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Stock Report
Mercator Lines performs well for 2Q ended September 2006, Sales up 65% at Rs. 295.74 crores
Posted On : 2006-10-20 09:21:08( TIMEZONE : IST )
MERCATOR LINES PERFORMS WELL FOR 2Q ENDED SEPTEMBER 2006
SALES up 65% at Rs. 295.74 crores
OPERATING PROFIT up 10% to Rs. 81.93 crores
-PROFIT BEFORE TAX UP 9% to Rs. 36.8 crores CONSOLIDATED
Mercator Lines on a consolidated basis has perFormed well during the second quarter of Financial Year 2007. Income from operations is up 65% to Rs. 295.74 crores, as compared to Rs. 178.99 crores. The operating profit is up 10% to Rs. 81.93 crores as compared to Rs. 74.18 crores.
The interest cost is Rs. 19.73 crores as against Rs. 17.53 crores, an increase of 12% as compared to the same quarter of the previous year. Inspite of a higher depreciation of Rs. 25.39 crores, (Previous year Rs, 22.83 crores), the profit before tax is up 9% flat at Rs. 36.80 crores as compared to 33.83 crores in the same quarter of the previous year. After providing for a higher tax of Rs. 1.65 crores (previous year NIL) Profit After Tax is flat at 35.13 crores as compared to 35.34 crores.
Correspondingly for the half year ended 30th September 2006, the income from operations is up 76% to Rs. 561.16 crores as compared to Rs. 319.56 crores. The operating profit is up by 7% to Rs. 155.36 crores as against Rs. 145.41 crores in the corresponding quarter of the previous year.
However, the profit after tax is marginally lower at Rs. 61.93 crores as against Rs. 77.27 crores on account of higher interest and depreciation costs and Dry docking expenses of Rs. 26.08 crores (Previous year NIL) which have been fully written of during the period under review.
The Company completed its first year of operations in the Dry Bulk Segment, wherein it had acquired 9 Bulk Carriers on long-term Time Charter last year
The strategic decision of the Company to enter the dry bulk segment has been vindicated. The Company would continue to be a dominant player in the Panamax Geared Grabber segment.
India and China continue to grow at a fast pace: The Industrial growth in both the countries is over double digit, resulting in, higher input requirements. Also, India remains a large importer of coal on account of implementation of mega power station and higher steel production. We expect freight to continue to remain firm on a medium to long term basis.
