Sical Logistics Q1FY07 Net Rs 114.5 mln, up 37% on Year

Chennai, Tamil Nadu, India, Monday, July 31, 2006 -- (Business Wire India)

-- Q1 net sales Rs 2.42 bln vs Rs 2.38 bln a year ago
-- Profit before tax Rs 148.9 mln, up 42% on year
-- Profit up on the back of lower expenditure on interest, cost of services

BSE: 520086
NSE: SICAL
Reuters: SICA.BO
Bloomberg: SIC@IN

Sical Logistics Ltd, India's leading provider of integrated multi-modal logistics for bulk and containerized cargo, today announced unaudited results for the quarter-year to 30 June 2006. Q1 net profit was Rs 114.5 million, up 37% from Rs 83.8 million in the same period a year ago; Q1 net sales were Rs 2.42 billion against Rs 2.38 billion a year ago.

Profit before tax was Rs 148.9 million, up 42% from Rs 104.3 million a year ago.

EBIDTA of Sical’s core logistics business was Rs 186.7 million, contributing 79% of the company’s total segment-wise EBIDTA of Rs 237.6 million.

The rise in profit was mainly on the back of lower expenditure on interest and on cost of services—interest expense was down 37% at Rs 73.3 million from Rs 116.8 million a year ago; cost of services was down 11% at Rs 1.26 billion from Rs 1.41 billion a year ago.

RECENT DEVELOPMENTS

-- Container train terminal at Nagpur Hub Airport

In April 2006, the Maharashtra Airport Development Company issued the letter of intent (LoI) to the consortium led by Sical Logistics for setting up a rail terminal as part of the proposed Multi-modal International Hub Airport at Nagpur in central India. The 150,000 TEU-a-year-capacity terminal is scheduled to be begin first phase operations in FY08-09.

-- Iron ore terminal at Ennore port

In July 2006, the Ennore Port Ltd issued the letter of intent (LoI) to the Sical-led consortium to build an iron ore terminal at Ennore port near Chennai. The project is estimated to cost nearly Rs 5.5 billion. Operations are scheduled to begin in financial year 2008-09.

-- Inland logistics gets a boost: 50 trucks added to fleet Sical's services for inland logistics were boosted with the addition of 50 double-axle trucks and tankers. The fleet expansion comes on the back of recent increased business from major customers, namely, Caltex, Tamil Nadu Petrochemicals, Pepsi India, and Shell India. Sical expects to spend Rs 500 million in FY2006-07 on the acquisition of trucks and other related expenditure relating to road transportation.

COMMENT BY SICAL VICE CHAIRMAN ASHWIN MUTHIAH

Ashwin Muthiah, Vice Chairman, Sical Logistics, attributed Sical's Q1 performance to the series of measures relating to financial and operational restructuring in the previous 12 months.

“The sustained focus on maximizing efficiencies across the board that we began in FY05 is clearly beginning to show results where it really counts—the bottom-line,” Mr Muthiah said. “The improvement in efficiencies has resulted in better availability of funds for operations; we expect this will have a greater impact in the coming quarters,” he added.

ABOUT SICAL

Sical Logistics Ltd is India’s leading provider of integrated multi-modal logistics for bulk and containerized cargo─port logistics; inland transportation and warehousing; container stations; and offshore supplies logistics. Sical's delivery network includes an exclusive walk-in berth at Chennai for ships carrying bulk cargo; 1.9 million square meters of storage across 104 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.

To view the unaudited financial results please click on the link given below:

http://www.businesswireindia.com/attachments/Unadited_Financial_Results.xls