SCI Net Up At Rs 77 Cr, Even As Sales Decline

Mumbai, October 25: | Updated: Oct 26 2002, 05:30am hrs
Shipping Corporation of India (SCI) has reported a net profit of Rs 77 crore for the quarter ended September 2002 as compared to Rs 64.4 crore for the corresponding quarter last year. Net sales declined to Rs 596.6 crore from Rs 741.25 crore last year. However, the net profit of Rs 77 crore recorded during the quarter under review includes extra-ordinary income comprising refund of income tax of Rs 75.05 crore for the previous year and interest thereon of Rs 7.37 crore. The extra-ordinary income of Rs 82.42 crore, if excluded, results in a net loss of Rs 5.42 crore.

The shipping industry in general has been going through a recessionary phase with the softening of the charter freight rates in the tanker segment. SCI has been deriving almost 75 per cent of its revenues through the tanker segment.

However, in the quarter under review, SCIs liner division seems to have performed well over its preceding quarter registering a 142 per cent jump to Rs 201.26 crore from Rs 141.53 crore, over its preceding quarter in the current fiscal.

SCI director SS Rangnekar attributed the performance in liner division to the rate restoration initiative being gradually accepted by the trade coupled with better capacity utilisation.

Moreover, the corporate image and the brand equity of SCI has also helped in forming consortium with good container liners worldwide, which was a positive factor, he added.

During the quarter, operating margins declined to 13.3 per cent from 25.8 per cent in the corresponding quarter last year.