Indian stock market indices are trading strong over the last two hours of trade. Realty and Banking stocks witnessed maximum buying interest while Pharma and IT stocks witnessed maximum selling pressure.
Shipping stocks are trading in the green led by Dredging Corp and Great offshore. Great Eastern (GE) Shipping announced results for the quarter ended December 2011. The company has reported a 4% growth in standalone topline and a 64% drop in bottomline. The growth in topline was mainly driven by freight and charter hire division as the company earned very little from sale of ships. Operating margins contracted by 15.4% on the back of higher outgo towards hiring of chartered ships and rigs. The biggest impact has come on account of costs incurred for hire of chartered ships and rigs. The company's offshore business continued to do well, increasing its revenues by about 61% YoY and segmental profits by more than 50% YoY. Another Rs 983 m were pumped into the offshore business related subsidiary, taking the total investment till now to Rs 17 bn.
Steel stocks are trading strong led by JSW Steel and Maharashtra Seamless. Steel Authority of India (SAIL) has announced results for the quarter ended December 2011. The company has reported a decline of 4.9% YoY and 42.9% YoY in net sales and net profits respectively. The decline in net profit was due to high raw material cost and foreign exchange fluctuations. During the nine months ended December 2011, net sales increased by 4.8% YoY while net profits declined by 41.7% YoY. Despite the slippage in profit during the nine-month period as compared to the year-ago period, SAIL's performance reflected an uptrend during the third quarter as compared to the preceding quarter. The company has declared an interim dividend of Rs 1.2 per share.