Driven by robust earnings by its ports division, Ruias-promoted Essar Shipping Ports and Logistics Limited (ESPLL) on Thursday posted a five-fold jump in net profit to Rs 11 crore for the quarter ended September 30 compared to Rs 2.27 crore in the corresponding quarter last fiscal. Revenues for the period grew 20% to Rs 813.35 crore compared to Rs 677.01 crore.
The company said the ports division contributed significantly to the earnings with a sharp rise of 53% to Rs 178.96 crore. Meanwhile, shares of the company closed marginally down at Rs 110.05 on the BSE on Thursday. ESPLL MD & CEO Rajiv Agarwal said, ?The company has shown good results despite this being a monsoon quarter which usually is a lean period. The robust volumes at our ports show good promise for the rest of the year.? During the quarter the company issued $280 million worth of foreign currency convertible bonds to the holding company. For the September quarter, the ports division handled 9.55 million tonne of cargo, up by 4.6% from 9.13 million tonne for the same quarter last fiscal.
Meanwhile, Essar Shipping expects to complete demerger of shipping, logistics and oilfields businesses from its ports business in three-four months, a top official said on Thursday.
Post the demerger, which will simplify Essar Shipping’s business structure and unlock value, the company will be renamed Essar Ports.
The new entity will be called Essar Shipping which will be listed on the stock exchanges, Agarwal said. The whole process will take up to February-March of 2011. By March next year the entire exercise of demerger as well as listing will be completed, Essar Shipping, India’s second largest private sector port operator, has also lined up ambitious expansion plans to ramp up capacity of its ports, shipping and oilfields businesses in coming years.