Essar Ports net up marginally at Rs 94 cr

Company had posted a post tax profit of Rs 90.4 crore in the corresponding period last year

The Ruias-controlled Essar Ports today reported a marginal rise in the December quarter net at Rs 94 crore, even though there was a dip in cargo volume.

 

The Essar group company, which operates 104 mt per annum capacity at present, had posted a post tax profit of Rs 90.4 crore in the corresponding period last year.

 

Cargo handled during the reporting quarter dipped to 12.12 million tonns (MT) as against 14.34 MT in the previous fiscal.

 

However, its total revenue showed improvement on a year- on-year basis, growing to Rs 398.8 crore as against the Rs 367 crore last year.

 

Managing director and chief executive Rajiv Agarwal told reporters that developments like the 23-MTPA capacity at the Vishakapatnam Port, for which it signed a concession agreement recently, come on board.

 

He said the company expects the terminal to be operational in three years. Additionally, due to a Supreme Court clearance, he said work on the Paradip coal terminal is expected to start soon and will be completed by mid 2016.

 

Its total debt stood at Rs 6,048 crore, resulting in a debt to equity ratio of around 1:2.5 and director finance Shailesh Sawa said the company is comfortable with the ratio.

 

The average cost of borrowing is now at 12.8% and it is on the lookout for ways to reduce the rates through refinancing options with forex funds, Agarwal said, adding, its request for being allowed to raise foreign currency loans may not be given the nod as it does not have any foreign revenues.

 

The company scrip gained 1.55% to close at Rs 59.05 apiece on the BSE today.