Shreyas Ship

Shreyas Shipping breached the 5% upper circuit yesterday within moments of opening for trade. The market was celebrating the company’s Boards decision to acquire 4 container vessels ranging from 1700 teus to 2500 teus over a period of 18-24 months.  This move is construed by the market as a positive development, an indication that business is good and thus the need to expand its fleet. This company, on its website says that it is India's first container feeder owning and operating company. It commenced its operations in 1994 to fill the gap for feedering of containers between Indian ports and international transhipment ports such as Dubai, Jebel Ali, Colombo and Singapore. It’s fleet currently comprises of six vessels.

In terms of its financial performance for Q3FY15, it was fuel costs and overall fall in operating costs with rise in topline which helped the company end the quarter with a consolidated net profit of Rs.22 crore v/s net loss of Rs.4 crore in Q3FY14. Its operating cost was down 8% (YoY) . Its biggest outgo is fuel cost (29% of total cost) and that, thanks to the fall in crude price, was down 24% while depreciation was down 55%. The interest outgo also came down 17%. There was an exceptional income of Rs.77 lakh on account of adjustment to loss on sale of vessels for giving financial effect to auditor’s qualification. In terms of geographical distribution of total income, 83% income comes from India, less than 1% from Pakistan and 15% from Rest of World.