Mercator decides to gradually exit coal trading

India?s shipping and logistics company Mercator Limited (earlier known as Mercator Lines Limited) has decided to gradually shut its coal-trading business due to lower margins from the segment, a local report said.

"We are not focusing on that business now because it is not contributing to profitability," Kishor Shah, chief financial officer, Mercator told Business Standard.

The company has been in the business of coal transportation and logistics since 1995.

Mercator acquired coal mines in Indonesia and Mozambique. The company has mining licenses for three coal blocks in Indonesia.

The drop in income from operations in the April-June quarter is due to coal-trading business, the report said.

"Presently we are doing 1.5 million tons of mining and selling in the Indonesian market. That business is contributing at the EBITDA (earnings before interest, taxation, depreciation and amortization) level," Shah said.

The company is also engaged in renting out infrastructure services like jetty, barges and crushers etc alongside mines in Indonesia.

Mercator is focusing on the development of its dredging business in India and it hopes to bag a few orders in the segment. (*)