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The Great Eastern Shipping Company's (GE Shipping) consolidated net profit has more than doubled at Rs 83.73 crore during the fourth quarter ended March, 2013, largely on account of hefty rise in other income.
The leading shipping firm had reported a net profit of Rs 39.19 crore during the same quarter of 2011-12.
However, its total income declined by over 6% at Rs 775.28 crore during the quarter vis-a-vis Rs 826.30 crore of the fourth quarter of FY'12, it said in a filing to the BSE.
During the quarter, GE Shipping's other income was Rs 74.66 crore as against a negative other income of Rs 1.14 crore of January-March quarter of FY'12. Besides, its interest outgo also decreased by nearly 26% at Rs 83 crore during the last quarter.
For the financial year ended March, 2013, the company's consolidated net profit rose by nearly 70% at Rs 537.76 crore vis-a-vis Rs 316.55 crore of FY'12. The rise in profit was largely due to lower expenses and decline in interest outgo.
However, the company reported a marginal increase of Rs 1.73% in its consolidated total income at Rs 3,006.69 crore in the last fiscal vis-a-vis Rs 2,955.49 crore of FY'12.
In a separate statement, GE Shipping said that the crude tanker market continued to under-perform in the last quarter and subdued demand from the western economies reflected in lower earnings.
"The charter rates for large asset classes in the dry bulk sector remained depressed throughout the quarter mainly due to lower iron ore imports from Brazil to Asia and lower coal shipments from Australia due to heavy floods," it added.
The company further said that even though substantial scrapping of vessels was witnessed during the quarter, the issue of new supply overhang loomed over the freight rates.
Giving its outlook, the company said that the product tanker segment is expected to perform relatively better than the crude tanker segment in the coming years as the US has turned net exporter of refined products. However, a recent boom in ordering of new product tankers can negate a significant improvement in the charter rates going forward.
The company added that its "revenue visibility for the balance part of FY 2013-14 is around Rs 381 crore. Crude tankers and product tankers are covered to the extent of 42% and 56% of their operating days respectively".
Shares of the company closed today at Rs 230.95 apiece on the BSE, up 1.29% from the previous close.
