Business Review
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Financial Review
Financial Highlights
  • Revenues up 21% to US$7.9 billion
  • EBITDA up 42% to US$2.3 billion
  • Free cash flow of US$1.8 billion, 79% EBITDA conversion
  • Investment of US$3.5 billion in growth projects
  • Strong balance sheet
    • Net debt of US$0.9 billion
    • Cash and liquid investments of US$7.2 billion
  • Dempo iron ore acquisition completed during the year
  • Purchased US$894 million of Vedanta equity and convertible bonds; and also bought US$311 million of subsidiaries' shares
  • S&P outlook revised to Stable, Crisil upgraded Sterlite rating to AA+ from AA
(in US$ million, except as stated) FY 2010 FY 2009 FY 2008  FY 2007  FY 2006
EBITDA 2,295.9 1,612.2 3,010.4  2,703.0  1,105.5
Underlying EPS (US cents per share) 199.2 108.0 303.9  327.0  130.2
Free cash flow 1,814.3 1,733.8 2,216.9  1,504.2  634.8
ROCE (excluding project capital WIP) (%) 19.9 24.4 45.6  78.5  37.9
Net (cash)/debt 947.2 200.8 (2,142.7) (432.7) 11.9

We have delivered strong financial results in this challenging year for the global economy and our industry, delivering higher volume across all of our metals, improved operational efficiency, implementing cost reduction measures and improved commodity prices. We continue to benefit from a strong balance sheet with modest net debt of US$0.9 billion and liquidity of US$7.2 billion. Strong free cash flow was generated of US$1.8 billion and US$3.5 billion was spent on expansion projects in the year. Total shareholders' funds at 31 March 2010 were US$11.4 billion, up from US$7.6 billion at 31 March 2009.

Group Operating Results
Group operating results for FY 2010 are set out below.

(in US$ million, except as stated) FY 2010  FY 2009  % change
Revenue 7,930.5  6,578.9  20.5%
EBITDA 2,295.9  1,612.2  42.4%
EBITDA margin (%) 29.0%  24.5%  –
Special items (67.3) (31.9) –
Depreciation and amortisation (563.0) (473.3) 19.0%
Operating Profit 1,665.6  1,107.0  50.5%
Net interest income 176.0  74.0  138.2%
Profit before taxation 1,841.6  1,181.0  55.9%
Income tax expense (330.4) (280.5) 17.8%
Effective tax rate (%) 17.9%  23.8%  –
Minority interest 908.9  681.1  33.4%
Minority interest (%) 60.1%  75.6%  –
Attributable profit 602.3  219.4  174.5%
Basic earnings per share (US cents per share) 219.6  76.4  187.4%
Underlying earning per share (US cents per share) 199.2  108.0  84.4%