Sesa Goa soars as govt eases export duty

Sesa Goa galloped 7.13% to Rs 85.60 at 14:03 IST on BSE on reports the government has altered the duty structure on iron ore exports, aiming to trim the tax burden on miners.
The stock hit a high of Rs 86.80 and a low of Rs 80.10 so far during the day. The stock had a 52-week high of Rs 4390 on 5 May 2008 and a 52-week low of Rs 63.60 on 27 October 2008. Earlier this year, the firm had split each share into ten and thereafter gave one bonus share for each share held.
The mid-cap iron miner has an equity capital of Rs 6289.73 crore. Face value per share is Rs 1.
The current price of Rs 85.60 discounts its Q2 September 2008 annualised EPS of Rs 15.55, by a PE multiple of 5.50.
The government has reportedly withdrawn a flat rate tax on exports of iron ore fines, replacing it with an 8% ad-valorem duty, aiming to trim the tax burden on miners.
The government had earlier introduced a Rs 200 flat rate tax on 31 October 2008, replacing a 15% ad-valorem duty. But iron ore producers had protested against the change, saying it amounted to a 90% - 100% increase in the duty.
Sesa Goa's net profit surged 272.63% to Rs 306.08 crore on 151.6% increase in sales to Rs 832.92 crore in Q2 September 2008 over Q2 September 2007.
Sesa Goa, an iron ore mining company of the Vedanta group, has been involved in iron ore mining, beneficiation and exports besides. It is also into the manufacture of pig iron and metallurgical coke.