Sical Logistics posts Rs.502 mn net profitJune 18th, 2008 - 9:00 pm ICT by IANS
Chennai, June 18 (IANS) Integrated multi modal logistics company Sical Logistics Ltd has closed fiscal 2008 with a turnover of Rs.7.1 billion and a net profit of Rs.502 million as against Rs.10.5 billion turnover and Rs.426.3 million profit posted during fiscal 2007. While the net profit is up during the period under review as compared to FY07, the dip in the net sales is attributed to the demerger of non logistics business.
According to company officials, the consolidated net sales of Sical’s core logistics business was Rs.6.8 billion, up from 6.7 billion a year ago.
Said chairman Ashwin Muthiah: “We successfully executed our strategy of focusing on our core logistics business with the demerger of the non-core business and the separation of the service and infrastructure business. This ensured dedicated management focus and helped us leverage the true potential of each business.
“Our infrastructure projects are progressing smoothly. Over the next two years, most of the special purpose vehicles (SPVs) will commence operations and we envision robust growth and enhanced profitability for the group in the long term.
In May 2007, Sical formed a subsidiary, Sical Infra Assets Ltd, to house the company’s asset-heavy, capital-intensive, longer gestation infrastructure-based businesses like the Container Rail Project, the Container terminals at Tuticorin and Chennai in joint venture with PSA Singapore, Sical Iron Ore Terminal at Ennore, Sical Distriparks and Road and Rail terminals at Nagpur.
The short cycle service-oriented businesses and the asset heavy infrastructure businesses of the company were segregated to crystallize the value of investments made by Sical into its SPVs.
In January, Sical received the sanction from the Madras High Court for the de-merger of its non-logistics business into a wholly owned subsidiary, Sicagen India Ltd, with effect from Oct 1, 2006.
The approval marked the successful completion of the de-merger process initiated by Sical in early 2007, and was an important step in the company’s restructuring efforts.
The company sold its non-core businesses in FY08, namely the manufacturing facilities and assets of the auto components, refractory, specialty chemicals and flexible shaft divisions.
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