Shipping Corp sets sail with 59% jump in net

Written by fe Bureau | Mumbai | Updated: Aug 1 2010, 05:27am hrs
State-run Shipping Corporation of India (SCI) on Friday reported a 59% jump in net profit to Rs 191.49 crore for the quarter ended June 30, 2010, compared with Rs 119.92 crore in the corresponding quarter last year. Revenues for the June quarter rose to Rs 906.52 crore compared with Rs 882.79 crore in same quarter last year. Revenue from the liner segment improved to Rs 270.8 crore for the quarter. For the bulk segment, revenue slipped to Rs 644.16 crore.

SCI is among those public sector companies, which are part of the government's plans to raise up to Rs 40,000 crore through disinvestment this fiscal.

The proposal is to sell 10% stake in SCI through a FPO in the current financial year. However, the quantum of fresh equity to be raised by the company is yet to be decided. The shipping ministry is in the process of finalising the cabinet note for the FPO.

There is a proposal for a follow on public offer (FPO) for the company, said S Hajara, CMD. The government is yet to take a decision of divestment in the company. The company has a debt to equity ration of 0.43, and cash in hand of Rs 2,300 crore. The year 2009-10 was a trying year for the bulkers & tankers, but with its judicious mix of time charters, spot charters and COA, SCI managed to ride the uncertain market conditions successfully, the company said in a release.