Shipping Corporation of India shares surge 10% after strong Q1 performance

The Shipping Corporation of India Ltd (SCI) saw a significant rise in its share price on Friday following the release of its first-quarter financial results. Here’s what happened:

Key Highlights

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  • Share Price Surge: SCI shares jumped 10%, reaching ₹281.20 as of 10:17 AM.
  • Profit Growth: The company reported a 69.9% year-on-year increase in net profit, reaching ₹291.5 crore for the quarter ending June 30, 2024. This is a substantial rise from the ₹171.6 crore profit recorded in the same period last year.
  • Revenue Increase: SCI’s revenue from operations grew by 26.2%, totaling ₹1,514.3 crore compared to ₹1,200.1 crore in the previous year.

Operational Performance

  • EBITDA Growth: Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 40.4% to ₹509.7 crore in the first quarter, up from ₹363 crore in the same period last year.
  • EBITDA Margin: The EBITDA margin improved to 33.7% in the reporting quarter, compared to 30.3% in the first quarter of FY24.

Summary

The Shipping Corporation of India’s strong first-quarter performance, with significant increases in profit and revenue, has driven its share price to new heights. The company’s improved EBITDA and margin reflect its robust operational efficiency, positioning it well for continued growth in the coming quarters.