Transcript of Analyst Call [Company Update]

8/16/2019 Transcript of Analyst Call [Company Update]

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“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



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



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


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



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?


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



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?


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



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


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.


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.




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.


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



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.


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



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


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


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





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


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



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.


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


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



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


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?


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



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


Shreyas Bhukhanwala: Can you j

EXIM?

Capt. V. K. Singh: It is appro

Shreyas Bhukhanwala:So total was 72



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


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



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


lobal Financial Services

all. Have a good day.

services that concludes

ct the lines.

Documents

Transcript of Analyst Call [Company Update]