PSU Stock Fall: Shipping Corp shares decline 8% after weakness in Q2 results

Shares of state-run Shipping Corporation of India Ltd. (SCIL) fell as much as 8.5% on Monday, November 10, in response to their September quarter results that were reported after market hours on Friday.

Shipping Corp's revenue for the September quarter declined by 7.7% to ₹1,338.8 crore from ₹1,450.7 crore during the same period last year.

The company's net profit declined by one-third, a 35% fall to ₹189 crore from ₹291 crore during the year-ago quarter.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter fell by 23.7% on a year-on-year basis to ₹406 crore, while margins narrowed by over 600 basis points to 30.3% from 36.7% during the last year's quarter.

Shipping Corp's cash position at the end of the quarter, including liquid Mutual Funds stood at ₹1,875 crore. It added that it has inducted two large gas carriers "Sahyadri" and "Shivalik" into its fleet, to strengthen its presence in the energy transportation segment. The vessel will be deployed on the Persian Gulf to India trade route.

Revenue for the Linear segment fell to ₹214 crore from ₹298 crore last year, while bulk revenue fell to ₹201 crore from ₹214 crore on a year-on-year basis. Tanker segment revenue also declined to ₹858 crore from ₹885 crore last year.

Shares of Shipping Corporation of India are trading 8.5% lower on Monday at ₹243.8. The stock had risen 10% in the last one month.