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Shares of India’s largest shipping company – Shipping Corporation of India (SCI) surged over 13%
Shipping Corporation of India (SCI) surged over 13% today
Shares of India’s largest shipping company – Shipping Corporation of India (SCI) surged over 13 per cent, as investors welcomed the strong growth in bottomline for the September quarter. There is strong buying interest in the shares of the demerged entity – SCI Land Assets – as well, which is higher by over 6 per cent on November 11.
On Friday, after market hours, Shipping Corporation of India reported a 343 per cent rise in consolidated net profit to Rs 291.44 crore in Q2 as compared to Rs 65.73 crore a year ago.
The revenue from operations grew 32.7 per cent for the quarter under review to Rs 1,450.76 crore as compared to Rs 1093.2 crore a year ago.
The Earnings before interest, tax, depreciation, and amortisation (Ebitda) for the second quarter stood at Rs 533 crore as compared to Rs 236 crore a year ago which implies a decline of 126 per cent.
The Ebitda margins of the company for the quarter under review stood at 36.7 per cent as compared to 21.6 per cent.
The Shipping Corporation of India is a government-owned public sector enterprise in India. It plays a key role in the nation’s maritime industry.
The company is involved in various aspects of the shipping business, including cargo transportation, passenger services, and the management of a large fleet of vessels.
It supports global trade by transporting goods such as crude oil, coal, and containers across international routes. SCI also operates passenger ferry services and offers ship management, technical services, and maritime training. It is a Navratna company. The company’s headquarter is in Mumbai and was founded in 1961.
The company also handles a significant portion of India’s cargo requirements, especially in international shipping. The company serves major global trade routes and is an integral part of India’s economic linkages with the rest of the world.
Issuing an update on proposed strategic divestment of SCI, the management informed that the process of due diligence by qualified interested parties is now underway. The sale is expected to fetch Rs 3,000 crore approximately to the government exchequer.
In June, News18.com had reported that the strategic sale of Shipping Corporation of India (SCI) is likely to take off with no further delay, and the Maharashtra cabinet has already given a stamp duty exemption on this demerger.
In the past one year, Shipping Corporation of India shares have gained 59.8 per cent against Sensex’s rise of 22 per cent.
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