Vedanta's Sesa Goa unit swings to full-year loss

Sesa Goa, India's largest iron-ore producer part-owned by mining giant Vedanta Resources, swung into the red in the year to March 31st as operations were hit by suspensions.

Sesa Goa, India's largest iron-ore producer part-owned by mining giant Vedanta Resources, swung into the red in the year to March 31st as operations were hit by suspensions.

The company swung to net loss of 131 crores (£15.6m) from a profit of 2,108 crores (£251m) the year before as a ban on iron-ore mining in Karnataka and Goa pushed sales volumes down 80%.

In the final three months of the financial year (ended March), the company recorded no sales of iron ore and had to rely on sales of pig iron, metallurgical coking coal and power to contribute to the top line.

Net sales in the full year dropped 69% from 8,275 crores to 2,554 crores and were down 90% in the fourth quarter alone.

Earlier this month (after the financial year had ended), Sesa Goa received a green light for the resumption of mining in Karnataka but is still waiting for an initial hearing regarding operations in Goa.

Despite the mining bans, the firm still said that it had "another year of significant reserves and resources accretion" in the two regions. Reserves and resources in India were increased from 374m to 433m tonnes over the year.

Sesa SterliteSesa Goa is currently waiting to give a completion date for its merger with Vedanta's Indian copper subsidiary Sterlite.

The merger, as part of the parent group's "consolidation and simplification", has now received the approval of the High Court of Bombay.

Vedanta has said that the new entity, named Sesa Sterlite, will be India's natural resources "champion" and is expected to become the seventh largest global diversified natural resources major in terms of earnings.

Sesa Sterlite will be listed in India and with American Depositary Shares (ADS) listed on the New York Stock Exchange.

Vedanta's share were up 0.66% at 1,229p in early trading on Monday.

Recommended

Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021