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Shreyas Shipping & Logistics Ltd.

BSE: 520151 Sector: Infrastructure
NSE: SHREYAS ISIN Code: INE757B01015
BSE 00:00 | 20 Jul 455.25 -4.75
(-1.03%)
OPEN

464.50

HIGH

464.50

LOW

455.25

NSE 00:00 | 20 Jul 459.10 -0.60
(-0.13%)
OPEN

459.00

HIGH

461.00

LOW

457.00

OPEN 464.50
PREVIOUS CLOSE 460.00
VOLUME 3002
52-Week high 645.00
52-Week low 292.00
P/E 12.15
Mkt Cap.(Rs cr) 1,000
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 464.50
CLOSE 460.00
VOLUME 3002
52-Week high 645.00
52-Week low 292.00
P/E 12.15
Mkt Cap.(Rs cr) 1,000
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shreyas Shipping & Logistics Ltd. (SHREYAS) - Chairman Speech

Company chairman speech

It gives me great pleasure in presenting you my thoughts on the 30th AnnualReport of Shreyas Shipping and Logistics Ltd. Thank you for taking out time to read thisreport and for your continued support and interest in the company. Last financial year forShreyas was one of the best performing years in the history of the company while theshipping industry globally continued to face challenging times. I would like to take youthrough the industry scenario and our performance for the year.

INDUSTRY PERSPECTIVE

The global economy is expected to continue improved with global GDP growth projectedto pick up from 2.9% in 2017 to around 3.1% in 2018-2020 although it remains susceptibleto geo-political and other macroeconomic risks. Meanwhile India continued itsoutperformance and is soon expected to become fifth largest economy in the world.

The shipping sector has been under pressure for few years now primarily due to a weakglobal environment over capacity falling freight rates contraction in imports andexports etc. The global container shipping saw a turnaround in FY18 as the situation ofovercapacity which prevailed in FY17 is solved to a great extent which was due to higherdemand growth of the fleets in FY18. This also resulted in some improvement in the freightrates globally and the outlook on the freight rates remains stable with a positivesentiment. The global freight transport is expected to grow at a CAGR of 13.35% by 2020and this can be attributed to increased demand and supply factors associated withindustries like manufacturing FMCG E-commerce and Retail. As per global container marketoutlook the demand is expected to grow by 4.5% to 5% in the calendar year 2018 whilesupply on the other hand is expected to expand by 5.5% due to reduction in scrapping.During 2017-18 India handled 679.36 MT of traffic across its 12 major ports registeringa growth of 4.93% from previous year. Along with the capacity the utilisation rate ofmajor ports has also increased.

The implementation of GST has eased the movement of cargo across India leading to costefficiencies.

Shreyas Shipping continues to be the leader and largest player in the domesticcontainer shipping business in India. We closed this year with 13 operating vessels with atotal capacity of 23143 TEUs. Last year was the first time in the history of the companywhere we bought 4 vessels in a single financial year. During the year we acquired 2container vessels namely SSL Brahmaputra & SSL Ganga and 2 multipurpose vesselsnamely SSL Sabarimalai and SSL Balaji. We timed these acquisitions perfectly and boughtthem at much cheaper rates as compared to the current prices of similar capacity vessels.The container vessels are now deployed successfully on the Indian coastline and arerunning at optimum utilisation levels. This year we also started with the coastal movementof break bulk cargo where the two multipurpose vessels acquired in this year are beingused for.

Year under review

We closed the last financial year with a remarkable financial performance. Our top-lineimproved by 46% from the previous financial year with Total Revenues reported at INR 541crore as against INR 370 crore in FY17. The EBITDA margins improved to 20.63% and PATmargins improved to 14.95%. This performance was mainly driven by increase in the tonnagecapacity coupled with increase in volumes handled and optimum utilisations. Ourdisciplined approach to working capital management allowed us to once again generatesignificant free cash flows.

This year we announced a digital transformation project called "Innovation inMotion". Here we are looking to leverage technology-enabled solutions and customerconnected e-platforms to provide real-time informationswift business process and adigital customer interface unlike any other. Additionally the company will beincorporating new emerging technologies like blockchain adaptive intelligence and loTThese investments in technologies will keep us ahead of the competition and we will bearthe fruits of these investments in years to come.

Our unique business model geographical footprint dedicated team and our dominatingposition in this oligopolistic market has positioned us very well for future growthprospects. Our commitment to excellence in corporate governance and transparentcommunications with all stakeholders are critical to the long term sustainable growth ofthe company and our commitment towards the same has been unwavering.

We look forward for the company's continued growth on coastal container trade as wellas in the break bulk segment. To achieve the required growth we will be continuouslylooking at better opportunities to enhance growth in tonnage and increase our presenceacross newer ports. We are where we are due to the strategic vision and dedication of ourteam. I would like to take this opportunity to thank them and also all our stakeholdersfor a fantastic performance and I'm confident we will continue this momentum in years tocome.

Best Wishes

S. Ramakrishnan

Executive Chairman