The ban on iron-ore mining in Karnataka and Goa meant shareholders will have little interest in Sesa Goa Ltd’s March-quarter earnings. With not a tonne of ore mined in the three months, it was left to its pig iron and metallurgical coke division to earn some revenues while its investment in Cairn India Ltd added to its consolidated financial numbers. Revenues rose to 314.8 crore from 251.8 crore on a sequential basis and net profit declined to 297.5 crore from 496.7 crore.

Shareholders can look forward to the resumption of mining by the company in Karnataka, as the courts have cleared the resumption of work at Sesa Goa’s mines earlier this month. The actual process of restarting will take time after getting clearances. Shareholders will be awaiting signals of how much time it could take, as that will see an uptick in revenues and profits from iron-ore. There is no clarity on the Goa mining front.

Another event that is nearing completion is the merger of Vedanta’s group companies in India with Sesa Goa Ltd. The Bombay high court has approved the merger and approvals from the Madras high court are awaited. Once that comes through, it will alter Sesa Goa’s financial profile and investors will look to its first set of post-merger results to see how the consolidated entity looks like.

It will result in a company that has a diverse set of businesses in metals and energy. But it also adds to its debt burden and brings along the uncertainty faced by companies such as Vedanta Aluminium Ltd in implementing its integrated aluminium project in Orissa.

The global environment has turned unfavourable for commodities, both in non-ferrous metals and energy, possibly because slowing economic growth is affecting demand. If the trend continues, it will be a negative for the merged entity. The Sesa Goa stock has declined by 20.3% from its level three months ago.