Key performance indicators

Our Key Performance Indicators are outlined below.

Strategic Objective	Key Performance Indicator	Description	Results
Shareholder value creation	Underlying EPS	Net profit attributable to equity shareholders and is stated before special items and their attributable tax and minority interest impacts. By producing a stream of profits and EPS we will be able to pay a progressive dividend to our shareholders. EPS growth also demonstrates the management of our capital structure.	303.9 US cents per share in FY 2008 against 327.0 US cents per share in FY 2007 due to the impact of additional issue of shares by Sterlite to outside interest and change in profit tax.
	EBITDA	EBITDA is a factor of volumes, prices and cost of production. This measure is calculated by adjusting operating profit for special items plus depreciation and amortisation. Our objective is to take advantage of our low cost base and achieve the best possible margins across the Businesses.	EBITDA of $3,010.4 million in FY 2008 against $2,703.0 million in FY 2007.
	Free cash flow	This represents net cash flows before financing activities and investing activities in expansion projects and dividends pay out by Vedanta. This measure ensures that the profit generated by our assets is reflected by cash flow in order to fund the future growth and development of the Group.	Free cash flow increase to $2,216.9 million in FY 2008 against $1,504.2 million in FY 2007.
	Return on capital employed (ROCE %)	This is calculated on the basis of operating profit before special items and net of tax as a ratio of capital invested in operations as at the balance sheet date and excludes investment in project capital work in progress. The objective is to earn consistently a return (net of tax) above the weighted average cost of capital to ensure that capital is invested efficiently and this indicator measures the efficiency of our productive capital.	ROCE of 45.6% in FY 2008 against 78.5% in FY 2007. The reduction is on account of higher capital employed arising from the large investment in mining properties of Goa and commission of projects during the year.
Safety	Lost time injury frequency rate	The number of lost time injuries per million man hours worked.	LTIFR is 1.91 in 2008 against 2.51 in 2007.
Communities	Please see the narrative on page 65.	Please see the narrative on page 65.
People	Please see the narrative on page 64-65 describing the Group’s Human resources principles.	Please see the narrative on page 64-65 describing the Group’s Human resources principles.