In Q1FY21, the company registered a standalone net profit of Rs317.48cr compared to a net loss of Rs39.36cr in the corresponding period of the previous year. In the preceding quarter, Shipping Corp posted a net profit of Rs113.75cr.
Standalone revenue from operations stood at Rs1,143.46cr which increased compared to Rs918.95cr a year ago same period. However, revenue was down from Rs1,313.82cr of the previous quarter.
On segment-wise performance, revenue was at Rs134.96cr from liner business, while Rs101.41cr was witnessed in bulk carrier business as on June 2020. Tanker business was a stellar performer, as revenue here was at Rs861.46cr in Q1FY21 versus Rs571.25cr of Q1FY20.
Talking about Covid-19 impact, Shipping Corp in its financial audit report said, "The shipping business and markets have been adversely impacted as the cascading effect of the lockdown pervaded the port and cargo operations leading to delays in clearing of cargo containers, berthing of vessels, clearance of documents/immigration resulting in demand compression and utilization levels of ships. Rise in tanker rates in the backdrop of a sharp drop in oil prices and demand for floating storage may not sustain in the future. The near-term outlook for major shipping segments like dry bulk, containers and offshore appears negative."
Further, Shipping Corp added, "The Company on the basis of internal assessment believes that there is no impact on its ability to continue as a going concern and meeting its liabilities as and when they fall due. The Company has access to the line of credit which can be utilized to meet emergencies, if any, arising out of the impact of Covidon its operations. With system driven environment there has been no impact in the internal controls and reporting as well."
On a consolidated front, Shipping Corp recorded a net profit of Rs336.87cr in the latest quarter against a loss of Rs28.90cr of the similar quarter a year ago. While total income here was at Rs1,178.43cr as against Rs945.50cr of Q1FY20.
At around 09.42 AM, the Shipping Corp stock was performing at Rs60.85 per piece surging by 6.75% on Sensex.