Fiscal 2003-04 witnessed record freight rates in the shipping industry. Propelled by the surge in demand from China, the overall pick-up in the global economy and a demand-supply mismatch in the availability of ships, freight rates reached unprecedented levels.
Naturally, this has been reflected in their bottomlines. Here is a brief overview of four companies that recently announced their results.
GE Shipping
India's largest private sector shipping firm, the Great Eastern Shipping Company posted a 98.44 per cent rise in net profit for the quarter ended March 31, 2004 to Rs 184.77 crore (Rs 1,847.7 million) against Rs 93.11 crore (Rs 931.1 million) in the corresponding period of the previous year.
Total income for the quarter ended March 31, 2004, rose 71.30 per cent to Rs 478.88 crore (Rs 4,788.8 million) against Rs 279.55 crore (Rs 2,795.5 million) for the corresponding period of the previous year.
Net profit for the year ended March 31, 2004 increased by 107.28 per cent to Rs 471.13 crore (Rs 4,711.3 million) against Rs 227.29 crore (Rs 2,272.9 million) for the previous year.
Total income for the full fiscal rose to Rs 1,426.35 crore (Rs 14.26 billion) against Rs 1007.15 crore (Rs 10.07 billion) in the previous year. The board has proposed a final dividend of Rs 4 a share, which will result in an outflow of Rs.85.88 crore (Rs.858.8 million) [including tax].
Varun Shipping Company
The leader in the liquefied petroleum gas carrier segment of the shipping industry, Varun Shipping's net profits rose by 169.32 per cent for the quarter ended March 31, 2004 to Rs 17.56 crore (Rs 175.6 million) against Rs 6.52 crore (Rs 65.2 million) in the corresponding period of the previous year.
The company's income form operations for the quarter ended March 31, 2004 increased by 9.56 per cent to Rs 84.33 crore (Rs 843.3 million) against Rs 76.97 crore (Rs 769.7 million) in the corresponding period of the previous year.
Net profit for the year ended March 31, 2004 rose by 214.67 per cent to Rs 35.81 crore (Rs 358.1 million) against Rs 11.38 crore (Rs 113.8 million) in the corresponding period of the previous year.
Income from operations rose on a year-to-year to basis by 27.19 per cent to touch Rs 292.87 crore (Rs 2,928.7 million) for the year ended March 31, 2004 against Rs 230.25 crore (Rs 2,302.5 million) in the previous year. The company has declared a total dividend of Rs 1.60 a share, resulting in an outgo of Rs 11.60 crore (Rs 116 million). The company is now eyeing a Singapore listing.
Mercator Lines
This company with a strong coastal focus posted the highest jump in net profits in percentage terms. Net profit for the quarter ended March 31, 2004 zoomed by 1568.60 per cent to touch Rs 20.19 crore (Rs 201.9 million) against Rs 1.21 crore (Rs 12.1 million) in the corresponding period of the previous year.
The company's income from operations rose by 624.16 per cent on a quarter-to-quarter basis to touch Rs 95.87 crore (Rs 958.7 million) against Rs 13.24 crore (Rs 132.4 million).
The company's net profit for the year ended March 31, 2004 jumped by 731.13 per cent to touch Rs 45.38 crore (Rs 453.8 million) against Rs 5.46 crore (Rs 54.6 million) for the year ended March 31, 2003.
Net sales increased by 295.56 per cent for the year ended March 31, 2004 to Rs 242.13 crore (Rs 2,421.3 million) against Rs 61.21 crore (Rs 612.1 million) for the year ended March 31, 2003.
Mercator raised Rs 14.30 crore (Rs 143 million) through a preferential issue to the promoters and an FII at Rs 275 a share.
SKS Ship
SKS Ship, yet another coastal shipping focused company, saw its profit surge by 141.53 per cent to Rs 7.29 crore (Rs 72.9 million) for the year ended March 31, 2004 against Rs 3.02 crore (Rs 30.2 million) for the year ended March 31, 2003.
The company's net sales increased by 10.44 per cent to Rs 28.44 crore (Rs 284.4 million) for the year ended March 31, 2004 against Rs 25.75 crore (Rs 257.5 million) for the year ended March 31, 2003. The company has declared a 1: 1 bonus.