Sesa Goa -Topline zooms on higher volume and realizations: Emkay

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Sesa Goa

Topline zooms on higher volume and realizations

HOLD

CMP: Rs 327                                        Target Price: Rs 353

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n     Strong realizations and higher sales volumes helped the topline to grow by 50% YoY and 61% QoQ to Rs 36.2 bn  in Q4 FY11, beating ours as well as street estimates

n     EBITDA grew by 41% and 72% on YoY and QoQ respectively to Rs 21.2 bn. EBITDA margin while 358 bps YoY rose by 376 bps to 58.6% due to drop in sequential costs  

n     Full tax rate for the quarter restricted PAT not to grow in line with the EBITDA. The APAT came in line with our estimate at Rs 14.6 bn, up 21% YoY and 37% QoQ 

n     Valuing the company on SOTP basis assuming 20% stake in CAIRN India. Revising up FY12E EPS to Rs 57.9, introducing FY13E EPS at Rs 66. Raising target price to Rs 353; Hold