Shares of Shipping Corporation of India (SCI) gained 3% to trade at ₹212.49 on NSE as of 10:33 am. The stock is rallying amid anticipation of legislative reforms for the shipping sector, with the Merchant Shipping Bill and Coastal Shipping Bill set to be introduced during the winter session of Parliament starting Monday.
Strong Q2 Performance Boosts Sentiment
SCI recently reported robust financial results for the quarter ending September 2024:
- Profit After Tax (PAT) surged 145.61% year-on-year to ₹582.92 crore.
- Net Sales grew by 29.29% YoY, reaching ₹2,965.03 crore.
- Operating Profit Margin hit 36.71%, its highest in the last five quarters.
- Profit Before Tax (PBT) excluding other income rose by 94.9% from the average PBT of the past four quarters to ₹257.95 crore.
Legislative Outlook
The winter session will see the introduction of multiple Bills impacting the shipping industry:
- Merchant Shipping Bill: Aims to align India with international maritime treaties and improve compliance.
- Coastal Shipping Bill: Expected to remove the need for Indian-flagged vessels to acquire trading licenses, facilitating smoother operations.
- Indian Ports Bill: Focused on port security, pollution control, and empowering State Maritime Boards.
These legislative efforts signal the government’s commitment to boosting the maritime sector, potentially benefiting companies like SCI.
Broader Parliamentary Agenda
The session will deliberate on 15 Bills, including five new ones such as the Merchant Shipping Bill. Other pending legislations include the Disaster Management (Amendment) Bill and the Banking Laws (Amendment) Bill.
With the strong financial performance and legislative tailwinds, SCI is poised to benefit from the upcoming reforms in India’s shipping industry.
