SHIPPING CORP Announces Quarterly Results (3QFY21); Net Profit Down 63.7%

Wed, 10 Feb

SHIPPING CORP has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

SHIPPING CORP Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	12,576	8,432	8,412	-0.2%	-33.1%
Other income	Rs m	240	337	316	-6.1%	31.7%
Turnover	Rs m	12,816	8,769	8,728	-0.5%	-31.9%
Expenses	Rs m	7,296	5,297	6,024	13.7%	-17.4%
Gross profit	Rs m	5,280	3,135	2,388	-23.8%	-54.8%
Depreciation	Rs m	1,699	1,590	1,564	-1.6%	-7.9%
Interest	Rs m	792	548	66	-88.0%	-91.7%
Profit before tax	Rs m	3,029	1,334	1,074	-19.5%	-64.5%
Tax	Rs m	184	23	41	82.2%	-77.7%
Profit after tax	Rs m	2,845	1,311	1,033	-21.2%	-63.7%
Gross profit margin	%	42.0	37.2	28.4
Effective tax rate	%	6.1	1.7	3.8
Net profit margin	%	22.2	15.0	11.8

Year-on-Year Performance:

• The company's operating income during the quarter fell 33.1% on a year-on-year (YoY) basis. The expenses were down by 17.4% YoY during the same period.
• The company's operating profit declined by 54.8% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 28.4% in 3QFY21 as against 42.0% in 3QFY20.
• Depreciation charges declined by 7.9% and finance costs declined by 91.7% YoY, respectively.
• Other income increased by 31.7% YoY during the quarter.
• Net profit for the quarter declined by 63.7% YoY. Net profit margins during the quarter declined from 22.2% in 3QFY20 to 11.8% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 0.2% on a quarter-on-quarter (QoQ) basis. The expenses were up by 13.7% QoQ during the same period.
• The company's operating profit declined by 23.8% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 28.4% in 3QFY21 as against 37.2% in 2QFY20.
• Net profit for the quarter declined by 21.2% QoQ, while net profit margins declined from 15.0% in 2QFY20 to 11.8% in 3QFY21.

To see how SHIPPING CORP has performed over the last eight quarters,please visit here.

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SHIPPING CORP Share Price Performance

Over the last one year, SHIPPING CORP share price has moved up from Rs 59.4 to Rs 84.9, registering a Gain of Rs 25.6 or around 43.0%.

Overall, the S&P BSE SENSEX is up 25.0% over the year.

Current Valuations

At the current price of Rs 84.9, the price to earnings (P/E) ratio of SHIPPING CORP stands at 5.9 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.5 times.