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Sesa Sterlite corrects on profit booking

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Capital Market
Last Updated : Apr 23 2014 | 12:02 AM IST

Sesa Sterlite fell 2.82% to Rs 196.10 at 13:42 IST on BSE on profit booking after the stock rose 6.35% in the preceding three trading sessions to Rs 201.80 on 21 April 2014, from a recent low of Rs 189.75 on 15 April 2014.

Meanwhile, the BSE Sensex was up 18.22 points, or 0.08%, to 22,783.05.

On BSE, so far 9.19 lakh shares were traded in the counter, compared with an average volume of 6.85 lakh shares in the past one quarter.

The stock hit a high of Rs 201.90 and a low of Rs 194.65 so far during the day. The stock hit a 52-week high of Rs 213.05 on Monday, 21 January 2014. The stock hit a 52-week low of Rs 119.45 on 31 July 2013.

The stock had outperformed the market over the past one month till 21 April 2014, rising 14.76% compared with the Sensex's 4.65% rise. The scrip had, however, underperformed the market in past one quarter, falling 3.31% as against Sensex's 7.12% rise.

The large-cap company has an equity capital of Rs 296.47 crore. Face value per share is Re 1.

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Sesa Sterlite jumped 4.78% to Rs 201.80 on Monday, 21 April 2014, after the Supreme Court allowed resumption of iron ore mining in Goa.

Sesa Sterlite announced during trading hours today, 22 April 2014, that the Supreme Court vide its order dated 21 April 2014 has lifted the ban on mining in the State of Goa, subject to certain conditions. The Supreme Court has imposed an interim restriction on the maximum annual excavation from the mining leases in the state of Goa of 20 million tonnes subject to determination of final capacity by Expert Committee appointed by the Supreme Court.

Further, in its order, the Supreme Court has held that all mining leases in the State of Goa, including those of Sesa Sterlite, have expired in 2007. Consequently, no mining operations can be carried out until renewal/execution of mining lease deeds by the State government. The company is working towards securing the necessary permissions for commencement of operations at the earliest, the company said in a statement.

The Supreme Court had banned mining in all 90 mines in Goa from October 2012, due to investigations into alleged illegal mining operations.

The Supreme Court order is significant for Sesa Sterlite, which is the largest private sector iron ore producer in India. Its iron ore business is based in Goa.

Sesa Sterlite's consolidated net profit surged 276.1% to Rs 1868.29 crore on 7802.3% spurt in total income to Rs 19912.90 crore in Q3 December 2013 over Q3 December 2012.

Sesa Sterlite is one of the world's largest diversified natural resources companies. The company's business primarily involves exploring, extracting and processing minerals and oil & gas. The company produces oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power and has a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka. Sesa Sterlite has a strong position in emerging markets with over 80% of its revenues from India, China, East Asia, Africa and the Middle East.

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First Published: Apr 22 2014 | 1:50 PM IST

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