Shipping Corporation of India posts net profit of Rs 142 in Sept quarter

State-run Shipping Corporation of India Ltd (SCI) on Friday reported a consolidated net profit of Rs 141.89 crore for the second quarter ended September 30, 2020.

The shipping company had reported a net loss of Rs 40.91 crore in the corresponding quarter of previous fiscal, it said in a regulatory filing to the BSE.

SCI's total income declined to Rs 876.87 crore during the quarter under review from Rs 1,055.56 crore in the year-ago quarter.

Total expenses also fell to Rs 743.49 crore from Rs 1,096.10 crore in the year-ago quarter.

"The severity of the COVID-19 pandemic has dealt a significant blow to already-stressed markets. Increasing travel restrictions imposed by governments around the world have created significant hurdles to crew changes and repatriation of seafarers, which has raised concerns for the safety of seafarers," the company said.

It has also hit supply chains and is impacting business due to labour shortages and material constraints. The new normal demands a better balance between risk mitigation and business continuity on one hand and cost optimization on the other, it added.

"Tanker rates have almost flattened after the initial spike seen in the early 2020, while other shipping segments are operating at lower levels. The company has assessed the current scenario basis internal and external information and believes that there is no impact in its ability to continue operations," it said.

The company said its board of directors have approved taking all necessary actions for undertaking and implementing "demerger/hiving off" of non-core assets in connection with proposed strategic disinvestment of the company.

The Union Cabinet in its meeting held on November 20, 2019 had accorded ''in-principle'' approval for strategic disinvestment of Government of India's shareholding of 63.75 per cent in SCI along with transfer of management control to a strategic buyer.

The government in September said it has appointed transaction advisor and legal advisor for the same.

SCI is largest Indian shipping company and is the only Indian company engaged in transportation of LNG.

It has a fleet strength of 59 vessels at present.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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