Shipping Corporation of India the stock is in focus – the company had earlier announced a scheme of demerger of non-core assets. CNBC-TV18 spoke to Harjeet Kaur Joshi, Chairman and Managing Director of Shipping Corporation of India to discuss this and the impact of escalating geopolitical tensions on the shipping industry.
On update on demerger Joshi said, “Demerger – we are very much going as per schedule, and we have already crossed the clearance from the stock exchanges. We are going forward with the approvals from the Ministry of Corporate Affairs and, of course, as we have already made the scheme of arrangement public now. I consider that by June the demerger should come through, of course, that is now only an estimate from the company’s perspective.”
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On freight rates she said, “While there has been an upsurge in the freight rates, it is more than offset by the increase in the bunker prices as we know that the bunker prices are skyrocketing. Yesterday while it had touched $139 a barrel for shipping for not only for Shipping Corporation of India, but for any shipping company. We are largely impacted by the crude prices because the bunker costs constitute a major input cost for the company.”
For full management commentary, watch the video.