Sesa Goa Limited
NSE Symbol SESAGOA
Unaudited Consolidated Results for the
Second Quarter and Six Months
Ended 30 September 2010
Highlights
Strong operating performance - record iron ore production in H1 at 9.6 million tonnes
Strong balance sheet with cash and cash equivalents of Rs.7,575 crores
Sesa Goa to acquire 20% stake in Cairn India for a consideration of c. $3 billion
o Consolidated revenues and profit after tax were Rs.918.34 crores and ` 387.90 crores respectively for Q2.
Operating Performance
During Q2, Iron ore production was stable at 3.2 million tonnes while sales increased by 25% to 2.0 million tonnes compared with the corresponding prior quarter.
Production in H1 was a record 9.6 mt, an increase of 16% over the corresponding prior period primarily due to 1.5 mt from Dempo‟s operations.
Sales in H1 were 17% higher at 7.5 million tonnes inspite of 31% lower volumes from Karnataka operations during Q2, due to a state-wide temporary export restriction imposed by the Karnataka State Government at the end of July 2010.
The lower sales from Karnataka were offset by substantially higher sales volumes from Goa despite the seasonal impact of monsoons.
During Q2, Pig iron production was stable at 70,000 tonnes and sales volumes increased 25% to 84,000 tonnes compared with the corresponding prior quarter.
Sales and production volumes of Pig Iron in H1 was stable at 138,000 tonnes and 140,000 tonnes respectively.
Financial Performance
Cash Profit (PBDT) for Q2 and H1 were Rs.426.22 crores and Rs.2,033.05 crores, an increase of 78% and 165% respectively compared with the corresponding prior periods.
The positive impact of increased iron ore spot prices and the higher sales volumes was partly offset by the increase in export levies, railway freight, royalty rates and temporary restriction of Iron ore exports from Karnataka.
Liquidity and Investment
As at 30 September 2010, the Company had cash and cash equivalents of Rs.7,575 crores (excluding inter corporate deposit of ` 1,000 crores), consisting Rs.6,157 crores in debt mutual funds and Rs. 1,418 crores in fixed deposits and cash with banks.
Cairn India Stake
The Company has proposed to acquire upto 20% of the fully paid up equity share capital of Cairn India Limited (CIL) subject to requisite approvals. For the said offer, the Company is acting as a Person in Concert with its ultimate holding company Vedanta Resources Plc ("Vedanta"), and/ or any of Vedanta's subsidiaries for acquiring majority of equity shares of CIL. Outcome of EGM
Pursuant to the resolutions passed at the Extra Ordinary General Meeting of the Shareholders held on 18th October, 2010, the Company has been authorized to increase its investment limits to an amount not exceeding ` 16,000 crores (Rupees sixteen thousand crores only); and borrowing limits to an amount not exceeding ` 15,000 crores (Rupees fifteen thousand crores only), over and above the aggregate of the paid up share capital of the Company and its free reserves i.e. reserves not set apart for any specific purpose.
Unaudited Consolidated Financial Summary
| (in ` crore, except as stated) Quarter ended 30 September | Six months ended 30 September | ||||||
| | 2010 QE Sep | 2009 QE Sep | change | HYE sep’10 | HYE sep 09 | Change | |
| Net Sales/Income from operations | 918.34 | 538.72 | 70% | 3,331.42 | 1,550.24 | 115% | |
| Cash Profit (PBDT) | 426.22 | 240.01 | 78% | 2,033.05 | 766.23 | 165% | |
| Net Profit (PAT) | 387.90 | 169.44 | 129% | 1,692.40 | 593.54 | 185% | |
| Earnings Per Share (Rs.)* Basic Diluted | 4.49 4.22 | 2.05 2.05 | 119% 106% | 19.65 19.65 | 7.27 7.27 | 170% 170% | |
| Sales | |||||||
| Iron Ore (million tonnes) | 2.019 | 1.619 | 25% | 7.461 | 6.354 | 17% | |
| Pig Iron („000 tonnes) | 84 | 67 | 25% | 138 | 138 | 0% | |
As can be seen from the figures above, the Qtrly EPS has gone up by 119% while the Half yearly EPS has gone up by 170%.
STAND ALONE FIGURES
The stand alone Q2 figures also represent a good progress YOY, as in the case of consolidated figures. Net Sales has gone up by 79.31% while Net Profits has gone up by 153.75% compared to corresponding Qtr of last year. Basic EPS has moved up by 138.95%.
| SESA GOA | 2010 SEP | 2010 JUN | Dif%1 | 2010 Mar | 2009 Dec | 2009 Sep | Dif%2 |
| Net Sales | 80375 | 189918 | -57.68 | 183401 | 153007 | 44825 | 79.31 |
| Other Opertg Income | 1065 | 1818 | -41.42 | 2473 | 1969 | 260 | 309.62 |
| Increase/decrease in SIT & WIP | -10143 | -7113 | 42.6 | -7766 | 6764 | -13644 | -25.66 |
| Raw Materials | 13882 | 13892 | -0.07 | 13276 | 13680 | 12126 | 14.48 |
| Employees Cost | 2863 | 2852 | 0.39 | 2855 | 3489 | 2320 | 23.41 |
| Depreciation | 1423 | 1427 | -0.28 | 1572 | 1583 | 1354 | 5.1 |
| Other Expenditure | 45366 | 76733 | -40.88 | 65259 | 61230 | 33621 | 34.93 |
| Total Expenditure | 53391 | 87791 | -39.18 | 75196 | 86746 | 35777 | 49.23 |
| Profit from Operations | 28049 | 103945 | -73.02 | 110678 | 68230 | 9308 | 201.34 |
| Other Income | 9233 | 15063 | -38.7 | 12192 | 12820 | 8652 | 6.72 |
| Profit B I&EI | 37282 | 119008 | -68.67 | 122870 | 81050 | 17960 | 107.58 |
| Interest | 1383 | 1357 | 1.92 | 2237 | 2479 | 166 | 733.13 |
| Profit after I BB EI | 35899 | 117651 | -69.49 | 120633 | 78571 | 17794 | 101.75 |
| Profit before tax | 35899 | 117651 | -69.49 | 120633 | 78571 | 17794 | 101.75 |
| Tax expense | 600 | 15100 | -96.03 | 24200 | 17800 | 3883 | -84.55 |
| Net Profit after tax | 35299 | 102551 | -65.58 | 96433 | 60771 | 13911 | 153.75 |
| Net Profit | 35299 | 102551 | -65.58 | 96433 | 60771 | 13911 | 153.75 |
| Face Value.Rs | 1 | 1 | 0 | 1 | 1 | 1 | 0 |
| Paid Up Equity | 8597 | 8597 | 0 | 8310 | 8205 | 8205 | 4.78 |
| Basic EPS A EI | 4.11 | 11.95 | -65.61 | 11.89 | 7.5 | 1.72 | 138.95 |
| Diluted EPS A EI | 3.84 | 11.95 | -67.87 | 11.54 | 6.82 | 1.72 | 123.26 |
| Public holding (%) | 44.27 | 44.27 | 0 | 42.97 | 42.53 | 42.88 | 3.24 |
* * * E N D * * *
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