Lancer Containers

Q2 Concall Notes

• Added 610 TEU in last september. 15181 total available as of 30th Sep. The old target of 24K TEU hasn’t slipped, there is a delivery time of 3 – 4 months. We will reach this number by end of this financial year.

• Exploring new geographies. Started operations in Latam. Didn’t start operation in middle east due to Israel & Hamas war. Won’t have direct operations in Africa, only through agencies.

• Vessel operation will start by around January as part of fully owned subsidiary Lancia. Vessel operation will greatly boost the revenues and have higher margins. Starting with 1 vessel, plan is to add a couple more as funds accrue.

• Acquired 60% of Transco. They have a good freight forwarding network and experience with operating vessel. They don’t have vessel or TEU, just people. They will join our office by end of this year.

• Regarding FCCB – In total 250CR were raised. 50% converted and expecting remaining to be converted by march 24.

  • There is also accumulated interest @ 4% because of accounting standards even though the bonds carry 0% yield. Upon 100% conversion the accumulated interested will be added back.
  • Funded vessel and TEUs through FCCB funds.

• Revenue target of 1000cr by FY24 has slipped by a month due to a couple of reasons. Mainly delay in acquiring the vessel and sharp decline in freight rates. Expected to reach by Q1 FY 25.

  • Growth guidance of 35% was given. Confident of good growth given TEU addition, vessel operation, headcount growth, new offices.

disc: invested