Any current/future new fundraising through debt or equity?

There is an ongoing process of awaiting a better market opportunity for fundraising. Regulatory approvals and Board approvals for the fundraising are already in place. The company is waiting for the right time to proceed with the fundraising. Specific details on whether the fundraising will be through debt or equity were not disclosed. This information was shared by Capt. V.K. Singh in response to a query about the IPO of Avana and other fundraising activities.

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

Shreyas Shipping plans to acquire two larger tonnage vessels of 4,250 TEUs each during FY20, adding a total of 8,500 TEUs capacity to operations. Excess smaller vessels (1,700 to 2,500 TEUs capacity) will be chartered out to achieve economies of scale. No specific CAPEX on IMO compliance related to low sulfur fuel; however, operational expenses (OPEX) are expected to increase due to fuel cost rise (~$60 to $70 per ton) with adjustments passed on to customers. No clarity yet on exact cost related to IMO compliance; waiting on government/fuel company declarations. No immediate indication

Future growth expectations in sales/revenue/volumes?

The company expects volume growth of about 10-12% for FY20 compared to FY19, including both domestic and EXIM volumes. (Page 11) Growth will be supported by introducing new sectors and increasing capacity, including acquiring two larger vessels (4250 TEUs each) to add 8500 TEUs capacity. (Page 9) Excess smaller vessels will be chartered out to achieve economies of scale. (Page 9) Volume growth is anticipated due to expansion into new sectors like connectivity between the east coast of India and Bangladesh. (Page 6) Domestic volume growth for FY19 was nearly 11%, outperforming overall volume gr

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

Expect volume growth of 10-12% in FY20 compared to FY19, driven by domestic and EXIM trade expansions and new sectors (Page 11). Avana joint venture aims to recover profitability in FY20, targeting contribution around Rs. 14 crores or slightly less (Page 12). Plan to acquire two larger vessels (4250 TEUs each) adding 8500 TEUs capacity in FY20; smaller vessels to be chartered out for economies of scale (Page 9). EBITDA margin target around 15%, with emphasis on improving margin through scale and better utilization (Pages 11, 15). Market expected to stabilize with potential for freight rate inc

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Transworld Shipping Lines LtdQ1 FY19Transport Services

Transworld Shipping Lines Ltd Q1 FY19 Earnings Call Analysis

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

Price: ₹164Market Cap: ₹362 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

→The company expects volume growth of about 10-12% for FY20 compared to FY19, including both domestic and EXIM volumes. (Page 11)
→Growth will be supported by introducing new sectors and increasing capacity, including acquiring two larger vessels (4250 TEUs each) to add 8500 TEUs capacity. (Page 9)
→Excess smaller vessels will be chartered out to achieve economies of scale. (Page 9)
→Volume growth is anticipated due to expansion into new sectors like connectivity between the east coast of India and Bangladesh. (Page 6)
→Domestic volume growth for FY19 was nearly 11%, outperforming overall volume growth of about 7%. (Page 8)
→The company expects revival and growth in volume following the easing of market volatility and improvement in trade sectors such as tiles and food grains. (Pages 12, 6)

Margin guidance

Category 3

→Expect volume growth of 10-12% in FY20 compared to FY19, driven by domestic and EXIM trade expansions and new sectors (Page 11).
→Avana joint venture aims to recover profitability in FY20, targeting contribution around Rs. 14 crores or slightly less (Page 12).
→Plan to acquire two larger vessels (4250 TEUs each) adding 8500 TEUs capacity in FY20; smaller vessels to be chartered out for economies of scale (Page 9).
→EBITDA margin target around 15%, with emphasis on improving margin through scale and better utilization (Pages 11, 15).
→Market expected to stabilize with potential for freight rate increases when utilization improves (Page 10).
→Focus on growing coastal services, including connectivity between east coast India and Bangladesh, expected to drive volume and earnings growth (Pages 6, 12).
→No major CAPEX expected related to IMO fuel compliance; OPEX may increase due to fuel costs but largely passed on to customers (Page 14).

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Fundraise plans

→There is an ongoing process of awaiting a better market opportunity for fundraising.
→Regulatory approvals and Board approvals for the fundraising are already in place.
→The company is waiting for the right time to proceed with the fundraising.
→Specific details on whether the fundraising will be through debt or equity were not disclosed.
→This information was shared by Capt. V.K. Singh in response to a query about the IPO of Avana and other fundraising activities.

Order book

The transcript does not explicitly mention the current or expected orderbook or pending orders for Shreyas Shipping and Logistics Limited as of May 31, 2019. However, relevant insights related to fleet expansion plans and vessel acquisitions are as follows: - The company expects to acquire two larger tonnage vessels of 4,250 TEUs each in FY20, adding 8,500 TEUs capacity. - Post acquisition, excess smaller vessels (1,700 to 2,500 TEUs capacity) will be chartered out to achieve economy of scale. - Existing fleet comprises 13 vessels with 24,519 TEUs capacity; three vessels totaling about 4,300 TEUs are currently chartered out. - No specific details on pending orderbook/contracts beyond vessel acquisition plans are provided.

Capex plans

Yes

→Shreyas Shipping plans to acquire two larger tonnage vessels of 4,250 TEUs each during FY20, adding a total of 8,500 TEUs capacity to operations.
→Excess smaller vessels (1,700 to 2,500 TEUs capacity) will be chartered out to achieve economies of scale.
→No specific CAPEX on IMO compliance related to low sulfur fuel; however, operational expenses (OPEX) are expected to increase due to fuel cost rise (~$60 to $70 per ton) with adjustments passed on to customers.
→No clarity yet on exact cost related to IMO compliance; waiting on government/fuel company declarations.
→No immediate indication of capacity addition by competitors or partners like CONCOR; Shreyas is focusing on rationalizing tonnage with suitable vessels and chartering out excess.
→Plans to expand operations toward connectivity between east coast India and Bangladesh, including adding new sectors to drive volume growth.

How does Transworld Shipping Lines Ltd rank vs peers in Transport Services?

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