In its October 20, 2010 research report KRChoksey has suggested to hold rating on Sesa Goa with an aim of Rs 390.

Sesa Goa has accounted consolidated sales of Rs 907 crore as contrasted to the Rs 534 in the consequent quarter last year. Sales volumes rose up by 25% to 2.0 million tonnes as contrasted to 1.62 million tonnes in Q2FY10. Successively the sales volumes fall down by 62% majorly on account of seasonality.

In the previous quarter the making of iron ore was impacted with a ban on exports of iron ore forced by Karnataka government. Standard realization for Q2FY11 was ~USD 75 per tonne a dip of 17% as contrasted to Q1FY11. EBITDA for Q2FY11 remained at Rs 303 crore increased by 99% y-o-y, though on a chronological basis EBITDA has fallen by 80% on the back of minor realizations, higher logistics cost, higher export duty and amplified royalty rates.

The accustomed net profit of the firm has enhanced by 131% to Rs 385 crore in comparison with Q1FY11 it has fallen down by 70%.