BackEssar Ports’ March quarter profit declines 1.37% to `90.80 crore
Sales were flat at `387.74 crore compared with `387.08 crore a year ago
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Mumbai: Essar Ports Ltd reported 1.37% decline in net profit to ₹ 90.80 crore in the quarter ended 31 March against ₹ 92.07 crore for the same period a year ago due to the economic slowdown.
Sales were flat at ₹ 387.74 crore compared with ₹ 387.08 crore a year ago.
Essar Ports has a capacity of handling 104 million tonne per annum (mtpa) at its three operational terminals at Hazira, Vadinar (both in Gujarat) and Paradip (Odisha).
The port company plans to develop a coal terminal at Paradip of 14 mtpa capacity and is setting up a dry bulk terminal at Salaya in Gujarat with a capacity of 20 mtpa. It plans to expand its Hazira port capacity by 20 mtpa, taking it to 50 mtpa. Essar Ports has won the bid for the development of three iron ore berths totalling 23 mtpa at Visakhapatnam Port.
“We have started receiving many pending approvals, which will ensure early commissioning of our pending projects," managing director Rajiv Agarwal said. “With the start of operations in Vizag terminal and proposed commissioning of Salaya terminal, the revenue profile for Essar Ports is also set to diversify, thereby improving the customer mix."
Essar Ports said it has received the first stage of forest clearances for Salaya port.
“Compensatory afforestation land has been finalized and agreement has been executed. Final FCA clearance is expected soon. Paradip coal terminal construction expected to start soon as Supreme Court dismissed all the petitions filed by port users occupying the land during December 2013," it said.
It said the port has received final environment clearance for Hazira expansion and court cases by labour unions against award of concession of Vizag iron-ore terminals have been dismissed by high court of Andhra Pradesh.
In April, Mint had reported that four big port projects of Essar Ports are stuck because of regulatory approvals and litigation, highlighting a larger problem with infrastructure projects in India.
The company has so far invested ₹ 2,500 crore in these four projects over the past five years, but revenue from these projects will be delayed beyond this financial year, when they were originally expected to kick in.
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