The Shipping Corporation of India (SCI), a leading player in the maritime industry, has released its unaudited consolidated financial results for the quarter and nine months ended December 31, 2024. The report provides insights into the company’s financial performance, strategic initiatives, and ongoing developments. Here’s a detailed overview:
Business Overview
SCI operates a diverse fleet of vessels, including:
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Liner
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Bulk carriers
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Tankers
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Technical & Offshore vessels
This diversified portfolio enables SCI to cater to a wide range of maritime needs, from cargo transportation to offshore operations.
Financial Performance Summary (Consolidated)
The following table compares SCI’s financial performance for the quarter ended December 31, 2024, with the previous quarter (September 30, 2024) and the same quarter last year (December 31, 2023):
| Particulars | Dec 31, 2024 (Unaudited) | Sep 30, 2024 (Unaudited) | Dec 31, 2023 (Unaudited) |
|---|---|---|---|
| Revenue from Operations | 1,31,560 Lakhs | 1,45,076 Lakhs | 1,34,068 Lakhs |
| Net Profit | 7,552 Lakhs | 29,144 Lakhs | 13,435 Lakhs |
| Basic EPS (₹) | 1.62 | 6.26 | 2.88 |
| Diluted EPS (₹) | 1.62 | 6.26 | 2.88 |
Key Highlights for Investors
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Strategic Disinvestment
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The proposed strategic disinvestment of SCI is being managed by the Department of Investment and Public Asset Management (DIPAM).
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A Preliminary Information Memorandum (PIM) has been released, and the Virtual Data Room is open for due diligence by Qualified Interested Parties.
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Demerger of Non-Core Assets
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A demerger scheme was approved by the Ministry of Corporate Affairs (MCA) on February 22, 2023.
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192 non-core assets were transferred to Shipping Corporation of India Land and Assets Limited (SCILAL) effective April 1, 2021.
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These assets are currently leased back to SCI under a short-term lease, pending the finalization of agreements and the disinvestment process.
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Performance Related Pay (PRP)
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The payment of PRP amounting to Rs. 1,103 lakhs, in line with Department of Public Enterprises (DPE) guidelines, remains unresolved since FY 2014-15.
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SCI is awaiting a decision/recommendation from the Committee on this matter.
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Balance Confirmations
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SCI is in the process of reconciling Trade Receivables, Trade Payables, and Deposits.
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The management does not anticipate any material differences that would impact the financial results.
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Auditor’s Review
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The Joint Statutory Auditors have issued an unmodified review report on the consolidated financial results.
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Segment Transfer
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Effective April 1, 2024, SCI transferred passenger and research vessels managed under the Technical & Offshore (T&OS) Division to the Liner & Passenger Services (L&PS) Division.
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Interest on Delayed Payments
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SCI booked interest of Rs. 34.96 crores in the current quarter on delayed payments of contributions to PRMS Trust, Gratuity Trust, and Pension Trust.
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Additional Considerations
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The independent auditors have emphasized key matters, including:
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The unresolved Performance Related Pay (PRP) issue.
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The ongoing practice of seeking balance confirmations.
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The progress of the strategic disinvestment process.
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The demerger between SCI and SCILAL.
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Figures from previous periods have been regrouped or rearranged to align with the current period’s presentation.
The Shipping Corporation of India’s Q3 FY2024 results reflect a challenging quarter, with a decline in net profit compared to the previous quarter. However, the company continues to make progress on strategic initiatives such as disinvestment, demerger, and operational restructuring. These efforts are expected to strengthen SCI’s position in the maritime industry and create long-term value for stakeholders.
As SCI navigates the complexities of the global shipping market, its diversified fleet and focus on strategic realignment will play a crucial role in driving future growth. Investors and industry watchers will be closely monitoring the outcomes of the disinvestment process and the resolution of pending matters like PRP payments.
