PROFILE OF COMPANY

Sesa Goa Limited is engaged in the business of prospecting,

mining, processing and exporting iron ore. It is also involved in
support activities like shipping and shipbuilding. The Company
exports iron ore, fines and lumps to customers in Japan, China and
Europe from ports on both the east and west coasts of India.
Besides its mining activities in Goa, the Company has mining
operations in Karnataka and Orissa. Ore from Karnataka is exported
through the ports at Goa and Chennai while ore from Orissa is
exported through the ports of Haldia and Paradeep. The exports of
ore from Goa are approximately 4 million tons, of which about 3.2
million tons are fines and 0.8 million tons are lumps. Its main
mining operations in Goa are at Codli and Sonshi.
 PRODUCTS

Iron Ore

Coke
 LIST OF DIRECTORS

No. Name Designation

1.Mr. Sudhakar D Kulkarni Chairman

Mr. Pandurang G
2. Director
Kakodkar
3.Mr. Kuldip K Kaura Director

4.Mr. D D Jalan Director

5.Mr. Akhilesh Joshi Director

6.Mr. Gurudas D Kamat Director

7.Mr. Madhukar D Phal Director

8.Mr. Amit Pradhan Wholetime Director
9.Mr. Arun K Rai Wholetime Director
10.Mr. Hari Prasad U K Nair Wholetime Director
11.Mr. Prasun K Mukherjee Managing Director

IMPACT OF RECESSION:-
SESA GOA LIMITED is the India’s largest exporter of iron ore in
the private sector. The global financial crisis, recession in the US,
JAPAN and slowdown in the rest of the world has its effect on this
company on the basis of various parameters:-

I. IMPORT AND EXPORT :-

Iron-ore demand has fallen due to the global slowdown, and prices have
corrected sharply.Sesa Goa is into mining and export of iron ore. Almost
66 per cent of its ore is exported to a single country, CHINA . Thus, this
stock is dependent on the performance of the Chinese economy. Because
of the global economic slowdown, steel production has fallen, and hence
also the demand for iron ore. In 2007, India’s total production of iron
ore was 181 million tonnes ((MT). About 51.4 per cent of total
production, or 93 MT, was exported. Of this, 90 per cent exports went to
China (more than 80 MT). In 2007-08, Sesa Goa sold 12.391 MT of iron
ore of which 66 per cent was sold to China. In 2008 China is expected to
import about 80 MT. But in 2009 and 2010 China’s import of iron ore is
expected to slow down, which could affect Sesa Goa’s earnings.

II. PROFITS / LOSSES :-

Income Statement
31-Mar- 31-Mar- 31-Mar-
As on( Months )
08(12) 07(12) 06(12)
Profit / Loss A/C Rs mn %OI Rs mn %OI Rs mn %OI
35516.1 19877.3 17512.5
Net Sales 98.32 97.06 97.45
0 1 3
Operating 36122.1 100.0 20478.8 100.0 17971.4 100.0
Income (OI) 0 0 9 0 1 0
22161.0
OPBDIT 61.35 9121.0344.54 8368.13 46.56
0
22138.0
OPBDT 61.29 8896.7343.44 8053.66 44.81
0
21712.2
OPBT 60.11 8583.9441.92 7805.01 43.43
0
Non-Operating
657.20 1.82 414.52 2.02 265.81 1.48
Income
Extraordinary/Pri
-14.00 -0.04 -52.00 -0.25 14.00 0.08
or Period
Tax 7435.4020.58 2882.4014.07 2690.80 14.97
Profit after 14920.0
41.30 6064.0629.61 5394.02 30.01
tax(PAT) 0
15345.8
Cash Profit 42.48 6376.8531.14 5642.67 31.40
0
Dividend-Equity 1771.30 4.90 1574.48 7.69 1574.48 8.76
During the quarter, Sesa Goa reported a top line growth
of 129.4%, primarily due to a jump in iron ore
realizations. In Q2 FY09, iron ore sales volumes rose by a
mere 13.9% yoy, lower than our expectations.
Production for the quarter, however, was inline with our
expectations. The drop in sales volume was attributed to
the rainy season. The company’s iron ore production rose
39.1% yoy to 2.57mn tons. In H1 FY09, Sesa Goa has
accrued an iron ore inventory of 2.7m .

Sesa Goa Ltd has announced that financial results for the Q3 reporting a
lower net profit, despite increased revenues.

During the quarter, revenue from Iron Ore increased 15% to INR 1,248.44
crore from INR 1,088.95 crore in the Q3 of 2007, while Metallurgical Coke
revenue increased 11% to INR 93.24 crore from INR 84.11 crore in the
prior year quarter. Revenue from Pig Iron was INR 91.94 crore, down by
25% from INR 123.35 crore in the previous year quarter.
 For the first 9 months, Sesa Goa's net profit surged 97% to INR 1,446.53
crore from INR 735.33 crore in the corresponding period a year ago. Total
revenue, including operating income increased 66% to INR 3,515.56 crore
from INR 2,117.58 crore for the 9 months ended December 31st 2007.

III. FOREIGN DIRECT INVESTMENT:-

Sesa Goa’s 51% stake held by Mitsui Corp. through its subsidiary
Finsider International . Mitsui has contributed towards the
enhancing the value and share of the Sesa iron ore in the
global iron ore market as well as establishing its brand name
in new markets. The Goa company has already attracted good
interest among foreign investors, with US-based pension fund
CalPERS (Californian Public Employees Retirement System)
owning about 1.44% in Sesa Goa.

The Reserve Bank of India has notified that no

further purchases of equity shares of Sesa Goa
Ltd., should be made on behalf of Foreign
Institutional Investors (FIIs) through primary and
secondary markets in India without obtaining the
prior permission of the Reserve Bank. The Reserve
Bank has stated that Sesa Goa Ltd., has reached
the limit of 22 per cent of its paid up capital.

IV. INTERNATIONAL STOCK MARKET :-

Sesa Goa has declined more than 12 per cent in stock price and trading
volumes of 12.16 lakh shares. Sesa Goa is well positioned in the iron ore
industry but analysts feel the positive triggers are factored in the price.
Sesa Goa exports more than 90 per cent of its ore and China is its largest
market. The company has is expecting a volume growth of 25-30 per cent
in FY09. Spot iron ore prices in China have, however, dropped from $185
per tonnes in July 2008 to $160 per tonnes owing to factors like shutting
down of Chinese steel mills around key city areas in connection with
Olympics and increased participation of Australian and Brazilian
supplies. The company has close to Rs 250 crore in cash and proposes to
utilize it largely to acquire iron ore mines, both in India and
internationally. The stock is currently trading at a price earning of 5.7x
and 4.8x its FY09 and FY10 earnings.

FUTURE PLANS :-

Sesa Goa is in the process of setting up a 30MW

power plant based on the Coke oven fuel gas and
Sesa Industries blast furnace gas. It is intended to
establish the power plant on a Build Operate Own
(BOO) basis. With recovery in the steel sector, the
company is expecting an increase in the iron ore
prices. The company attributed the decline in the
prices to the recession in the Japanese market.
However, if the recovery steel industry is sustainable,
the prices of iron ore will improve in the next few
years.
.