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Lancer Container Lines Ltd announces Q3 FY24 results

Posted On : 2024-02-13 17:57:01( TIMEZONE : IST )

Lancer Container Lines Limited has announced the Un-Audited Results for quarter ended December 31st, 2023.

Business Update:

- LCL has acquired a majority stake (60%) in Transco Logisitix Worldwide Private Limited, establishing a new subsidiary with a strategic focus on freight forwarding business.

- LCL approved the raising of funds (Rs. 3,000 Mn) through issuance of equity shares via Qualified Institutional Placement (QIP) in one or more tranches within 12 months timeframe.

Commenting on the performance of Q3 FY24, the management team of LCL said:

- Our Revenue from Operations stood at Rs. 1,505.6 Mn in Q3 FY24 and at Rs. 4,811.4 Mn in 9M FY24.

- Our EBITDA increased by 28.0% from Rs. 237.1 Mn in Q3 FY23 to Rs. 303.5 Mn in Q3 FY24 and increased by 19.9% from Rs. 690.7 Mn in 9M FY23 to Rs. 828.0 Mn in 9M FY24. EBITDA margins increased by 680 bps from 13.4% in Q3 FY23 to 20.2% in Q3 FY24 and by 630bps from 10.9% in 9M FY23 to 17.2% in 9M FY24. This was led by operational efficiencies, and expansion of operations in newer geographies.

- PAT stood at Rs. 140.6 Mn in Q3 FY24 and at Rs. 423.9 Mn in 9M FY24. PAT margins grew by 160 bps and by 210 bps to 9.3% in Q3 FY24 and 8.8% in 9M FY24 respectively.

We are delighted to share that our performance remains steady for this quarter, supported by consistent demand for our services. Our commitment to growth is evident in the increase in TEUs, expansion into new geographies, establishing and enhancing stronger foothold in key operating markets, and providing comprehensive logistic solutions.

We have added 3,265 TEUs in this financial quarter to our existing portfolio reaching to a total of 18,446 TEUs as at 31st December 2023. This progress aligns seamlessly with our objective to reach ~20,000 TEUs by FY24. Looking ahead, we have ambitious plans to expand our TEU capacity to 45,000 by FY26. In view to achieve the same we are planning to raise INR 3,000 Mn through the issuance of equity shares via Qualified Institutional Placement (QIP) in one or more tranches over the next 12 months.

Moreover, in our pursuit of becoming a fully integrated service provider, we are actively exploring opportunities to purchase a new vessel. This strategic move will help us to position ourself at the heart of one of the world's key maritime hubs, providing us with unparalleled access to international trade routes and opportunities. The strategic location of Dubai as a global trading hub, will position us favourably to capture a significant market share and is expected to yield substantial revenue and margin growth.

We are also expanding our operations inorganically and have successfully acquired a majority stake (60%) in Transco Logisitx Worldwide Private Limited. This strategic acquisition is poised to play a pivotal role in our freight forwarding business. Transco Logistix brings a wealth of expertise, industry relationships, and operational efficiencies to the table, further enhancing our competitive edge in the market.

Additionally, we have commenced the operations of our subsidiary, Argo Anchor Shipping Services LLC and Lancer Tank Container Services Private Limited. Through Argo Anchor, we aim to provide a comprehensive suite of shipping services, encompassing container shipping, logistics, and freight forwarding. With a robust global network, Argo Anchor is strategically positioned to meet the dynamic demands of the shipping industry in the Middle East. Meanwhile, Lancer Tank Container specializes in providing ISO Tank Container Services, ensuring the secure and efficient transport of a diverse range of liquids, food-grade products, and petroleum derivatives across international borders. This expansion broadens our service portfolio, presenting opportunities for increased revenue and margin growth.

In the face of the Red Sea crisis, marked by geopolitical tensions and maritime trade disruptions, global shipping entities encountered significant challenges. However, our proactive measures and innovative strategies not only minimized the crisis's effects but also effectively safeguarded our financial performance from these challenges. By diversifying shipping routes to reduce dependence on the Red Sea and mitigate disruptions, we maintained operational effectiveness.

As we move forward, we think that the Government's thrust on supporting exports will be a key driver for demand. Moreover, the SagarMala program towards enhancing port capacity, connectivity and operational efficiency to reduce costs, shortening vessel turnaround time, accommodating larger ships and elevating the strategic relevance of Indian ports in the South Asia region will enable us to capture the opportunities in the market through our diversified service offerings contributing to the growth and development of our business. Our team's dedication and the unwavering support of our customers have been the key drivers of our success, and we look forward to continued growth and prosperity in the coming quarters.