Shipping Corporation of India's net profit almost doubled to Rs 59.66 crore in the October-December quarter of 2015-16, mainly boosted by change in method for calculation of depreciation. It had posted a net profit of Rs 31.35 crore in the October-December quarter of the previous fiscal. Total income from operations during the third quarter of the current fiscal declined to Rs 987.04 crore as against Rs 1,052.35 crore in the year-ago period, the largest domestic shipliner said in a regulatory filing to the BSE.
Total expenses declined to Rs 908.64 crore in the quarter under review, as against Rs 1,027.79 crore in the year-ago period. "During the nine months ended December 31, 2015, the company has adopted the useful life of 25 years in respect of tankers and offshore vessels which is different from the useful life of 20 years...the company while calculating the depreciation for the nine months has adopted the residual value of all the vessels as 5 per cent of initial cost of vessels as against Rupee 1 considered earlier. "...
consequent to the change, the depreciation for the quarter ended December 31, 2015 is lower and the profit for the quarter December 31, 2015 is higher by Rs 5,057 lakh (Rs 50.57 crore)," the SCI said. The revenue of the shipliner from the bulk segment increased to Rs 771.03 crore, over Rs 759.12 crore in the year-ago period, it said. The revenue from liner segment was Rs 126.98 crore as against Rs 202.48 crore in the year-ago period.
Shares of the company closed at Rs 74 apiece, down 4.45 percent on the BSE.
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