M.S. Mehta – Chief Executive OfficerThank you, Ashwin. Good evening, ladies and gentlemen and thank you for joining us on the Sterlite’s Q1 earning call. We have had a good start to the year on operational front and have delivered excellent set of numbers. Our revenues were up to over INR10,000 crores by 8% driven by volume growth in lead, silver, at our Zinc India operations and at our copper business and commercial power. Consolidated EBITDA was 2,337 crores reflecting low metal prices and depreciated rupee in cost and realization both. And of course, underlying EPS, as you can see was INR4.2 per share. I will now briefly walk you through the segment wise performance. First coming to Zinc India, our results for the quarter have shown excellent ramp up of Sindesar Khurd mine, with 70% increase in the volume of silver and lead. Ore production at SK mine has increased by more than 1.5 times from the year ago. We expect to reach 2 million tonne capacity during the year. Very importantly on silver side, after having delivered 33% growth in the FY ‘12, we are ready to deliver about 45% growth in the current year by positioning ourselves to produce 350 tonnes. As you will have noticed, we produced 80 tonnes in this quarter. We are steadily and rapidly moving towards the 500-tonne mark as we mentioned to you before, which we believe is the silver potential corresponding to delivering capacity at Hindustan Zinc. We are on track to deliver operational performance for the year, as mentioned to you in the earlier calls, which would include some fall of volume in H1, but more than that will be made up in the second half. Hindustan Zinc, as you know, has reached mineral capacity mark and has been delivering fully exciting performance on the exploration success. We remain positive to continue delivering positive results around our brownfield exploration initiative, by adding more R&R that what we deplete. I think we have an unparalleled track record on discount in the sector. That said I wanted to let you know that Hindustan Zinc is in the final stage of its feasibility report for the next phase of growth, which it well deserves at the back of 45 years plus mine life and further potential to add R&R from our brownfield exploration initiatives.
As you are aware, we are developing underground mining operations at Rampura Agucha mine and also developing Kayar mine. During the quarter, we achieved significant progress in both these developments and we are here to deliver commercial production from both these assets from next year. As we have mentioned before, our open cast mining operation at Rampura Agucha will continue uninterrupted while underground mining development is going on and production start next year.Just to reiterate, at the back of using the best-in-class mechanization, productivity and large scale mining operations, and of course, cost-benchmarked structure, management structure, we believe that Rampura Agucha mine, underground mine operations, it should be possible for us to deliver costs lower than current operating costs. I’d like to mention one more thing regarding Hindustan Zinc, while in the today’s atmosphere, where rupee is depreciated significantly impacting business in many ways, here is one company, Hindustan Zinc, which is only deriving benefit of depreciating rupee.. It’s very good to see a company, which is getting its true value from delivering expanded capacity. Moving on to Zinc International, output at Zinc International operation was in line with our earlier stated guidance. Our commitment to continuous improvement culture has helped continuously reduce our cost. Our cost, during the quarter, reduced by 7% at ZI. Just to refresh the memory, we delivered excellent performance on the exploration front at ZI in the form of increasing mine life significantly all three assets renewed up to three years. Read the rest of this transcript for free on seekingalpha.com