SCI bottomline declines 4.32%

BS 200 SCORECARD

The Shipping Corporation of India (SCI) has reported 4.32 per cent decline in net profit at Rs 268.05 crore during the third quarter ended December 31, 2005, against Rs 280.15 crore reported during the corresponding period last year.

Total income from operations has decreased to Rs 931.95 crore for Q3 of the FY06 against Rs 992.92 crore in last corresponding quarter.

The company has declared an interim dividend of 85 per cent (Rs 8.50 per share of Rs 10 each) for the financial year 2005-06.

SCI Chairman and Managing Director S Hajara said the company has posted fair results despite the slowdown in freight rates.

"Though the freight rates in the bulk sector was not attractive, we managed to perform better with our cost cutting and other measures," Hajara said.

Hajara pointed out that there were no profit on sale of ships included in the current third quarter results. "The third quarter of last financial year included over Rs 58 crore from sale of ships while there were no sale this year.

"According to analysts, the freight rates were at its best in 2004 and therefore it cannot be compared with the current frieght rates.

The bunker cost of the company has gone up to Rs 120.77 crore during the quarter under review against Rs 61 crore during the corresponding period of the last year.

The company, as part of the consortium of SCI, Mitsui OSK Lines, NYK Line and K Line has successfully bid and won the tender for construction, ownership and 25 years of operation of the third LNG tanker required by Petronet LNG for its expansion project at Dahej.