Mercator sailing smooth

Mercator is doing well today in an otherwise choppy market. The stock is up almost 3% currently at Rs.12.76, with an intra day high at Rs.13.15. Its 52-week high stands at Rs.24.

The stock is sailing smooth today despite the rough waters on general optimism surrounding the stock, on its good performance of the company for FY13, which the market seems to be giving credence now. The company has posted cash profit of 43 crore for FY 13, after providing for exceptional loss of 156 crore on early termination of contracts of 3 vessels, which are now likely to get deployed at a better rate, by its Singapore subsidiary. With the termination, the company plans to retire past of its debt and over the next two years, hopes to save around US$ 25 to 30 million , helping boost its cash flows which is already evident.