SHIPPING CORPORATION OF INDIA SEES PROFITS RISE
Despite significant losses by its container carrying division, a buoyant tanker market coupled with cost-cutting measures to help the Shipping Corporation of India post a whopping 230 percent profit increase in the April-June period from a year earlier to Rs. 163.54 crore (approximately $25.5 million).
During the first quarter, the state-owned carrier lost heavily in its liner segment, which comprises container and passenger operations. First-quarter liner loss swelled to $3.2 million from a loss of about $137,280 a year earlier, as revenue tumbled 25 percent year-over-year to $26 million, a company release shows.
SCI’s solid result came despite its quarterly revenue falling 2.7 percent year-over-year to Rs 1,056.5 crore (about $165 million) as lower costs enabled the public company to boost operating profit by 168 percent to $28 million. The company trimmed its quarterly operating costs by 24 percent from a year earlier to $136 million.
“The quantum leap in profits during the quarter has been attributed to the rally in tanker markets aided by the continued slide in world crude oil prices,” the national carrier said in a filing to the Bombay Stock Exchange.
SCI’s core bulk shipping business booked an operating profit of $28 million, reversing a $2.7 million loss recorded in the same period last year, on an 8.5 percent year-over-year increase in revenue to $126 million.
The carrier recently expanded its SCI Middle East India Liner Express Service, or SMILE, by adding a call at Kattupalli International Container Terminal, a new, privately-operated facility near Chennai.