Sesa Sterlite will focus on free cash flows, according to analysts.

According to Motilal Oswal, the company management is emphasising on free cash generation through capex optimisation, cost cutting and better utilisation of assets.

The company's unit, Cairn India, has cut FY16 capex to $500 million from $1.2 billion.

The revised capital expenditure numbers will improve the cash flow generation for Sesa Sterlite, according to Kotak.

The Sesa Sterlite stock was trading 0.9 per cent lower on Tuesday morning.