Shipping Corporation of India posts results for nine months ended 31.12.2012
SCI has declared a profit of Rs. 167.13 crores for the nine months ended 31.12.2012 as against a loss of Rs. 72.36 crores for the nine months ended 31.12.2011, the company reports.
Though the quarter ended 31.12.2012 has shown a loss of Rs.75.26 crs, the redeeming feature which needs to be noted is that the operating result for the preceding quarter (excluding extraordinary items) included income from sale of vessel. If this income is adjusted from the operating results, it can be seen SCI has posted better operating results in the current quarter. So is the case with the corresponding quarter of the previous year. Thus SCI has performed operationally better in the current quarter. Overall there has also been an emphasis on cost control as a result of which the total expenditure excluding depreciation has reduced.
SCI has taken delivery of eleven vessels since beginning of the current financial year and disposed off five old vessels, as a result of which there is additional depreciation. However as a result of this addition to the fleet, the average age of the SCI fleet is about 10.20 years.
In spite of the stress in the freight markets, the liner segment primarily represented by the cellular services has shown a trend of profitability. This has been due to the restructuring of the Liner services.
The Offshore Segment buoyed by the induction of five vessels since January 2012, continued its trend of profitability and the ‘Others’ Segment which includes the Offshore vessels has shown almost 90% increase in profit before interest and tax. It is to be noted that eight more offshore vessels are to be delivered in the next financial year,
Though the bulk carriers and tankers have shown losses it is expected that with the young fleet, SCI is in a position to take on the market when the trends improve.
