Sesa Goa has reported that its net profit was down 36 per cent at Rs 841 crore during the first quarter of this fiscal compared with Rs 1,305 crore, largely lower production of iron ore. Net sales were down 13 per cent at Rs 2,109 crore (Rs 2,413 crore).
The stock was down nearly 4 per cent during the opening session but recovered smartly and is trading in the green at Rs 278.30.
The company’s sales volume was down 12 per cent at 4.3 million tonnes (4.9 million tonnes). The company produced 4.4 million tonnes of iron ore in the quarter under review. The positive impact of higher iron ore prices was more than offset by the higher export duty and logistics costs. At present, the company taps the export market through the Goa ports.
The decrease in production and sales compared to last year was primarily on account of termination of the third-party mining agreement in Orissa and logistical constraints in Goa, said Sesa Goa in a press release.
The Supreme Court has stayed export ban of the Karnataka Government on April 20. Despite the orders, permits for transportation of iron ore for exports have still not been issued, the company said.
Sesa Goa increased sales in the domestic market significantly. However, the export ban constrained full capacity utilisation in Karnataka, it added.
Pig iron sales volumes increased 7 per cent at 58,079 tonnes, while production declined 11 per cent to 62,230 tonnes. The decline in production was mainly due to the reduced availability of high grade iron ore from Karnataka, it said.