Essar Shipping has reported a 64 per cent drop in consolidated net profit at Rs.19.41 crore for the first quarter ended June 30, 2013, against Rs.53.90 crore in the same quarter last year. Total income from operations dropped by 48 per cent from Rs.915.84 crore to Rs.472.25 crore.
The company, on a standalone basis, reported a net profit of Rs.23.10 crore as compared to Rs.6.22 crore. But total income was lower at Rs.278.82 crore against Rs.421.09 crore.
“The reduction in revenue was mainly due to scale down of logistics services done through Essar Logistics Ltd. This was in line with the plans of Essar Shipping to focus on its core business activities such as sea transportation and oilfield services,” said AR Ramakrishnan, Managing Director. “The shipping industry continues to face challenging times on freight rates and reduced availability of cargo quantities. However, the company is fully focussed on leveraging long-term contracts and managing operating costs effectively,” said Captain Anoop Sharma, Director and CEO, Sea Transport Business, Essar Shipping.
Meanwhile, the company has reconstituted the board with the induction of Michael Pinto, Captain BS Kumar and Dr. NC Singhal as independent directors.
Essar Shipping shares closed at Rs.13.85, up 1.09 per cent on the BSE on Wednesday.