Mercator Lines Strong earnings from subsidiary (Singapore)

Mercator Lines wholly owned subsidiary Mercator Lines (Singapore) reported three-fold jump in net profit to $52.2 million in the year ended March 2008 over the year ended March 2007.

The stock hit a high of Rs 109.75 and a low of Rs 102.55 so far during the day. The stock had a 52-week high of Rs 184.95 on 3 January 2008 and a 52-week low of Rs 40 on 11 May 2007.

The company’s current equity is Rs 23.53 crore. Face value per share is Re 1.

The current price of Rs 108.40 discounts its Q3 December 2007 annualised EPS of Rs 4.10, by a PE multiple of 7.89.

In April 2008, Mercator Lines, Singapore acquired a geared Panama dry bulk carrier from Ken Line, Republic of Panama for a total consideration of $65.5 million.

In March 2008, Mercator Lines, Singapore entered into negotiation with Refined Success for the time charter-out of Geastiniono TBN, a gearless panamax vessel.

Mercator Lines’ net profit rose 53.4% to Rs 23.59 crore on 7.2% growth in net sales to Rs 196.11 crore in Q3 December 2007 over Q3 December 2006.

The company provides marine transportation services. The group's areas of operations are tankers and lighterage. The company is a provider of sea borne transportation services, primarily involved in the transportation of crude oil in India and overseas.