Ruias-promoted Essar Shipping Ports and Logistics Limited (ESPLL) today posted a five-fold jump in net profit to Rs 11 crore for the quarter ended September 30, driven by robust earnings by its ports division.
For the September quarter, the revenue grew by 20 per cent to Rs 813.35 crore compared to Rs 677.01 crore for the corresponding period last year.
The ports division contributed significantly to the earnings with a sharp rise of 53 per cent to Rs 178.96 crore.
"ESPLL has shown good results despite this being a monsoon quarter which usually is a lean period. The robust volumes at our ports show good promise for the rest of the year," Essar Shipping Ports & Logistics Limited Managing Director & CEO Rajiv Agarwal said.
For the first half of the current financial year, the company reported over six-fold jump in net profit to Rs 50.48 crore against Rs 8.40 crore a year ago.
Revenue for the period grew by 26 per cent to Rs 1,705.56 crore compared to Rs 1,348.77 crore a year ago.
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Regarding its demerger plans, the company said a shareholder meeting would be held on November 30.
Post demerger, ESPLL will be renamed as Essar Ports, while resulting company will be called Essar Shipping. Persuant to the demerger, for every three shares of ESPLL held, the shareholders to get two shares of Essar Ports and one share of Essar Shipping.
During the quarter the company issued $280 million worth of foreign currency convertible bonds to the holding company.
For the September quarter, the ports division handled 9.55 million tons of cargo, up by 4.6 per cent from 9.13 million tons for the same quarter last year.
During the quarter under review, the company acquired two bulk carriers with the aggregate of 26,321 dwt and disposed off a capsize bulk carrier of 1,15,153 dwt.
Shares of the company closed marginally down at Rs 110.05 on the Bombay Stock Exchange.