Shipping Corporation of India (SCI) could lose its coveted Navratna status, as the country’s largest shipping company suffered losses for the third year in a row.

Hit by the bearish freight market, the public sector company reported a loss of ₹274.66 crore for the year ended March 31, 2014. This is against the loss of ₹ 114 crore in 2012-13 and ₹428 crore reported the previous year.

However, the positive sign is that the company managed to make a marginal profit of ₹13.24 crore during the fourth quarter.

Arunkumar Gupta, Chairman and Managing Director, SCI, said the management will request the government to retain the Navratna status, as the company suffered losses because of the prolonged recession in shipping. “We have done our best to reduce costs and rationalise our operations. Shipping is a global business driven by global factorsbeyond our control.” He said the freight market which has been under pressure since 2008 due to excess supply of tonnage, is expected to remain weak at least till the end of the year.

According to the Navratna norms, the company has to report profits for continuous three years to be eligible for the covetous status.

The Navratna status was conferred on SCI in 2008. This provides the company more autonomy in capital expenditure, investments, formation of joint ventures and other corporate decisions.

The company, hit by the prolonged bearish freight market, tried to make up the losses by selling some of the assets during the year. It also cancelled some of the orders for building new ships.

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Published on May 27, 2014