Sesa Goa's Q3 net down 26% on mining ban

Moneycontrol Bureau

Private sector iron ore maker Sesa Goa  has reported a 28 percent, year-on-year decline in net profit to Rs 497 crore, due to decline in sale on ongoing mining ban in Goa and Karnataka. Of not for Rs 669 crore profit coming in from Cairn Indian in which the company holds 20% stake, it would have reported loss of Rs 172,25 crore, said the company.
The Vedanta Group company's sales also plunged by 91 per cent to Rs 227.54 crore as there was no production and sale of iron ore during the quarter.
"Iron ore mining operations in both Karnataka and Goa remain suspended due to regulatory restrictions. During Q3, approximately 0.03 million tonnes of iron ore was sold from Karnataka through court monitored e-auctions. There was no production or sale of iron ore during the quarter at the Goa operations," Sesa said in a statement.
Mining in Goa has been stopped since September, when the state government ordered a temporary suspension on extraction of ore across Goa. On October 5, the Supreme Court ordered complete ban on mining, including transportation of mined ore from mines or stockyards. Did you read: Sesa Goa up 3.57% on hopes of relief from CEC report
However, the company has filed an application before the SC seeking modification of the aforesaid order for which the hearing is yet to commence.
Shares of the company were down 1.07% to Rs 176.40 at 9:30 am.