According to the provisional results announced by the company here on Thursday, net sales were pegged at around Rs 2,412 crore, as against around Rs 2,270 crore, marking a 7 per cent increase.

Net profit-margin remained almost the same at 10.37% for 1997-98, as against 10.27 for the previous year.

In the backdrop of adverse market conditions and declining freight rates, the company was able to maintain its profitability, said chairman and managing director PK Srivastava.

According to him, the diversified fleet of SCI (comprising 17 different kinds of ships) was mainly responsible for keeping its profits' stable. During the year, the tanker- and bulk-carrier segment fetched around Rs 1,130 crore. The liner-and-passenger vessels earned Rs 675 crore revenue, while around Rs 112 crore was miscellaneous income, according toSCI director, finance, KK Kothari.

In the liner segment (which did not perform well), the break-bulk business incurred maximum losses. According to Srivastava, SCI could reduce losses in the cellular segment. The state-owned company made marginal profit from its feeder services.

SCI's operating profit margins declined marginally from 23.65% to 22.47%. Its operating profit was pegged at around Rs 542 crore (Rs 537 crore). SCI netted Rs 20.4 crore (Rs 43.2 crore) on sale of vessels.

The other income declined to Rs 121.8 crore from around Rs 129 crore. The total expenditure increased to Rs 1,870 crore from around Rs 1,733 crore . The tax outgo was Rs 55 crore (Rs 40.3 crore).

In 1997-98, the company had planned to acquire 24 vessels at a cost of $733 million. The acquisition plan was scaled to 13 vessels, costing around $450 million.

These included 12 new vessels (four Aframax, two product tankers, two Ammonium gas carriers and four-liner combi vessels) and one second-hand 30,000 DWT vessel.

In thecurrent fiscal, the company plans to acquire 14 vessels at a cost of around $420 million. On SCI's future diversification plans, Srivastava said the company plans to get into LNG transportation and coastal movement of cargo. Last year, the company branched out from mainline shipping to feeder service.