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8/16/2019 Transcript of Analyst Call [Company Update]
http://slidepdf.com/reader/full/transcript-of-analyst-call-company-update 1/16
8/16/2019 Transcript of Analyst Call [Company Update]
http://slidepdf.com/reader/full/transcript-of-analyst-call-company-update 2/16
“Shreyas ShiEa
MANAGEMENT: CAPT
LOGI
MR.
LOGI
MODERATOR: MR.
SERV
Page 1 of 15
ping and Logistics Ltd. Qnings Conference Call”
May 27, 2016
. V. K. SINGH – CEO, SHREYAS SH
TICS LTD.
AJESH DESAI – CFO, SHREYAS SH
TICS LTD.
SHITIZ PRASAD – EMKAY GLOBA
CES LIMITED
FY16
PPING AND
IPPING AND
FINANCIAL
8/16/2019 Transcript of Analyst Call [Company Update]
http://slidepdf.com/reader/full/transcript-of-analyst-call-company-update 3/16
Moderator: Ladies an
byEmkay
Mr.Rajesh
there will
you need
"0" on yo
like to han
you Mr. P
Kshitiz Prasad: Good afte
us thisop
remarks.
Capt. V. K. Singh: Good mo
performan
global me
freight lev
ranging b
Managers
Similar ef
during the
condition
freight for
domestic c
the perfor
to be depl
In order t
on a fixed
SSL Visa
The vessel
ofcourse t
vessels wi
The total
fleet is 19.
the earlier
for the p
wasaroun
quarter re
quarter in
increased
previous q
Shreyas Shipp
Page 2 of 15
Gentlemen, welcome to the Q4 FY16 results for Shreyas
Global financial services. We have with us today Captai
Desai – CFO. As a reminder, all participant lines will be in
be anopportunity for you to ask questions after the prese
assistance duringthe conference call, please signal an oper
r touchtone phone. Pleasenote that this conference is bein
d the conference over to Mr. KshitizPrasad of Emkay Glob
rasad.
noon everyone, I would like to welcome the management
ortunity. I would now hand over the call to Capt. V.
ver toyou sir.
rning Ladies and Gentleman. I just go ahead with t
ce. Initially i will just update for the market situation o
t down and reduced marketdemand coupled with excess c
els globally. Container Index of course has been flatsince
tween 441 and 453 points right through the quarter. Also
Index during the quarter was at its weakest level since
ect felt even on the cost and we faced depressed and chal
quarter. In view of the prevailing market situation our co
due to reduction in volume and freight for the EXIM carg
the domestic cargo. However overall we have done with i
argo ourperformance has been much better than the previo
ance of thequarter for the company as you know we oper
yed on the existingservices during the quarter.
strengthen the PIX 2 Servicethat is on East Coast of India
day weekly frequency company acquired and 9th vessel to
hapatnam was acquired and deployed on the east coast s
was purchased at a competitive market price of USD 2.7
e total carrying capacity has increased by 13% and fleet h
h total capacity of 13,567 TEUs and 192,771 MT dead wei
rowth in capacity during the year has been 63% and the c
6 years. Since the ship days of 746 was operated during thi
quarter and also tonnage operated were same. Hence pro
rformance between the two quarters. The volume incr
12 % as compared to earlier quarter while the stand alo
uced by 6.7% but our consolidated basis increased by 12
view of the additional volumes which we kept. Stand
by 11.5% and on a consolidated basis the revenue increas
uarter.
ing and Logistics Ltd.May 27, 2016
Shipping Limited hosted
n V.K.Singh – CEO and
the listen-only mode and
tation concludes. Should
ator by pressing "*" then
g recorded. I would now
al. Thank you and over to
nd thank them for giving
. Singh for his opening
e brief update on our
verall. As you know the
apacity has led to drop in
eginning of the year and
the PMI, i.e., Purchasing
second quarter of 2013.
lenging marketconditions
mpany faced challenging
o as well as reduction in
ncrease in volume on the
s quarter. Just go through
ted all 8 vessels continue
had tooperate the service
he fleet. The vessel name
ervice on 16th of march.
illion. With this addition
s increased to 9 container
ht.
urrent average age of the
quarter is very similar to
ides a good comparative
ased during the quarter
ne operating cost for the
as against the previous
alone operating revenue
d by 23% as against the
8/16/2019 Transcript of Analyst Call [Company Update]
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The total
volume gr
year. We
north to s
quarter an
The dome
in Q4 to
during thi
Average
against th
satisfactor
have now
all our eff
but freight
look out
service le
Sharing A
operated b
June whic
While we
continue oyou very
Rajesh Desai: Good afte
Moderator: Thank yo
session. T
ahead.
Vikram Suryavanshi: Good aft
operatinglast quart
are we get
Capt. V. K. Singh: Well. Fuel
virtually.
less same
likewise c
during thi
varying g
also as yo
tax free, d
Shreyas Shipp
Page 3 of 15
olume handled by the company as progressively gone u
owth has been 29% during this quarter as against the fir
aintained our market share of domestic volumes at 58% a
uth and west to east was 93% during the quarter as aga
on the reverse leg it was 54% as against 42% in the previo
stic volume was 40% and other volume was 60% in the Q
0% of domestic and 40% for others. So basically domesti
quarter and they have been dropped in the EXIM volume.
perating yieldper day for the vessel for the quarter incr
e previous quarter. So the overall performance for the
y and we expect to grow with such increase on quarter to
established all our services with the required tonnage. For
rts being made to increase the volume and utilization level
rates definitely the market driven and not very much in our
ays for reducing the operating cost wherever possible with
els. We have also discussed and agreed with SCI to go ahe
rrangement on two of the coastal services going to mid
y us and one was being operated by SCI which we will put
h gives us the strength of increase in additional volume
continue to strengthen the strategy to face the challenging
ur study to look out for new market and new business poteuch from our side.
noon. Now I think you can go for questions and answers. R
very much. Ladies and Gentlemen, we will now begin
e firstquestion is from the line of Vikram Suryavanshi fro
rnoon sir. We have seen good recovery in quarter on qu
performance. I just wanted to know fuel cost on quarter-on r we have 25 crores and this quarter 19 crores. There has
ting any benefit in this quarter duties or something?
cost if you see this quarter we had a decline because the co
lthough the quantity did not reduce because we have bee
sector with same tonnage so there was not much of differ
omparative with as against the previous quarter. But th
quarter that has given us reduction in our cost. Of course
ne up in the latter part. But this quarter definitely we have
said we had also taken advantage of the government polic
ty free, fuel on the coastal container vessels which we hav
ing and Logistics Ltd.May 27, 2016
which each quarter and
t quarter of the financial
erage utilization level on
inst 79% in the previous
us quarter.
1 which actually reversed
c volume is mainly grew
ased by around 20% as
quarter has been quite
quarter basis because we
the future outlook while
which we have with that
control. We continued to
out compromising on the
ad with VSA, i.e., Vessel
le east one of each one
in place shortly by mid of
and adding the top line.
market situation we also
tial for the future. Thank
ajesh Desai is here.
he questions and answer
PhilipCapital. Please go
rter basis in numbersand
-quarter, if you lookat thebeen relativelydecline so
st of the fuel alsodeclined
operating on themore or
nces in quantity and it is
fuel prices came down
the price is slightly again
an advantage of that. And
y for which they have for
e taken certain advantage
8/16/2019 Transcript of Analyst Call [Company Update]
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on that. A
Vikram Suryavanshi: Yes. Beca
Capt. V. K. Singh: No. It is
same it is
on depen
definitely
Vikram Suryavanshi: And can y
Capt. V. K. Singh: Basically
again SE
which is
componen
separately
have acco
to apporti
31st march
atthe com
of its nex
incost to t
wehave ta
factor that
Moderator: Thank yo
Nehal Jham: Hi Sir. G
yield that
Because y
Capt. V. K. Singh: It is like
calculate
profitabili
Nehal Jham: Is the 20
Capt. V. K. Singh: 20% impr
and decre
cost by 7.1
Nehal Jham: Fine. And
breakup h
Shreyas Shipp
Page 4 of 15
d that definitely continues to be there.
se this quarter we have lower EXIM business so that is wh
nly EXIM containers are lesser in this quarter but definit
not that does not depend on the EXIM volume as such. It is
s on the service pattern and whether we use the coastal
e have got the advantage of government policy on the coa
ou just explain this dry dock reversal 4 crores around amou
if we see like earlier we used to apportion on the dry doc
I has again told us and all that entire episode i think you
ore correct so that is why again with effect from 1st a
tization dry dock is a separate component and which
to be depreciated over the period of next dry dock. Theref
nted that time that entire thing was not pretty clear and th
n that over the period and we have taken the entire cost i
the entire thing we had lot of discussion and finally it got
onentizations. Therefore, the entire dry dock cost is now a
t dry dock. That is the reason there was like whatever ben
hat extent also is accounted in the current quarter. But
en a depreciation hit, the depreciation is more by around 6
additional depreciation something around2.2 to 2.5 crores p
. Next question is from line of Nehal Jham from Edelweiss.
od afternoon and congratulation on this good set of nu
ou calculate is that just may be the revenues or is it net of t
u mentioned it is grown 20% Q on Q so just wanted to und
charter hire is what you really get on the vessels basic
ntaking into account the revenue and operating cost. So
yper day operating level that is what we call it as yield on t
improvement mainly related to fuel cost then?
vement that is not only related to fuel cost but also relat
se in cost. If you see as I said the stand alone on the vessel
1% but at the same time we have increased our revenue by a
we mentioned in the volumes have increased 12% inQ o
w domestic and EXIM move separately?
ing and Logistics Ltd.May 27, 2016
at I was wondering.
ely in the trade we were
only the cost of thefuel is
fuel or foreign fuel but
stal fuel.
t?
cost over the period but
are already aware. So but
pril 2015 because of the
has to be accounted as
re, in the first quarter we
auditor did not allow us
n the first quarter and by
cleared. And it is utilized
portioned over the period
fit or what the reduction
t the same time because
crores that also like some
ertain to that.
Please go ahead.
bers. If I understand the
he revenues and fuelcost?
erstand that.
lly on per day basis we
asically the left over the
e vessel.
ed to increase in revenue
part, we have reduced our
lmost 12%.
n Q. Is it possible to get
8/16/2019 Transcript of Analyst Call [Company Update]
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Capt. V. K. Singh: Yes. We
beengoing
feeder vol
iswhere
volumewh
firstquarte
quarterno
transship
Nehal Jham: Just looki
pricing pa
and pricin
Capt. V. K. Singh: Sir, we ar
year even
been 29%
tonnage t
thevolume
rates whic
definitely
Nehal Jham: So just on
one year i
Capt. V. K. Singh: Sorry. Ca
Nehal Jham: I was aski
year? Ho
toundersta
Capt. V. K. Singh: Realizatio
see it has
carrying oEXIM vol
wehave fe
Nehal Jham: Sure sir. T
Moderator: Thank yo
Pleasego
Giriraj Daga: Hello. Sir
muchwe p
Shreyas Shipp
Page 5 of 15
can say that is where I said if you take into account
on right from the first quarter and as you know the globa
ume and international volume has been dropping. That is t
e have taken our whatever drop was there and with
ich we got is out of the domestic cargo and that is where I
r we were 40% domestic volume and 60% feeder vol
we have reversed that. And our total volume 60% is do
ent that is feedervolume.
g for the year forward what is your expectation of volu
rt? So just looking at how the revenue growth should pan o
?
looking at the growth in volume and we have seen the g
with the last year even with the depressed markets but our
for the year and we expect the similar growth in volu
take care of this growth what we have taken and we c
. So definitely and as far as the revenue is concerned its
h is volatile and it all dependent on the market conditionsi
hat is where the main growth will come in on the top line.
e last question from my side. How this freight rate and th
FY2016?
you ask the question again?
ng that what has been the movement in the realization of f
the growth would have been? You mentioned 29% for
nd on the realization part?
n on the freight rate virtually it has come down from the l
come down and even for the domestic as well as for the
f course domestic freight realization has come down byume has not come down much because the sectors we
t that overall realization has come down by about 10% ther
hank you so much. That’s it from my side.
. Next question is from the line of Giriraj Daga from K
head.
, i would like to understand like you said we have acq
aid for it?
ing and Logistics Ltd.May 27, 2016
because this change has
market is depressed and
he effect we felt and that
that drop plus increase
said like you know in the
me while in the fourth
mestic and 40 % is only
e growth and also onthe
t but separately involume
owth in volume year-on-
verall volume growthhas
e because we have the
an expect that growth in
do depend on the freight
it goes it even can goup
realization moved inthis
reight rates in the lastone
volumes and just wanted
st year to this year ifyou
XIM cargo which weare
lmost 15%-20% and onave changed and that is
.
M Visaria Family Trust.
ired one vessel so how
8/16/2019 Transcript of Analyst Call [Company Update]
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Capt. V. K. Singh: We paid
march las
service th
in the mai
us a better
Giriraj Daga: Have you
vessel in
Capt. V. K. Singh: You kno
growth in
So in the
total tonn
Giriraj Daga: Actually i
crores thi
Capt. V. K. Singh: Yes.
Giriraj Daga: So that’s t
Capt. V. K. Singh: Yes.
Moderator: Sorry sir.
of Vikram
Vikram Suryavanshi: Sir, just
Ifpossible
Capt. V. K. Singh: 250,000 T
Vikram Suryavanshi: And reven
Capt. V. K. Singh: Total days
Vikram Suryavanshi: Yes. Oper
Capt. V. K. Singh: Around 2
Vikram Suryavanshi: 2600 +. O
Capt. V. K. Singh: New vess
Vikram Suryavanshi: 1613?
Shreyas Shipp
Page 6 of 15
.7 million that is closed to about 18 crores that is whe
t vessel we acquired is Visakhapatnam and we have put
t is east coast service to make it weekly because earlier w
n haul. Now we will be operating with 4 vessels on a weekl
advantage as regard to services are concerned.
hired like we had a 8 vessel on last year basis. right? We
Y 2016?
we have actually added 3 vessels in last year, basically
tonnage wise was almost about 63,000 and we have added
eginning of the last year our tonnage was only 8,300 TE
ge of 13,560 TEUs.
wanted to understand gross bloc we had. Gross blo
year?
e pertaining to 3 vessels?
is line got disconnected. In the mean while you can take t
Suryavanshi from PhilipCapital.
anted to know how much was the total TEUs handled fo
revenue days?
EUs
ue days is more than 2800 or? Total revenue days?
of operation?
ation.
00 plus
. Can you repeat that TEUs for the new vessel the size of n
l in TEUs is 1613 TEUs.
ing and Logistics Ltd.May 27, 2016
we acquired in 16th of
that vessel on the PIX2
were operating 3vessels
y frequency. Sothat gives
have not added anyother
last year to this year the
ll larger vessels this year.
s while today we have a
addition of about 100
he next question fromline
r this full year FY 2016?
ew vessel inTEUs.
8/16/2019 Transcript of Analyst Call [Company Update]
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Capt. V. K. Singh: Yes.
Vikram Suryavanshi: Any dry d
Capt. V. K. Singh: Yes. We h
have. We
new regul
intermedi
we have n
away in th
docks whi
than we a
compared
Vikram Suryavanshi: Right. Sir,
up this qu
it just like
Capt. V. K. Singh: No. Other
we have h
definitely
cost has g
Vikram Suryavanshi: Got it sir.
Moderator: Thank yo
Please go
Sachin Kasera: Yes. Goo
youmentio
numberco
Capt. V. K. Singh: Yes. All p
Sachin Kasera: What was
Capt. V. K. Singh: March qu
Sachin Kasera: Which m
62,500?
Capt. V. K. Singh: No. It is f
Shreyas Shipp
Page 7 of 15
cking we had in this quarter or coming in next one or two
ad one dry docking in this quarter. Of course in the next q
have skipped 2 dry docking which was supposed to be in t
ations which we got from the DG shipping, i.e., under w
te dry dock. So 2 intermediate dry docks were due in the c
ow skipped that and instead of that we have got now unde
e dry dock. And of course at the end of the year in the last
ch are due. Ok. But again just to add because dry dock no
re apportioning over a period. So dry dock actually does
to like quarterly figures whatever.
just last question. Is there any one time or any in other exp
arter compared to YOY or even QOQ. So is there any signi
a normal business?
cost if you see where it has gone up is only because of the
andled. If we have handled 12% of extra volume so each c
will add up to the cost. That’s why you are seeing on over
ne up. On standalone basis the cost came down.
hank you.
. Next question is from the line of Sachin Kasera from Luc
ahead.
afternoon sir and congratulations for the good turn
ned that TEUs for the full year were 250,000 if i got th
rect?
t together yes.
the number for March quarter?
rter was 72,400 TEUs.
ans that if I remember it correct same number for De
r the previous quarter it was 64,700 TEUs.
ing and Logistics Ltd.May 27, 2016
uarters.
arter we are not going to
is quarter because of the
ater survey in lieu of the
urrent quarter also which
rwater survey and carried
uarter we will have 3 dry
it will be frequent rather
not much significant as
enses have relativelygone
ficant reason forthat or is
additional volumes which
ntainer got a cost so that
all consolidated basis our
ky Investment Managers.
around in numbers. Sir,
e number correct. Is that
ember quarter was also
8/16/2019 Transcript of Analyst Call [Company Update]
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Sachin Kasera: Which m
crores to
sircompar
chairmana
slightlyim
Capt. V. K. Singh: No. What
volume in
may be se
Sachin Kasera: So improv
Capt. V. K. Singh: It is the s
increase t
Sachin Kasera: And sir
tothe110,0
Capt. V. K. Singh: Not to tha
we are ex
same rati
almost ab
Sachin Kasera: No, so yo
is that si
withourex
also?
Capt. V. K. Singh: Yes, we c
Sachin Kasera: So that m
morecapa
Capt. V. K. Singh: We can lo
since all o
tonnage.
however,
better pric
all we are
Sachin Kasera: So you m
Capt. V. K. Singh: Definitelyalarger ca
Shreyas Shipp
Page 8 of 15
ans that it is around 12-13% growth and the revenu
176 crores. So does it mean that there is also some
d to December quarter for the March quarter? Beca
lso mentioned in the previous call that the rates have bot
prove just what he mentioned in February during December
has happened is we have done more volume where we ar
reased on the sectors where we are getting better rate and
tors where we are not getting better rate.
ement relation is due to change in root mix other than price
election of the trade lane as selection that volume and
e revenue more than the percentage of growth in the volum
ith the addition of therecent vessel now i think what
00 TEUs per quarterif we run on full capacity, is that under
t level because if you see these volumeincrease will be aro
ecting about 10% growth in the tonnage also 10 to 12%
the volume growth should be there. So definitely we
ve 80,000 should be there for the next part around that 10
are saying that may be for June quarter you could have be
r in case the market reverse significantly and this
isting capacity can we actually handle100,000 TEUs to 11
n.
eans till the volume reached 90,000-95,000 TEUs now
ity,is that inference correct from this?
ok at the change of vessel may beand we may notincrease t
ur services aremore or less aligned on a weekly frequenc
o wewill like to consolidateall the services and get the bes
uring the year we may look atchange in one odd vessel i
e and instead to cut down the cost on the older vessel, we m
looking at.
y replace that at a bit higher capacity vessel or you look for
we will look at a higher capacity what we will removeacity then what we removed.
ing and Logistics Ltd.May 27, 2016
e has grown from 141
improvement in the rate
use if I remember that
tomed out and they may
quarter conference call.
getting better rates. The
e reduced the volume on
increase?
argo,which helped us to
.
we can achieve is close
standing correct now?
nd 10% more that’s why
rowth in the tonnageand
xpect about another say
increase.
n at 80000. Mayquestion
demand in the market
0000 TEUsa quarter that
e may not look to add
at much of capacity now
what help that required
t out of the services. But,
the vessel is available at
ay consider that so that is
the similar vessel?
e will definitely look at
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Sachin Kasera: second qu
quarter m
there was
you can s
much is b
Rajesh Desai: The additi
less above
have to ch
So if your
goes up to
Sachin Kasera: But sir th
would ha
depreciati
3.55 each
Rajesh Desai: That’s im
V. K. Singh: That is th
that time.
work out
depreciati
Sachin Kasera: That is pa
Capt. V. K. Singh: Yes.
Sachin Kasera: Next ques
much. Yo
we are in
rate becau
Rajesh Desai: No. If you
where the
automatic
the delive
also growi
Capt. V. K. Singh: Is that the
little bit h
Sachin Kasera: So how shyear you
Shreyas Shipp
Page 9 of 15
estion of sir on regarding on this depreciation if I see
rch is around 9 crore vs 3.5crores in the December quart
some increase because of the change in the way you have g
lit up for this incremental 5.5 crores that has come from
cause of dry docking and how much is because of the addit
on of vessel will not be as much as such because now the
the 10-15% of the scrap value. But it is mainly because
ange the scrap value of the vessel according to the depreci
scrap price goes down to that extent depreciation will be
extent depreciation will come down.
n there is a little confusing if I refer to your note number
e been lower by 1.61 lakh only if you had for the
n actually gone up by5.5 crores not able to exactly relat
you should reported the depreciation of 5.1 crores.
act of 3 to 4 crores because of the reduction in scrap value.
value ofvessel in the sense when you are working on a scr
So it depends on that value keep changing for year-on-year.
in the beginning of the year that this is the cost and o
n all together.
tly reflected in this including depreciation. Right sir?
ion was on the balance sheet if we see this year while your
r receivables have gone up from 82 crores last year march
a very good cash flow but this is indicating that are we st
se of market is slow what is this syndication of?
compare in the last quarter like last 2 quarters, we have s
e is longer voyage period. That voyage itself take around
lly they able that to that extent some credit period automat
y and all that. So that will have impact on outstanding and
ng and also most factor will lead to increase in outstanding.
market situation is not that good which was there earlier
re.
ould we look and receive. You should look at the numberre receivable 115 crores on turnover of around 500 crore
ing and Logistics Ltd.May 27, 2016
our depreciation for the
er. You did mention that
ne for dry-docking. So if
ecember to March. How
ion of the vessel?
vessel costs are more or
f that like every year we
ation price will move up.
more if your scrap values
, it says the depreciation
earlier policy. But your
. If we had 1.6 crores to
p you are taking a cost at
So year-on-year basis we
that basis we work the
turnover has not gone up
its 115 crores. Normally
arting to offer much hike
tarted the PIX 2 Services
28 days to complete. So
ically will be linked with
because your business is
so that will also effect a
f days. For example, thiss which is approximately
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Sachin Kasera: Sir, you
vessels wi
1-2 or 2-3
Capt. V. K. Singh: We will l
and they
vessels. O
fleet whic
special su
can get m
money on
terms whi
we got th
course of
we are loo
Sachin Kasera: Which me
gone up b
is lower. S
Capt. V. K. Singh: Yes. Surel
Moderator: Next ques
Pratik Kumar: Delving
thefuel pri
sameperio
Capt. V. K. Singh: It takes so
such but d
the fright
come a bit
Pratik Kumar: One thing
do you se
like you h
capacity i
Capt. V. K. Singh: See, indus
even as yo
with SCI
tonnage o
adds up c
will help
Shreyas Shipp
Page 11 of 15
entioned that you may look this year only in terms of re
h new vessels. So how many vessels you think you could l
essels?
ok at only 1 may be and not more because we have most
ave been purchased more economical vessels. We are l
ne vessel is mainly which is non-economical and total 2 o
we will in due course of time because instead of taking a
vey cost we would like that because today asset prices are
uch better second-hand vessels at a competitive price th
the special survey and also those older vessels have got
h we can get better. That’s what we have done in the pre
advantage of that and that’s where we plan because 1 or
ime may be 1 in this year may be another next one in the
king at.
ans this year our capital expenditure will be much lesser. L
almost 90 crores. This year net cash flows will be much hi
o net debt level should improve.
y.
ion is from the line of Pratik Kumar from Antique stock Br
ore on the freight rates, over the past one month as you al
ces and also there is no improvement in the freight rates
d or I mean in the past month?
me time to start getting reflected on the freight rates. So
efinitely internationally I see there is slight movement wit
rates also slightly improving on the international lanes and
latter domestic side. So I am sure it will follow on.
in the industry capacity, you have added significant capaci
industry players adding capacity both in container and
ave said probably you are done for some time but how do y
the next one year?
try will put more capacity will come and I expect more cap
u know we are said that we are in process of working out
that is Shipping Corporation of India and there they ma
the coastal routes so that will again add up to the capacity
pacity for both of us when we are jointly going to share th
oth of us to increase the capacity because there is avolume
ing and Logistics Ltd.May 27, 2016
lacing some of the older
ok at it like number wide
other vessels are younger
ft with only one or two
f the older vessels in our
cost on those vessels for
much competitive and we
an spending so much of
higher operating cost in
vious year if you see and
2 whatever is left in due
ext year. So that’s where
ast year our net block has
gher because the CAPEX
king. Please go ahead.
o said is improvement in
hich witnessed over the
not seen the movementas
the fuel pricesgoing up,
slowly because the effect
ty over thepast year.How
ulksegment in near term
ousee the industry adding
acities to come inbecause
essel sharingarrangement
y be deployingadditional
butdefinitely that’s where
ecapacity. So definitely it
growth if you see there is
8/16/2019 Transcript of Analyst Call [Company Update]
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a volume
quarter th
covered if
even cove
definitely
also if yo
same lot o
Pratik Kumar: Freight r
capacityk
led tothe f
Capt. V. K. Singh: Yes. That
not only t
the future
pressure o
utilized th
Pratik Kumar: Sir, one
aroundcoa
theseanno
Capt. V. K. Singh: Yes. We c
potentials
future. M
because t
overall tra
waterway
well as po
working.
Moderator: Next ques
goahead.
Akash Sethia: Just want
fuel, oce
distinction
Rajesh Desai: Fuel is b
iswheneve
all the por
business.
charges. T
there.
Shreyas Shipp
Page 12 of 15
rowth of almost about 12% for us. So for overallif 12% g
t much capacity also needs to be added anddefinitely mor
we add the capacity that is where weare looking at the mo
ring today that can be covered. So thatwill take some capac
there will be more capacity but atthe same time the capac
recall from the previous year.There are lot of capacity w
f capacity which went out ofcoastal services. So its keep tak
tes are the more of function of improving crude pri
eps coming up. As I understand,I think the massive capacit
all in freight rates more than the public crude prices also.
also did happen. I will not deny that. But our own the capac
e other capacity growth but that is the sometime we have
growth and take the advantage of asset prices. So defini
n the freight rate. I will not deny that. But slowly the cap
freight rate also will start coming up.
ast question on government initiative like Maritime S
stal shipping. Do you see some movement on the
ncements or policies?
an definitely see and that summit has thrown open lot of b
to the people and we are also working on certain segme
y be not in what we are actually doing today, may be d
ey have a lot of future plans in place for improvement
de. So whether it is bulk, whether it is on the RORO o
, the government iskeen they are trying to work out givi
sitive policies. Sowhich will help to take on to the new se
tion is from the line of Akash Sethia from Canvan Dis
d aclarity on the cost side. I see there are three line items
an freight and transportation. Just wanted some
between each?
sically whatever we are like this is the fuel cost pertai
r we are loading on some other vessels because everywhere
ts or outside when we do some liner business and even my
So that’s what ever is loaded on the others vessels that
ransportation is purely road transportation and trailer trans
ing and Logistics Ltd.May 27, 2016
rowth is there quarter-on-
e and more areas will be
re ports which we are not
ity to be utilized there. So
ities have come and gone
hich we added but at the
ing its own shifts.
ces or I mean because
y addition in the industry
ity also had growthso it is
to put in thecapacity for
telythat will be put little
acity gets more and more
mmit and all the buzz
ground with respect to
usiness opportunities and
ts where we canwork in
ifferent sector alltogether
ofcourse to shippingand
whether it is the inland
g lot of opportunities as
ments which we are also
h Square Capital. Please
that you have in termsof
ense on what is the
s to. Other freight rates
suppose if I am notgoing
subsidiaries dosome liner
is the part of seafreight
ortation whatever will be
8/16/2019 Transcript of Analyst Call [Company Update]
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Capt. V. K. Singh: I just giv
basisfor a
Abbas.Ou
on to thet
partyfreig
Akash Sethia: Understan
predomin
Rajesh Desai: Company
Akash Sethia: So long te
Rajesh Desai: Yes. Maxi
Akash Sethia: So this is l
Rajesh Desai: Short term
40% turn
wehave th
Moderator: Next ques
Giriraj Daga: You said
weare givi
Capt. V. K. Singh: The tariff
tariff has
gone up.
Giriraj Daga: So what is
Rajesh Desai: Gross rat
togetherin
Giriraj Daga: But I can
Sothat’s it
Rajesh Desai: Actually t
investmen
against m
Giriraj Daga: I come to
will not cr
Shreyas Shipp
Page 13 of 15
a breakup of freight rates. There are lot of cargo which
destination where we are not calling. It could be f
rvessels only call up to Jebel Ali. So from Jebel Ali to Band
ird party vessel and pay it as cost that way. That is how
t cost.
d. On the balance sheet debt side, long-term b
ntlyrupeedenominated or is there also dollar denominated d
always go for dollar denominated debt.
rm barrowing is dollar?
mum is dollar denomination. Some portion is also INR den
ong term and short term would be rupee?
also include both Dollar as well as rupee denominated. Act
ver consists of EXIM related boxes. So that is where w
natural age to that extent we go for dollar denominated.
ion is from the line of Giriraj Daga from K M Visaria Fami
like 15% tariff reduction. Is it like more mix if you are
ng higher discount? Or Is the tariff actually gone down by 1
itself has gone down. It’s not that we give some major disc
one down and of course while our revenue has gone up as
s I said like because of the selection of better revenue lanes
the total gross debt as of now?
will be roughly around 160 crores on consolidated l
luding short-term and long-term.
see long term debt is around 119 crores consolidated an
self is about 180 crores
hat 63 crores consist of some short-term debt which is
t. So normally that we don’t consider as because it is t
own money. So that portion is excluded from this.
the CAPEX question. You might replace one more vessel
oss thatthreshold from debt side?
ing and Logistics Ltd.May 27, 2016
we accept for a through
rom Calcutta to Bandar
ar Abbas I have to load it
it works out on the third
orrowing, is the debt
ebt?
minator also.
ually if you see our 30%-
go for the which where
ly Trust. Please go ahead.
taking reverse cargo that
5% on normal routes?
unt or something.Overall
against the tariffwhich is
.
evel and this is all put
short-term is 63 crores.
against our mutual fund
e money given actually
so keep that in mind we
8/16/2019 Transcript of Analyst Call [Company Update]
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Rajesh Desai: No. There
Giriraj Daga: Going for
debt thres
Rajesh Desai: Normally
debtequity
considere
Giriraj Daga: My last q
anyupdate
Capt. V. K. Singh: No. Just g
Giriraj Daga: I know bu
Rajesh Desai:: It is alwa
we will ge
Moderator: Next ques
Shreyas Bhukhanwala: Can you j
EXIM?
Capt. V. K. Singh: It is appro
Shreyas Bhukhanwala:So total was 72
Capt. V. K. Singh: Yes.
Moderator: Next ques
Jinal Fofalia: Could you
forward?
Capt. V. K. Singh: Utilization
against79
forwardsi
thatincrea
wewill rea
theutilizati
theutilizati
focus.
Shreyas Shipp
Page 14 of 15
will not be much CAPEX requirement because it will be re
ard also do we have any threshold in mind that we will
old?
we don’t fix the CAPEX as such directly but whenever
ratio does not go beyond say 0.8 or 0.9. That ratio
.
uestion is we will be freeze fuel cost at some point o
on like is that still the case?
ne up. If the crude prices if you are talking about,it is gone
earlier I think we have booked some and tried hedge fuel c
s the benefit cost analysis. The premium what we have to
t.
ion is from the line of Shreyas Bhukhanwala from Sushil F
ust give me the breakup of TEUs that handled this quart
ximately as I said like the total volume is to the ratio of 60-
,400 right?
ion is from the line of Jinal Fofalia from Alfa Accurate. Ple
just tell utilization numbers quarter-on-quarter in FY 2016
level from north to south and west to east was 93
in the previous quarter. And on the reverse leg it was
ce we have added also if you see like one vessel in the last
es the 12% and so again we expect that if the volume in
ch the same level of utilization in the next quarter.If we ca
on level will become better and on top of that we are w
on level goes up on the vacant legs which is on reverse leg
ing and Logistics Ltd.May 27, 2016
placement of vessel.
not cross that amount of
like we ensure that my
ill normally always be
time about $40-42. So
up.
ost.
pay and what protection
inance.
r based on domestic and
0%.
ase go ahead.
and how do you seegoing
during this quarter as
54% against 42%. Going
month of the quarter. So
creases by 12 -13% also,
n increase volume further
orking harder to see that
. So that will be our main
8/16/2019 Transcript of Analyst Call [Company Update]
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Moderator: I now ha
forclosing
Kshitiz Prasad: I would li
Moderator: Ladies an
thisconfer
Shreyas Shipp
Page 15 of 15
d the conference over to Mr. Kshitiz Prasad of Emkay
comments.
e to thank the management and all the participants on the c
d Gentlemen, on behalf of Emkay Global financial
nce call. Thank you for joining and you may now disconne
ing and Logistics Ltd.May 27, 2016
lobal Financial Services
all. Have a good day.
services that concludes
ct the lines.