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Chennai, 31 July 2006: Sical Logistics Ltd, India's leading provider of integrated multi-modal logistics for bulk for containerized cargo, today announced unaudited results for the first quarter-year ended 30 June 2006. Q1 net profit was Rs 114.5 million, up 37% from Rs 83.8 million in the same period a year ago; Q1 net sales were Rs 2.42 billion against Rs 2.38 billion a year ago.
Profit before tax was Rs 148.9 million, up 42% from Rs 104.3 million a year ago.
The rise in profit was mainly on the back of lower interest and cost of services—interest expense was down 37% at Rs 73.3 million from Rs 116.8 million a year ago; cost of services was down 11% at Rs 1.26 billion from Rs 1.41 billion a year ago.
EBIDTA of Sical’s core logistics business was Rs 186.7 million against Rs 184.9 million a year ago, contributing 79% of the company’s total segment-wise EBIDTA of Rs 237.6 million; even as sales fell 12% to Rs 1.43 billion, profitability of the logistics group as measured by EBITDA/segment sales rose by 2 percentage points to 13% from 11% a year ago.
The improved profitability in the logistics group was owing to a focus on profitable business portfolios, improved credit cycling, and judicious deployment of extra funds coming from better treasury operations.
RECENT DEVELOPMENTS
- Container train terminal at Nagpur Hub Airport
In April 2006, the Maharashtra Airport Development Company issued the letter of intent (LoI) to the consortium led by Sical Logistics for setting up a rail terminal as part of the proposed Multi-modal International Hub Airport at Nagpur in central India. The 150,000 TEU-a-year-capacity ( when all the phases are completed) terminal is scheduled to be begin first phase operations in FY08-09.
- Inland logistics gets a boost: 50 trucks added to fleet
In May 2006, Sical's services for inland logistics were boosted with the addition of 50 double-axle trucks and tankers. The fleet expansion comes on the back of recent increased business from major customers, namely, Caltex, Tamil Nadu Petrochemicals, Pepsi India, and Shell India. Sical expects to spend Rs 500 million in FY2006-07 on the acquisition of trucks and other related expenditure relating to road transportation.
- Iron ore terminal at Ennore port
In July 2006, the Ennore Port Ltd issued the letter of intent (LoI) to the Sical-led consortium to build an iron ore terminal at Ennore port near Chennai. The project is estimated to cost nearly Rs 5.5 billion. Operations are scheduled to begin in financial year 2008-09.
COMMENT BY SICAL VICE CHAIRMAN ASHWIN MUTHIAH
Ashwin Muthiah, Vice Chairman, Sical Logistics, attributed Sical's Q 1 performance to the series of measures relating to financial and operational restructuring in the previous 12 months.
“The sustained focus on maximizing efficiencies across the board that we began in FY05 is clearly beginning to show results where it really counts—the bottom-line,” Mr Muthiah said. “The improvement in efficiencies has resulted in better availability of funds for operations; we expect this will have a greater impact in the coming quarters,” he added.
About Sical
Sical Logistics Ltd is India’s leading provider of integrated multi-modal logistics for bulk and containerized cargo-port logistics; inland transportation and warehousing; container stations; and offshore supplies logistics. Sical's delivery network includes an exclusive walk-in berth at Chennai for ships carrying bulk cargo; 1.9 million square meters of storage across 104 warehouses; owned and regularly contracted fleet of over 2400 transport vehicles, and container freight stations at 4 locations across India. Sical's FY2005-06 revenue was Rs 9.60 billion on Rs 301.9 equity capital .
Contact
Anuradha Altekar,Ubiquus,
+91.9870100642
anuradha@ubiquus.biz
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