Shreyas Shipping confident will achieve 100% topline growth

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Shreyas Shipping confident will achieve 100% topline growth

The shipping space is witnessing quite a downturn right now and don’t seem to be improving. But Shreyas Shipping & Logistics Limited says there have been improvements in the general shipping segment.

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The shipping space is witnessing quite a downturn right now and don't seem to be improving. But Shreyas Shipping & Logistics Limited says there have been improvements in the general shipping segment.

The CFO Vinay Kshirsagar indicated that they are expecting to grow by about 100% in FY12. They are also expanding their businesses in various segments.

Below is a verbatim transcript of his interview. For complete details watch the accompanying video.

Q: What is your outlook going forward on your business? Do you expect any kind of improvement in the near-term? Would you expect things to be stable for some time before the upturn begins?

A: With regards to general shipping, improvements have been seen in the tanker as well as bulk market. We have refocused and confined our operation to the Indian coast. We see a huge potential for coastal shipping since India is blessed with 7,500 km of coast. So we see a lot of potential ahead in this area.

Q: For you, how much comes from shipping and how much from logistics?

A: We own four ships and we have in-chartered two vessels from the market from Gati and Seaways. Today, we operate six ships on the east and west coast. So the ship which I put on charter is a shipping income but my ships which I operate on the east as well as the west coast of India carries local domestic cargo, regional cargo and exim cargo. Today, my 100% income can be categorized as logistic income.

Q: Your year-on-year (YoY) growth last quarter was about 10% in terms of the topline. How would you expect YoY growth to pan out for the entire FY12?

A: I see a huge potential for topline growth in FY12. We have ventured into various verticals such as transportation, warehousing, airfreight, sea as well as air, freight forwarding and we wanted to go into liquid as well as project cargo logistics. Out of these two verticals, rail and transportation we have stabilised and have a few contracts. All put together we see a substantial growth in the coming two quarters.

Q: The concern stems from the fact that you reported a loss. Does it become black in the second quarter itself? What is the prospect for the full year for the bottomline?

A: I will come to that. As far as the topline growth is concerned for the FY11-12, I expect 100% growth in topline can be achieved. As far as the second quarter is concerned, normally for a shipping and logistic company, the first two quarters are particularly not very good because of the monsoon.

The second quarter's performance would be adversely affected because of the strike in Cochin and Tuticorin ports as well as the holidays in the southern part of the country. The fact is that Q3 and Q4 would be definitely better. This is what the general trend is. Even now, I am quite confident we will achieve 100% topline growth.

Q: What kind of expansions do you have in FY13?

A: We handle the integrated total logistics movement through land, sea and air through containers as we wanted to venture into bulk as well as liquid and project cargo logistics. We are evaluating to acquire even bulk carriers because today the six vessels which we operate are container vessels.

We would like to venture into the bulk segment. We see India's bulk movement having tremendous potential considering that a lot of power plants are coming on the coast. We wanted to consolidate this entire operation and to become a total integrated multi-model logistics solution provider.