05-11-2018

Hit by a falling rupee, Shipping Corp and Great Eastern post Q2 losses

Shipping Corporation of India Ltd (SCI) and The Great Eastern Shipping Co Ltd, India’s top two fleet owners, posted losses during the July-September quarter, hammered by a falling rupee despite higher operational income.

State-run SCI’s second quarter loss – announced on Saturday- widened to ₹142.53 crore from ₹76.18 crore a year earlier. The company has posted a loss of ₹205.98 crore in the first quarter of FY19, taking the combined loss in the first half of FY19 to ₹348.51 crore from ₹82.90 crore in FY18.

Operationally, India’s biggest ocean carrier fared better by posting an operating income of ₹939.81 crore in the second quarter from ₹808.22 crore a year earlier.

But, this performance was dragged down by a foreign exchange loss of ₹184.86 crore in the July-September quarter (₹338.13 crore in H1FY19) compared to ₹14.02 crore and ₹8.8 crore respectively during Q2 and H1 of FY19.

On a consolidated level that includes its offshore unit, The Great Shipping Co posted a loss of ₹223.47 crore in the second quarter of FY19 from a net profit of ₹6.86 crore a year ago.

The Mumbai-listed firm had posted a loss of ₹245.08 crore in Q1FY19, taking the combined loss for H1FY19 to ₹468.55 crore from a net profit of ₹110.42 crore in H1FY18.

India’s biggest private ocean carrier’s operational income rose to ₹799.42 crore during the second quarter of FY19 from ₹702.43 crore in FY18.

The Great Eastern booked a forex loss of ₹221.44 crore during the second quarter of FY 19 and ₹520.54 crore during H1 FY19.

Both SCI and The Great Eastern were hit by a ₹4 depreciation in the rupee-dollar exchange rate between June 30 and September 30, 2018.

Though, it’s a non-cash item, the impact of rupee depreciation has to be shown in the profit and loss account, according to the new accounting standards.
Source: The Hindu Business Line

Previous Next
 

Huge Opportunities For Investment in Maritime Sector: Nitin Gadkari

View More Videos


Gallery

India Shipping and Offshore Summit

View All Albums