Essar Ports today reported a jump of 97 per cent in its consolidated net profit to Rs 80.53 crore for the quarter ended September 30,2012,largely due to increased volumes.
The Ruias-promoted firm had reported a net profit of Rs 40.84 crore in the corresponding quarter of the previous fiscal.
Total income of the company increased by over 25 per cent to Rs 343.98 crore during the quarter against Rs 273.97 crore in the July-September quarter of FY12,it said in a statement.
“In the second quarter,Essar Ports saw an increase of 31 per cent in the total volumes handled to 12.70 million tonnes (MT) from 9.73 MT in Q2 of FY12,” it added.
Commenting on the results,company’s Managing Director Rajiv Agarwal said,”We are on track towards completing our projects as per our plans. We are happy with the continued growth across all fronts,be it cargo handled,revenue and
According to the statement,Essar Ports will soon start operations of 16 million tonnes per annum (MTPA) terminal at Paradip Port for export of Iron ore and bulk cargo.
Besides,it has completed 56 per cent of work at its upcoming dry bulk terminal at Salaya in Gujarat which will have a capacity of 20 MTPA. The project is expected to be completed by September,2013.
Essar Ports currently has a capacity of 88 MTPA,which includes two operational terminals at Hazira and Vadinar in Gujarat. The company is in the process of expanding its capacity to 158 MMTPA over the next few years.
This includes expansion of Hazira port and setting up new terminals at Paradip and Salaya ports.
According to the company,it became one of the first companies to be part of the Government’s Take Out Financing scheme through India Infrastructure Finance Company Ltd (IIFCL) by refinancing Rs 405 crore of its debt at Essar Bulk
Terminal Ltd,Hazira in the last quarter.
The refinancing has brought down company’s interest cost by 2.65 per cent for the said amount,it said.
Takeout finance of the infrastructure projects by IIFCL is the government initiative wherein an infrastructure project on commissioning can replace some of its costly domestic rupee debt with finances from IIFCL.
This lowers the interest burden on infrastructure projects and facilitates incremental lending to infrastructure sector by freeing up the capital of banks.
Meanwhile in a filing to the BSE,the company said itspromoter director Anshuman Ruia has resigned from the board and the company has appointed P K Srivastava as an additional director.
Shares of the company closed today at Rs 98 apiece on the BSE,down 0.20 per cent from the previous close.