Just updating my observations after Q424 in continuation to my earlier post
- Revenue fell from 115 to 81 crores on a QoQ basis. I was expecting lower revenues in the current quarter following the reduction in international time charter rates. Another thing to consider is the fact that OPM margins went down 53 % to 32 % on a QoQ basis. This could be due to effect of the fixed nature of vessel operation and employee expenses. So the margins may further deteriorate if sales get reduced.
- The company has other income of 10 crores resulting from the sale of a few ships in the last quarter. The results may have been worse without other income.
- Debt has increased from 235 to 498 crores on a YoY basis. As indicated in the last post, the company will require cash flow from operations along with debt to modernize the fleet. The company has a cash equivalent of 27 crores as of March23.
It seems like the company may have to raise further debt if they need to buy any more ships.
Source: Earnings release
On a positive note, the company may not have to incur any dry-docking expenses soon.
At last, even though the debt has increased significantly. Interest expenses have not increased much. So we may see the effect of higher interest as well from next quarter.
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