SCI sailing in good waters

Shipping Corporation of India (SCI) is in the limelight today after having hit a new high four days ago at Rs.79.40. Today, in the morning trades when it hit an intra day high of Rs.77.25, it seemed precariously close to clinching a new high. But it has since then come off that level and is now trading at Rs.75 levels, nevertheless, one of the top gainers on the BSE currently.

The market is enthused with the Q1Fy16 performance of the company. Good performance of its bulkers and tankers helped the company end the quarter with a whopping 233% (YoY) jump in net profit at Rs.163 crore. This profit is already 81% of entire FY15 net profit of Rs.201 crore.

Net sales was down 1% at Rs.1046 crore but it more than recouped with a 19% drop in total costs. What also helped was the 25% jump in interest income. Its liner segment performed miserably with a loss at EBIT level. This was offset by the turnaround in its bulker segment which had an EBIT of Rs.178 crore v/s loss of Rs.17 crore. Its echnical and offshore segment, which is technical consultations and offshore vessels showed a 3.5% rise in EBIT. The company is said to be chasing secondhand LNG carriers, after India's shipping minister urged it to move towards this type of vessel.