... Profit After Tax up by 93 per cent, Revenues up by 23 per cent
MUMBAI : Shreyas Shipping and Logistics Ltd (SSL), a part of the 40-year-old global conglomerate Transworld Group, has reported its unaudited financial results for the quarter ended June 30, 2017.
Commenting on the performance, Mr S. Ramakrishnan, Chairman and Managing Director, said: "Our strategic focus towards developing coastal trade as well as feeder services on the East Coast has resulted in strengthening of volumes and utilisation levels on ECC service. The signing of MoU for the MPP vessel purchase and RINL’s contract 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."
The company posted encouraging numbers during the quarter. Operating revenues increased to Rs 11,786 lakh which is a 23 per cent rise over the quarter ended March 31, 2017 and a 39 per cent increase over the quarter ended June 30, 2016.
The Profit After Tax (excluding exceptional items) went up by 93 per cent to Rs 2,046 lakh as against Rs 1,062 lakh for the quarter ended March 31, 2017. Profit After Tax for the quarter ended June 30, 2016 was Rs 487 lakh excluding exceptional items.
The growth momentum was largely driven by higher volumes and increase in freight rates. Vessel utilisation levels have gone up despite increased tonnage. This demonstrates the growth in overall volumes shipped and the potential of coastal container shipping in India. 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. Charter hire rates and scrap rates have seen a positive uptrend since the beginning of the year, informed a media statement.
There were three significant developments during the first quarter:
1. Signing of joint venture agreement with Suzue Corporation, Japan, on June 12, 2017 in Mumbai for undertaking international freight forwarding, Customs clearance and other land logistics services.
2. Signing of MoU to purchase a multipurpose (MPP) vessel of
17,472 DWT, with the intention to explore new opportunities through diversification into coastal break-bulk trade. The vessel is expected to be delivered in September 2017.
3. Bagging contract from Rashtriya Ispat Nigam Ltd (RINL) worth Rs 72 crore for transporting 225,000 tonnes of products from its Visakhapatnam plant to stockyards in Ahmedabad, Mumbai and Kochi to further strengthen Shreyas’ plans of venturing into coastal break-bulk trade.
The way forward