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Essar Shipping March net slides 78% to Rs 13.9 cr

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Press Trust of India New Delhi

Essar Shipping Ports & Logistics Ltd (ESPLL) today posted a 78% decline in profit after tax at Rs 13.9 crore for three months ended March 2011, mainly on account of lower charter rates.

The company had a profit after tax of Rs 63.5 crore in the year-ago period. ESPPL is part of Ruias-led conglomerate Essar.

In the latest quarter under review, ESPPL raked in revenues to the tune of Rs 857.6 crore, lower than Rs 909 crore garnered in same period a year ago, the company said.

Essar Shipping's CEO and MD Rajiv Agarwal told reporters during a teleconference that charter rates came down, especially in oilfield services, impacting the bottomline.

The firm earned a profit after tax of Rs 92.1 crore on revenues of Rs 3,397.4 crore for the year ended March 2011.

ESPLL is undergoing a demerger process that would see the present entity being split into two -- Essar Shipping Ltd and Essar Ports Ltd.

The shipping, logistics and oilfield businesses would be spun off into a separate company called 'Essar Shipping Ltd', while the port business would be renamed as 'Essar Ports Ltd'.

Essar Shipping is expected to be listed by June-end, while ESPLL -- which would be renamed Essar Ports -- would remain listed.

"For every three shares of ESPLL, shareholders of ESPLL will get two shares of Essar Ports Ltd and one share of Essar Shipping Ltd," the firm said.

Currently, ESPLL has a share capital of Rs 615 crore. Post demerger, Essar Shipping would have a share capital of Rs 205 crore, while that of ESPLL would be Rs 410 crore.

Shares of ESPPL tumbled nearly five% to Rs 92.55 on the BSE.

 

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First Published: May 03 2011 | 6:16 PM IST

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