New Delhi: Vedanta group firm Sesa Goa Ltd on Saturday reported a 74% decline in consolidated net profit at 297.51 crore for the fourth quarter ended 31 March 2013 as its mining operations remained closed due to the bans in Goa and Karnataka.

The company managed to remain profitable in the quarter largely due to a 512.72 crore profit coming from its associate and oil firm Cairn India Ltd. Sesa Goa holds a 20% stake in the oil firm.

Otherwise, the Goa-based company would have plunged to a consolidated net loss of 215.21 crore in the quarter, its balance sheet, posted on the website, showed.

A continuation of the mining ban in Goa and Karnataka during the quarter played spoilsport for the company. Due to this, the company neither produced nor sold any iron ore during the quarter, it said in a statement.

This has also led to Sesa Goa’s total income from operations declining 90% to 290.87 crore during the quarter, vis-a-vis the 2,794.37 crore posted in Q4 of FY12.

The company said its pig iron production increased 75% in the quarter, while met coke production was up 48%. Sales of pig iron and met coke increased by 59% and 28%, respectively.

For the fiscal ended March 2013, the firm reported a decline of 15% at 2,280 crore in its consolidated net profit.

Its consolidated net sales also declined 69% at 2,554 crore in the last fiscal. The company had reported a net profit of 2,696 crore and net sales of 8,275 crore in FY12.

“The cash profit for the full year declined to 23 crore from 3,235 crore in the previous year on account of suspension of iron ore operations," Sesa Goa said. Despite all the gloom, the company also has good news as it added more than a billion tonnes of iron ore resources at its mines in India and Liberia.

In India, it added 59 million tonnes (mt) of reserves and resources (R&R), taking total R&R to 433 mt. In Liberia, it added 966 mt R&R during the year. “Total reserves and resources in India as on 31 March 2013 stands at 433 mt, as compared to 374 mt as on 31 March 2012, implying more than 20 years of mine life," Sesa Goa said.

In Liberia, the company has completed 69,000 metres of drilling till March 2013. “The maiden reserves and resources at Liberia stand at 966 mt as on 31 March 2013. The resources pertain to part of the exploration licence areas in Liberia and a significant upside is anticipated. Drilling continues and the preliminary indications continue to be positive," it added.

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