Varun Shipping profit drops 70% to Rs 130 cr

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Oct 2009

The crash in freight rates has pulled down Varun Shipping Company’s net profit 70.52 per cent. The country’s biggest liquefied petroleum gas (LPG) carrier reported profit of Rs 130.5 crore for second quarter this financial year. Varun Shipping’s profits were Rs 442.7 crore in the corresponding quarter of previous financial year.
The income too saw a dip of 19.64 per cent. It reported Rs 206.40 crore income compared to Rs 256.85 crore in the second quarter of financial year 2009.
The stock price of the company was down 0.55 per cent during the market hours. It was trading at Rs 53.80 a share.
As ship earnings globally remain depressed in all segments of the trade for few months now, the company had reported similar results in the first quarter of the current financial year. This has led to a fall in half yearly profits too.
The half yearly profits were down 77.30 per cent. The income, on the other hand, saw a dip of 7.92 per cent.
The company also said that it had sold one LPG carrier during this quarter. And, Varun Shipping reported other income of Rs 1.72 crore.

Source: Business Standard