Essar Shipping Ports and Logistics has announced its second quarter numbers. Its net sales was at Rs 696.5 crore and net profit of Rs 65.72 crore.
Key takeaways from Essar Shipping concall
Operating revenues jumped 44% in Q2 YoY and 41% in H1 Operating EBIDTA up 74% in Q2 YoY and 91% in H1 Cash profits jumped to Rs 38 crore YoY in Q2 and up Rs 133 crore from Rs 60 crore in H1 Debt as on 30th September stood at Rs 4500 crore (including Rs 150 crore on Essar logistics) Cargo handling 10.2 million tonnes versus 9.06 million tonnes for H1 Forex loss of Rs 207 crore in Q2 Company reported loss of Rs 72 crore versus profit of Rs 65 crore in previous quarter Operating loss of Rs 32 crore in Q2 and profit of Rs 4.4 crore in H1
Freight rates increased in bulk carriers operations but the company was unaffected
Merger of Essar Shipping and Ports will be completed by 1st week of December
Expansion continues up to January 2011, already spent Rs 139 crore from internal accurals and equity
Current capex up to 2011-12 stands at USD 2.5 billion
No capex plan for Essar logistics as of now
Company sees volumes pressure in future
Two bulk carriers already acquired this year, three acquisition of bulk carriers deferred due to falling asset value and weak market condition
Company sees dip in terms of throughput in next two quarters but margins will not be affected due to long term contracts
Company has 30 rigs, out of which 6 rigs are operational and 3 will be operational soon Average revenues from these rigs at EBITDA level at USD 100-120 million annually.
