Sesa Goa slips after weak Q1 numbers

Sesa Goa fell 2.27% to Rs 122.65 at 9:23 IST on BSE after consolidated net profit fell 57.05% to Rs 414 crore on 78.18% fall in income from operations to Rs 378 crore in Q1 June 2013 over Q1 June 2012.

The company announced results after market hours on Monday, 29 July 2013.

Meanwhile, the S&P BSE Sensex was up 19.92 points, or 0.10%, to 19,613.20.

On BSE, 63,000 shares were traded in the counter as against an average daily volume of 1.84 lakh shares in the past one quarter.

The stock hit a high of Rs 123.50 and a low of Rs 121.40 so far during the day. The stock had hit a 52-week high of Rs 205.40 on 7 January 2013. The stock had hit a 52-week low of Rs 123.90 on 29 July 2013.

The stock had underperformed the market over the past one month till 29 July 2013, sliding 12.11% compared with the Sensex's 1.02% rise. The scrip had underperformed the market in past one quarter, falling 19.03% as against Sensex's 1.06% rise.

The large-cap company has an equity capital of Rs 86.91 crore. Face value per share is Re 1.

The sharp decline in net profit was due to suspension of iron ore operations at the company's mines in Goa and Karnataka.

Sesa Goa said its Karnataka mine has received clearance from the Supreme Court, and the company is now awaiting final statutory clearances in order to restart mining at the unit. The company expects to resume mining at Karnataka in Q2 September 2013, it said.

Regarding the suspension of mining in Goa, the date for hearing is yet to be fixed by the Supreme Court. Earlier, the Goa state government and major miners, including Sesa Goa, had filed their responses to the report submitted by the Central Empowered Committee. Separately, Sesa has filed an application to the Supreme Court for a modification or vacation of the court's existing order on the suspension of mining and restrictions on ore transportation.

The company said that exploration activities are progressing well at its Liberia iron ore project, with 91,500 meters of drilling completed till 30 June 2013 across the three deposits viz. Bomi, Bea and Mano River. The company said that the first phase of 2 million tonnes per annum is likely to be completed by December 2014, and that the company remains on track to deliver the first shipment by March 2014.

The company said proposed merger of Sterlite Industries (India) and Sesa Goa and Vedanta Group consolidation has received the approval of the High Court of Madras on 25 July 2013 and the approval of the High Court of Bombay at Goa on 3 April 2013. One of the shareholders of Sesa Goa has filed an appeal against the order passed by the High Court of Bombay at Goa before the Division Bench of the same court. The hearings before the Division Bench have been completed and the order is awaited.

Sesa is India?s leading producer and exporter of iron ore in the private sector with operations in the states of Goa and Karnataka in India and a large integrated project site in Liberia, West Africa. Founded in 1954, for about 6 decades, Sesa has been involved in iron ore exploration, mining, beneficiation and exports. Sesa is a part of Vedanta Resources plc, the London-listed FTSE 100 diversified metals and mining major. Sesa also manufactures pig iron and metallurgical coke, with a 0.56 mtpa metallurgical coke plant and a 0.625 mtpa pig iron plant in Goa, and associated two power plants of 30 MW each.

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