The Shipping Corporation of India (SCI) Q4 97/98 earnings summary

Executive summary

• FY ended 31 Mar 1998 gross earnings rose over 7% YoY to Rs. 2,521 crore; net profit increased to Rs. 246.24 crore from Rs. 233.27 crore.

• Gross profit before interest, depreciation and tax was Rs. 638 crore; proposed dividend was 20%, absorbing Rs. 56.46 crore, plus dividend tax of Rs. 5.65 crore.

Financial highlights

• Operating earnings reached Rs. 2,414.45 crore versus Rs. 2,269.72 crore; total income was Rs. 2,521.49 crore versus Rs. 2,342.66 crore.

• Profit before tax rose to Rs. 301.26 crore from Rs. 273.59 crore; tax provision increased to Rs. 55.02 crore from Rs. 40.32 crore.

• Net interest and finance charges fell to Rs. 86.48 crore from Rs. 100.52 crore; depreciation increased to Rs. 249.75 crore from Rs. 235.69 crore.

• Excess provisions written back were Rs. 69.88 crore versus Rs. 10.33 crore; net surplus on ship sales was Rs. 19.17 crore versus Rs. 43.28 crore.

Outlook and guidance

• A five-year tanker acquisition plan was drawn up to address expected tonnage demand; the 9th Plan programme targets 44 vessels totaling ~1.95 million DWT, with investment estimated at US$1.24 billion.

• The 9th Plan acquisition outlay was revised to Rs. 5,752 crore from Rs. 5,053 crore; the 1997-98 plan had approved Rs. 885.19 crore, with 17 vessels envisaged.

• LNG transportation was identified as a growth area; discussions with Indian project authorities and potential arrangements with established operators were underway.

• The 1998-99 government MOU raised targets for revenue operating days, safety and berthing delays while retaining the gross-margin target at the 1997-98 level.