India's largest shipping company Shipping Corporation of India (SCI) has earmarked Rs 900 crore ($134m ) capex for the current financial year even as business climate remains grim for the industry across globe mainly because of availability of low-priced assets in the market, reports Business Standard.
SCI Chairman and Managing Director B B Sinha said that the demand situation is pathetic and so it is the right time to buy assets. "We have a capex plan of Rs 900 crore for 2016-17. We have invested some money already and negotiations are on to buy a few more vessels," he said.
The state-owned company has recently purchased one offshore vessel and negotiations are on for another tanker.
Shipping Corporation of India (SCI) has registered 72.56% fall in its net profit at Rs 55.91 crore for the quarter as compared to Rs 203.78 crore for the same quarter in the previous year. Total income of the company decreased by 21.67% at Rs 875.94 crore for quarter under review as compared to Rs 1118.22 crore for the quarter ended June 30, 2015.
"Dry bulk was already doing badly plus the tanker market also softened, which hit the topline," explained Sinha.