Iron ore miner Sesa Goa today reported a 14.6 per cent in net profit at Rs 963.97 crore for the first quarter ended June 30,mainly on its share of profit in associate company Cairn India.
The company had reported a net profit of Rs 840.59 crore in the year-ago period.
Net profit of the company,a Vedanta Group firm,would have been down to Rs 198.82 crore during the reporting quarter,if it had not received Rs 765.15 crore as its share of profit from Cairn India in which Sesa Goa has 20 per cent stake,Sesa Goa said in a statement.
“Net Profit before associate income for first quarter was at Rs 199 crore,a decrease of 76 per cent as compared to corresponding prior quarter,” it said.
The profit declined due to lower volumes,higher export duty,higher interest cost,foreign exchange losses and dip in iron ore price,which was partly offset by rupee depreciation,it added.
Total income of the company came down to Rs 1,732.63 crore during the quarter from Rs 2,108.87 crore a year ago,it said,adding that both production and sales declined as a result of Karnataka mining ban and continued logistical constraints in Goa.
Sesa Goa could not produce iron ore from its mines in Karnataka in the June quarter. Production was down from Goa to 2.8 million tonnes from 3.2 million tonnes a year ago.
“During first quarter,iron ore production and sales were 3.4 million tonnes and 2.9 million tonnes,respectively. The decrease in production and sales volumes was primarily on account of Karnataka mining ban and continued logistical constraints in Goa,” Sesa Goa said.
The company had produced 4.4 million tonnes and sold 4.3 million tonnes of iron ore during the April-June quarter of the last fiscal.
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