Some investment analysts expect Shipping Corp. of India (SCI) to incur losses in 2012-13 too because of depressed freight rates and a slowing global economy.
The slowdown in world economy reduces trade and thereby hurts business prospects of shipping firms.
In the quarter ended September 2012, the company posted a net profit of Rs 297 crore mainly because of an extraordinary item of about Rs 480 crore.
IDBI Capital estimates that SCI’s losses have expanded to Rs 210 crore for the September quarter, adjusted for the ship-sale income and forex income gain or loss.
The company witnessed slower revenue growth last quarter compared with the June quarter. Revenue growth was slower mostly because the liner business (including break bulk and container transport) revenue declined by 25 percent on a year-on-year basis. Moreover, bulk segment revenue increased at a slower pace than the June quarter.
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