SCI sailing high

Shipping Corporation of India, (SCI) is sailing high today morning, having hit a new 52-week high at Rs.63.70. Though it has come off the highs, it remains strongly in the green, up over 12%.

The stock is sailing well on the back of its good performance for Q4Fy14. The company after a really long time turned around into profits for Q4. It posted a net profit of Rs.13 crore, compared to the loss of Rs.66 crore in Q3 and loss of Rs.282 crore in previous Q4. Apart from the 25% (YoY) jump in net sales at Rs.1203 crore, What also helped was the interest income of Rs.26 crore, tax write back of excess provision to the tune of Rs.7 crore and MAT credit of Rs.3 crore.

Yet, despite this good Q4, it ended FY14 with a net loss at Rs.275 crore and there is now talk that FY14 being its third straight year of losses, it faces the risk of losing its Navratna status. The company management has stated that it will talk to the Govt and request it to retain the status as the company’s loss was beyond its control – it was global recession which pushed the shipping industry into losses.