Shipping Corporation Of India Limited (SCI) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Shipping Corporation of India Q4 FY26 Results Conference Call, hosted by Antique Stock Broking Limited. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance, please signal for an operator by pressing star and then zero on your touch-tone telephones. Please note that this conference call is being recorded. I now hand the conference over to Mr. Vartarajan Sivasankaran from Antiques of Broking Ltd. Thank you and over to you, sir.

Thank you, Farah. Very good evening to everyone. It's my pleasure to welcome all the participants on the call and the top management of SAI. We have with us the Senior Management Team of SAI, represented by Captain B.K. Tiagi, Chairman Managing Director, Mr. Vikram Dingle, with the technical and offshore services. Holding additional charge of Director, sorry, and Rear Admiral Jasmin Dr. Singh, Director, Liner and Passenger Services, Captain Sommaraj, Director, Personal and Administration, Mr. Nitin Kamsara, Director, Finance, and Captain Daniel Chandran, General Manager, INC, Bulk Carriers and Packers. I'd like to hand over the floor to Captain B.K. Tiagi for initial remarks. The floor is yours, sir.

Thank you, Bharat Rajan. A very warm welcome to all our investors, analysts, and stakeholders who have joined us today for the Shipping Corporation of India's Earning Call to discuss our financial performance for FY2526. Let me begin by thanking you for your continued trust and partnership as we navigate a dynamic global shipping environment and continue to strengthen a CIC leadership in India's maritime sector. I am pleased to share that we have delivered a momentous performance this year, despite global market volatility and mixed rate trends across segments. Our standalone net profit stood at Rs. 1326 crore, while the consolidated net profit was Rs. 1353 crore. Last financial year, we had posted standalone profit of Rs. 814 crores and consolidated profit of Rs. 844 crores. The operating revenue came in at Rs. 5,778 crores vis-a-vis Rs. 5,592 crores in last FY. EBITDA for the financial year 26 is Rs. 2,633 crores. We continue to maintain a strong balance sheet with a net worth of Rs. 8,489 crore, gas and liquid investment of Rs. 2,676 crore, and long-term debt of Rs. 2,409 crore. This translates to a debt-equity ratio of 0.29 and a DHCR of 4.61, demonstrating our sound financial position and liquidity. The board has also declared total dividend of 75%, that is Rs. 7.5 per share, reflecting our commitment to delivering consistent value to our shareholders. Coming to operations, our own fleet now stands at 58 vessels, and we manage an additional 40 vessels across various categories for government organization with an average age of 15.5 years. This financial year, we were proud to induct two very large gas carriers, Shehadri and Shevalik, built by HHI, each has a capacity of around 82,000 cubic meters, and their induction significantly strengthens our position energy transport segment. We have also entered into a contract with MDL for building a 3000-derweight methanol dual-fuel diesel-electric PSV. This is a pilot project under a National Green Hydrogen Mission of Government of India. We are proud to mention that HCI was the first Indian ship owner to clear its guest carrier from the state of Hormuz to serve the LPG requirement of the nation. Ladies and gentlemen, you must have heard the name of the LPG, Sivalik and Nanda Devi on the TV for good reasons. Let me briefly touch upon our key business segments now. Tanker segments, crude tanker market. The tanker market during FY25-26 quarter 4 has seen very high volatility due to the conflict in the Middle East Gulf. After the low of end, December 25 tanker market rapidly picked up in January 26 and February 26 and VLCC earnings on key routes such as TD2 and TD3 were in the range of $80,000 to $150,000 per day. After the beginning of the conflict, the rates rose to very high levels, while there were hardly any westward transit through the state of Hormuz. A few fixtures at substantially high freight levels from Red Sea ports were reported. Presently, the state of Hormuz's transits are disrupted for more than two months now. Since the beginning of the war in MEG, global seabore crude oil shipments have fallen drastically compared to prior last year. While the tanker market is elevated, it is seen that many owners are competing for the available cargo from Gulf of Homan or the Red Sea ports. Last Friday, TD3 was at 460. That itself speaks a very, very different level. The Aframex market benefited from the broader bullish sentiments in two tankers, but the rally was not uniform across all trading areas and were reasonably concentrated. In January 26, Aframex earnings were relatively modest. February 26th saw a gradual strengthening in Aframex rates, with earnings increasing to approximately $47,000 to $56,000 per day for TD-14 and TD-8, respectively. In March 26th, the Aframex segment displayed divergent performance across routes. TD-3 experienced a sharp spike. with time charter earnings rising to around $138,000 per day. However, other rules such as CD14 remain relatively stable with earning around $42,000 per day. Clean petroleum products, the disruption to supply chains due to the closure of the state of Armos, an ongoing attack on refineries in the region have created a shortage of refined products. LR2 and LR1 segments also demonstrated study improvement through quarter with a more balanced growth profile. In terms of bulk areas, the dry bulk market showed a notable recovery, led by former freight indices. Last Friday, BDA was at nearly 3,011, and this shows a stable demand for coal and gain exports. Earnings in Panamax and Supramax category rose nearly 30 to 35 percent quarter on quarter. Liner and coastal shipping, our coastal liner business remains a key growth driver with freight rates up by 10% year-on-year and utilization levels as high as 99%, reflecting strong domestic demand and high operational reliability. While the global extreme container trade continues to face pricing pressure, we maintain 95% utilization and uninterrupted services by proactively rerouting vessels via the Cape of Good Hope to ensure reliability amid Red Sea disruptions. Offshore and technical services. The offshore segment continues to gain momentum with ONGC, Oil India, and private operators expanding exploration and production activity. SEI's DP2 class itself remains well positioned to gain benefit from this rising demand. In terms of strategic developments, ladies and gentlemen, a key strategic decision of the company involves the signing of MOU. This happened on 19th September, 2025. This MOU was signed with Oil, PSUs, and Tragarmala Financial Corporation Ltd. Further, one more MOU was signed on 3rd February, 2026. This was to form Bharat Container Shipping Line, and MOU was signed with Concor and other major ports. Overall objective of Bharat container shipping line is to have the Indian container fleet, currently Indian container fleet is as good as negligible. These proposed initiatives support the vision of Aatmeerabad Bharat, strengthen India's shipping capacity, and reinforces a role as a critical partner in enhancing national energy security and self-sufficiency for transportation of Indian cargoes, wide Indian containers. I now hand over to Sri Nitin Kamshera, Director Finance of SCI, to provide a brief overview of the financial performance of the company during 2025 and 2026. Thank you, ladies and gentlemen. Over to you, Nitin.

Thank you, CMD, sir. Good evening, everyone, and warm welcome for today's SCI's earning council for financial year 2526. It gives me immense pride to speak on the performance of the pillar of India's maritime infrastructure, that is Shipping Corporation of India Limited. As the largest Indian shipping company with a Navratna accelerator, FCI is more than just a commercial venture. It is a national carrier and has... Consistently maintain India's supply line through challenging times. Today, I am pleased to share that SCI is sailing on a path of exceptional performance, setting new records in financial and operational excellence. I'm pleased to share that FY2526 has been an exceptional year for STI, with the company delivered its highest ever consolidated EBIT of 1423 growths, representing a growth of nearly about 67% over the previous year. Consolidated total income increased by Rs. 426 growths during the year, reflecting a growth of nearly 7% year-on-year basis. The strong performance was driven primarily by the robust earning in the tanker segment, supported by the favorable global shipping dynamics and disciplined operational execution. During the FY2526, revenue from the tanker segment increased to Rs.3940 from 3609 in the previous year. Segmental profitability witnessed a substantial improvement, increased from Rs.680 crores in F525 to 1190 crores in F526, representing a growth of nearly 75%. The strong tanker performance was supported by a highly favorable trade market environment during the year. Another important development during the year was the induction of two VLGC carriers, that is Shadri and Shivalik. This vessel have been deployed on the Parisian Gulf-India route and have further strengthened FCI presence in the gas transport segment, while diversifying the earning portfolio of the tanker business. The bulk carrier segment recorded an improvement in revenue, which increased to Rs.789 crores in FY26 from Rs.711 crores in FY25. Reflecting a growth of around 11%, the segment also reported a reduction in losses during the year. The improvement in revenue was mainly driven by the higher number of void charter and improved deployment. In the line of segment, revenue from operations stood at 784 crores in FY26 as against 1036 crores in FY25. While segment profit declines Rs.75 crores from Rs.166 crores in the previous year, the decline in both revenue and profitability was primarily on account of moderation in the freight rate and lower cargo volume during the year. From the financial perspective, SCI continues to maintain a strong and healthy balance sheet. Operating cash flow during the year has grown by 58%, enabling the company to further strengthen its liquidity position. While continuing to pursue its growth and fleet expansion plan, our capital allocation policy and strategy remains focused on the three key priorities, that is reinvestment in the business, maintaining a financial strength, and delivering value to the stakeholders. During the year, the company added two VLGCs to its fleets and recently also played an order of a dual pair. In addition, FCI currently has some vessel acquisition tender to market, which we intend to conclude expeditiously as a part of a long-term pre-renewal and expansion strategy. In line with the improved financial performance, the board has recommended a dividend of Rs. 7.5 per share for FY2526. The company also delivered a healthy return of equity of more than 16% during the year. I would also like to highlight that SCI continues to maintain a very comfortable debt equity position, which provides us with significant financial flexibility and sufficient headroom to support our future expansion and capital expenditure plans. Overall, financial year 2526 has been a landmark year for SCI, reflecting the strength of our diversified business model, student financial management, and dedication of our employees and stakeholders. To conclude, I would like to reassure that the Shipping Corporation of India is not just riding the wave of the current market. It is shaping them with a strong commitment to safety, a robust financial strategy, and a proactive growth as CI is and will continue to be the flagship Indian maritime prosperity. Thank you once again for joining us today. We would now open the floor for the Q&A. Thank you.

Thank you very much. Thank you, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephones. If you wish to remove yourself from the question queue, you may enter star and two. Participants are requested to please use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Digantharai from Green Edge Wealth. Please go ahead.

Yeah, I thank you for the opportunity and congratulations for the performance. And also, you know, in the presentation, you put a lot of details. So thank you for that. I have two questions. First question is, you know, on our tanker segment that, you know, we have around 31 vessels. And, you know, in your presentation and in your speech, you wrote that, you know, the rates have gone up quite significantly in March. But, you know, when we look at your revenue and your profit before tax in the tanker segment, you know, on a QOQ basis, there has been very little growth, so to say. So, just wanted to know if all of these 31 tankers that we have, you know, do they operate on spot rates or, you know, are the rates predetermined? Do we get any benefit when the rates go up or down, you know, or we lose something? So, if you can just explain that part, that would be great.

Okay, thank you very much for your question. See, at CIE, we have got a majority fleet is the tanker vessels. And some of these vessels are on time charter with the Indian industry. In the month of March after the war, some of the vessels got stuck inside the Persian Gulf. They could not transit the state of Hormuz. The difference, what we could have got, if this was, straight of foremost, was operational, then this number would have been much, much better than this. And what we have explained is the overall scenario for the year 25-26. Towards quarter 4, the numbers have gone up and the market was firm. And after break of war, definitely those numbers, March was as good as ideal for the most of the shipping which were operating in the state of Hormuz. So, this number what we have given you is basically Q4 cents. The numbers have gone up for the tanker fleet and whatever the results you see, the major contribution is for the tanker segment.

Right, right. So, now, now, are there any ships stuck or, you know, we are on track, like all our 31 tankers, they operate now regularly?

See, I'll give you update. Three tankers of SCI, two LPG, one crewed carrier is already out of state of almost. As we speak now, three crude carriers are still inside, and one LNG, which is a part of ILT company, has a joint venture. So, total four vessels of SCI are still inside. Government of India is trying coordinating with various agencies, and efforts are on to get these four vessels also out of the state of arms.

All right, all right, sir. So, thank you for that. The second question is on our joint venture, you know, with the oil marketing companies. Sir, there, you know, we have ordered, you know, quite a few number of ships. So, with this entire disturbance in the market, you know, have we finalized the rates at which those ships will be procured or, you know, will those rates also go up because generally when the market is so tight, the rate to purchase those, you know, the Zafra Max and, you know, the orders that we have given, they may also vary. So, just wanted, you know, your views on that, that, you know, have we been able to increase our rates of buying those.

See, so far only one vessel, that is a platform supply vessel, that we have finalized, order is placed with the MDL. Remaining, they are in the tender stage at various stages. So far, we have not finalized any tender. And your observations are absolutely right. Today, tanker market is basically very, very abnormal. And so the price of assets would be also in the same range. So, we will take definitely note of this all things when we finalize the numbers and when we give the contract to the NECPR.

Right. So, we will not rush because I think we have tenders for four Afra Max and, you know, some six container vessels and, you know, four MR tankers. Right. So, we may wait, right, if the prices become too rational because if we buy at this peak of the cycle, you know, then maybe our future revenues can, you know, actually suffer. So, that was my, you know, point of asking.

Very well noted, and definitely board, when we take the decision, will definitely take this point into account.

Right, right. Sir, and last question would mean, April, you know, we are like 40 days into this quarter also, so are the rates still as firm and, like, you know, our ships are earning all the profits out of, you know, whatever rates are there?

See, you can monitor the market, how the tanker indices are behaving. That is the only indication which I have given in my speech also. But the rest, performance of the SCI in terms of the April and all, at this stage, it will be inappropriate to comment.

Thank you. Thank you very much and all the best, sir. Thank you. Thank you.

Thank you. The next question is from the line of Chetan Gindoria from Mahindra Manual Life Mutual Fund. Please go ahead.

Yes, hi, sir. Sir, thank you for the opportunity. I wanted to understand regarding the GED with the OMSI company, has there been any more details if you can share now that we have finalized with some bit of ordering and some counseling courses also being started, as you said. So how the financial model will sort of work on what proportion of the vectors will be at spot or fixed rate and what sort of ROE or IRRs we can generate from this or any revenue EBITDA or any sort of financial metrics that we can share regarding over three to five years, what we can generate from this.

See, this oil and gas proposed JV with OMCs. This space is under constitution of our ministry. Parallelly, we have floated some tender which are mint for SCI tonnage and maybe some of this vessel will be for the proposed JVC also. So at this stage, that is update. As far as this, what will be the IRR, what will be the revenue and all, this we will see once we have those tenders going further, and once we have the approval in place, and how the financial quotes will be received during those centering. Then we will have better information and at appropriate time, we will definitely share with all the stakeholders through the stock exchange.

Thank you, sir. And just lastly, this Q4, as you said, because some of our vessels got stuck in the shade of August, we couldn't realize the full potential at the current rate. So fair to say that over the next coming one to two quarters, the numbers could improve substantially for us as, you know, the rates continue to stay elevated and there is free movement of our vessels.

See, the vessels which are stuck inside the state of Hormuz, SCI vessels and any other ship owners, they are basically at this state, whatever the market, they are not able to tap those market, but the vessels which are outside the state of Hormuz, whatever few fixtures are there, few cargos are there, definitely they will have a lot of, basically, potential in terms of the freight. But let's see, this is a very dynamic, very volatile situation. And we will have clarity because every day some negotiations are happening between Iran, between USA and other parties also. So we have to wait and watch and then see how this situation, how fast this war settles. And then we can evaluate overall how good and bad the impact will be there. But the current leads of our tanker market is definitely very, very high. But the cargos are very few.

Thank you.

The next question is from the line of Hitesh Doshi from Nirzar Securities. Please go ahead. There appears to be no response from the participant. We'll take the next question from the line of Chetan Falke from Pirtan Capital. Please go ahead.

Yeah. Thank you for the opportunity, sir. Sir, in last con call, you mentioned that we would prefer to go ahead with vessel acquisitions and have an IRR of 10 to 11 percent, at least. Otherwise, we would not go ahead. And also, there is some transparent formula which will be worked out, wherein it will be linked to certain underlying global indexes, and there will be some plus or minus formula. So if you can just, you know, help us understand around these two pointers, I mean, how will we navigate to the shipping cycle volatility by using these two things and still achieve our expected IRR? Or have things changed after the recent volatility that we are seeing?

See, this current war and this current uncertainty volatility is a temporary phase. This will not last long. We are very confident as a SEI. Further, any project, any vessels when we purchase second-hand assets or the newer assets. As a vessel, we evaluate as a project each and every vessel separately, independently. And if IRR is making commercial sense, then only our board approves this. That is our procedure. One. Second, when we will outcharter this vessel to maybe OMC or outside market, then if it is OMC, definitely it will be linked to some market indexes, so that there is basically at arms, length, earnings, and expenses for both the sides. And that will be quite fair for the prevailing market. So it will capture what is the prevailing market sentence, sentiments, and whatever the prevailing market rates, basically. So, these are the two points which you have asked. I hope I have clarified this.

Yes, sir. But any minimum IRR thresholds that we have in mind, considering the full cycle in mind, or let's say over the longer run?

As earlier also I mentioned, we look for at least a 10 to 12 percent range of IRR.

Okay, okay. And sir, if you can just help us understand that plus or minus formula that you are mentioning, is there any precedent? I mean, let's say in other countries like Japan and Korea, was the same formula followed? How is it being worked out? How it will be different in Indian context? I mean, if you can just give us some more color with that respect. I mean, so from what I understand, it will be linked to global index, plus there will be some plus minus formula, and plus over and above, the shipping corporation will have some management fees. Am I right?

See, as far as this global indexes, as you said, it's a global, it is not restricted to India. Entire world shipping uses indices. One, Second, these formulas, what we have in mind, these kind of formulas are being used by various international saponers, charters, even India also, when we have the COA with the OMCs, similar kind of formulas are used. They use the prevailing market condition and some plus minus factors. Some of the factors may be the bunker adjustment factor and maybe some floor, some ceiling also may be there just to rule out any abnormal variations in freight. So this is a normal practice in shipping and we have used as a CI and this is what we are thinking also to keep it transparent from the JV perspective also and from the charter perspective also.

Okay, okay, and just in case if the shipping cycle turns the other way, what downside protection does this kind of arrangement gives us, or is it, how is it embedded into this arrangement?

See, normally in this kind of formula, we have got the two ceilings, lower and the top also, so that just in case it goes beyond some certain level, then basic operating costs are covered, and top side also, it goes in a normal manner, then charter also is not penalized unnecessarily. So, Mr. Chetan, I was explaining this, we have got the limits upper also and the lower limits to take care of this kind of situation.

Okay, okay. Got it, sir. And, sir, with respect to this JV, oil, PSU, JV, what percentage of their overall demand will be routed through this JV?

See, you know this India. Today, we are basically nearly $80 billion is going out of country in terms of trade. So, this proposed concept, this model is an action in that direction to basically minimize that. This demand aggregation done by SCI, by our ministry, and by all companies, is just this initial phase in the direction, and currently this is to capture basically maybe 25 to 30 percent of that component.

Okay, but eventually it can go up as well.

Yeah, yeah, yeah. See, our overall idea is this whatever the money is going out of country directly and indirectly, that all should be basically, it should be retained within the country and the economy.

Okay, okay. Because we have done similar GV with I think SAIL or other PSU organizations as well. So can we expect the extension of this model into other areas of the economy as well or other imports that we are doing?

See, sale we have not done yet, but there will be definitely, this is just an experiment, and this model will work, we are very sure. We have got the support from the oil companies, SCI is there, and this is under direct control of the basically ministry. So, we will take similar model in other areas also. This is in the oil and gas. We will be in the dry bulk also. We will go ahead with this same formula.

Okay. And, sir, what's the status of the GV? At what stage of approval it is? When is it going to come online?

At this stage, this is under active consideration of our ministry.

Okay. Any expected timelines for it to get operationalized?

So, at this stage, timeline, we do not have the information. But once we have the information, once this is approved, definitely we will inform all the shareholders. We will disclose at the stock exchange. Okay.

Okay. Sure. Thank you very much, sir. Thank you.

Thank you. The next question is from the line of Ronak Singhvi from NAFA Asset Managers. Please go ahead.

Hello. Can you hear me? Hello, so I want to know the dry docking schedule for the next two financial years.

Dry docking schedule for next two financial years. Let's just take help of my pension director. How many tankers bulk areas are planned? Just be online please.

Yeah, yeah.

Otherwise, what we can do, we can share this information with you, and see the dry dock is done normally twice in five, and it's a requirement. What we'll do, we'll share this information with you after this call.

Okay, thank you.

Thank you.

Thank you. The next question is from the line of Isha Shah from Nirzar Enterprise. Please go ahead.

Hello, good afternoon. Am I audible?

Yes, good afternoon, loud and clear, please. Go ahead.

Hope you're doing well, sir, and congratulations on a good set of numbers. Sir, I have two questions, okay. First one, it is on the, as you mentioned in the notes for two accounts, you know, of the recent quarter, that our three vessels are still stuck in state of Hormuz. And there you have explained that the freight has been recognized on the basis of how much ever the percentage of voyage completion. So I'm trying to understand, is this accounting treatment, irrespective of the type of agreement we are into, like time charter, voyage charter, or spot, or is it only for the voyage contract that we have these? And also, like, how much revenue can be recognized from these vessels, or would we get any revenue?

See, number one, these vessels, three vessels which are mentioned, all three are on the voyage. Voyage, okay. Correct. And whatever this proportionate revenue we have recorded in our books, that is as per accounting system, and that is as per the charter party.

Okay. So going forward, we can expect more revenue to be recognized for this, right?

Yes. The remaining parts, once the voice gets over, rest will come in the next FY.

Okay, sir, sir, and recently, one of the questions about that you mentioned, that operate, like, you know, if the cycle goes down, then the operate, like, what the flooring would be in such a way that the operating cost gets covered. But what about the interest cost? Would that also get covered? Interest cost and depreciation?

To be part of that formula. But this formula is normally for the only EOA or at the most it can be in time charter also. If it is in exports for the voyage, then the prevailing market condition we have to basically use it.

So for time charter, will the interest and depreciation cost also be covered?

Would you like to comment on this?

Yeah, good evening. This is Nitin Kamisra, Director of Finance website. Hello, sir. Yeah, good evening. From the time charter perspective, whenever we are basically deploying any vessel on the time charter, it has... Spending charges built into it. It has the basically the interest and the other indirect operating expenses also built into it. Then return on the asset is also built into it to ensure that the time charter market is basically giving the adequate financial benefit to SCI. Now, to answer your question whether in the formula we can build any floor or cap, normally whenever it's a contractual tax, whenever in the future, let's say for the example of the JV, when we are trying to build it, definitely we would like to cover as much as of the cost, standing cost, indirect operating expense, and to the extent whatever will be financial cost, we can basically build into the floor. But it all depends on the commercial agreement with the counterparty. Okay.

So, sir, the standing cost, does it also include depreciation?

Yeah.

It includes depreciation, right? And also, so, in the JV, then can we expect like a 10-12 year of time charter?

As an SCI, we would love to have the maximum possible of the useful life of the asset covered through the time charter model, but that modalities will be finalized once we have the vessel acquisition process in place, we will fit with the counterparty for the commercial terms and conditions, then these terms can be worked out.

Okay, and any minimum RO fee or anything that you would have planned for the JV or at least would have thought of since we are going with the acquisition?

It's similar lines what CMD sir has also mentioned for the FDI acquisition plan. We would like to have basically IRR in range of around 10 to 12% broadly.

So IRR would be covering your depreciation interest and operating cost or ROC. Like, what's the definition of IRR here?

The IRR is basically the over the project life, what is the return is generated out of that particular project on a discounted basis. That is the definition of IRR.

Okay, it's not ROC, right?

No, it's not ROC.

Okay, okay. And so, one more question I had. Like, if the expiring contracts were to be renewed at prevailing market rates today, then what could be the estimated impact on earnings, EBITDA, profitability, vis-a-vis the current charter book?

It's a very hypothetical question. Means, once we'll enter into the agreement with any counterparty, then only we can basically assign any number to it.

Okay, but any delta that you can, like, you all would have thought of?

That's the market indexes. You can compare three months before market to the current market. The data will be available to you.

Okay, okay. Thank you so much, sir.

Thank you, thank you. It will be basically all prevailing market conditions.

Okay, okay. Thank you. The next question is from the line of Aditya Ladhar from Stallion Asset. Please go ahead.

Hello, sir. Am I audible?

Yes, go ahead.

Yes, so congratulations, firstly, on a great set of numbers. From what I understand broadly, the time for us is huge. As you mentioned, $80 billion of freight to overseas, you know, overseas shipping companies. And I guess the top three OMCs also spend close to 40,000 CR on their freight bill. And then with the Bharat Amrit Kal Marine Time mission last year, we really sort of put the trigger into the shipping sector of India. So, with this JV announced also 59 vessels. So right now, I wanted to know is, given the importance of this sector to our country right now, is the government having any other additional incentives for the procurement of ships that we would do in the JV or outside the JV? Maybe in terms of some tax, tax like BACS or GST taken off or any other way of incentive?

The government of India has taken various initiatives today as a country. There are two clear-cut priorities for the government of India. One is to have the ship construction now done in India. Especially the commercial big vessels should be built in India. That is the priority one. Parallelly, that Indian tonnage should increase. These are the two clear-cut priorities. Now to support the ecosystem for the ship building in India. Already various schemes have been announced, and these are the shipbuilding financial assistance, even at the time of scrapping of vessels, credit notes, policies announced. So this is working all in the circular economy. Government of India at every stage is trying to support the species of shipbuilders, so that they become competitive to build the vessels in India, and we can compete as a country with China or maybe South Korea. Now coming to the ship owner side also, there are some minor incentives are there, and with the help of this assistance going to the ship holder, then that benefit we expect this will be transferred to the ship owners also. So, these are the overall, basically, ecosystem what the government of India, especially our Ministry of Shipping, is working on, and these various schemes, policies are already announced, they are published, they are available for the industry today.

Got it. Understood. So, what would be the name of current ships?

Sorry, can you repeat your question, please?

What would be the NAV of the ships that we have in our portfolio?

Yeah, I'll answer your question. The NAV on a consolidated basis is roughly around 300.

Got it, got it. And so lastly on this Bharat shipping line, that also sounds like a very interesting JV that you're going ahead with. So just wanted a few more details on that. What sort of investment are we going to make over here? How many vessels would we procure? And, you know, what would be our share of, what would be our share in the JV overall?

See, this proposed JV for the container is Bharat container shipping line. In this, SCI will be one of the partners. Concor also will be one of the partners where Concor and SCI, we are expected to have around 30% shareholding. This number of vessels... At the initial phase, we have identified 51 vessels as a demand aggregation for this Bharat container shipping line.

So, any timeline for the 51 vessels?

These are, this is over basically next five years.

Next five years. Perfect.

Sorry, sorry. And in this, this is for up to 2047, 51 vessels.

Okay, April 2047. Got it. Understood.

I'm sorry to interrupt, sir, Mr. Ladh, could you just return to the question queue? We have many participants waiting.

Last question, ma'am.

Sir, it's a request. Please return to the question queue.

Okay.

Thank you. Participants, please limit your questions to one question per participant so that all the participants can address their questions. The next question is from the line of Div Agrawal from FitCom Family Office. Please go ahead.

Yeah, hi, sir. Thanks for taking my question. So, sir, I just had one question. So, given the current geopolitical scenario, can you give us a sense of how the mix has changed between the long term contract versus the spot contract? And also, can you give us a sense of the mix that we have right now for our 58 vessels between the long term contract and the spot contract?

See, today, especially in the tanker segment, spot rates are very, very high, multiple times what were prevailing pre-war. And we are sure after war, these numbers will definitely will come down to the whatever were prevailing pre-war. As a SCI, we have got this voyage and the time charter. We have nearly 60% of tanker fleet on voyage and nearly 40% on the time charter.

Right, so just to follow up on this, so the state increase that we are witnessing right now, the venue recognition would be in the coming quarter, is that right?

Yes, yes, this all impact should be visible, should be reflected in any onus P&L in the next quarter. Right, sir. Thanks a lot, sir.

Thank you. The next question is from the line of Rakesh Roy from Boring AMC. Please go ahead.

Hi, sir. My first question regarding the annual milestone, we are on 31st March, four sheep is stuck in hormones. How much revenue is impacted from this one, sir, in Q4?

Can you tell me? See, what will be the total impact?

These voyages remain unfinished voyages. So, overall, final tuning, as far as the revenue is concerned, will happen once the voyage gets over.

Okay.

Yeah, the voyage design is similar, in progress, unfinished.

Okay.

Any idea, any rough figure as per your estimate? How much revenue come to a Q1 and how much revenue we recognize in Q4?

No, no, it will be very difficult to give you number at this stage. We can watch and get this voyage completed, then we can, this will reflect in the Q1 definitely.

Okay. One more question, sir. A.D. plan to add old or new ship in SCI blocks in FY27, as you mentioned, because in FY27, old, second-hand or new ships?

Yes, yes, we have got a clear kit plan, and we would be, our plan is to order some new vessels as well as purchase some second-hand vessels.

Need for in FI27, to add in FI27.

Yes, yes, in current 26-27, we have got plans, and in fact, on 29th October, Honorable Prime Minister has announced our long-term business plan, which is up to 2047.

Okay. Right. One more question, sir.

I'm sorry, sir. Please return to the question.

Yeah, please. Yeah.

Thank you so much. The next question is from the line of Anushree from Alpine Vesco. Please go ahead. Anushree, ma'am, your line is unmuted. Please go ahead.

Hello, am I audible?

Yes, ma'am. Please go ahead.

Yeah. Hello, sir. Congratulations on a good set of numbers. So, I had a question. So, earlier during maritime India vision, we had indicated that we are going to purchase around 216 vessels approximately with investments of 1 lakh crore by 2047. So can you just clarify how this larger fleet expansion will be executed? Will it be through the JV route? Like you mentioned, there is also some planned vessels under the Bharat shipping line. So how much will be through the JV route and how much will be independently done by SPI? And also, does this 216 vessels also include the JV where 59 vessels demands that we have planned under the PSUs? And so, how much of these vessels do you think, are you planning will be second-hand vessels and how much of it will be new build vessels, these are my questions.

Yeah, see, the number of vessels you have already read in various publications, 59 vessels are scheduled under oil and gas at this stage as a part of demand aggregation. Nearly 51 ships are planned under Bharat container shipping line. And rest of the vessels, this will be basically under SCI or maybe then some further plans of this both the JVs or maybe some new JVs also. But this plan is up to 2047, long term plan. So this definitely will be reviewed periodically by the SCI board and by the board of this proposed JVs also.

And my last question was, what is the plan of the new build versus second-hand vessel? How many are going to be new build versus second-hand?

See, at this stage, if we order new vessel as a company, and our intention, clear-cut intention is that we order this vessel in India, so that Indian stability gets some orders, form order, and it grows. By the time we get the delivery of those new vessels built in India, it will take at least couple of years. So in the meantime, to basically augment our fleet, we will be purchasing second-hand vessels also. So this will be the initial phase where first, second, third year, we will be adding second-hand tonnage, and then a new fleet will start joining the fleet.

Any number you have in your plans, how many are you going to add in the first three years, the second-hand vessel?

At this stage, in fact, this will go to the board, maybe next board meeting, and then we'll have a clarity, we'll share with you. Okay. Thank you. Thank you.

Thank you. The next question is from the line of Amitabh Batsia from Satandan Ventures. Please go ahead.

Thank you for the opportunity. My question is with respect to the land asset holding company, SILAL. So, is there some

rumors or some news about reverse merger of SILAL with SCI?

Is there a possibility? Because some development is happening with NBTC contract, MOU has been signed. So, some color on that is possible.

See, number one, this NBCC MOU was signed a few days back, and idea is we have one big training institute in Powai. Company wants to upgrade that, and that company has already done the MOU with one of the big international ship manager synergy. So, we want to upgrade, we want to utilize that capacity to the best possible way. As far as this SCI-LAL and SCI reversal is concerned, SCI-LAL is a separate legal entity and this is a matter where the government, our ministry will take decision if at all anything is there. We have no information regarding to set the system. You're welcome. Thank you.

Thank you. The next question is from the line of Suraj from Bidget Global. Please go ahead.

Good evening, sir. Good evening, Jay. Hello.

So, my first question is that during the last phone call, it was mentioned that all the vessels that are going to be acquired would be second-end vessels. But since you mentioned recently and also on the tenders page, all I could see is new vessels being acquired. So, are there any changes in plans or any sense on that? And secondly, I wanted to understand on the insurance thing, recently we heard that India would be having its own insurance setup for shipping instead of the global insurance setup which everyone is following. Would that have any impact on our financials?

See, first your question. SCI always had the plan to purchase new vessel as well as the second hand. And this number may vary with the time ahead and when we review with the dynamic condition of the market. Today, we have got a still same plan. We will purchase new as well as the second hand vessel. Coming back to the insurance part. During this war situation, we all have seen the insurance cost for the vessels has gone multiple times, especially vessels which were stuck inside the Strait of Hormuz or operating in the high-risk area. So to realize that, in fact, some of the vessels were not getting even the insurance cover. So, Government of India came forward and they have already created a pool, insurance pool. Their pool will help in this situation for the SIP owners with the help of our insurance companies, public sector, so that Indian SIP owners can get the insurance cover at a reasonable price, and the international market should not basically make money out of this. There, this pool will come in picture, and this is a very good initiative taken by Government of India.

Understood, sir. Thank you.

Thank you. The next question is from the line of Harsh Shah from JM Financial PMS. Please go ahead.

Yeah, thanks for the opportunity. Just one question from my end. So basically, in terms of what you all mentioned in the last call with respect to the aspiration of growing the revenue by two to three times in the next four to five years. So, that is basically taking into account whatever is happening in the JV, right? So, the accounting of that JV would be done via the equity method or the numbers would be consolidated. Just wanted a clarification on that.

Yeah, Mr. Nitin will answer this, please.

Means the question what you are asking, whether the, once the JV is in place, how the revenue will flow to the SCI? That's the precise question. That will be on the equity method. That will be on equity method.

Okay, so basically the numbers would not be consolidated, just before the PBT, it would be shared with JV. Correct. Okay, got it. Yeah, that's it from me.

Thank you.

Thank you. The next question is from the line of Bhavia Gandhi from Bajaj Alternative Investments. Please go ahead.

Yeah. Hello. Can you hear me?

Yes, yes. Please go ahead.

Yeah. Just wanted to understand, is there any mandatory requirement for oil companies to use the services of SCI? As of now?

No, no, no. There is no compulsion either side. In fact, SCI, your good company, operate in international and very serious competition.

Okay. And with respect to JV, because already we were doing business with all these oil companies, right? So special purpose of forming this JV, is it just to purchase assets and then rent it out?

See, the overall purpose as I mentioned, we have got the cargo in hands of OMCs, and if OMCs or the proposed JV has got the ships also, then this freight which was going out of country can be retained to a certain extent. That is the basic intention of this.

Okay. And what is the spend currently by all these oil companies? What is? Can you repeat your question? What is the total spend by all these top 3-4 companies?

We need to check this number with the help of the OMC. We will be able to answer it.

Okay. Got it. Got it. That's it from my end. Thank you so much.

Thank you. The next question is from the line of Akshay Ajmera, an individual investor. Please go ahead.

Yes, thank you so much for the opportunity, sir. And congratulations on good performance. So, we have given our JV formation in the ministry. Last call, we had updated around December 25th. Thank you. The reason is that the delay is because the government and the government have a lot of trust in order to form it quickly and quickly. So, let's go to the other guide.

Good morning, everyone, and welcome to the call, and welcome to the call, and welcome to the

Sir, one more question about IRR, you have given a broad range of 11% to 11-12% so do you consider a minimum floor or is it the minimum that we can generate the return going forward? Floor and Tilly, something like that.

See, when this proposal comes to the board, we normally don't consider our board generally. But if there is a strategic need or a strategic importance of the project, then the board has got the power to take some decisions. And the offer, the more the better the company or our shareholders.

No, no, no. Sir, there are some follow-up that can't be replied in the following. So, one time, we will request the secretary to them. So, we will ask questions in the call, which can be asked to answer for the answer. So, there is only a request that they can get the answer. And, okay. It was a request that you say that after the call, you say that after the call, but it's not possible to follow up. So if you mention this in the secretary of finance department, you will be

sure that we have committed to your reply.

Thank you, thank you so much. And sir, if you have any number of effects related loss or ECL provision or any kind of one-off, which you should see.

Nothing abnormal, it's a normal ECL provision. It means nothing significant which needs to be shared at this point of time.

Thank you.

Okay, okay.

Thank you so much, sir. And the whole XCI team, I would like to thank you and thank you so much, because in such a difficult situation, your team is working so hard and India is a country's energy security and safety. Thank you.

Thank you. Ladies and gentlemen, that was the last question. I now hand the floor over to Mr. Varsarajan Sivasankaran from Antique Stock Broking. Over to you, sir.

Thank you, Farah. In case, let us know if there are any participants with more questions, you can share it with us or directly take it up with the SEO Investigation Team. I would like to thank the management of SEM for all the detailed answers as well as giving us the opportunity to host the call. And if you have any closing remarks to be made, please go ahead, sir.

Thank you, Bharat Rajanji. At the end, I would like to thank the investors and analysts who have joined the conference. and have reposed their continued confidence in SEI. We are committed for continuous improvement, which have been witnessed over the last three years, and strategic initiatives would earn manifold growth for the organization and ultimate value to our shareholders in years ahead. In case you have any further queries or questions, you can get in touch with our investors' relations. Thank you, ladies and gentlemen. Best wishes to everyone. Thank you.

Thank you very much. On behalf of Antique Stop Broking Limited, that concludes this conference call. Thank you all for joining us, and you may now disconnect your lines. Thank you.

Thank you, everyone.