 "SCI share price up 4% after in-principle nod for GIFT City subsidiary")
Shipping Corporation of India stock soars: Shipping Corporation of India shares surged as much as 3.76 per cent to hit an intraday high of Rs 271.20 per share on Friday.
The surge in stock price came after Shipping Corporation of India said that it has been granted in-principle approval to form a wholly-owned subsidiary at GIFT City.
In an exchange filing, Shipping Corporation of India said, “The Company has received Letter dated June 12, 2024 from NITI Aayog communicating their concurrence regarding in-principle approval for formation of wholly-owned subsidiary of Shipping Corporation of India Limited (SCI), a Navratna CPSE, at GIFT City.”
The shipbuilder has also secured approval from the Ministry of Ports, Shipping and Waterways, the company said.
Financial performance
Shipping Corporation of India’s profit dropped 19 per cent to Rs 307 crore in the March quarter (Q4FY24), from Rs 380 crore in the same quarter a year ago (Q4FY23).
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However, revenue from operations fell marginally to Rs 1,413 crore in Q4FY24, from Rs 1,420 crore in Q4FY23.
SCI’s earnings before interest, taxes, depreciation and amortisation (Ebitda), also known as operating profit fell 12.3 per cent to Rs 406 crore in the fourth quarter of this fiscal year 2024, from Rs 463 crore a year ago.
Its Ebitda margin, meanwhile, came in at 28.8 per cent, from 32.7 per cent in the corresponding period in the previous fiscal year.
The board of directors have recommended a dividend of Rs 0.50 per equity share of face value of Rs 10 each.
SCI is a shipping company operating break-bulk services, international container services, liquid/dry bulk services, offshore services, passenger services. Additionally, the SCI manages and manages a large number of vessels on behalf of various government departments and organisations.
The market capitalisation of Shipping Corporation of India is Rs 12,378 crore, according to Bombay Stock Exchange (BSE).
At 10:21 AM, shares were trading 1.68 per cent higher at Rs 265.75 per share. In comparison, BSE Sensex was trading 0.15 per cent higher at 76,923.70 levels