Transport Corporation of India has acquired a new secondhand ship of 26000 tonnes, which will be deployed on the West Coast of India. This will help increase the company's overall capacity by 70%.
Throwing more light on the above development Vineet Agarwal, MD of the company said it is a container ship which will be deployed on the West Coast from Mundra to Cochin, since there is good traction seen for that section.
Despite this capacity addition, the revenues of Seaways to the total revenues will not exceed 15 percent, he said. The seaways division will see revenues of Rs 240-260 crore this year and will be around Rs 325 crore by next year.
The revenues will not go up hugely on account of the new ship because the full year implementation does not come right away. Moreover, some other ships also go out for dry-docks and repairs.
Therefore, the net impact on revenues is not in terms of capacity addition but more in terms of overall utilisation of all the capacity, he said. The EBITDA margins for the full year would be around 9.5-10 percent. The overall topline growth for FY18 would be in excess of 15 percent and bottomline would be between 15-20 percent, said Agarwal.
Overall, for the economy, there seems to be a pickup in demand post GST, consumption growth is robust. The upcoming e-Way Bill could slowdown things a bit for the industry as a whole but would not impact their company because of strong corporate governance, said Agarwal.
The consolidated debt post the acquisition of the ship would be around Rs 450 crore in FY18, which includes working capital, he said. The average borrowing cost for the company is under 8 percent.
The company hasn’t seen any benefits flow in through infrastructure status given to the logistic sector, said Agarwal.