Gains in crude oil -- hovering near $145 a barrel -- and lower oil inventory have supported the uptrend in tanker hire rates, which is up 60 percent from the last quarter at about $120,000 per day, analysts said.
"But there could be a dip in margin due to high bunker cost, though many times that cost is borne by the charterer. Also, revenue days were lower," Kapil Yadav, an analyst with Dolat Capital, said.
The first quarter is traditionally a dull period for shipping firms as they keep their vessels on drydock for inspection and maintenance, Yadav said.
Besides, GESC -- India's biggest player in the tanker segment -- is also replacing ageing vessels and converting single-hull tankers into double-hull to meet a 2010 global deadline.
The bottom and the sides of double hull tankers have two complete layers of watertight hull surface and is considered safer against oil spill during under-water damage or collisions.
"For Great Eastern, we are assuming about 500 million rupees from sale of assets in the quarter," a shipping analyst with a foreign brokerage, said.
The firm has sold 3 product carriers and one single-hull tanker. Its current fleet stands at 41 vessels, according to data on the BSE.
"Outlook for GE (Shipping) is very strong. Specially in FY10, it will perform still better as we are expecting vessels in the offshore segment to enter," Yadav said.
GESC is looking to increase its offshore exposure and has earmarked a capex of more than $100 million in FY09 for assets in the oil & gas segment.
Shares in GESC have remained flat in April-June when the CNX Midcap Index's CNXMDCP dropped 16 percent, while the broader 30-share BSE index fell 13.95 percent.