Shipping Corp’s net profit seen lower at 42%

Shipping Corp’s net profit seen lower at 42%
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First Published: Thu, Jun 14 2007. 12 50 AM IST
Updated: Thu, Jun 14 2007. 12 50 AM IST
State-run Shipping Corp. of India Ltd (SCI) is expected to report a fall in net profit for the quarter to March on lower other income and container freight rates, and higher depreciation, analysts said.
A poll by Reuters showed that analysts expected the company, on an average, to report a 42.07% drop in net profit to Rs202.8 crore in the January-March quarter.
However, they expected quarterly net sales to rise by 6.81% to Rs1,122 crore. The company is expected to announce its results on 15 June.
“There has been no sale of vessel in the quarter and the depreciation would be higher,” analyst Kanan Shah of Networth Stock Broking Ltd said.
In a quarterly preview report in April, Networth said the container shipping segment has witnessed a major correction and the freight rates in this segment have also bottomed out in the short term.
Shah expected SCI’s yearly net profit to fall sharply due to higher operating, bunker and repairing costs, and on lower charter rates.
However, she expected the company to report higher yearly revenues.
Most brokerages covering the shipping sector are bullish on the short-term outlook, especially in the dry bulk and offshore segments.
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First Published: Thu, Jun 14 2007. 12 50 AM IST