Essar Ports Q1 Net dips 9 pc to Rs 92.15 crore

Written by PTI | New Delhi | Updated: Jul 24 2014, 00:52am hrs
Essar portsThe capacity will be expanded to 194 MTPA over the next few years.(Reuters)
Essar Ports today reported a 9 per cent dip in net profit to Rs 92.15 crore for the first quarter ended June 30, due to higher expenses and finance costs.

The Ruias-led port had reported a net profit of Rs 101.44 crore in the first quarter of 2013-14.

"Revenues for the quarter increased by 4 per cent to Rs 431.6 crore from Rs 415.5 crore during the previous quarter and increased by 5 per cent from Rs 410.5 crore during the corresponding quarter of the previous year," Essar Ports said in a statement.

The company also said it "recorded its highest quarterly operating revenues of Rs 431.6 crore (excluding export obligation revenues booked in previous quarters)".

Total expenses during the quarter, however, rose to Rs 159.60 crore as against Rs 144.23 crore in the corresponding quarter in FY14.

The finance costs rose to Rs 161.38 crore in the quarter under review against Rs 146.81 crore in the year-ago period.

Essar Ports Managing Director Rajiv Agarwal said, "Our expansion plans are on the track with operations at the Vizag terminal expected to start next quarter. The traffic at our Paradip Dry Bulk Terminal is also slated to increase next quarter. We remain focused towards increasing our third-party cargo share and diversifying our customer base."

The company said it has received final forest clearance for construction of a dry bulk terminal at Salaya on the West Coast, whose scheduled date of commissioning is June 2015.

It has also received the Hazira expansion environment clearance for 4.8 km of berth length. The 1,100-m expansion project construction is expected to start post the receipt of Gujarat Maritime Board approval.

Besides, it said, "The Vizag iron ore terminal's existing operations are expected to be taken over during Q2 FY'15.Upgradation of the outer harbour to be undertaken simultaneously along with operations."

Essar Ports is one of the largest private sector ports in the country with a capacity to handle cargo to the tune of 104 million tonnes per annum (MTPA).

The capacity will be expanded to 194 MTPA over the next few years.

It has three operational port terminals at Hazira, Vadinar and Paradip. The company is also setting up a dry bulk terminal at Salaya with a capacity of 20 MTPA. Additionally, it plans to expand its Hazira port capacity by 20 MTPA taking it to 50 MTPA.

The company is also developing three iron ore berths at Visakhapatnam port with a capacity of 32 MTPA. Besides, it has plans to develop a coal terminal at Paradip of 18 MTPA capacity.

Shares of the ended at Rs 87.50 apiece on the BSE, up 2.64 per cent from the previous close.