Essar Shipping Ports and Logistics (ESPL) has today posted a net profit of Rs 64 crore in the fourth quarter, 10 per cent lower than the Rs 71 crore posted in the same quarter last year. The revenues of the company have gone up 19.4 per cent to Rs 909 crore, from Rs 761 crore in the corresponding quarter last year.
"We have made a provision in the drilling business towards tax liabilities. We are legally contesting them but we made a provision of Rs 20 crore in the fourth quarter. Interest cost has also increased, which has reflected in our balance sheet. Without the provisioning, our net profit would have gone up 17-18 per cent," said V Ashok, director, ESPL.
ESPL has also said the board has approved raising as much as $500 million (Rs 2,350 crore) either in the form of foreign currency convertible bonds, global depository receipts, American depository receipts or other instruments to be converted into equity.
The company is planning to spend Rs 4,875 crore in the financial year 2010-11. Maximum investment will flow into the ports business as it plans to spend around Rs 2,800 crore in the sector. The company is implementing berth and terminal construction projects in Salaya in Gujarat and Paradip in Orissa.
