Sesa Goa Limited has recorded a 57% decrease in its net profit which is at Rs 414.3 crore for the quarter ended June 30, 2013. Sesa Goa is a Vedanta owned firm. The iron ore mines ban in the states of Karnataka and Goa has resulted to this loss for the firm. In the quarter ended June 30, 2012 the net profit reported by the company was about Rs 964 crore.
The company was not able to sell iron ore in the Apr-Jun quarter owing to the ban in mining operations in the state ordered by the Supreme Court. The Supreme Court had ordered a ban in mining operations in Karnataka and Goa because of the illegal mining being done here by the miners. However, a few mines have been ordered to resume mining operations, but many of the mines still remain untouched.
Sesa Goa’s mining lease to explore mines of Karnataka has expired long ago in October 2011. However, they can still continue with the mining in the state at a low capacity production of around 2.3 MnTPA which was earlier at 6 MnTPA.
The company however expects to resume with mining in the next quarter, as they have received clearance from the Supreme Court for the same. They are now waiting for the final legal permission for the resumption of mining process in the state.
They have also faced a loss in their total income of around more than 79% due to the ban in mining operations. Their total income was Rs 360.6 crore for quarter ended June, 2013, which was Rs 1,724.9 crore for the same period last year.