Rise in output to drive Sesa Goa earnings

Vedanta Ltd. | Metal - Non Ferrous | Metals & Mining | BSE: 500295 | NSE: VEDL

11 Feb 2010 Evaluate

Estimated 10% growth in steel production in 2010 is good news for iron ore companies such as Sesa Goa Ltd and NMDC Ltd. China and emerging markets are seeing higher demand growth. China is a key market for Indian iron ore producers because it absorbs nearly all the ore the country can export. A sharp uptake in Chinese steel production in 2009, with crude steel production up by 13% compared with an 8% decline in global output, has led to higher demand for iron ore.

Though India’s output growth was relatively low at 2.8%, the industry has recovered, and in December, output grew by 7%. Iron ore producers have been able to hike prices mainly due to the sharp increase in demand from the Chinese steel industry. The situation has led to improving margins. However, Indian steel makers have to pay higher prices for iron ore is affecting their margins. Successful lobbying by the steel industry led to a 10% export duty on iron ore lumps and a 5% duty on iron ore fines in December.

Sesa Goa’s sales rose by 36% to Rs1,866 crore while its operating profit rose by 85% to Rs1,035 crore. Now, just one month of export duty amounted to about Rs18 crore during the quarter and the full impact will be felt in subsequent quarters.

Sharply higher iron ore prices from a year ago will mean that margins will continue to improve year-on-year, even if they lose some shine on a sequential basis. But if the government hikes export duties to 20%, then it will really begin to pinch margins. However, higher output will drive performance, with Sesa Goa’s output up by 36% in the December quarter. The company’s capacity is projected to increase from 16 million tonnes (mt) to 25 mt in 2010 and eventually reach 50 mt by 2013.

In the short term, changes in duties could play some havoc with its earnings estimates, reflecting also in its share price. Higher output from its mines and an improving demand outlook for the steel industry are longer term positives.

crack crack

Vedanta Share Price

305.35 -11.05 (-3.49%)

07-May-2026 16:59 View Price Chart

Peers

Company Name	CMP
Hindalco	1055.55
Vedanta	305.35
Hindustan Zinc	635.95
Jain Resource Recycl	504.45
Gravita India	1800.10
View more..

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Fiduciary-first advisory model.
As SEBI-registered IAs, we are legally and ethically bound to act in the best interests of our clients. We do not sell or distribute any financial products. This ensures our guidance is 100% unbiased and conflict-free.
Deep fundamental research + robust valuation discipline.
Built on more than 15 years of equity research, our framework combines quality assessment, intrinsic value estimation, and a sensible margin-of-safety approach.
Process—not predictions.
We don’t rely on guesswork or market timing. Instead, we focus on asset allocation, risk management, and long-term compounding.
Technology + Human Intelligence.
We believe a combination of both is essential for investing success. We constantly innovate and upgrade in-house tools, financial X-rays, and portfolio analytics so that our team of analysts and advisors are equipped with the best.
Partner with Clients.
We follow a DIWM (Do-It-With-Me) approach where we partner clients in setting goals, financial planning, educating on our investing process and share decision-enabling resources transparently with our clients who retain control on execution.

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

Investing in stocks, mutual funds, debt, and gold
Quality-at-Reasonable-Price way of investing in stocks
Constructing Direct Stock Portfolios with Core, Booster, and Amplifier stocks
A Mutual Fund Portfolio that delivers consistent out-performance and meaningful diversification (low overlap)
Periodic review and rebalancing
Clear Buy-Sell-Hold, and Position-sizing frameworks

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.