http://www.thehindubusinessline.com/2008/04/30/stories/2008043051650200.htm
Sesa Goa Q4 net soars on higher ore price, volumes Proposes bonus in the ratio of 1:1, stock split Our Bureau Mumbai, April 29 Nearly a doubling of iron ore prices in the last one year, coupled with higher production and sales, helped Sesa Goa Ltd (SGL) more than treble its standalone net profit for the quarter ended March 31, 2008 to Rs 798.30 crore against Rs 252.33 crore in the year-ago quarter. Its standalone sales from operations crossed the Rs 1,644-crore mark during the quarter compared with Rs 760.11 crore in the same period of the previous fiscal. On a consolidated basis, the London-listed Vedanta Group controlled company notched up a net profit of Rs 811.58 crore in the quarter, up by nearly 209 per cent from Rs 263.34 crore in the year-ago period. Similarly, its consolidated net sales increased by 108 per cent to Rs 1,705 crore (Rs 819 crore). The board of directors has recommended a final dividend of Rs 30 for one equity share, apart from a bonus issue and stock split. An indication of the higher price realisation from iron ore can be had from the fact that the company's iron ore sales was about five million tonnes (mt) during the quarter compared to 4.5 mt in the year-ago quarter. Even then, its standalone revenue from iron ore was Rs 1,537 crore (Rs 701.26 crore). Mr P.K. Mukherjee, Managing Director, said the higher price realisation was only one of the driving factors for the growth. He said on an average the ore prices increased from $40- $45 a tonne to $80- $90 a tonne in the last one year. "It is not that we decide the prices. We get offers from our buyers and then we take a position," he pointed out. The positive impact of higher prices and volumes was, however, partly offset by the appreciation of the rupee against the dollar by about 11 per cent, increase in logistic costs and export duty. Exports increased by 14 per cent during the last fiscal as compared to the previous year. The company registered the highest-ever quarterly and annual iron ore sales of 5 mt and 12.4 mt respectively. Its annual iron ore sale of 12.4 mt was higher by 14 per cent over the previous fiscal. Its consolidated annual sales were also the highest ever at Rs 3,823 crore, up by 72 per cent compared to 2006-07. Mr Mukherjee expected the company to maintain a 25 per cent volume growth in iron ore sales in the current fiscal.