Consolidated net profit of Essar Shipping fell almost 64 per cent to Rs 19.41 crore for the April-June quarter from Rs 53.90 crore in the year-ago period because of decline in total income.
The total income of the firm fell 48.44 percent to Rs 472.25 crore during the quarter from Rs 915.84 crore in the previous fiscal period.
While income from logistics services business was down over 96 percent to Rs 10.87 crore, fleet operating and chartering business reported a decline of 35.42 per cent at Rs 298.71 crore in the quarter.
The Ruias-promoted firm reported a muted growth of 3.15 per cent to Rs 173.46 crore in its oilfield services business during the quarter. The reduction in revenue was mainly due to scale down of logistics services done through Essar Logistics (ELL).
This was in line with the plan of Essar Shipping to focus on its core high EBITDA margin business activities such as sea transportation and oilfields services, Managing Director AR Ramakrishnan said.
During the April-June quarter, EBITDA (earnings before interest, taxes, depreciation and amortisation) margin on a consolidated basis rose to 44 per cent as compared to 27 per cent in the corresponding quarter of previous year.
The board of Essar Group has been rejigged to have an ideal mix of competencies in the fields of maritime industry, governance, finance, strategy and risk management.