1QFY2012 Result Update | Mining

July 21, 2011

Sesa Goa
Performance Highlights

BUY
CMP Target Price
% chg (yoy) (12.6) (21.5) (616)bp (35.4) 4QFY11 3,624 2,118 58.5 1,462 % chg (qoq) (41.8) (45.9) (413)bp (42.5)

`278 `335
12 months

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit

1QFY12 2,109 1,146 54.3 841

1QFY11 2,413 1,460 60.5 1,302

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Mining 24,165 1.0 384/221 777486 1 18,436 5,542 SESA.BO SESA@IN

Source: Company, Angel Research

Sesa Goa's 1QFY2012 net sales fell by 12.6% yoy to `2,109cr, lower than our estimate of `2,378cr on account of lower-than-expected iron ore sales volumes. Net profit at `841cr was also above our estimate of `1,075cr. Lower sales volume impacts 1QFY2012 performance: During the quarter, iron ore sales volume declined by 12.2% to 4.3mn tonnes on dry metric tonnes (dmt) basis due to logistics constraints in Goa and termination of third-party mining in Orissa. However, iron ore realisation increased by 3.4% yoy to US$99/tonne on dmt basis. Thus, lower sales volume resulted in net revenue declining by 12.6% yoy to `2,109cr. Export duty for 1QFY2012 increased by 170.7% yoy to `345cr, which led to a 616bp contraction in EBITDA margin. As a result, EBITDA declined by 21.5% yoy to `1,146cr. Further, other income fell by 5.5% yoy to `152cr and tax rate was higher at 31.2% in 1QFY2012 vs. 17.8% in 1QFY2011. This led to a decline of 35.4% yoy in the bottom line to `841cr. Outlook and valuation: We expect Sesa Goas iron ore sales volume to increase by 9.0% yoy in FY2012 and 10.0% yoy in FY2013 mainly on account of higher sales volumes from its Karnataka mines. Further, we expect international iron ore prices to remain firm in the medium term, as we expect additional meaningful supplies to hit the sea-borne market only from CY2013. We believe the current stock price discounts negatives such as acquisition of minority stake in unrelated oil business via acquisition of Cairn Indias stake, increased export duty and railway freight and decreased volumes from Goa mines. We value Sesa Goa at 3.0x FY2013 EV/EBITDA multiple and lower our target price to `335 (`385) per share. We maintain our Buy rating on the stock. Key financials (Consolidated)
Y/E March (` cr) Net sales % chg Net profit % chg FDEPS (`) OPM (%) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 55.1 4.7 24.4 15.8

Abs. (%) Sensex Sesa Goa

3m (5.9)

1yr 2.6

3yr 33.1

(13.6) (23.9) 106.7

FY2010 5,858 18.1 2,629 32.2 29.6 53.7 9.4 2.9 41.6 41.7 2.6 4.8

FY2011 9,205 57.1 4,222 60.6 47.5 56.5 5.9 1.9 40.7 42.9 0.8 1.4

FY2012E 10,675 16.0 3,625 (14.2) 40.7 46.9 6.8 1.5 25.2 30.6 1.5 3.2

FY2013E 12,172 14.0 4,050 11.7 45.5 46.6 6.1 1.3 22.8 27.9 1.1 2.3 Bhavesh Chauhan
Tel: 022- 39357600 Ext: 6821 Bhaveshu.chauhan@angelbroking.com

Pooja Jain
Tel: 022- 39357600 Ext: 6839 E-mail: pooja.j@angeltrade.com

Please refer to important disclosures at the end of this report

Sesa Goa | 1QFY2012 Result Update

Exhibit 1: 1QFY2012 performance (Consolidated)

(` cr) Total sales Raw Material % of Net sales Consumption of Stores % of Net sales Staff Cost % of Net sales Export Duty % of Net sales Other Expenditure % of Net sales Total Expenditure % of Net sales EBITDA % of Net sales Interest Depreciation Other Income Exceptional Items Profit before tax % of Net sales Tax % of PBT Reported net income % of Net sales
Source: Company, Angel Research

1QFY12 2,109 76 3.6 91 4.3 55 2.6 345 16.4 404 19.2 963 45.7 1,146 54.3 49 27 152 0 1,222 57.9 381 31.2 841 39.9

1QFY11 2,413 93 3.9 74 3.1 44 1.8 128 5.3 623 25.8 953 39.5 1,460 60.5 14 19 161 0 1,588 65.8 283 17.8 1,302 53.9

yoy (%) (12.6) (19.1) 23.8 22.7 170.7 (35.1) 1.0 (21.5) 258.7 40.5 (5.5) (23.1) 34.6 (35.4)

FY2011 FY2010 9,205 858 9.3 296 3.2 207 2.2 662 7.2 1,979 21.5 4,002 43.5 5,203 56.5 55 96 557 (49) 5,559 60.4 1,337 24.1 4,222 45.9 3,445 58.8 806 23.4 2,629 44.9 5,858 534 9.1 244 4.2 130 2.2 148 2.5 1,654 28.2 2,709 46.3 3,149 53.7 52 75 426

yoy (%) 57.1 60.6 21.6 59.5 348.6 19.6 47.7 65.2 6.9 29.3 30.8 61.4 66.0 60.6

Exhibit 2: 1QFY2012 Actual vs. Angel estimates

(` cr) Net sales EBITDA EBITDA margin (%) PAT
Source: Company, Angel Research

1QFY12A 2,109 1,146 54.3 841

1QFY12E 2,378 1,379 58.0 1,075

Variation (%) (11.3) (16.9) -367bp (21.8)

July 21, 2011

Sesa Goa | 1QFY2012 Result Update

Lower sales volume impacts top-line growth

During the quarter, production was lower due to termination of third-party mining in Orissa and logistics constraints in Goa. Thus, iron ore sales volume fell by 12.2% to 4.3mn tonnes on dmt basis. Further, pig iron production declined by 11.0% yoy to 62,230 tonnes due to lower availability of high-grade iron ore from Karnataka, while sales volume increased by 7.0% yoy to 58,079 tonnes. However, iron ore realisation increased by 3.4% yoy to US$99/tonne on dmt basis. Average pig iron realisation also increased by 11.0% yoy to `28,117/tonne. Thus, lower sales volume resulted in net revenue falling by 12.6% yoy to `2,109cr.

Exhibit 3: Iron ore sales volume fell by 12.2% yoy

8 7 6
(mn tonne) (U $ /tonne)

Exhibit 4: EBIT/tonne trending up

120 100 80 60 40 20 0

120 100

5 4 3 2 1 0 1QFY10 3QFY10 1QFY11 3QFY11 1QFY12 Sales Volume (LHS) Average realization (RHS)

(US $/tonne)

80 60 40 20 0 1QFY10 3QFY10 Revenue/tonne 1QFY11 Cost/tonne 3QFY11 EBIT/tonne 1QFY12

Source: Company, Angel Research

Source: Company, Angel Research

EBITDA fell by 21.5% yoy

During the quarter, export duty increased by 170.7% yoy to `345cr. Royalty for the quarter stood at `230/tonne. These factors led to a 616bp contraction in EBITDA margin and a 21.5% yoy decline in EBITDA to `1,146cr. Further, other income fell by 5.5% yoy to `152cr and tax rate was higher at 31.2% in 1QFY2012 vs. 17.8% in 1QFY2011. This led to a 35.4% yoy decline in the bottom line to `841cr.

Exhibit 5: EBITDA margin trend

2500 2000 1500 1000 500 0 1QFY10 3QFY10 EBITDA (LHS) 1QFY11 3QFY11 1QFY12 EBITDA margin (RHS) 70 60 50
(` cr)

Exhibit 6: Net profit trend

1600 1400 1200 1000
(` cr)
(%)

60 50 40
(%)

40 30 20 10 0

800 600 400 200 0 1QFY10 3QFY10 Net profit (LHS) 1QFY11 3QFY11 1QFY12 Net profit margin (LHS)

30 20 10 0

Source: Company, Angel Research

Source: Company, Angel Research

July 21, 2011

Sesa Goa | 1QFY2012 Result Update

Outlook
Crude steel consumption in China is expected to rise
According to China Iron and Steel Association data, Chinas steel production in CY2011 is expected to increase by 6.0% yoy over the coming five years. The Australian Bureau of Agricultural and Resource Economics and Sciences expects Chinese crude steel production to reach 674mn tonnes (+7.5% yoy) in CY2011.

Exhibit 7: China steel production to grow steadily

800 700 600 500 400 300 200 100 2009 2010E 2011E 2012E

Exhibit 8: China steel consumption to remain robust

660 640 620 600 580 560 540 520 500 480 2009 2010E 2011E 2012E

China crude steel production

Chinese steel consumption

Source: CISA, Angel Research

Source: World Steel Association, Angel Research

supporting firm iron ore prices in the medium term

We expect spot iron ore prices to remain firm during FY2012 and FY2013, considering the increase in crude steel production and muted growth in domestic production of iron ore in China. Further, in our view, any meaningful additional supplies in the sea-borne iron ore market are expected to come only from CY2013, thus supporting high iron ore prices in the medium term.

Exhibit 9: China iron ore prod. growth remains muted

120 100 40 30 20 10 0 (10) (20) (30) (40) Jul-07 Jul-08 Jul-09 Jul-10 Jul-11

Exhibit 10: Spot iron ore prices remain firm

250

(US $/tonne)

200 150 100 50 0

(mn tonnes)

80 60 40 20 0 Jul-06

(%)

Dec-10

Aug-10

Nov-10

Mar-11

Oct-10

Sep-10

Feb-11

Apr-11

Jul-10

May-11

Iron ore production (LHS)

mom change (RHS)

China iron ore fines CFR 63.5% Fe China Iron ore fines CFR 58% Fe

Source: Bloomberg, Angel Research

Source: Bloomberg, Angel Research

July 21, 2011

Jan-11

Jun-11

Sesa Goa | 1QFY2012 Result Update

Imports of iron ore by China remain steady

Demand for imported iron ore has increased recently as Chinese steel production continues to rise. Iron ore imports have remained steady during AprilJune 2011. However, iron ore inventories continue to remain high at over 94mn tonnes currently.

Exhibit 11: Iron ore imports by China remain steady...

40 30

Exhibit 12: ...despite high inventories at Chinese ports

100 80 60 40 20 0

(mn tonnes)

20 10 0

Dec-10

Aug-10

Apr-11

Nov-10

Mar-11

Oct-10

Sep-10

Feb-11

May-11

Iron ore imports by China from India Iron ore imports by China from Australia Iron ore imports by China from Brazil

Chinese iron Ore inventory

Source: Bloomberg, Angel Research

Source: Bloomberg, Angel Research

July 21, 2011

Jan-11

Jun-11

Jul-11

Aug-10

Oct-10

Dec-10

Feb-11

Apr-11

Jun-11

(mn tonnes)

Sesa Goa | 1QFY2012 Result Update

Valuation
We expect Sesa Goas iron ore sales volume to increase by 9.0% yoy in FY2012 and 10.0% yoy in FY2013 mainly on account of higher production and sales from its Karnataka mines. Further, we expect international iron ore prices to remain firm in the medium term, as we expect additional meaningful supplies to hit the sea-borne market only from CY2013. The recent closure of several iron ore mines in Karnataka has resulted in shortage of iron ore supplies in the region. This is expected to lift domestic prices of iron ore in Karnataka, thus benefitting Sesa Goa. We believe the current stock price discounts negatives such as acquisition of minority stake in unrelated oil business via acquisition of Cairn Indias stake, increased export duty and railway freight and decreased volumes from Goa mines. We value Sesa Goa at 3.0x FY2013 EV/EBITDA multiple and lower our target price to `335 (`385) per share. Thus, we maintain our Buy rating on the stock.

Exhibit 13: Key assumptions

FY2012E Iron ore Sales volume (mn tonnes) Average realisation (US$/tonne) Coke Sales volume (tonnes) Average realisation (US$/tonne) Pig iron Sales volume (tonnes) Average realisation (US$/tonne) US$/`
Source: Angel Research

FY2013E 25.2 90.0 511,000 556 568,750 619 45.0

22.9 90.0 365,000 556 406,250 619 45.0

We have lowered our sales volumes estimates for FY2012E and FY2013E, considering lower-than-expected sales volume from Goa mines in 1QFY2012 and managements guidance. Hence, our profitability estimates are also reduced for FY2012E and FY2013E.

Exhibit 14: Change in estimates

(` cr) Net sales EBITDA EBITDA margin (%) PBT PAT PAT margin (%)
Source: Angel Research

Earlier estimates FY12E 11,147 5,232 46.9 5,204 3,861 34.6 FY13E 12,453 5,813 46.7 5,780 4,220 33.9

Revised estimates FY12E 10,675 5,001 46.9 5,105 3,625 34.0 FY13E 12,172 5,676 46.6 5,785 4,050 33.3

Upgrade/(downgrade) (%) FY12E (4.2) (4.4) (9)bp (1.9) (6.1) (68)bp FY13E (2.3) (2.4) (6)bp 0.1 (4.0) (62)bp

July 21, 2011

Sesa Goa | 1QFY2012 Result Update

Exhibit 15: EPS Angel forecast vs. consensus

Year FY2012E FY2013E
Source: Bloomberg, Angel Research

Angel forecast Bloomberg consensus (%) (%) 40.7 47.5 45.5 50.0

Variation (%) (14.3) (8.9)

Exhibit 16: Recommendation summary

Companies Coal India MOIL Sesa Goa NMDC CMP Target Price (`) 368 355 278 255 (`) 335 241 Neutral Neutral Buy Reduce Reco. Mcap Upside (` cr) 232,189 5,972 24,165 101,258 20.6 (5.6) P/E (x) 17.1 10.8 6.8 13.8 16.4 10.2 6.1 12.0 P/BV (x) 5.3 2.4 1.5 4.1 4.3 2.0 1.3 3.2 EV/EBITDA (x) 11.0 5.6 3.2 8.6 9.6 4.9 2.3 7.0 RoE (%) 35.0 23.7 25.2 33.3 28.8 21.4 22.8 30.0 RoCE (%) 33.9 27.7 30.6 42.4 29.0 24.5 27.9 38.3 FY12E FY13E FY12E FY13E FY12E FY13E FY12E FY13E FY12E FY13E

Source: Angel Research

Exhibit 17: EV/EBITDA band

45,000 40,000 35,000 30,000 25,000 7.0x 5.5x 4.0x 2.5x 1.0x

(` cr)

20,000 15,000 10,000 5,000 0 (5,000) Apr-02 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11

Source: Bloomberg, Angel Research

July 21, 2011

Sesa Goa | 1QFY2012 Result Update

Exhibit 18: P/E band

600 500 400 12.0x 9.0x

(`)

300 200 100 0

6.0x 3.0x

Apr-02 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11
Source: Bloomberg, Angel Research

Exhibit 19: P/BV band

900 800 700 600
(`)

4.0x

3.0x 2.0x 1.0x

500 400 300 200 100 0 Apr-02 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11

Source: Bloomberg, Angel Research

July 21, 2011

Sesa Goa | 1QFY2012 Result Update

Profit & loss statement (Consolidated)

Y/E March (` cr) Gross sales Less: Excise duty Net sales Other operating income Total operating income % chg Total expenditure Net raw materials Other mfg costs Personnel Other EBITDA % chg (% of Net sales) Depreciation EBIT % chg (% of Net sales) Interest charges Other income (% of PBT) Share in profit of asso. Recurring PBT % chg Extra. Inc/(Expense) PBT (reported) Tax (% of PBT) PAT (reported) Add: Earnings of asso. Less: Minority interest Extra. Expense/(Inc.) PAT after MI (reported) ADJ. PAT % chg (% of Net sales) Basic EPS (`) Fully Diluted EPS (`) % chg FY2008 3,845 79 3,766 57 3,823 72.4 1,519 477 294 68 680 2,303 139.2 60.3 50 2,253 144.0 58.9 3 74 3.2 2,325 140.7 2,325 776 33.4 1,549 0 1,549 1,549 137.9 40.5 19.7 19.7 137.9 FY2009 4,991 73 4,918 41 4,959 29.7 2,417 494 394 77 1,452 2,542 10.4 51.3 52 2,490 10.5 50.2 4 224 8.3 2,710 16.6 2,710 715 26.4 1,995 (7) 1,988 1,988 28.4 40.1 25.3 25.3 28.4 FY2010 5,842 44 5,798 60 5,858 18.1 2,710 534 391 130 1,654 3,149 23.9 53.7 75 3,074 23.4 52.5 56 426 12.4 3,445 27.1 3,445 806 23.4 2,639 (10) 2,629 2,629 32.2 44.9 31.6 29.6 17.0 FY2011 9,209 64 9,145 60 9,205 57.1 4,002 858 958 207 1,979 5,203 65.2 56.5 96 5,107 66.1 55.5 38 540 9.6 5,608 62.8 487.8 5,560 1,337 24.1 4,222 0 4,222 4,222 60.6 45.9 49.1 47.5 60.6 FY2012E 10,889 214 10,675 0 10,675 16.0 5,674 847 2,199 139 2,489 5,001 (3.9) 46.9 129 4,873 (4.6) 45.6 147 380 7.4 5,105 (9.0) 5,105 1,481 29.0 3,625 0 3,625 3,625 (14.2) 34.0 40.7 40.7 (14.2) FY2013E 12,416 243 12,172 0 12,172 14.0 6,497 1,055 2,433 170 2,839 5,676 13.5 46.6 147 5,529 13.5 45.4 162 418 7.2 5,785 13.3 5,785 1,736 30.0 4,050 0 4,050 4,050 11.7 33.3 45.5 45.5 11.7

July 21, 2011

Sesa Goa | 1QFY2012 Result Update

Balance sheet (Consolidated)

Y/E March (` cr) SOURCES OF FUNDS Equity share capital Reserves & surplus Shareholders funds Share warrants Minority interest Total loans Deferred tax liability Total liabilities APPLICATION OF FUNDS Gross block Less: Acc. depreciation Net block Capital work-in-progress Goodwill Investments Current assets Cash Loans & advances Other Current liabilities Net current assets Mis. exp. not written off Total assets 770 294 476 21 2,051 864 21 59 784 376 488 3,036 886 342 544 49 3,125 1,683 18 1,103 562 584 1,099 4,817 2,751 574 2,177 79 4,565 4,416 2,392 1,146 879 1,240 3,176 9,997 3,065 649 2,416 729 8,800 3,660 897 1,322 1,441 1,726 1,934 13,878 4,265 778 3,487 429 12,123 3,094 430 1,322 1,342 1,136 1,958 17,996 5,265 925 4,340 79 12,123 6,338 3,421 1,322 1,595 1,279 5,059 21,600 39 2,904 2,943 27 66 3,036 79 4,637 4,716 33 2 66 4,817 83 7,835 7,918 43 1,961 75 9,997 87 12,724 12,810 999 68 13,878 87 15,904 15,990 1,937 68 17,996 87 19,508 19,595 1,937 68 21,600 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

Note: Cash and bank balance include deposits

July 21, 2011

10

Sesa Goa | 1QFY2012 Result Update

Cash flow statement (Consolidated)

Y/E March (` cr) Profit before tax Depreciation Change in working capital Less: Other income Direct taxes paid Cash flow from operations (Inc.)/Dec. in fixed assets (Inc.)/Dec. in investments (Inc.)/Dec. in loans & adv. Other income Cash flow from investing Issue of equity Inc./(Dec.) in loans Dividend paid (Incl. tax) Others Cash flow from financing Inc./(Dec.) in cash Opening cash balances Closing cash balances 69 (1,203) 184 (184) (0) 21 21 113 (999) 138 1,001 (1,139) (3) 21 18 (2,168) (5,394) 537 2,358 206 6 2,682 (141) 2,533 2,392 2,150 (2,965) (7) 328 85 (420) 149 748 897 (4,223) 938 445 493 (467) 897 430 (650) 445 (445) 2,992 430 3,421 FY2008 2,325 50 (170) (71) 747 1,387 (67) (1,205) FY2009 2,710 52 314 (221) 721 2,134 (147) (965) FY2010 3,445 75 179 (363) 764 2,571 (149) (3,078) FY2011 5,560 96 (304) (451) 1,368 3,533 (984) (4,131) FY2012E 5,105 129 (491) 1,481 3,263 (900) (3,323) FY2013E 5,785 147 (110) 1,736 4,086 (650) -

July 21, 2011

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Sesa Goa | 1QFY2012 Result Update

Key ratios
Y/E March Valuation ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV/Total assets Per share data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book value DuPont analysis EBIT margin Tax retention ratio (%) Asset turnover (x) RoIC (post-tax) Cost of debt Leverage (x) Operating RoE Returns (%) RoCE (pre-tax) Angel RoIC (pre-tax) RoE Turnover ratios (x) Asset T/o (gross block) Inventory (days) Receivables (days) Payables (days) WC capital (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA (0.7) (0.9) (1.3) (2.5) (1.2) (3.0) (1.4) (3.4) (0.5) (1.7) (0.6) (2.1) 5.1 234 35 102 53 6.0 213 28 170 33 3.2 261 20 351 12 3.2 265 20 403 7 2.9 270 24 250 16 2.6 270 24 250 22 96.2 264.5 68.0 63.9 198.5 51.9 41.7 136.3 41.6 42.9 160.3 40.7 30.6 43.3 25.2 27.9 28.3 22.8 58.9 66.6 4.4 172.0 172.0 50.2 73.6 3.8 142.2 142.2 52.5 76.6 2.5 101.6 101.6 55.5 75.9 2.6 108.1 108.1 45.6 71.0 0.9 29.2 29.2 45.4 70.0 0.6 19.5 19.5 19.7 19.7 20.3 2.3 37.4 25.3 25.3 25.9 2.3 59.9 31.6 29.6 32.5 3.3 95.3 49.1 47.5 48.5 5.0 144.0 40.7 40.7 42.2 5.0 179.7 45.5 45.5 47.2 5.0 220.2 14.1 13.7 7.4 0.8 5.2 8.6 6.5 11.0 10.7 4.6 0.8 3.1 6.1 3.2 9.4 8.5 2.9 1.2 2.6 4.8 1.5 5.9 5.7 1.9 1.8 0.8 1.4 0.5 6.8 6.6 1.5 1.8 1.5 3.2 0.9 6.1 5.9 1.3 1.8 1.1 2.3 0.6 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

July 21, 2011

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Sesa Goa | 1QFY2012 Result Update

Research Team Tel: 022 3935 7800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Sesa Goa No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns) :

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

July 21, 2011

13