The Hindu Business Line : Sical posts Rs 4.17-cr net loss in Q3

Chennai, Jan. 13 Sical Logistics Ltd has reported a net loss of Rs 4.17 crore for the quarter ended December 2008 compared with a net profit of Rs 14 crore for the corresponding quarter of last year. This was, however, because of the hit the company had to take on account of foreign exchange fluctuations.

But for that, Sical would have reported a higher net profit, though entirely earned from savings in interest costs and other income.

Turnover declined by nearly 15 per cent. “It was a bad quarter, with volume dropping in both iron ore and coal movements,” said Mr Sudhir S. Rangnekar, Managing Director and Group CEO, Sical Logistics.

“We are now seeing improvement.”

Despite a lower turnover, the company was able to hold on to profitability because of cost cutting efforts, he said.

For instance, cost of services declined by nearly Rs 32 crore in October to December 2008 to Rs 119 crore, thanks to measures such as cut down in manpower and consolidation of operations. The company also improved its receivables, Mr Rangnekar said.

For the nine months ended December 2008, the company reported a net loss of Rs 34.42 crore against a profit of Rs 49.13 crore in the previous year period. Turnover declined to Rs 528 crore (Rs 711 crore).

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