Sesa Goa Regulatory checks weigh down performance HOLD :Emkay

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Sesa Goa

Regulatory checks weigh down performance

HOLD

CMP: Rs 211                                       Target Price: Rs 239

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n     Topline in line with estimates at Rs 7897 mn, down 14% YoY and 63% QoQ on low realizations and on sales volume of only 1.55 mt

n     EBITDA was down 92% YoY and 97% QoQ at Rs 259 mn including forex loss of Rs 2600 mn, well below estimates. EBITDA/ tonne for iron ore business stood at US$33

n     PAT on the back of other income of Rs 504 mn was reported at Rs 12.8 mn. Adjusted for forex loss and tax rate, the PAT stood at Rs 1.6 bn, lower than our estimates of Rs 2.04 bn

n     Cutting core EPS estimates for FY12E and FY13E to Rs 24 and Rs 29. We reduce our SOTP target price to Rs 239;  Assign Hold rating on the stock