SCI has registered a spectacular performance by reporting a whopping 1,208 per cent increase in net profit to Rs 129.18 crore for the third quarter compared to Rs 9.87 crore in the corresponding quarter last year.Net sales for the quarter grew by 44 per cent to Rs 842.15 crore from Rs 583.66 crore in the corresponding quarter.

SCI's performance, said analysts, was expected to have a positive impact on its valuation as the company had been lined up for disinvestment by the government.

Commenting on the excellent results, SCI chairman and managing director PK Srivastava said the company, which currently focuses on energy transportation, will have an evenly balanced revenue stream between the energy transportation and container lines, five years down the line.Currently, the tanker division contributes 70 per cent to the total sales and 95 per cent of the net profit to the SCI.

For the quarter under review, the operating, gross and net margins improved to 30.5 per cent, 28.3 per cent and 15.3 per cent respectively compared to the corresponding quarter of 18.07 per cent, 14.13 per cent and 1.69 per cent.

The company has also planned to go hi-tech in a big way and move away from the existing manual system within the next five years, in tune with the recommendations of PricewaterhouseCoopers (Pwc). The company plans to train its employees to adapt to the hi-tech environment within 18 months, Mr Srivastava added.

He further said that the increase in staff cost in the current quarter by 28 per cent over the corresponding quarter is more on account of the arrears been paid with retrospective effect. Interestingly, SCI's staff strength has down below 1,500 by natural attrition. The company has forwarded an attractive voluntary retirement scheme (VRS) for its employees to the government.

Meanwhile, its liner and break-bulk division, which contributes around 25 per cent of the turnover (Rs 700 crore) per annum has reduced its net loss by around 18 crore for the last nine months. The liner business will have to wait for another two years to make profits, till it hives off its break-bulk vessels, which is currently under process.

During the quarter, the company has disposed off five line vessels for a sum of Rs 22 crore. It has disposed of liners and four product tankers during the last nine months and would dispose of two more liners in the fourth quarter.

SCI, with a fleet of 101 ships, accounts for 4.14 million DWT, constituting 41 per cent of India's total tonnage. It has a diversified fleet of 34 crude tankers, 11 product tankers, 25 bulk carriers, four container ships and 10 supply boats. It has plans to acquire two second-hand vessels and two new vessels in the crude oil tanker segment for which it is seeking approval from the government.