Any current/future capex/capital investment/strategic investment?

Seamec Limited is actively looking to acquire suitable assets, including vessels, especially in overseas markets such as the UK and Middle East. The acquisition process is ongoing but it is too early to specify whether the purchase will be under the subsidiary or the parent company. The company continues to explore good opportunities for both buying and selling vessels. Decisions on new capex or acquisitions will be announced to exchanges once finalized. There is no specific timeline given for these acquisitions or capital investments yet. The company’s strategy includes expanding fl

Any current/future new fundraising through debt or equity?

There is no explicit mention of any current or planned fundraising through debt or equity in the provided transcript. The company is in a strong financial position with a net cash surplus of INR178 crores after adjusting borrowings. The management continues to explore acquisition opportunities for vessels but has not detailed any specific funding plans. Any material decisions related to acquisitions or restructuring (such as liquidation of parts of the UK subsidiary) will be communicated via stock exchange filings. Overall, no direct guidance or update on new debt or equity fundraising was giv

Future growth expectations in earnings/operating earnings/profits/EPS?

Seamec reported a 12% year-on-year revenue increase in Q2 FY25, with EBITDA growing 26% YoY, indicating positive growth momentum. The company is confident of improving operating performance and profitability going forward, targeting a Return on Capital Employed (ROCE) of 18-20% by FY26, up from 14% reported in H1. They expect sustained demand in offshore services, especially subsea inspection, maintenance, and construction, backed by continued contracts with clients like ONGC. Management is actively pursuing contract renewals and new vessel acquisitions to strengthen their fleet and reduce qua

Future growth expectations in sales/revenue/volumes?

Seamec's revenue for Q2 FY25 increased by 12% YOY to INR 110 crores; standalone revenue rose by 32%. Growth driven by ongoing and new contracts with ONGC and other key clients like Aramco and AdNoc. Seamec is focused on expanding its fleet, including plans to acquire vessels overseas, enhancing global opportunities. The company is optimistic about the offshore service sector due to robust demand for subsea inspection, maintenance, and construction. Seasonality affects Q3 revenues due to monsoon-related off-hires; management aims to reduce volatility with more year-round contracts. EBITDA and p

Current/ Expected Orderbook/ Pending Orders?

Seamec Limited has ongoing contracts with ONGC, including underwater inspection and pipeline replacement projects, indicating a strong order book in offshore support services. The vessel Seamec Princess is engaged in the third season of the Pipeline Replacement Project 7 with ONGC. New contracts expected include renewal of Seamec-3, Seamec Princess, and Swordfish, with negotiations ongoing and announcements anticipated soon. The company is exploring opportunities to acquire new vessels, including potential overseas acquisitions, to expand its fleet and order book. Several contracts are undergo

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SEAMEC LtdQ3 FY24Transport Services

SEAMEC Ltd Q3 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,426P/E: 20.2Market Cap: ₹3.9K CrSector: Transport Services

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Seamec's revenue for Q2 FY25 increased by 12% YOY to INR 110 crores; standalone revenue rose by 32%.
→Growth driven by ongoing and new contracts with ONGC and other key clients like Aramco and AdNoc.
→Seamec is focused on expanding its fleet, including plans to acquire vessels overseas, enhancing global opportunities.
→The company is optimistic about the offshore service sector due to robust demand for subsea inspection, maintenance, and construction.
→Seasonality affects Q3 revenues due to monsoon-related off-hires; management aims to reduce volatility with more year-round contracts.
→EBITDA and profitability showed significant improvement, signaling operational efficiency.
→New contracts, contract renewals, and higher charter rates expected to boost revenues from Q3 FY25 onwards.
→East Coast and international markets (Middle East, UK) are under active exploration for opportunities.
→Overall, a positive growth outlook with sustainable financial improvement is anticipated through FY26.

Margin guidance

Category 3

→Seamec reported a 12% year-on-year revenue increase in Q2 FY25, with EBITDA growing 26% YoY, indicating positive growth momentum.
→The company is confident of improving operating performance and profitability going forward, targeting a Return on Capital Employed (ROCE) of 18-20% by FY26, up from 14% reported in H1.
→They expect sustained demand in offshore services, especially subsea inspection, maintenance, and construction, backed by continued contracts with clients like ONGC.
→Management is actively pursuing contract renewals and new vessel acquisitions to strengthen their fleet and reduce quarter-to-quarter volatility.
→Profit after tax improved significantly with consolidated PAT turning positive in Q2 FY25 compared to a loss last year.
→Earnings per share and profits are expected to improve in line with operational scaling, higher contract wins, and better utilization.
→Overall, the outlook for earnings and operating profits is optimistic, driven by strategic contract repricing and new project opportunities.

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Fundraise plans

→There is no explicit mention of any current or planned fundraising through debt or equity in the provided transcript.
→The company is in a strong financial position with a net cash surplus of INR178 crores after adjusting borrowings.
→The management continues to explore acquisition opportunities for vessels but has not detailed any specific funding plans.
→Any material decisions related to acquisitions or restructuring (such as liquidation of parts of the UK subsidiary) will be communicated via stock exchange filings.
→Overall, no direct guidance or update on new debt or equity fundraising was given during the call.

Order book

→Seamec Limited has ongoing contracts with ONGC, including underwater inspection and pipeline replacement projects, indicating a strong order book in offshore support services.
→The vessel Seamec Princess is engaged in the third season of the Pipeline Replacement Project 7 with ONGC.
→New contracts expected include renewal of Seamec-3, Seamec Princess, and Swordfish, with negotiations ongoing and announcements anticipated soon.
→The company is exploring opportunities to acquire new vessels, including potential overseas acquisitions, to expand its fleet and order book.
→Several contracts are undergoing or expected to undergo repricing in FY25, with positive prospects due to market rate increases.
→Expansion plans include growing the diving support services fleet and entering new geographical markets such as the Middle East and UK.
→The company continues to monitor and bid for tenders, indicating a pipeline of potential new orders in the near future.

Capex plans

Yes

→Seamec Limited is actively looking to acquire suitable assets, including vessels, especially in overseas markets such as the UK and Middle East.
→The acquisition process is ongoing but it is too early to specify whether the purchase will be under the subsidiary or the parent company.
→The company continues to explore good opportunities for both buying and selling vessels.
→Decisions on new capex or acquisitions will be announced to exchanges once finalized.
→There is no specific timeline given for these acquisitions or capital investments yet.
→The company’s strategy includes expanding fleet capabilities which will help reduce volatility in quarterly performance.
→No mention of divestment or liquidation beyond the ongoing process for the UK subsidiary to recover funds and maintain a smaller office.

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