Dalal Street

Q4CY2007 results of SEAMEC have been disappointing. The revenues declined by 64% year on year (yoy) to Rs22.3 crore from Rs61.6 crore due to lesser deployment of vessels. The company suffered a net loss of Rs15.9 crore during the quarter as against the net profit of Rs25.9 crore during Q4CY2006 on account of lower revenue generation and higher dry docking expenses.

During the quarter, SEAMEC III was the only vessel that was fully deployed, while SEAMEC II and SEAMEC IV were not operational due to up-gradation or repair work for longer duration than expected. SEAMEC I was also under-utilised due to premature termination of contract.

SEAMEC II to be out of operations for a minimum of six-month duration and delay in up-gradation of SEAMEC IV, we expect the company’s performance to suffer during H1CY2008.

Delhi based Amtek Auto has informed us that the company has entered in to an MOU with the aim to set up a 50/50 joint venture with American Railcar industries, a North American leader in railcar manufacturing.

The signing of MOU is part of the Amtek Auto strategy to diversify by the setting up of the company’s Amtek Transportations systems division and this joint venture will be part of that new division which signals a major investment by the Amtek into this new and exciting market. The transportation division, which includes railways, aerospace and surface transportation system, will have within the next 4-5 years growth to around Rs 1,500 crore in sales and will give a good balance for the Amtek with it already highly successful automotive division. Amtek is currently investigating other potential opportunities and acquisition for the transportation division both in USA and European markets.