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State-owned Shipping Corporation of India Ltd (SCI), India’s largest shipping company, has reported a quarterly profit of Rs. 101.49 crores (US$ 15.9 million) for the fourth quarter of the 2014/15 financial year, up from Rs.13.24 (US$2.1 million) crores during the same quarter last year.
This is the fifth consecutive quarter in which SCI has been profitable. Having recorded losses in the previous three financial year periods, the company has turned its fortunes around and reported a net profit of Rs. 200.93 crores ($31.47 million) for the year ended 31st March 2015. This compared with a net loss of Rs. 274.66 crores (US$43 million) in the previous year.
Heralding this significant achievement, Arun Kumar Gupta, chairman and managing director of SCI, told The Maritime Standard: “We have steadied the ship and while we intend to steer ahead at full steam, market signals can be treacherous. As a result we will proceed with caution.”
While net income from operations remained virtually the same, a cost reduction programme, the cancelation of newbuilding orders and the sale of older tonnage has contributed to the positive result. Mr Gupta said, “The overall financial health of the company has improved with enhanced net-worth and reduced borrowings. Furthermore our return to profitability has immensely boosted the morale of our employees as well as the confidence of our stakeholders.”
SCI currently has a diversified fleet of 69 vessels totalling 5.89 million dwt with an average age of less than 9 years. A limited fleet expansion programme is underway and the target is to exceed 6 million dwt by the end of 2015. “My short term goal is to reach this landmark which has eluded us for many years,” added Mr Gupta.
