At the time when major ports are posting lower cargo handling results, Indian port company Essar Ports has recorded a 26 per cent increase in cargo handling in 2012-2013, notching up 54.5 million tonnes as compared to 43.2 million tonnes the previous year.
The port also recorded an increase in net profit of USD61 million in the last fiscal year, as compared to the USD11 million profit posted in 2011-2012, a five-fold increase.
"According to the Indian Ports Association, cargo handled at major ports declined by 2.6 per cent in 2012-13 to 546 million tonnes, while it grew by 26 per cent at Essar Ports," said Rajiv Agarwal, managing director of Essar Ports.
"Our improved performance on all parameters is in line with our expectations and we are confident of sustaining the performance in the coming quarters. We have seen a positive trend in cargo shifting to modern and efficient ports. The company has tried to maximise its operational efficiency by keeping all costs under control," Agarwal added.
"We are on track with respect to our project execution and operations ramp-up."
Essar Ports terminals handled a record 683 ships compared to the 514 ships handled during the previous year.
The company's total 2012-2013 revenue increased by 27 per cent to USD264 million, as against USD208 million recorded in the 2011-2012 financial year.
The earnings before interest, taxes, depreciation and amortisation (EBITDA) were also increased by 26 per cent to USD212 million in 2012-13, as against USD168 million recorded last year.
The company attributed the increase in cargo to the ramp up of Essar Oil and Essar Steel throughput following completion of the former's refinery expansion to 20 million tonnes per annum, and the latter's expansion to 10 million tonnes per annum.
The company currently has an installed cargo handling capacity of 104 million tonnes and expects to take it to 158 million tonnes in the next 24-30 months, he said.
Utilisation level of cargo handling for 2013-14 is expected to rise to 65 million tonnes from the current level of 54 million tonnes, he added.
Essar Ports also announced a dividend of five per cent for the 2012-2013 fiscal year and earnings per share was increased to USD0.14 (Rs 7.80), as against USD0.02 (Rs 1.56).
J Kanojia
