Sesa Goa's realization on iron ore sales improve at Goa. Its
revenue was 17.6% higher than the last year as iron ore prices rose in the
International market coupled with a weak rupee.
Through e-auction in Karnataka, it sold 0.64 millon tonne of
its inventory which resulted in better volume in October- December quarter last
year.
Iron ore mining is currently banned in Karnataka where it
has 0.10-0.15 million tonne of stock which will make it difficult to sustain
volume growth.
The current prices of Spot Iron ore are 3% higher than it
was in the beginning of last year. On account of 20% export duty operating
profit have declined. Profits are expected to come down in the coming months
because of additional 10% increase in the export duty.
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