Shipping Corporation of India Reports Multifold Profit Growth in Q2 FY25

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Shipping Corporation of India Reports Multifold Profit Growth in Q2 FY25

The Shipping Corporation of India (SCI), the nation’s largest shipping company, announced a remarkable jump in net profit for the September quarter, reporting a multifold increase to ₹291.44 crore, compared to ₹65.73 crore in the same quarter last year. This strong profit growth has ignited investor interest, pushing SCI shares up over 13% as of November 11. Shares of the demerged entity, SCI Land Assets, also saw a positive response, gaining over 6% as investors react to SCI’s robust financial performance.

SCI share price
SCI share price

Revenue Growth and Dividend Announcement in Q2 FY25

SCI reported an increase in consolidated income to ₹1,491.23 crore in Q2 FY25, up from ₹1,161.89 crore in the year-ago period. Alongside this strong financial rebound, SCI declared a dividend of ₹0.50 per share. This upturn has helped SCI shares recover much of the losses seen in recent months, with year-to-date gains now at an impressive 47%.

Strategic Divestment and Stake Sale Update

SCI’s management shared updates on the ongoing strategic divestment process, which is expected to bring approximately ₹3,000 crore to the government. The process, now in the due diligence phase, involves qualified bidders evaluating SCI’s assets and operational potential. The Maharashtra government has approved a stamp duty exemption on the demerger of SCI Land Assets, which holds SCI’s real estate and other non-core assets. The financial bidding phase is expected to conclude by the end of the year.

SCI share price
SCI share price

SCI’s Fleet and Market Outlook

With a fleet of 59 vessels, including 32 tankers, 15 bulk carriers, 2 liners, and 10 offshore supply vessels, SCI is also the only Indian player in the LNG transportation sector. SCI anticipates a generally positive market outlook for the dry bulk segment in 2025, driven by strong demand and limited vessel supply. However, SCI expects freight rates to decrease post-2025 due to an increase in effective supply from a strong order book.

SCI share price
SCI share price

Conclusion:

The Shipping Corporation of India’s impressive Q2 FY25 performance, driven by increased revenue, a substantial profit rise, and ongoing strategic divestment, underscores its pivotal role in the shipping industry. The positive market outlook, combined with SCI’s unique position in LNG transport and diversified fleet, makes it well-positioned to sustain growth in the coming years.

FAQs:

1.What is SCI’s net profit for Q2 FY25?

A. SCI reported a consolidated net profit of ₹291.44 crore in Q2 FY25, up from ₹65.73 crore in the previous year.

2.How much did SCI’s income grow in Q2 FY25?

A. SCI’s income rose to ₹1,491.23 crore in Q2 FY25, compared to ₹1,161.89 crore in Q2 of the previous year.

3.What dividend did SCI declare for Q2 FY25?

A. SCI declared a dividend of ₹0.50 per share for Q2 FY25.

4.How much have SCI shares increased on a YTD basis?

A. SCI shares have gained approximately 47% year-to-date.

5.What is the status of SCI’s strategic divestment?

A. SCI’s strategic divestment is in the due diligence stage, with financial bids expected by the end of the year.

6.What is SCI Land Assets?

A. SCI Land Assets holds the real estate and non-core assets of SCI, formed as a demerged entity.

7.How many vessels does SCI currently operate?

A. SCI operates a fleet of 59 vessels, including tankers, bulk carriers, liners, and offshore supply vessels.

8.What are SCI’s expectations for the dry bulk segment in 2025?

A. SCI expects strong demand and limited vessel supply in 2025, favoring a positive outlook for the dry bulk segment.

9.Will freight rates change in the coming years?

A. SCI expects freight rates to decline post-2025 as new vessels increase effective supply.

10.What role does SCI play in LNG transportation?

A. SCI is India’s only company specializing in LNG transport, marking it as a critical player in this sector.

SCI share price

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