Sical Q2 Net Profit Rs 61.2 Mln; Down 64% on Year.CHENNAI, India -- Sical Logistics Ltd: BSE: 520086 NSE: SICAL Reuters: SICA.BO Bloomberg: SIC@IN * Q2 net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight Rs 2.45 bln; up 5% on year. * Q2 PBIDT PBIDT Profit Before Interest, Depreciation & Taxes Rs 223.1 mln, down 36% on year. * Non-core businesses' H1 sales Rs 2.14 bln, up 30% on year * Profit decline caused by losses on Chennai ship-berthing facility; margin pressure in trucking and TNEB TNEB Tamil Nadu Electricity Board coal handling contract; increased costs, slow growth in non-core businesses. * Margin pressure to continue into Q3 from trucking, Chennai ship berth, TNEB contract * Vice Chairman: Short-term underperformance must be seen in context of overhauling of organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. , business priorities. Sical Logistics Ltd, India's leading provider of integrated multi-modal bulk logistics for bulk and containerized con·tain·er·ize v.tr. con·tain·er·ized, con·tain·er·iz·ing, con·tain·er·iz·es 1. To package (cargo) in large standardized containers for efficient shipping and handling. 2. cargo, today announced that its unaudited net profit for the second quarter-year ended 30 September 2005 was Rs 61.2 million, down 64% from Rs 170.4 million in the same period a year ago. Unaudited Q2 sales were Rs 2.45 billion, up 5% from Rs 2.34 billion a year ago, while Q2 profit before interest, depreciation, and taxes (PBIDT) was Rs 223.1 million, down 36% from Rs 349.6 million a year ago. The fall in Q2 earnings and slow revenue growth was primarily on account of: 1. Nearly Rs 15 million in Q2 at Sical's exclusive ship berthing facility (JD-5) at Chennai port Chennai Port is India's second largest port, after the Port of Mumbai. It is over 125 years old. on competitive pressure from deepend drafts at the Chennai port. 2. Nearly Rs 40 million loss in Q2 from Sical's coal handling contract with the Tamil Nadu Tamil Nadu (tăm`əl nä`d  ), formerly Madras (mədrăs`, mədräs`), state (2001 provisional pop. State Electricity Board (TNEB) as volumes
and unit realizations dipped on TNEB's inability to source higher
capacity vessels and TNEB's reduced dependence on coal for power
generation because of increased hydel power generation.3. Reduced volumes and margins in the trucking division owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de issues related to government guidelines on overloading and pricing pressure mainly from the unorganized trucking providers. 4. Higher costs in Sical's non-core business of building materials Building materials used in the construction industry to create . These categories of materials and products are used by and construction project managers to specify the materials and methods used for . : purchase of traded goods in H1 rose by Rs 157.7 million to Rs 742.0 million. H1 net sales of Sical's logistics division, the company's core business, was Rs 2.74 billion, down 10% from Rs 3.06 billion a year ago. H1 net sales of Sical's non-core businesses, consisting of building materials, services, and manufacturing, was Rs 2.14 billion, up 30% from Rs 1.65 billion a year ago. H1 profit before interest and tax (PBIT) of the logistics division was Rs 319.2 million, down 30% from Rs 456.7 million a year ago, while H1 PBIT of the non-core businesses was Rs 133.6 million, up 27% from Rs 105.6 million a year ago. VICE CHAIRMAN ASHWIN MUTHIAH'S COMMENT Sical Vice Chairman Ashwin Muthiah said that Sical's Q2 results, while being disappointing in absolute terms (Alg.) such as are known, or which do not contain the unknown quantity. See also: Absolute , should be seen in the context of major changes in the company's business and organizational structure. "As Sical refocuses, reorganizes and overhauls, we might have to sometimes forgo short-term performance for long term gain," he said. "For example, the offshore logistics business is turning out to be a major priority for us, as will be end-to-end structured multi-modal solutions based on product verticals," Mr Muthiah added. OUTLOOK Even as the benefits of the business and financial restructuring are beginning to accrue to Sical, gains in Q3 and Q4 might be affected by the same adverse factors that affected Sical's Q2 financials. Margins will continue to be squeezed in trucking, the ship berthing facility at Chennai, and the TNEB coal contract. Sical has plans for all of the above, but the plans will take a few months to take effect. ABOUT SICAL LOGISTICS Sical Logistics Ltd is India's leading provider of integrated multi-modal logistics for bulk and containerized cargo-port logistics; inland logistics; container logistics; and offshore logistics. Sical's delivery network includes an exclusive walk-in berth at Chennai for ships carrying bulk cargo That which is generally shipped in volume where the transportation conveyance is the only external container; such as liquids, ore, or grain. ; a container terminal A container terminal is a facility where cargo containers are transhipped between different transport vehicles, for onward transportation. The transhipment may be between ships and land vehicles, for example trains or trucks, in which case the terminal is described as a at Tuticorin, 1.9 million square feet of storage across over 100 warehouses; owned and regularly contracted fleet of over 2400 transport vehicles, and container freight stations at 4 locations across India. Sical's FY2005-06 revenue was Rs 9.60 billion on Rs 301.9 equity capital. [TABLE OMITTED] [TABLE OMITTED] < By Order of the Board |
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