Ruias promoted-Essar Shipping reported a 64% drop in net profit at R19.4 crore for the April-June quarter, from a net profit of R53.9 crore in the corresponding quarter last year as revenue from its fleet operations and chartering fell due to low shipping rates.
The company clocked in 48% lower total income at R472.2 crore from R915.8 crore in the same quarter last year. Revenue from fleet operations and chartering fell 35% to R293.7 crore during the first quarter. Income from logistics services business was down 96% to R10.87 crore
?Shipping industry continues to face challenging times on freight rates and reduced availability of cargo quantities. However, the company is fully focused on leveraging long term contracts and managing operating costs effectively,? Anoop Sharma, director and CEO of sea transportation business, said. The company was able to cut its total expenses by 49% to R396.9 crore for the quarter. This was mainly helped by lower operating expenses. The company appointed Michael Pinto, Capt BS Kumar and NC Singhal as independent directors. Shares closed up 2.1% at R14 on Wednesday on the BSE.