Government-owned Shipping Corporation of India (SCI) has put on a brave face despite seeing its net profit halved. The company earned a net profit of Rs 1.82bn ($46.3M) during the second quarter ending 30 September 2007, compared with Rs 3.21bn ($81.6M) in the corresponding quarter last year.
SCI's total income fell by 14% to Rs 9.46bn ($240.6M) from Rs 1.10bn ($28M). The company's chairman and managing director S Hajara attributed the sharp fall in profits to lower freight earnings from the company's liner segment. He explained that although rates in the bulk segment had improved, they have decreased in all other segments such as liners, VLCCs and tankers. Liner rates have now slightly improved following a move towards consolidation in the container trade. Despite its latest results, SCI is planning to acquire more than a dozen ships of various types. It is also preparing to set up a dredging company and shipyard to build large vessels up to VLCC size.
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