The Shipping Corporation of India (SCI) Q4 00/01 earnings summary

Executive summary

• FY2000-01 gross earnings rose to Rs.3,132 crore from Rs.2,608 crore; net profit increased to Rs.382.56 crore from Rs.161.61 crore.

• Results reflected higher operating earnings and significant ship-sale surpluses; a 30% total dividend was recommended, including the 25% interim dividend already paid.

Financial highlights

• Gross earnings were Rs.3,132.23 crore versus Rs.2,607.98 crore; operating earnings were Rs.2,994.76 crore versus Rs.2,542.76 crore.

• Profit before tax was Rs.554.57 crore versus Rs.202.63 crore; profit after tax was Rs.382.56 crore versus Rs.161.61 crore.

• Gross profit before interest, depreciation and tax was Rs.885 crore versus Rs.543 crore; net interest and finance charges were Rs.66 crore versus Rs.72 crore.

• Non-recurring items included Rs.68.89 crore net surplus on ship sales and Rs.53.66 crore of excess provisions written back; prior-year adjustments added Rs.9.78 crore net.

• Operating cash flow increased to Rs.844.91 crore from Rs.349 crore; EPS was Rs.13.55 versus Rs.5.73.

Outlook and guidance

• 2001-02 MOU set a Rs.645 crore gross-margin target, 17% above the prior year's target, despite an anticipated slowdown in Indian and global economies.

• Crude transportation nodal status was extended to March 2002; the period after that remained uncertain amid expected liberalization and possible refinery-level sourcing arrangements.

• Lighterage operations on India's west coast were expected to be ~4.5 MMT in 2001-02; clean petroleum product tanker requirements could increase.

• LNG ships for Petronet LNG were scheduled for delivery in December 2003 and December 2004, with first cargo expected in January 2004.