 crore, an increase of 250% and 123%, respectively

• Earnings Per Share for the fourth quarter and year ended March 31, 2006 
  of Rs.18.99 and Rs. 34.85, up by 250% and 123%, respectively

• Zinc - mined metal content for the year at 472,000 tonnes was 33% higher than
  the previous year. Refined zinc production for the year was 284,000 tonnes,
  34% higher than the previous year, primarily due to additional output 
  from the new 170,000 tpa hydro smelter commissioned at Chanderiya in
  May 2005, which has produced 14,000 tonnes in the month of March 2006. Surplus
  zinc concentrate of 100,000 tonnes was exported during the fourth quarter ended
  March 31, 2006

• Zinc - mined metal content for the fourth quarter at 125,335 tonnes 
  was 26% higher than the corresponding period in the previous year.
  Refined zinc production for the fourth quarter was 91,588 tonnes, 70% higher
  than the corresponding period in the previous year

• Lead metal produced during the year was 24,000 tonnes, including 4,300 tonnes 
  from the recently commissioned 50,000 tpa Ausmelt lead plant. 
  Full ramp-up of the Ausmelt lead plant is expected to be achieved during
  the first quarter of FY 2007

• Preliminary work on the new 170,000 tpa zinc smelter at Chanderiya has commenced. 
  The plant is expected to commissioned by early 2008, taking HZL's total zinc 
  capacity to 570,000 tpa


For further information, please contact:
Sumanth Cidambi                             sumanth.cidambi@vedanta.co.in
Associate Director - Investor Relations     Tel: +44 20 7659 4732 / +91 22 5646 1531
                          
Vedanta Resources plc


About HZL
HZL is India's only integrated producer of zinc and among the world's leading
integrated producers, with an Indian domestic market share is over 70%. Its zinc
capacity is currently 400,000 tpa with smelter operations are situated primarily
in Chanderiya with additional smelting facilities in Debari, and Visakhapatnam.
HZL has zinc mines in Dariba, Rampura Agucha, Zawar. HZL recently commissioned a
50,000 tpa Ausmelt lead plant, increasing its capacity to 85,000 tpa and making
it India's sole primary producer of lead. The company is a subsidiary of Vedanta
Resources plc.



                             HINDUSTAN ZINC LIMITED
                                        
               Registered Office: Yashad Bhawan, Udaipur - 313004


HIGHLIGHTS

• Annual turnover up by 76% at 3,877 crores
• Net Profit for the year up by 123% at 1,472 crores
• Earnings per Share for the year up by 123% at Rs. 34.85
• Strong growth in production volumes on account of newly commissioned 170,000 tpa 
  zinc smelter together
• Preliminary work has commenced on the new 170,000 tpa zinc smelter at Chanderiya, 
  which is expected to be commissioned by early 2008


 AUDITED FINANCIAL RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED MARCH 31, 2006


                                                (Rs. in crore, except as stated)
-----------------------------------------------------------------------------------------------------------------------
  P A R T I C U L A R S                     Nine Months           Fourth quarter ended                 Year ended  
                                               ended                     March 31                        March 31
                                            Dec 31, 2005          2006            2005            2006            2005 
-----------------------------------------------------------------------------------------------------------------------
1. Net sales / Income from                         2,103         1,774             733           3,877           2,202
   operations                                                                      
2. Other Income                                       79            37              28             116             135
3. Total Expenditure                               1,061           515             382           1,576           1,313
   a) (Accretion) / Decretion                        (93)           50              27             (43)              9
      to stock                                                                              
   b) Mining and Manufacturing Expenses              729           245             221             974             830
   c) Mining Royalty                                 174           100              50             274             152
   d) Staff costs                                    154            52              46             206             207
   e) Administrative, selling                         97            68              38             165             115
      and other expenses                                                                    
4. Profit before depreciation and                  1,121         1,296             379           2,417           1,024
   amortisation, interest and taxation (PBDIT)                                                            
5. Interest                                           44             3               1              47               2
6. Cash Profit (PBDT)                              1,077         1,293             378           2,370           1,022
7. Depreciation and amortization                     103            38              31             141              89
8. Profit before taxation                            974         1,255             347           2,229             933
9. Provision for Taxation - Current                  258           366              99             624             229
                          - Deferred                  46            87              19             133              43
10. Net Profit                                       670           802             229           1,472             661
11. Paid up Share Capital
    (Face value Rs. 10/- each)                       423           423             423             423             423
12. Reserves excluding Revaluation Reserve                                                       3,107           1,655
13. Basic and Diluted EPS (Rs.)                    15.86         18.99            5.42           34.85           15.65
14. Aggregate of Non-promoter Shareholding                                                                      
    - Number of Shares                      14,82,16,469   14,82,16,469   14,82,16,469    14,82,16,469    14,82,16,469
    - Percentage of shareholding                   35.08          35.08          35.08           35.08           35.08
-----------------------------------------------------------------------------------------------------------------------
                                                                         

NOTES:
1) The above results were reviewed by the Audit Committee and approved at the meeting of the Board of Directors 
   held on 28 April 2006.
2) Investment in equity shares of a power company has been considered as an intangible asset. This has resulted 
   in an additional amortisation charge of Rs.4.67 crore for the year ended March 31, 2006 (2005: Rs. 4.67 crore).
3) The Company is engaged in the business of mining and smelting of zinc and lead and its operations 
   are in a single segment as defined by Accounting Standard 17 - 'Segment reporting' issued by 
   The Institute of Chartered Accountants of India.
4) During quarter ended September 30, 2005, the accounting policy relating to valuation of ore has been changed 
   from Rs. 1/- per MT to lower of cost and net realisable value. This has resulted in an increase in profit before 
   tax for the year ended March 31, 2006 by Rs. 6.87 crore. Prior year figures have been restated accordingly.
5) Investor complaints outstanding at the beginning of the quarter were nil, number of complaints received and resolved
   during the quarter ended March 31, 2006 were 26 and 26 respectively. Outstanding number of complaints at the
   end of the quarter was nil.
6) The Board of Directors have recommended a payment of dividend @ 25% i.e. Rs. 2.50 per equity share of Rs.10/- each.
7) Figures of corresponding previous period have been regrouped / rearranged to correspond with current period figures 
   wherever considered necessary.


                                                                                            By Order of the Board

Date:  28 April 2006                                                                        M S Mehta            
Place: Mumbai                                                                               CEO and Whole-time Director



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