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CRISIL Research estimates operating margins of domestic players in the shipping industry to improve by 5-7 percentage points in 2013-14 due to a weaker rupee and better control over costs, exercised during the year. Operating margins are expected to grow further by 4 - 6 percentage points in 2014-15, led by improvement in charter rates.
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CRISIL Research has considered four major shipping companies to analyse profitability of the domestic shipping industry. These companies together form about 55-57 per cent of the domestic tonnage.
Freight rates declined across all segments in 2012-13, which led to a fall in operating margins for the shipping industry. However, a 14 per cent depreciation in the rupee helped arrest the drastic fall in operating margins and also aided growth in revenues.
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No part of this Report may be published/reproduced/distributed in any form without CRISILs prior written approval.
Note: Profitability has been estimated on the basis of aggregate results of GE Shipping, Mercator Lines and Shipping Corporation of India.
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