Warehousing Corp’s profit jump 54%

Warehousing Corp’s profit jump 54%

New Delhi: The Central Warehousing Corp (CWC) said that it has posted an over 54% rise in profit at Rs136.91 crore in 2007-08 but will remain cautious against the pressure of slowdown in exports on its capacity utilisation.

CWC had achieved profits to the tune of Rs88.70 crore during 2006-07.

“In spite of a drop in overall capacity utilisation, the corporation has registered the profit before tax at Rs154.76 crore against Rs133.80 crore in the year-ago period," CWC Chairman and Managing Director B B Pattanaik said.

“The improved results were an outcome of the diversification of the corporation’s activities, including operating railside warehousing complexes, running container trains and opening a management warehouse at the Philippines," he said.

Hailing the ‘professional approach’ adopted by CWC, Food and Agriculture Minister Sharad Pawar said: “If they maintain this pace, they cannot only maintain the mini-ratna status but also show new directions."

The minister added that the delayed monsoon, which helped early rabi sowing, and floods in certain states that left the soil fertile are likely to boost rabi crops.

He added that the procurement, therefore, is expected to be good in the next season, which may help the cause of CWC.

But the company’s capacity utlisation, which has declined to 73% from the average 84%, is likely to come under further pressure as fears of global recession loom large.