Due to a change in the deprecation policy for tanker ships and offshore vessels and lower fuel charges, the Shipping Corporation of India has recorded ₹163 crore as net profit for the quarter ended June 30. In the year-ago quarter, the company had achieved ₹49 crore as net profit.
In a BSE statement, the company said that in the quarter under review it decided to adopt a new norm for useful life of tanker ships and offshore vessels.
For calculation of deprecation the life of such ships has now been set at 25 years from the earlier norm of 20 years.
This has resulted in lower deprecation and increase in profit by ₹50 crore for the quarter.
The income from the operations for the quarter marginally dipped to ₹1,045 crore (₹1,057 crore).