Shipping Corporation of India Limited (SCIL): Hidden gems of India

 Shipping Corporation of India Limited (SCIL): Hidden gems of India

  • Further, the profitability is likely to remain vulnerable to the weakness in the global economy as marked by continuous deterioration in operating profit margin to 26.86% in FY23 as against 30.62% in FY22 and 32.11% in FY21 
  •  PAT margin  declined to 15.02% in FY23 as against 17.25% and 18.82% in FY22 and FY21 respectively  
  • The business operations of the company remained stable over the years marked by healthy growth in revenue from operations by ~25% CAGR over FY21-23 period 
  • The debt/equity of the company improved and stood comfortably at 0.37x and 0.53x as on 31 March 2023 and 31 March 2022 respectively
  • The cash accruals of the company are estimated to remain around Rs.1676-2093 Cr. during FY2024-26 period against the maturing debt obligations of Rs.300-600 Cr. over the same period
  • Strategic importance to Government of India 
  • With more than six decades of operational track record, SCIL remains strategically important to the Government of India. 
  • The company have been playing a pivotal role towards supplying vessels for the Indian Government key operations such as Mars Orbitter Mission of ISRO and other defence missions via agreement with DRDO (Defence Research and Development Organisation).
  • Furthermore, SCIL have created strategic alliances with other governments such as Maldives, Andaman & Nicobar Islands for providing maritime services among islands. 
  • They have also been serving projects of national importance by partnering with ONGC and Geological Survey of India (GSI) for offshore services. Apart from that, the company deployed its container vessel on direct “India – Middle East Shipping Service” which connects East & West Coast of India with Middle East ports of Jebel Ali and Hamad and will also cater to other ports in Persian Gulf.   
  • Long track record of operations along with diversified business segment SCIL is one of the largest shipping companies in India with an operational track record of around six decades. It benefits from the experienced management of qualified professionals and nominees of GOI. 
  • The long track record has helped them establishing relationships with major PSUs in India like IOCL, HPCL, BPCL, ONGC, etc.
  • The company have diversified business segments which includes crude oil/product tankers, dry bulk, offshore services, and container operations, and has a presence in passenger vessels, chemicals, and gas transportation. 
  • SCIL currently has the largest fleet size of 59 vessels; a relatively younger fleet, with an average age of around 11-12 years which helps them in getting better charter rates and achieving  higher operating efficiency. Vessels on behalf of third parties, primarily Public-Sector Units (PSUs)/ Government Departments/Union Territories are also managed for service income. Currently, SCIL are managing 53 third party vessels.

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