Sesa Sterlite gains after SC approves mining in Karnataka

Sesa Sterlite rose 2.39% to Rs 206 at 9:25 IST on BSE after the Supreme Court permitted the company to resume iron ore mining at Karnataka.

Meanwhile, the BSE Sensex was up 71.92 points, or 0.34%, to 21,265.50.

On BSE, so far 1.85 lakh shares were traded in the counter, compared with an average volume of 11.33 lakh shares in the past one quarter.

The stock hit a high of Rs 208.60 and a low of Rs 205.65 so far during the day. The stock hit a 52-week high of Rs 209.35 on 3 November 2013. The stock hit a 52-week low of Rs 119.45 on 31 July 2013.

The stock had outperformed the market over the past one month till 27 December 2013, rising 15.47% compared with the Sensex's 3.79% rise. The scrip had also outperformed the market in past one quarter, rising 10.01% as against Sensex's 7.43% rise.

The large-cap company has an equity capital of Rs 296.47 crore. Face value per share is Re 1.

Sesa Sterlite announced on Saturday, 28 December 2013, that it has received permission from the Supreme Court appointed monitoring committee to resume the mining activities at its Karnataka mine. Accordingly, the company has commenced its mining operations from 28 December 2013, in accordance with stipulated conditions.

The Supreme Court of India had earlier given the clearance for resumption of mining operations for A and B category mines in Karnataka, vide its order dated 18 April 2013, the company said in a statement.

In 2011, the Supreme Court imposed a ban on iron ore mining in Karnataka after a court-appointed body found prima facie evidence of environmental degradation in the districts of Tumkur and Chitradurg.

Sesa Sterlite's consolidated net profit spurted 358.7% to Rs 2394.37crore on 8619.8% growth in net sales to Rs 25166.16 crore in Q2 September 2013 over Q2 September 2012.

Sesa Sterlite is one of the world's largest diversified natural resource companies. Its business primarily involves exploring, extracting and processing minerals and oil & gas. The company produces zinc, lead, silver, copper, aluminium, iron ore, oil & gas and commercial power and has a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka. Sesa Sterlite has a strong position in emerging markets with over 80% of its revenues from India, China, East Asia, Africa and the Middle East.

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