Financial Daily from THE HINDU group of publications
Thursday, Oct 20, 2005
Financial Daily from THE HINDU group of publications Thursday, Oct 20, 2005 |
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Corporate Results
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Shipping Logistics - Financial Performance Varun Shipping Q2 net up at Rs 43 cr Our Bureau
Mr Arun Mehta (right), Vice-Chairman & MD, Varun Shipping Company, with Mr Yudhisthir Khatau, MD, at a press conference in Mumbai on Wednesday. - Paul Noronha
Mumbai , Oct. 19 VARUN Shipping has reported a net profit of Rs 43.37 crore for the second quarter of the current fiscal, against Rs 21.19 crore in the corresponding previous period. The company's revenue from operations during the quarter was Rs 146.11 crore (Rs 95.21 crore). The company has declared an interim dividend of 15 per cent for the current financial year. During the six-month period ended September 30, Varun Shipping's profit touched Rs 70.18 crore against Rs 28.48 crore for the corresponding previous period — a jump of 146 per cent. The increase in profit was chiefly due to the continuing buoyancy in freight rates in the LPG sector, although there was some dip in rates in crude and other sectors. After it takes delivery of its new tanker in a few days, Varun Shipping will have 18 vessels, including 10 LPG tankers, which will make it the owner of 77 per cent of the country's total LPG tonnage and the second largest owner globally of the mid-sized fully refrigerated LPG carrier fleet. Mr Yudhisthir Khatau, Managing Director of the company, told newspersons that with the acquisition of the 10th LPG carrier in a few days and another one by its Singapore subsidiary in mid-November, the company would have completed its capital expenditure programme of Rs 1,000 crore this fiscal. "However, we are working out a new acquisition programme for the rest of the year. It is in the early stages of drafting, but I can say that we are focussing on two new niche areas of shipping," he said. Mr Khatau said the company would continue to focus primarily on the hydrocarbon sector and have a fleet that consists of ships with lower volatility in the freight market. In this context, he said the company does not, at the moment, plan to enter the very large crude carrier market, as this was the most volatile segment in the shipping sector. "Just about a year and half ago, a very large crude carrier commanded a freight rate of $2 lakh per day, but today it is in the region of $30,000. You can see the extent of volatility in this segment," he said. Mr Khatau said the company, along with the Exmar Group of Belgium and Indian Oil Corporation Ltd, has submitted a bid for an LNG tanker against a tender floated by Petronet LNG Ltd. The share price fell by 2.73 per cent to close at Rs 59.65 on Wednesday.
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