Mercator Q3 consolidated net loss at Rs 340 crore

Shipping firm Mercator Ltd on Wednesday reported a consolidated net loss of Rs 340 crore for the quarter ended December 31, 2012 on account of steep decline in net sales.

However, the company had reported a net profit of Rs 26.6 crore in the corresponding period of the last fiscal, the company said in a filing to Bombay Stock Exchange (BSE).

The consolidated total income from operations of Mercator, formerly known as Mercator Lines Ltd, for December quarter was Rs 809 crore, registering a dip of 26 per cent, it said.

The shipping firm's consolidated total income from operations in the October-December period in the last fiscal year was Rs 1,100 crore, it added.

The company's standalone net loss during the quarter came down by 10 per cent at Rs 21.2 crore, over the corresponding period of FY12.

Mercator's standalone net loss in the December quarter of last fiscal year was Rs 19.2 crore.

The company further said that its step down subsidiary Mercator Lines (Singapore) Ltd has entered into an agreement to sell a very large ore carrier by next month.

"During the quarter...Mercator Lines (Singapore) Ltd, Singapore, has entered into early termination and settlement agreement in respect of in-charters of two vessels. Further, the company has made a provision for impairment in respect of an onerous contract for one more in-chartered vessel.

The compensation on termination (by way of cash compensation and issue of compensation shares) and provision for impairment of the onerous contract and related expenses amounting to Rs 169 crore has been provided for in this quarter as an exceptional item," the company said.

Shares of Mercator on Wednesday closed at Rs 18.35 on the BSE, up 1.10 per cent from the previous close.