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Monday, 25, June 2007, Chennai,
India: Sical Logistics Ltd, India’s leading
provider of integrated solutions for offshore logistics and multi-modal
logistics for bulk and containerized cargo, today announced that the
audited consolidated net profit, after prior period and exceptional
items, for the year 31 March 2007 (FY 06-07) was Rs 450.4 million, from
Rs 573.5 million a year ago. Net profit before prior period and
exceptional items was Rs 341.4 million, from Rs 687.6 million a year
ago.
Net sales for FY 06-07 was Rs 9.9 billion, up 6% from Rs 9.6 billion a
year ago.
Consolidated net sales of Sical’s core logistics business was
Rs 6.7 billion, up 6% from Rs 6.4 billion a year ago.
Comment by Sical Logistics Chairman
Ashwin Muthiah
Sical Chairman Ashwin Muthiah said that the
results for FY06-07 should be seen in the context of the
multi-dimensional change at Sical.
“The results are broadly as per
our internal estimates. We have been saying that Sical’s
strategy, put in place in FY05-06, of focusing exclusively on the core
business of integrated multi-modal logistics, while being
growth-oriented, would, given the sacrifices involved, cause some pain
in the short and medium term,” Ashwin Muthiah said.
“I would reiterate that
Sical’s growth pangs are not yet over—we should
expect earnings-related turbulence over the next four
quarters,” Ashwin Muthiah added.
“That said, FY06-07 was a watershed year for Sical; we
renewed our focus on our core business proposition of logistics by
exiting some non-core activities, we got international strategic funds
to invest in our vision, and have in place professional managers of the
right caliber to take our vision forward,” said, Mr. Ashwin
Muthiah.
“Our aim is to not only
consolidate our leadership position in Indian multi-modal logistics,
but also to seize the opportunities in value-added businesses such as
global offshore logistics and third party (3PL) and fourth party (4PL)
logistics,” Ashwin Muthiah elaborated.
Exit from Non Logistics businesses
• Vanagaram Refractories Works Industries Ltd (VRW), a
division that manufactures refractory bricks, was sold for Rs 407.9
million.
• 100% subsidiary Mac Oil Palm Ltd was sold to Soyumm
Marketing for Rs 293.7 million.
• Agri-bioproducts was sold for Rs 68 million.
• Other non core business including auto, drums, specialty
chemicals and flexible shafts are in the process of being sold.
Fund raising, preferential allotment
In April 2006, Sical raised USD 75 million
(Rs 3.30 billion) in foreign currency convertible bonds (FCCB); the
FCCBs are listed on the Singapore Exchange.
In April 2007, IDFC Private Equity, the
largest private equity investor in India’s infrastructure and
logistics sectors, invested USD 26 million (Rs 1.16 billion) for 14.82%
stake in Sical via a preferential allotment of equity shares at Rs 222
per share.
Sical has initiated the preferential
allotment of 2.05 million equity shares each to Credit Suisse Singapore
and Macquarie Bank at Rs 250 per share.
Acquisition of Singapore-based
Bergen Offshore, Sical Torino
• In September 2006, Sical
announced its acquisition of Singapore-based Bergen Offshore Logistics
Pte Ltd, a provider of specialized logistics for offshore oil and gas
exploration. The acquisition is a logical extension of
Sical’s existing offshore logistics business which operates
and manages offshore supply vessels for ONGC.
The USD 96.9 million acquisition was funded
via USD 16.9 million from Sical’s FCCB offering in April 2006
and the remaining via a structured loan of USD 80 million from NIBC
Bank, Singapore. This was to have a new build 470 Mk II PSV from Aker
Yards in Molde, Norway as well as three heavy duty AHTs. Due to
difficulty in transition of the contracts of the three AHTs, Sical
decided to limit the acquisition to the new build PSV. While Sical
funded its equity the borrowing was reduced to USD 25 million from NIBC
Bank.
• In October 2006, Bergen Offshore
took delivery of the latest generation specialty 470 MK2 class platform
supply vessel (PSV), for USD 31.3 million; Sical Torino currently
services deepwater oil rigs in the North Sea.
Key appointments
During the year, the following people joined
Sical in key management positions:
In November 2006, CEO K. Sridhar joined Sical; his earlier experience
includes FedEx, DHL, and ITW Signode.
In January 2007, CFO S. Bhaskar joined us
from Hindustan Lever; he’s earlier worked with Marico and
Shaw Wallace, Mr Bhaskar is a member of the Institute of Chartered
Accountants of India.
In November 2006, Sical Distriparks CEO L.R.
Sridhar joined Sical. Mr Sridhar has worked with TNT, Skypak, and
Overnite Express.
PG Thyagarajan, MD, Sical Multimodal and
Rail Transport Ltd, joined Sical in December 2006; Mr Thyagarajan, who
has spent 18 years in Indian Railways, joined us from Container
Corporation of India, where he was director of international operations.
Board restructuring
• Ashwin Muthiah was appointed
Chairman of Sical’s Board of Directors at an extra-ordinary
general meeting in April 2007. He had been serving as Sical’s
Vice Chairman.
• The Sical Board was also
restructured to include two promoter nominees, one nominee director
from IDFC Private Equity, and three independent directors. Luis
Miranda, President and CEO of IDFC Private Equity, was inducted as IDFC
Private Equity’s nominee Director, while Karthik Menon,
Sical’s Vice-President – Finance and Strategy, was
inducted as a promoter nominee and whole-time Director.
Subsidiary, SPVs
• Sical is setting up a wholly
owned subsidiary to house its ownership in infrastructure-oriented and
asset–intensive businesses. It will enable Sical to clearly
segregate the services-oriented and the infrastructure-oriented
businesses, and ensure dedicated management focus on each segment.
• Nagpur Sical Gupta Logistics Ltd,
a special purpose vehicle, was formed with Sical as the lead consortium
partner with 51 % stake, for the rail terminal Project at MIHAN,
Nagpur. The terminal is expected to be operational by end FY07-8.
• Nagpur Sical Gupta Road Terminal
Ltd, a special purpose vehicle, was formed, with Sical as the lead
consortium partner with 51% stake, for the road terminal at MIHAN,
Nagpur. MADC owns 26% of equity for contributing land towards the
project.
| Sical Logistics Ltd
Consolidated audited financial results: year to 31 March 2007 |
| |
|
All amounts in Rs crore, except for per share data |
| |
Particulars |
9 months to |
3 months to |
3 months to
|
Year to |
Year
to |
| |
|
31.12.2006 Unaudited |
31.03.2007 Unaudited |
31.03.2006 Unaudited |
31.03.2007 Audited |
31.03.2006 Audited |
| 1. |
Net sales |
|
|
|
|
|
| Logistics |
388.55
|
212.78
|
173.28
|
671.00
|
635.07 |
| Discontinuing operations |
283.95 |
103.05 |
96.00 |
387.00 |
357.90 |
| Total net sales |
672.50 |
315.83 |
269.28 |
1058.00 |
992.97 |
| 2. |
Other income |
6.66 |
15.87 |
6.00 |
22.84 |
5.50 |
| 3. |
Total expenditure |
|
|
|
|
|
| |
(Increase)/decrease
in stock-in-trade |
2.47 |
4.31 |
(5.03) |
6.78 |
5.72 |
| |
Consumption of raw
materials |
31.95 |
5.85 |
8.93 |
37.80 |
49.53 |
| |
Purchase of traded
goods |
|
|
|
|
|
| |
Stores consumed |
205.05 |
84.82 |
80.34 |
289.87 |
237.48 |
| |
Staff cost |
0.95 |
4.48 |
1.73 |
5.43 |
3.15 |
| |
Power, fuel and water
charges |
15.38 |
9.51 |
5.76 |
28.30 |
23.62 |
| |
Manufacturing and
other expenses |
2.24 |
1.90 |
1.71 |
4.14 |
4.90 |
| |
Cost of services |
26.36 |
13.31 |
14.12 |
44.12 |
37.53 |
| |
|
339.49 |
201.09 |
131.80 |
578.58 |
517.56 |
| 4. |
Profit before interest, depreciation, and tax (PBIDTA) |
|
|
|
|
|
| |
Logistics net |
45.73 |
4.46 |
27.71 |
73.69 |
102.81 |
| |
Discontinuing operations |
9.54 |
1.97 |
8.21 |
12.12 |
27.61 |
|
Total PBIDTA |
55.27 |
6.42 |
35.92 |
85.81 |
130.42 |
| 5. |
Interest |
22.73 |
(5.18) |
1.53 |
21.11 |
28.02 |
| 6. |
Depriciation |
10.23 |
3.60 |
3.89 |
20.44 |
18.53 |
7. |
Profit Before
Exceptional Items & Tax |
22.31 |
8.0 |
30.50 |
44.25 |
83.87 |
| 8. |
Provision for tax
(including deferred tax and fringe benefit tax) |
5.85 |
15.86 |
29.74 |
34.14 |
38.76 |
| 9. |
Profit after tax before exceptional items |
(0.19) |
0.59 |
(0.36) |
1.05 |
2.63 |
| 10. |
Exceptional items – (Net of tax) |
22.49 |
(11.59) |
- |
10.90 |
- |
| 11. |
Profit after tax after exceptional items |
28.34 |
4.27 |
29.74 |
45.04 |
68.76 |
| 12. |
Prior Period adjustments |
- |
0.01 |
11.41 |
- |
11.41 |
| 13. |
Net profit |
28.34 |
4.28 |
18.33 |
45.04 |
57.35 |
| 14. |
Paid-up equity share
capital |
30.19 |
30.19 |
30.19 |
30.19 |
30.19 |
|
15. |
Reserves (excluding
revaluation reserve) |
- |
- |
- |
314.27 |
297.15 |
| 16. |
EPS |
|
|
|
|
|
| |
Basic EPS (Rs) before exceptional items and prior period adjustments
|
1.94 |
5.26 |
9.34 |
11.31 |
24.52 |
| |
Diluted EPS (Rs) before exceptional items and prior period adjustments |
1.64 |
4.39 |
9.34 |
9.46 |
24.52 |
| |
Basic EPS (Rs) after Exceptional Items & Prior Period Adjustments |
9.38 |
1.42 |
5.76 |
14.93 |
20.44 |
| |
Diluted EPS (Rs) after exceptional items andprior period adjustments
|
7.93 |
1.18 |
5.76 |
12.48 |
20.44 |
| 17. |
Aggregate of non-promoters' shareholding |
|
|
|
|
|
| |
-Number of shares |
13,139,174 |
13,139,174 |
13,139,174 |
13,139,174 |
13,139,174 |
| |
-Percentage of shareholding |
43.55% |
43.55% |
43.55% |
43.55% |
43.55% |
|
| |
Segment
wise Revenue, Results and Capital Employed for
Year Ended 31st March
2007 |
| |
|
|
(Rs. in Crores) |
|
|
|
|
Consolidated |
| |
Particulars
|
Year Ended
31.03.2007
(Audited)
|
Year Ended
31.03.2006
(Audited)
|
31.03.2007
(Audited)
|
1.03.2006
(Audited)
|
|
A
|
SEGMENT
REVENUE |
|
|
|
|
|
|
a)Logistics |
601.33
|
616.75 |
671
|
639.49 |
|
|
b)Discontinuing Operations |
387.28 |
346.86 |
387 |
357.90 |
|
|
|
|
|
|
| |
Total |
988.61
|
963.61 |
1058.00 |
997.39 |
| |
Less: Inter Segment Sales |
(0.28) |
(3.23) |
0.00 |
(4.42) |
| |
|
|
|
|
|
| |
Net sales / Income from Operations |
988.33 |
960.38 |
1058.00 |
992.97 |
| |
|
|
|
|
|
| B |
SEGMENT RESULTS |
|
|
|
|
| |
Profit / (Loss) (Before Tax
and Interest) from each segment |
|
|
|
|
| |
a)Logistics (Net) |
50.82 |
91.45 |
69.50 |
82.63 |
|
b)Discontinuing Operations |
7.68 |
17.13 |
8.26 |
28.30 |
|
|
|
|
|
|
|
Total |
58.50 |
105.22 |
77.66 |
110.93 |
|
Less:
i)Interest |
28.19 |
29.90 |
33.51 |
31.56 |
|
Total
Profit before Tax before Extraordinary Items |
33.31 |
75.32 |
44.25 |
79.37 |
|
|
|
|
|
|
| C |
CAPITAL EMPLOYED |
|
|
|
|
|
(Segment Assets –
Segment Liabilities) |
|
|
|
|
|
a)Logistics (Net) |
446.20 |
262.09 |
562.77 |
289.88 |
|
b)Discontinued Operations |
407.13 |
375.81 |
416.41 |
384.93 |
|
Total
Capital Employed |
853.33 |
637.90 |
979.18 |
674.81 |
|
|
|
|
|
|
Notes:
- The above audited results were reviewed by Sical's audit committee and approved by Sical's Board of Directors at their meeting held on 25 June 2007.
- The Board of Directors at their meeting held on 13 March 2007 approved a scheme of arrangement for transfer of certain undertakings of the company (as defined as "transferred undertaking” in the Scheme of Arrangement) to Sicagen India Ltd, currently a 100% subsidiary of the company. The scheme is subject to the approval of Sical's shareholders of and the High Court of Madras. The company has initiated necessary steps for the approval of the scheme.
- In accordance with Accounting Standard 24, results for the discontinuing operations have been disclosed. Discontinuing businesses include: i) Trading, plantations and services businesses for which the Board of Directors have approved a Scheme of Arrangement (as per Note b) ii) Auto components, drums and specialty chemicals businesses for which the Board of Directors have passed a resolution approving their disposal.
- Exceptional items include the net impact of the disposal of the non- logistics businesses of refractories, agri bio-products, flexible shafts and real estate property and restructuring costs. It also includes the sale of shares of Mac Oil Palm post the approval of the High Court of Madras for the scheme of demerger.
- Statutory auditors' comments on the audited accounts for the year ended 31 March 2007 along with the company's responses are:
(i) Comment: Investments in certain shares considered as long term investments stated at book value, whose market value is lower by Rs.6.67 crore. Response: Investments in these equity shares are strategic long term investments and the intrinsic value of the same is significantly higher as compared with its market value. The board is of the view that provision for any shortfall in market prices of long term investments may not necessarily be a true reflection of the company's net worth and hence the difference between market value and book value need not be provided for.
(ii) Comment: Advances under court cases and Arbitration aggregating Rs 23.11 crore are stated at book values. Response: These pertain to cases under court and arbitration proceedings and are being closely followed up with legal counsels.
(iii) Comment: Dues by subsidiary aggregating Rs 74.99 crore are stated at book values. Response: The company is in the process of restructuring its subsidiary company to deal in estates and properties. Various amounts due from the subsidiary company will be either refunded by the subsidiary or restructured by way of (a) transfer of its investments or (b) sale of other assets.
- During the quarter to 31 March 2007, seven investor complaints were received and dealt with. The number of complaints as at beginning and closing of the quarter was NIL.
- Figures pertaining to the previous periods have been regrouped, reclassified, rearranged wherever necessary.
About Sical
Sical Logistics Ltd is India’s leading provider of integrated
solutions for offshore logistics and multi-modal bulk and containerized
logistics. Annually, Sical moves nearly 25 million tons of bulk cargo
and over 400,000 TEUs of containerized cargo.
The services of the company are segmented under:
- Bulk logistics: Stevedoring; port
terminals; customs handling; ship agency
- Inland logistics: Trucking; trains;
warehousing
- Container logistics: Box terminals; ICDs;
CFSs
- Offshore logistics: O&M of
platform supply vessels (PSV) for offshore oil exploration; ownership
of PSVs
Sical's delivery network includes an
exclusive walk-in berth at Chennai for ships carrying bulk cargo; a
container terminal at Tuticorin, 1.9 million square feet of storage
across over 100 warehouses; owned and regularly contracted fleet of
over 3000 transport vehicles, and container freight stations at 4
locations across
Contact
Richa Tilokani
Sical Logistics Ltd
Voice: +91.44.22350061
Fax: +91.44.22300189
Email: richa@sical.com
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