MUMBAI: ESSAR Shipping, Ports & Logistics will invest Rs 4,875 crore this financial year to strengthen its business, said a senior executive on
Thursday. The Ruias-owned company has earmarked Rs 2,875 crore for ports, while the remaining will be invested in shipping and drilling, said director V Ashok.
The Essar arm last year earned Rs 413 crore from the port business. Its oil services business generated Rs 515 crore. Its main money spinner, surface and sea logistics, earned Rs 2,072 crore.
Essar Shipping will finance 70% of the proposed expansion by debt. The remaining will be funded by equity, said Mr Ashok. The company has approved raising up to $500 million (Rs 2,350 crore) through equity instruments including foreign currency convertible bonds, global depository receipts and American depository receipts.
The company's net profit for the March quarter fell 10% to Rs 64 crore due to a rise in expenses. Total income grew 19% to Rs 909 crore, while expenses rose 57% to Rs 595 crore. For FY10, net profit grew 22% to Rs 94 crore. The Essar Shipping scrip closed 3% up at Rs 81.55 on Thursday.
During the last fiscal year, Essar Shipping commissioned a 30-million-tonne bulk cargo handling terminal at Hazira. It also achieved financial closures of projects worth Rs 5,000 crore.
It has appointed Rajiv Agarwal as the chief executive officer and managing director. Incumbent Sanjay Mehta will take overseas responsibility, Essar Shipping said.
News From: http://www.7StarNews.com
Thursday, May 27, 2010
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