Late Monday, Shipping Corporation of India Ltd., or SCI, provider of maritime transportation serving Indian and Global trades, announced financial results for the quarter, reporting a lower standalone net profit on decline revenues and on one-time charge.
Mumbai-based company posted fourth-quarter standalone net profit of Rs.200.76 crore or Rs.4.74 per share, 19% lower than Rs.248.69 crore or Rs.5.87 per share in the fourth-quarter of 2008.
The company said the results for the quarter included a one-time charge of Rs.39.08 crore, towards claim for compensation payable to statutory authorities for discontinuation of one of the liner services and arbitration award which is being contested by the company. Excluding charge, the company's net profit for the quarter was Rs.272.35 crore, down marginally from Rs.274.24 crore in the prior year quarter.
The company's quarter net revenue fell 24% to Rs.806.95 crore from Rs.1,056.83 crore in the year-ago quarter, while other income (including interest income and profit on sale of ships), amounted to Rs.292.64 crore, compared with Rs.120.61 crore in the previous year quarter.
During the quarter, revenue from Liner segment plummeted 18% to Rs.205.49 crore from Rs.250.91 crore in the corresponding quarter last year, while revenue from Bulk segment declined 7% to Rs.772.76 crore from Rs.832.75 crore in the prior year quarter. Revenue for the quarter from others was Rs.56.03 crore, compared with Rs.39.05 crore in the fourth-quarter of 2008.
During the quarter, the company sold a dry bulk carrier (Lok Maheshwari) year built 1986 of DWT 26450. With this, the company sold two vessels during this fiscal year.
For the fiscal year, the company's standalone net profit amounted to Rs.940.67 crore, up 16% from Rs.813.90 crore in 2008.
Net revenue for the year rose 12% to Rs.4,166.64 crore from Rs.3,726.84 crore a year-ago, while other income (including interest income and profit on sale of ships), was Rs.395.19 crore, compared with Rs.357.52 crore in the previous year.
The company said its board has recommended a final dividend of 65% or Rs.6.50 per equity share of Rs.10 each for the fiscal year 2009.
SCI said it has inked the shipbuilding contract for acquisition of 2 nos. 120 ton bollard pull anchor handling, towing and supply vessels with Cochin Shipyard Ltd.
The company expects to spend $1 billion in capital expansion in the current financial year.
S. Hajara, Chairman and Managing Director, said, "The last quarter was very bad. The entire shipping market went down and freight rates fell in the second half of last year, which impacted our revenues."
At the BSE, Shipping Corporation shares are currently trading at Rs.130.00 , up by Rs.2.50 or 1.96% on a volume of 1.05 lakh shares. The stock touched an intraday high of Rs.132.10 and a low of Rs.124.80.
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