Shipping Corporation shares jump over 6% after on strong Q4 numbers

Shipping Corporation of India share price: Shares of Shipping Corporation of India (NSE: SCI) rose over 6 per cent on NSE after the company reported a rise of over 156 per cent in profit after tax (PAT) to Rs 379.91 crore for the quarter ended March 2023. 

While filing this report, SCI’s scrip traded over 6 per cent higher on NSE at Rs 99.95  apiece, and on BSE the stock traded at Rs 100.69 apiece.

On Tuesday, May 9, 2023, Shipping Corporation of India released its results for Q4FY23 which showed that the company registered a 156.4 per cent jump in PAT which stood at Rs 379.91 crore in FY23 Q4 as compared to Rs 148.18  crore a year ago.

The company’s revenue in Q4FY2023 increased 8.3 per cent to Rs 1,418 crore from Rs 1,309 crore in the corresponding period last year. The company's margin — a key measure of profitability for a business — was up by 770 basis points to 32.7 per cent from 25 per cent year-on-year (YoY).

Meanwhile the total tax expense year-on-year (YoY) stood at Rs 106 crore in the quarter ending March 31 from Rs 11 crore last fiscal.

What analysts suggest? 

"Since last month the said counter has already given 30 per cent return from the low of 79 approx. At the current juncture, it is approaching near its historical resistance zone of 103-104. One should book partial profit near the mentioned resistance and wait for some correction for fresh longs," said Jigar S Patel - Senior Manager - Technical Research Analyst, Anand Rathi Shares and Stock Brokers.

"On the financial performance front, the company hasn't historically produced much in the way of growth, revenues grew in single digit in last 7-8 years. On the industry front, we have seen currency devaluation of several minor countries, in the current situation because of a high inflationary environment, growing economies that rely significantly on imports from other countries, and they have also reduced their expenditure. The switch to cleaner energy will also slow the increase of oil volumes in practically every nation. There are plenty of uncertainties regarding the company's future," said Aman Soni, head of operations, Prudent Equity.

SCI share price history 

On year-to-date (YTD) basis, SCI stock fell over 28 per cent as compared to Nifty50’s rise of 0.21 percent. On six month basis the stock fell over 23 per cent sharp decline against Nifty50’s rise of over 1 per cent. 

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