Flessione dei risultati economici della compagnia di navigazione indiana GESCO

Great Eastern Shipping Company (GESCO), la seconda compagnia di navigazione indiana, ha registrato nel trimestre aprile - giugno di quest'anno un profitto netto di 200,1 milioni di rupie, inferiore del 40,7% rispetto a quello ottenuto nello stesso trimestre del '98. Il fatturato è calato del 13,3%, passando da 2,4 a 2,1 miliardi di rupie nella comparazione tra i due periodi.

Le previsioni non sono peraltro rosee: lo stesso presidente della GESCO, K.M. Sheth, ha detto che il periodo di difficoltà della compagnia potrà continuare anche nei prossimi mesi. In particolare risulta delicata la situazione del settore cisterniero, mentre in quelli del trasporto di rinfuse secche e delle attività offshore sono attesi segnali di moderata ripresa.

Financial results
for the quarter ended
30th June,1999
(Source: The Great Eastern Shipping Co. Ltd.)

		(Rs. in Million)
		Quarter ended on 30.06.1999	Corresponding Quarter ended on 30.06.1998	Previous Year ended on 31.03.1999
1.	Income from Operations & Sales	2,055.0	2,370.7	9,289.6
2.	Gains on sale of vessels & other assets	49.4	-	5.4
3.	Other Income	66.3	165.0	513.5
4.	Total Expenditure	1,386.2	1,560.	5,895.6
5.	Operating Profit	784.5	975.1	3,912.9
6.	Interest	129.1	157.6	578.2
7.	Gross Profit after interest but before depreciation & taxation	655.4	817.5	3,334.7
8.	Depreciation	400.7	384.2	1,647.0
9.	Non-cash charges written off/provisions	6.6	-	143.4
10.	Profit before Tax	248.1	433.3	1,544.3
11.	Provision for Taxation	48.0	95.6	280.0
12.	Net Profit after tax	200.1	337.7	1,264.3
13.	Paid-up Equity Share Capital	-	-	2,876.0
14.	Reserves	-	-	9,233.4

NOTES:

The break up of operating profit is as follows :

	Rs. in Million
	30.06.1999	30.06.1998
Shipping	623.9	679.5
Offshore	137.8	146.4
Property Development	33.6	39.3
Others	54.2	169.9
	849.5	1,035.1
Less : Corporate Administration Expenses	65.0	60.0
Total	784.5	975.1

Non-cash charges is the Goodwill written off amounting to Rs. 6.6 million.
During the quarter of the Company disposed off 2 bulk carriers and 1 product tanker. The Company is taking effective steps to be Year 2000 compliant well before December 31, 1999. A budget of Rs. 50 million has been allocated for this purpose.
The Company is developing contingency plans to minimize the risk of disruptions due to Year 2000 non-compliance.
The scheme of arrangement consisting of de-merger of certain business activities of the Property Division has been unanimously approved by the shareholders and creditors (secured as well as unsecured) at its meeting held on July 7, 1999. The de-merger will be effective from April 1, 1999 after receipt of pending approvals and the Quarterly Results as shown above do not, therefore, take into account the effect of de-merger.
The Board of Directors have approved the aforesaid results for the quarter ended June 30, 1999 at the meeting held on July 30, 1999.