Companies

Sesa Goa FY13 earnings hit by mining suspension

R.Y. Narayanan Coimbatore | Updated on March 12, 2018 Published on April 29, 2013

Sesa Goa's performance in 2012-13 was hit by the mining ban in Karnataka and Goa. Earlier this month, the Supreme Court lifted the ban with respect to A and B category mines in Karnataka.

Results

According to the standalone results of SGL, the income from operations in Q4 of 2012-13 slumped to Rs 313.65 crore (Rs 2,194.15 crore). The company incurred a net loss of Rs 174.93 crore in the quarter against a net profit of Rs 648.21 crore in the same period of the previous fiscal.

For the full fiscal year, the income on a standalone basis for Sesa Goa sharply dropped to Rs 2,414.29 crore (Rs 7,051.75 crore) in 2011-12 FY. The net profit was Rs 120.77 crore (Rs 1,679.94 crore).

The EPS for the whole year was a mere Rs 1.39 compared to Rs 19.33 in the previous year.

Ban impact

The impact of the suspension of the iron ore mining could be judged by the fact that the company in the fourth quarter of last year earned just Rs 12.16 crore from iron ore compared to Rs 1,821.68 crore in the same quarter in the previous year. For the full year, iron ore fetched a revenue of Rs 1,313.21 crore (Rs 5,677.65 crore in 2011-12).

Iron ore operations

Sesa Goa said in a release that the iron ore operations were hit by the suspension of mining in Goa and Karnataka. On April 18, the Supreme Court had given the green signal for resumption of mining operations for A and B category mines in Karnataka subject to statutory clearances. Its Karnataka mines are B category. Sesa Goa was awaiting statutory clearances, including forest clearance that expired in October 2012, to resume mining there. As far as mines in Goa were concerned, the date for initial hearing is yet to be set by the Supreme Court.

With regard to the proposed Vedanta Group Consolidation and Simplification that would also pave the way for the merger of SGL and Sterlite, among others, the company said the scheme of merger had received the approval of High Court of Bombay on April 3. The hearings at the High Court of Madras were over and the order was awaited. On receipt of Court Approvals, the record date for giving effect to the proposal would be announced.

Sesa Goa announced a dividend of 10 paise per share. The share (face value Re 1) was trading at Rs 154.15, a gain of Rs 2, on the BSE about two hours into trading today.

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Published on April 29, 2013
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