SCI Back in the Black after 3 Yrs
The Shipping Corporation of India Ltd (SCI), India’s largest shipping company and a Government of India Public Sector Undertaking having reported losses for last three financial years has made a dramatic turnaround, reporting a net profit of Rs. 200.93 Crores for the year ended 31st March 2015, as against a net loss of Rs. 274.66 Crores in the previous year. The company has reported a quarterly profit of Rs. 101.49 Crores for Q4 FY 2014-15 as against Rs.13.24 Crores reported during the same quarter last year. This is the fifth consecutive quarter of reporting profits.
While the net income from operations has almost remained flat, the appreciable decrease in various expenses, impact of judicious cancellation of new ship building orders and sale of old vessels have also contributed to the positive results. The overall financial health of the company has improved with enhanced net-worth and reduced borrowings.
All the three business segments of SCI have reported profits before interest in the last quarter and also on annual basis. The losses due to unprecedented downturn in the dry bulk markets have been partially offset by the rally in the tanker market since early 2015.
SCI prides in having a diversified fleet of 69 vessels of 5.89 mn dwt with an average age below 9 years. SCI has been able to maintain her tonnage over the year and is aspiring to cross the 6 million DWT mile stone in near future.