Sesa Goa Q4 net down 74% at Rs 297.51 cr

Vedanta group firm Sesa Goa today reported a 74 per cent decline in consolidated net profit at Rs 297.51 crore for the fourth quarter ended March 31, 2013, as its mining operations remained closed due to bans in Goa and Karnataka.

The company managed to remain profitable in the quarter largely due to Rs 512.72 crore profit coming from its associate firm and oil major Cairn India. Sesa Goa holds 20 per cent stake in the oil major.

Otherwise, the Goa-based company would have plunged to a consolidated net loss of Rs 215.21 crore in the quarter, its balance sheet, posted on the website, showed.

A continuation of mining ban in Goa and Karnataka during the quarter played the spoilsport for the company. Due to this, the company neither produced nor sold any iron ore during the quarter, it said in a statement.

This has also led to Sesa Goa’s total income from operations declining by 90 per cent to Rs 290.87 crore during the quarter vis-a-vis Rs 2,794.37 crore of the Q4 of FY’12.

The company said that its pig iron production increased by 75 per cent during the quarter, while met coke production was up 48 per cent. Sales of pig iron and met coke had increased by 59 per cent and 28 per cent, respectively.

For the financial year ended March, 2013, the company reported a decline of 15 per cent at Rs 2,280 crore in its consolidated net profit. Its consolidated net sales also declined by 69 per cent at Rs 2,554 crore in the last fiscal.

The company had reported a net profit of Rs 2,696 crore and net sales of Rs 8,275 crore in FY’12.

“The cash profit for the full year declined to Rs 23 crore from Rs 3,235 crore in the previous year on account of suspension of iron ore operations,” Sesa Goa said.

Despite all the gloom, the company also has good news as it added more than a billion tonnes of iron ore resources at its mines in India and Liberia.

In India, it added 59 million tonnes (MT) of reserves and resources (R&R), taking the total R&R to 433 MT. In Liberia, it added 966 MT R&R during the year.

“Total reserves and resources in India as on 31 March 2013 stands at 433 MT as compared to 374 MT as on 31 March 2012, implying more than 20 years of mine life,” Sesa Goa said.

In Liberia, the company has completed 69,000 metres of drilling till March, 2013.

“The maiden reserves and resources at Liberia stand at 966 MT as on 31 March 2013. The resources pertain to part of the exploration licence areas in Liberia and a significant upside is anticipated. Drilling continues and the preliminary indications continue to be positive,” it added.