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Shreyas Shipping’s PAT vaults 93% to Rs 20.46 cr for June ended 2017 Quarter

Transworld Group company, Shreyas Shipping and Logistics Ltd has reported 93% jump in Profit After Tax(PAT) at Rs 20.46 crore for June ended 2017 quarter against PAT of Rs 10.62 crore recorded during March ended 2017 quarter. The company has logged Rs 4.87 crore PAT for June ended 2016 quarter, says a release on 14th August.

 Financial Performance

 The company has posted encouraging numbers during the current quarter. The operating revenues increased to Rs 117.86 crore which is 23% increase over quarter ended 31st March 2017 and 39% increase over the quarter ended 30th June 2016.

 Operational Performance

 The growth momentum was largely driven by higher volumes and increase in freight rates. On anticipated lines, the vessel utilisation levels have increased despite increased tonnage. This demonstrated the growth in overall volumes shipped and the potential of coastal container shipping in India. The bunker prices remained moderate during the quarter, allowing the company to maintain its operational costs. Globally, the environment has improved over the second half of the previous year. The charter hire rates and the scrap rates have seen a positive uptrend since the beginning of the year.

 Milestones reached during the review quarter

 The galore achievements during the quarter include signing of joint venture agreement with Suzue Corporation, Japan on 12th June, 2017 in Mumbai for undertaking international freight forwarding, custom clearance service and other land logistic services.  Signing of MoU to purchase a Multipurpose vessel of 17,472 DWT, with an intention to explore new opportunities through diversification into coastal break bulk trade; the vessel is expected to be delivered in Sept 2017. The company has bagged contract from Rashtriya Ispat Nigam Ltd(RINL) worth Rs 72 crores for transporting 225,000 Tons products from its plant at Visakhapatnam to stockyards in Ahmedabad, Mumbai and Kochi to further strengthen our plans of venturing into coastal break bulk trade.

Commenting on the performance, S Ramakrishnan, Chairman and Managing Director says: “Our Strategic focus towards developing coastal trade as well as feeder services on the East Coast has resulted in strengthening of volumes and utilization levels on ECC service. The signing of MoU for the MPP Vessel purchase and RINL’s contact are our initial steps towards exploring the immense growth potential in the coastal bulk trade. We will continue to strengthen our existing services and maintain our growth momentum in the coming quarters”.

 Way Forward

 Going ahead the company intends to commence and strengthen its coastal MPP business. Besides, it will also expand container and MPP into other regional areas in addition to growth in the container tonnage and overall business.

 Key Global Developments During June 2017 Qtr

 Global Container Index increased in the month of March but reverted to downward trend in the following months. The carter hire and the scrap prices that softened in the last two months of the quarter have reverted to upward trend currently.

 Global Fleet Growth

 Delivery levels were still running short of what was scheduled at the start of the year with 80 ships (or 592,000 teu) delivered up to late July and the net of scrapping this equates to fleet growth of 1.4%. However, around 1.1 million teu are estimated to enter service in 2017 with 450,000 being scrapped.  Global utilization scenario reveals that services from North to South and West to East remained at the level of around 97% and on the reverse leg was around 70 to 75% post deployment of increased capacity acquired during the quarter.

 The Utilization level on the ECC service from South to North was around 89% and on reverse leg was 67%. During the period, Shreyas has drydocked SSL BHARAT and SSL Mumbai. Smooth co-operation with SCI and SIMATECH for providing better frequency to the customers and tonnage rationalisation. The SSL Sagarmala has lived her life and may not be advisable to take her through next special survey; to be scrapped by Dec 2017 and the expected loss on sale is included under the exceptional item.


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