Sesa Goa :: 1QFY2012 Result Review by Angel Broking,

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Sesa Goa
For 1QFY2012, Sesa Goa's net sales decreased by 12.6% yoy to `2,109cr, lower than our
estimate of `2,378cr on account of lower-than-expected iron ore sales volumes. The
decrease in revenue was mainly on account of a 21.0% yoy decline in iron ore sales
volume to 4.3mn tonnes. Iron ore realisation increased by 14.8% yoy to US$99/tonne on
dry metric tonne basis (in-line with our expectations). Export duty increased by 170.7% yoy
to `345cr in 1QFY2012, as the government had raised export duty on iron ore to 20%
recently. EBITDA declined by 21.5% yoy to `1,146cr mainly due to a decline in net sales.
EBITDA margin slipped by 616bp yoy as higher iron ore realisation was more than offset
by the increase in export duty. Tax rate increased to 31.2% of PBT compared to 17.8% in
1QFY2011. Hence, PAT decreased by 35.4% yoy to `841cr (below our estimate of
`1,075cr). On account of lower-than-expected 1QFY2012 results, we would lower our
estimates and target price for Sesa Goa. We maintain our Buy recommendation on the
stock. However, our target price is under review.