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Essar Shipping sets FY11 capex at Rs4875 crore

Essar Shipping sets FY11 capex at Rs4875 crore
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First Published: Thu, May 27 2010. 06 15 PM IST
Updated: Thu, May 27 2010. 06 15 PM IST
Mumbai: Essar Shipping Port & Logistics Ltd will spend Rs4875 crore in FY11 and expects its port business to drive growth in the year, senior officials told reporters at a press conference on Thursday.
The firm plans to invest more than half of the total capex in its port business, which had income of Rs410 crore in FY10 compared with Rs387 crore last year, director V. Ashok said.
It commissioned a 30-million-tonnes per annum dry bulk terminal at Hazira earlier this month and is expanding crude oil and petroleum product terminal at Vadinar - both in Gujarat.
The firm said its board has approved raising up to $500 million through various means including foreign currency convertible bonds, global depository receipts and American depository receipts. It did not give any more details.
The company on Thursday also announced FY10 net profit rose by a fifth to about Rs9.38 crore on total operating income of Rs3000.
“We were largely insulated because of long-term contracts across businesses,” Ashok said.
However, the firm expects shipping rates, particularly in the tanker segment, to remain volatile for the rest of the year, Anoop Kumar Sharma, chief executive officer of sea transportation business, said.
The firm has appointed Rajiv Agarwal as the chief executive officer and has also nominated him as the managing director, said MD Sanjay Mehta, who is stepping down due to more time commitments in the group’s overseas ventures.
Shares in the firm ended up 3.16% at Rs81.55 in a firm Mumbai market.
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First Published: Thu, May 27 2010. 06 15 PM IST