Sesa Goa - Q4FY13 Result Review - Angel Broking

For 4QFY2013, Sesa Goa (Sesa) reported disappointing results due to continuing iron ore ban in Goa. The net sales declined by 89.8% yoy to Rs. 285cr mainly on account of no iron ore sales. The Pig iron and Met coke sales however grew 59.0% and 28.0% to 95kt and 90kt respectively. Consequently the company reported an EBITDA loss of Rs. 78cr and a net loss of Rs. 215cr in 4QFY2013. Sesa reported share of income from associate (Cairn India) of Rs. 512cr during 4QFY2013. The adjusted PAT including share of profit from associate declined 74.4% yoy to Rs. 298cr.

The proposed Sesa-Sterlite merger has received the approval of the High Court of Bombay at Goa on 3 April 2013. The hearings at the High Court of Madras have been completed and the order is awaited.

We continue to value Sesa-Sterlite as a merged entity and based on its SOTP valuation maintain our Accumulate rating on the stock with a target price of Rs. 163.

Source : Equity Bulls

Keywords