SCI sails ahead, pushed by Iranian joint venture move

DALAL STREET SPIKES

India's largest shipping company, Shipping Corporation of India (SCI), sailed lower even as the company plans to form a joint venture with an Iranian company.

The stock after hitting the day's high of Rs 151.50, slipped to close at Rs 145.20, down 1.37 per cent. According to reports, Shipping Corporation of India (SCI) is planning to set up a new company for transportation of LNG and petrochemicals from the South Pars Field in Iran.

SCI plans to float a joint venture company with National Iranian Tanker Company (NITC), Islamic Republic of Iran Shipping Line (IRISIL) and Irano-Hind Company for the LNG and petrochemicals from the above-mentioned field.

The structure of the venture is yet to be finalised. Tentatively, it will be a 50-50 partnership between the Indian and Iranian companies. The company recently announced impressive March ended quarterly results.

Its net profit has risen 137 per cent in fourth quarter ended March 2005 to Rs 611.13 crore (Rs 257.14 crore). However, the surge in net profit is due to a huge deferred tax credit.