GE Shipping Q1 net up 45% at Rs 324 cr on higher income

Company's total income from operations increased by 17.11% to Rs 946.54 crore

Country's largest domestic ship liner Great Eastern Shipping Company today reported a 45 per cent jump in its consolidated net profit to Rs 323.67 crore for the quarter ended June 30, on the back of higher income.

The company had reported a consolidated net profit of Rs 222.93 crore in the first quarter of the previous year.

Its total income from operations increased by 17.11 per cent to Rs 946.54 crore in the quarter under review as against Rs 808.20 crore during the same period, a year-ago, it said in a BSE filing.

The company's total expenses rose to Rs 442.14 crore in the quarter over Rs 437.48 crore during the corresponding quarter of the previous fiscal.

Segment wise, shipping sector contributed Rs 563.42 crore revenue while offshore sector contribution stood at Rs 497.44 crore.

The company said, during the quarter Greatship (India) Ltd (GIL), a wholly owned subsidiary of the company has redeemed, as per the terms of the issue, part of its investment in 7.50 per cent cumulative redeemable preference share capital in GIL to the extent of 1,45,00,000 shares of Rs 10 each.

"Consequently, total investment of the company, as on June 30, 2015, in GIL amounts to Rs 1,305.14 crore in cumulative redeemable preference shares, aggregating to Rs 1,620.51 crore," it said.

During the quarter, the company took the delivery of a dry bulk carrier 'Jag Arnav' while its arm GIL sold and delivered anchor handling vessel 'Greatship Akhila'.

It further said, "Subsequent to the end of the quarter, the wholly owned subsidiary GIL has formed one wholly owned subsidiary Greatship Oilfied Services Ltd."

The company has two main businesses, shipping and offshore.

The shipping business is involved in transportation of crude oil, petroleum products, gas and dry bulk commodities.

The offshore business services to oil companies in carrying out offshore exploration and production activities, through its subsidiary Greatship (India) Limited.

GE Shipping is India's largest private sector shipping service provider with presence in the international maritime industry.

The shipping business operates under two main businesses, dry bulk carriers and tankers and a sizeable part of the tankers have approvals from oil giants like Shell, BP, Exxonmobil, Chevron Texaco and Totalfina.

Shares of the company today closed at Rs 382.00 a scrip on BSE, up 0.05 per cent.