Ladies and gentlemen, good day and welcome to the Shipping Corporation of India Q4 FY 2026 results conference call hosted by Antique Stock Broking Limited. As a reminder, all participants line 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 touchphone telephone. Please note that this conference call is been recorded. I now hand the conference over to Mr. Varatharajan Sivasankaran from Antique Stock Broking Limited. 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 SCI. We have with us the senior management team of SCI represented by Captain B.K. Tyagi, Chairman and Managing Director, Mr. Vikram Dingley, Director (Technical & Offshore Services), holding additional charge of director. Sorry. Rear Admiral Jaswinder Singh, Director (Liner and Passenger Services). Captain Som Raj, Director (Personnel & Administration). Mr. Nitin Khamesra, Director (Finance), and Captain Chandran Daniel, General Manager IMC Bulk Carriers and Tankers. I'd like to hand over the floor to Captain B.K. Tyagi for initial remarks. The floor is yours, sir.
Thank you, Varatharajan. 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 FY 2025- 2026. Let me begin by thanking you for your continued trust and partnership as we navigate a dynamic global shipping environment and continue to strengthen SCI's 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 freight trends across segments. Our standalone net profit stood at INR 1,326 crore, while the consolidated net profit was INR 1,353 crore. Last financial year, we had posted the standalone profit of INR 814 crores and consolidated profit of INR 844 crores.
The operating revenue came in at INR 5,778 crore vis-à-vis INR 5,592 crore in last FY. EBITDA for the financial year 2026 is INR 2,633 crore. We continue to maintain a strong balance sheet with a net worth of INR 8,489 crore, cash and liquid investment of INR 2,676 crore and long-term debt of INR 2,409 crore. This translates to a debt equity ratio of 0.29 and a DSCR of 4.61, demonstrating our sound financial position and liquidity. The board has also declared total dividend of 75%, that is INR 7.5 per share, reflecting our commitment to delivering consistent value to our shareholders.
Coming to operations, our owned fleet now stands at 58 vessels. We manage an additional 40 vessels across various categories for government organization with an average of 15.5 years. This financial year, we were proud to induct two Very Large Gas Carriers, Sahyadri and Shivalik, built by HHI. Each has a capacity of around 82,000 cubic meters. Their induction significantly strengthens our position in the transport segment. We have also entered into a contract with MDL, that is Mazagon Dock Shipbuilders Limited, for building a 3,000 deadweight 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 SCI was the first Indian ship owner to clear its gas carrier from the Strait of Hormuz to serve the LPG requirement of the nations.
Ladies and gentlemen, you must have heard the name of the LPG Shivalik 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 FY 2025- 2026 Q4 has seen very high volatility due to the conflict in the Middle East Gulf. After the low of end December 2025, tanker market rapidly picked up in January 2026 and February 2026, and VLCC earning on key routes such as TD2 and TD3 were in the range of $80,000-$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 Strait of Hormuz. A few fixtures at substantially high freight levels from Red Sea ports were reported.
Presently, the Strait of Hormuz transit are disrupted for more than two months now. Since the beginning of the war in MEG, global seaborne 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 Oman or the Red Sea ports. Last Friday, TD3 was at $460. That itself speak a very, very different level. The Aframax market benefited from the broader bullish sentiments in crude tankers, but the rally was not uniform across all trading areas and were regionally concentrated. In January 2026, Aframax earnings were relatively modest. February 2026 saw a gradual strengthening in Aframax rates, with earnings increasing to approximately $47,000-$56,000 per day for TD14 and TD8 respectively.
In March 2026, the Aframax segment displayed divergent performance across routes. TD3 experienced a sharp spike, with Time Charter earnings rising to around $138,000 per day. However, other routes, such as TD14, remained relatively stable, with earnings around $42,000 per day. Clean petroleum products, the disruption to supply chains due to the closure of the Strait of Hormuz and ongoing attack on refineries in the region have created a shortage of refined products. LR2 and LR1 segments also demonstrated a steady improvement through quarter, with a more balanced growth profile. In terms of bulk carriers, the dry bulk market showed a notable recovery led by firmer freight indices. Last Friday, BDI was at nearly 3,011, and this saw a stable demand for coal and grain exports.
Earnings in Panamax and Supramax category rose nearly 30%-35% 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 EXIM 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. SCI's DP2 class vessels remain 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 Sagarmala Financial Corporation Limited. Further, one more MOU was signed on 3rd February 2026. This was to form Bharat Container Shipping Line, the 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 Atmanirbhar Bharat, strengthen India's shipping capacity, and reinforce SCI role as a critical partner in enhancing national energy security and self-sufficiency for transportation of Indian cargoes via Indian containers. I now hand over to Sri Nitin Khamesra, Director of 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, Nitinji.
Thank you, CMD sir. Good evening, everyone, and warm welcome for today's SCI's earnings con call for FY 2025- 2026. 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 status, SCI is more than just a commercial venture. It is a national carrier and has consistently maintained India's supply lines with 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 FY 2025- 2026 has been an exceptional year for SCI, with the company delivered its highest ever consolidated PBT of INR 1,423 crores, representing a growth of nearly about 67% over the previous year.
Consolidated total income increased by INR 426 crores during the year, reflecting a growth of nearly 7% year-on-year basis. The strong performance was delivered, driven primarily by the robust earning in the tanker segment, supported by the favorable global shipping dynamics and disciplined operational execution. During the FY 2025- 2026, revenue from the tanker segment increased to INR 3,940 crores from INR 3,609 crores in the previous year. Segmental profitability witnessed a substantial improvement, increased from INR 680 crores in FY 2025 to INR 1,190 crores in FY 2026, representing a growth of nearly 75%. The strong tanker performance was supported by a highly favorable freight market environment during the year. Another important development during the year was the induction of two VLGC carriers, that is Sahyadri and Shivalik.
This vessel have been deployed on the Persian Gulf-India route and have further strengthened SCI 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 INR 789 crores in FY 2026 from INR 711 crores in FY 2025, 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 voyage charter and improved deployment. In the liner segment, revenue from operations stood at INR 784 crores in FY 2026 as against INR 1,036 crores in FY 2025. Segment profit declined INR 75 crores from INR 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, company added two VLGCs to its fleet and recently also placed an order of a dual fuel PSV vessel. In addition, SCI currently has some vessel acquisition tenders in the market, which we intend to conclude expeditiously as a part of our long-term fleet renewal and expansion strategy.
In line with the improved financial performance, the board has recommended a dividend of INR 7.5 per share for FY 2025-2026. The company also delivered a healthy return of equity of more than 16% during the year. I would also like to highlight that SCI continued 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 2025-2026 has been a landmark year for SCI, reflecting the strength of our diversified business model, prudent 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, SCI 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 touchphone telephone. 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 Digant Haria from GreenEdge Wealth. Please go ahead.
Yeah, hi. Thank you for the opportunity and congratulations for the performance. Also, you know, in the presentation you have 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. 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.
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? If you can just explain that part, that would be great.
Okay. Thank you very much for your question. At SCI, 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 vessel got stuck inside the Persian Gulf. They could not transit the Strait of Hormuz. The difference, what we could have got if this was Strait of Hormuz was operational, then this number would have been much, much better than this. What we have explained is the overall scenario for the year 2025- 2026. Towards quarter four, the numbers have gone up and the market was firm. After break of war, definitely those numbers, March was as good as idle for the most of the shipping which were operating in the Strait of Hormuz.
This number what we are giving you is, basically Q4 sense. The numbers have gone up for the tanker fleet, and this whatever the results you see, the major contribution is from the tanker segment.
Right. Right, sir. 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 crude carrier is already out of Strait of Hormuz. As we speak now, three crude carrier are still inside and one LNG, which is a part of ILT company as a joint venture. 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 Strait of Hormuz.
All right. All right, sir. Thank you for that. Second question is on our joint venture, you know, with the Oil Marketing Companies. Sir, with there, you know, we have ordered, you know, quite a few number of ships. 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 Aframax and, you know, the orders that we have given, they may also vary. Just wanted, you know, your views on that, you know, have we been able to freeze our rates of buying those?
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. Your observations are absolutely right. Today, our tanker market is basically very, very abnormal. The price of assets would be also in the same range. We will take definitely note of this all things when we finalize the numbers and when we give the contract to the NECPR.
Right. Right, sir. We'll not rush because I think we had tenders for four Aframax and, you know, some six container vessels and, you know, four MR tankers. Right? We may wait, right? If the prices become too irrational, because if we buy at this peak of the cycle, you know, then maybe our future revenues can, you know, actually suffer. That was my, you know, point of asking that question.
Very well noted. Definitely board, when we take the decision, will definitely take this point into account.
Right. Right, sir. Sir, last question would be in April, you know, we are, like, 40 days into this quarter also. 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. The rest, performance of the SCI in terms of the April and all, at this stage, it will be inappropriate to comment.
Right, sir. Thank you. Thank you very much and all the best, sir.
Thank you, Ji. Thank you.
Thank you. The next question is from the line of Chetan Gindodia from Mahindra Manulife Mutual Fund. Please go ahead.
Yes. Hi, sir. Sir, thank you for the opportunity. I wanted to understand regarding the JV with the OMC company, has there been any more details if you can share, now that we have finalized with some bit of ordering and some tendering process also been started, as you said. So how the financial model will sort of work, on what proportion of the vessels will be at spot or fixed rates, and what sort of, you know, ROE or IRRs we can generate from this, or any revenue EBITDA or any sort of, you know, financial metrics that you can share regarding, you know, over three to five years, what we can generate from this? Yeah, that's it.
See, this oil and gas proposed JV with the OMCs, this is at this stage is under consideration of our Ministry. Parallelly, we have floated some tender which are meant for SCI tonnage, and maybe some of this vessel will be for the proposed JVC also. 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 tendering. We will have better information and at appropriate time, we will definitely share with the, all the stakeholders through the Stock Exchange.
Got it. Thank you, sir. Just lastly, this, Q4, as you said, because some of our vessels got stuck, in the Strait of Hormuz, we couldn't realize the full potential at the current rates. 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 Strait of Hormuz, SCI vessels and any other shipowners, they are basically at this stage, whatever the market, they are not able to tap those market. The vessels which are outside the Strait of Hormuz, whatever few fixtures are there, few cargoes are there, definitely they will have a lot of, basically potential in terms of the freight. 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. We have to wait and watch and then see the how this situation, how fast this war settles, and then we can evaluate overall how good and bad the impact will be there.
Currently, the tanker market is definitely very, very high, but the cargoes are very few.
Understood. Thank you. Thanks a lot, sir, and all the best.
Thanks.
Thank you. The next question is from the line of Hitesh Doshi from Nirzar Securities. Please go ahead. Mr. Doshi, your line is unmuted. Please go ahead. There appears to be no response from the participant. We will take the next question from the line of Chetan Phalke from Tirthan 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 the vessel acquisitions at and have an IRR of 10%-11% at least, otherwise we would not go ahead. 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. If you can just, you know, help us understand around these two pointers, sir. I mean, how will we navigate through the shipping cycle volatility by using these two things and still achieve our expected IRR? Have things changed after the recent volatility that we have seen?
See, this current war and this current uncertainty volatility is a temporary phase. This will not last long. We are very confident as a SCI. Any project, any vessels when we purchase second-hand assets or the newer sets, as a vessel, we evaluate as a project, each and every vessel separately, independently. If IRR is making commercial sense, then only our board approves this. That is our procedure. One. When we will out charter this vessel to maybe OMC or outside market, then if it is OMC, definitely it will be linked to the some market indexes. That there is a basically at arm's length earnings and the expenses for both the sides, and that will be quite fair for the prevailing market.
It will capture what is a prevailing market sentiments and whatever the prevailing market rates, basically. These are the two points which you have asked, hope I have clarified this.
Yes, sir. Any minimum IRR threshold 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%-12% range of IRR.
Okay. Okay. Sir, if you can just help us understand that plus or minus formula that you are mentioning. Is there any precedent? I mean, in let's say in other countries like Japan, 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, from what I understand, it will be linked to global index, plus there will be some plus minus formula, and plus over and above, we, 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 use these indexes. One. Second, these formulas, what we have in mind, these kind of formulas are being used by various international shipowners, charterers. 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. This is a normal practice in shipping, and we have used as SCI, and this is what we are thinking also to keep it transparent from the JV per-perspective also and from the charter perspective also.
Okay. Okay. Just in case if the shipping cycle turns the other way, what downside protection does this kind of arrangement gives us? How is it embedded into this arrangement?
See, normally in this kind of formula, we have got two ceilings, floor and top also, so that just in case it goes beyond some certain level, then basic operating costs are covered. Top side also, it goes in a normal manner, then charterer also is not penalized unnecessarily.
Sir, the management line got disconnected. We'll just try connecting again. Please stay connected. We have the management line reconnected. Please go ahead.
Mr. Chetan, I was explaining this.
Yes.
We have got the limits, upper also and the lower limits, to take care of this kind of situations.
Okay. Got it, sir. Sir, with respect to this JV only, oil PSUs JV, what percentage of their overall demand will be routed through this JV?
You know this India, today we are basically nearly $80 billion is going out of country in terms of freight. 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 oil companies, is just this initial phase in the direction. Currently, this is to capture basically maybe 25%- 30% of that component.
Okay. Eventually it can go up as well.
Yeah. See, our overall idea is this, whatever the money is going out of country directly or indirectly, that all should be basically, it should be retained within the country and the economy.
Okay, okay, because we have done similar JV with, I think, SAIL or other, PSU organizations as well. Can we expect the extension of this model into other areas of the economy as well or other imports that we are doing?
See, SAIL, we have not done yet. 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. We will take similar model in other areas also. This is in the oil and gas. Maybe in the dry bulk also, we may go ahead with this same formula.
Okay. Sir, you know, what's the status of the JV? 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?
No. At this stage, timeline, we do not have the information. Once we have the information, once this is approved, definitely we'll inform all our shareholders. We will disclose at the stock exchange.
Okay, okay. Sure, sir. Thank you very much, sir.
Thank you so much.
Thank you. The next question is from the line of Ronak Singhvi from NAFA Asset Managers. Please go ahead.
Hello. Can you hear me?
Hi. Namaskar.
Hello. I want to know the dry docking schedule for the next two financial years.
Dry docking schedule for next two financial years.
Yes.
Just a minute. Let me take help of my pension Director. How many tankers bulk carriers are planned? Just be online, please.
Yeah, yeah.
Otherwise, what we can do, we can share this information with you. See, the dry dock is done normally twice in five years. It's a requirement. How many bulkages are planned this time? What we'll do, we'll share this information with you after this call.
Okay. Thank you. Thank you.
Thank you.
Thank you. The next question is from the line of [Esha Shah] from [Nirzar Enterprise]. Please go ahead.
Hello. Good afternoon. Am I audible?
Yes. Good afternoon. Loud and clear, please. Go ahead.
Yeah, hope you're doing well, sir, and congratulations on good set of numbers. Sir, I had two questions. Okay? First one, it is on the. As you mentioned in the notes to accounts, you know, of the recent quarter, that our three vessels are still stuck in Strait of Hormuz. There you have explained that the freight has been recognized on the basis of how much ever the percentage of voyage completion. 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? Is it only for the voyage contract that we have these accounting? Also, like, how much revenue can we recognize from these vessels, or would we get any revenue?
See, number one, these vessels, three vessels which I mentioned, all three are on the voyage.
Voyage. Okay.
Correct. Whatever the proportionate revenue we have recorded in our books, that is as per accounting system, and that is as per the charter party.
Okay. Going forward, we can expect more revenue to be recognized for this, right?
Yes. The remaining part, once the voyage gets over, rest will come in the next FY.
Okay, sir. Sir, recently, to one of the questions about that you mentioned, that, like, you know, if the cycle goes down, then the flooring would be in such a way that the operating cost gets covered. What about the interest cost? Would that also get covered?
No, no.
Interest cost and depreciation.
It will be part of that formula. This formula is normally for the only COA 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.
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 Khamesra, Director of Finance this side.
Hello, sir.
Yeah. Good evening. From the time charter perspective, whenever we are basically deploying any vessel on the time charter, it has standing charges built into it. It has the, basically the interest and the other indirect operating expenses also built into it. 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 terms, 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. To the extent, whatever will be financial cost, we can basically build into the floor.
It all depends on the commercial agreement with the counterparty.
So it's very-
Okay. sir, the standing cost, does it also include depreciation?
Yeah.
It includes depreciation, right? In the JV, can we expect like a 10-year to 12- year of time charter?
Uh, we would-
Like the duration.
As an SCI, we would love to have the maximum possible of the useful life of the asset covered through the time charter model. That modalities will be finalized once we have the vessel acquisition process in place. We will sit with the counterparty for the commercial terms and conditions, these terms can be worked out.
Okay. Any minimum ROFE 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 SCI acquisition plan. We would like to have basically IRR in range of around 10%-12% broadly.
IRR would be, what covering your depreciation interest and operating costs or ROFE, 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 ROFE, right?
No, it's not ROFE.
Okay, okay. 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, EBIT or profitability vis-a-vis the current charter book?
It's a very hypothetical question. Once we'll enter into the agreement with any counterparties, then only we can basically assign any number to it.
Okay, any delta that you can, like you all would have thought of?
That's the market indices. You can compare, three months before market to the current market. The delta 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.
Thank you. The next question is from the line of Aditya Ladhad from Stallion Asset. Please go ahead.
Hello, sir. Am I audible?
Yes, sir.
Yes.
Please go ahead.
Yes. Congratulations firstly on a great set of numbers. From what I understand, broadly, the TAM for us is huge. As you mentioned, $80 billion of freight to overseas, you know, overseas shipping companies. I guess the top three OMCs also spend close to INR 40,000 crore on their freight bill. With the Maritime Amrit Kaal Vision 2047 last year, we really sort of put the trigger into the shipping sector of India. With this JV announced also 59 vessels. Right now, what 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 write backs or GST they can offer any other way of incentive.
Government of India has taken various initiatives. Today as a country, there are two clear-cut priorities for the Government of India. One is the have the ship construction now done in India, especially the commercial big vessels should be built in India. That is a priority one. Parallelly, that Indian tonnage should increase. These are the two clear-cut priorities. To support the ecosystem for the shipbuilding 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. This is working all in the circular economy.
Government of India at every stage is trying to support especially the shipbuilders, so that they become competitive to build the vessels in India and we can compete as a country with China, maybe South Korea. Coming to the shipowner side also, there are some minor incentives are there. With the help of this assistance going to the shipbuilder, then that benefit, we expect this will be transferred to the shipowners also. These are the overall basically ecosystem what Government of India and especially our Ministry of Shipping is working on. These various schemes, policies are already announced. They are published, they are available for the industry today.
Got it. Understood. What would be the NAV of our current ships?
Sorry, can you repeat your question, please?
What would be the NAV of the ships that we have in our portfolio currently?
Yeah, I'll answer your question. The NAV on a consolidated basis is roughly around INR 300.
INR 300.
Per share.
Got it. Got it. Lastly on this Bharat Shipping line, that also sounds like a very interesting JV that you're going ahead with. Just wanted a few more details on that. What sort of investment are we gonna make over here? How many vessels would we procure? You know, what would be our share of, and what will be our share in the JV overall?
See, this proposed JV for the container is Bharat Container Shipping Line. In this, SCI will be the one of the partner. CONCOR also will be the one of the partner, 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.
Any timeline for this 51 vessels?
This is over basically next five years.
Next five years. Got it.
Sorry. Can you turn in this? This is for up to 2047, 51 vessels.
Okay. Up to 2047. Got it. Understood. Any updates on.
I'm sorry to interrupt, sir. Mr. Ladhad, could you just return to the question queue? We have many participants waiting.
No, last question, ma'am. That's fine.
Sir, it's a request. Please return to the question queue.
Okay. Got it.
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 [Viv Agrawal] from [Fitcom Family Office]. Please go ahead.
Yeah. Hi, sir. Thanks for taking my question. Sir, I just had one question. Given the current geopolitical scenario, can you give us a sense of how the mix has changed between the long-term contract versus a spot contract? Then 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 contracts?
Today, especially in the tanker segment, spot rates are very, very high, multiple times what were prevailing pre-war. We are sure after war, these numbers will definitely come down to the whatever were prevailing pre-war. As 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. Just a follow-up on this. S ir, the freight increase that we are witnessing right now, the revenue recognition would be in the coming quarters. Is that right?
Yes. This all impact should be visible, should be reflected in any owner's P&L in the next quarter.
Right, sir. Thanks a lot, sir.
Thank you.
Thank you.
The next question is from the line of Rakesh Roy from Boring AMC. Please go ahead.
Hi, sir. My first question regarding, sir, as you mentioned, on 31st March, four ship is stuck in harbor. How much the revenue is impacted from this one, sir, in Q4? Can you tell me?
See, what will be the total impact?
Yes, sir.
This voyage remains unfinished voyages. Overall final tuning, as far as the revenue is concerned, will happen once the voyage gets over.
Okay.
Yeah.
Right.
The voyage is not still, in progress unfinished.
Okay. Any idea, any rough figure as per your estimate? How much revenue comes to a Q1 and how much revenue we recognize in Q4?
No, no. It will be very difficult to give you a number at this stage. We have to wait and watch and get this voyages completed. We can. This will reflect in the Q1, definitely.
Okay. One more question, sir. Any plan to add old or new ship in SCI books in FY 2027, as you mentioned, because in FY 2027, old secondhand or new ships?
Yes, yes. We have got a clear-cut plans. Our plan is to order some new vessels as well as purchase some secondhand vessels also.
Need for in FY 2027, to add in FY 2027 books.
Yes, yes.
For this whole year.
In current 2026, 2027, we have got plans. In fact, on 29th October, Honorable Prime Minister has announced our long-term business plan, which is up to 2047.
Okay. Right, sir. It's on this article-
I'm sorry to interrupt, sir. Please return to the question.
Okay. Yeah, please. Yeah. Yeah. Yeah.
Thank you so much. The next question is from the line of [Anushri] from Alpha Invesco. Please go ahead. [Anushri], 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. I had a question. Earlier during Maritime India Vision, you had indicated that you are going to purchase around 216 vessels approximately with investments of INR 1 lakh crore by 2047. 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. How much will be through the JV route and how much will be independently done by SCI? Also, does this 216 vessels also include the JV where 59 vessels demand that we have planned under the FCHUs?
How much of these vessels do you think, you know, are you planning will be secondhand 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. Rest of the vessels, this will be basically under SCI or maybe some further plans of this both the JVs or maybe some new JVs also. This plan is up to 2047, long-term plan. This definitely will be reviewed periodically by the SCI board and by the board of this proposed JV also.
Sir, my last question was, what is the plan of the new build versus second-hand vessels? How many are going to be new build versus second-hand?
At this stage, if we order new vessels as a company, and our intention, clear-cut intention, is that we order this vessel in India, so that Indian shipbuilder gets some orders, firm order, and it grows. By the time we get the delivery of those new vessels built in India, it will take at least two years. In meantime, to basically augment our fleet, we will be purchasing second-hand vessels also. This will be the initial phase where, first, second, third year we'll 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 vessels?
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. Fine. Yeah.
Thank you.
Thank you.
Thank you. The next question is from the line of Amitabh Vatsya from Sadhan Ventures. Please go ahead.
Yeah. Thank you for the opportunity. My question is with respect to the land asset holding company, SCILAL. Is there are some rumors or some news about reverse merger of SCILAL with SCI? Is there a possibility or because, some development is happening with NBCC contract, MOU has been signed. Some color on that, if possible.
See, number one, this NBCC MoU was signed a few days back. Idea is we have got 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 managers, Synergy. We want to upgrade, we want to utilize that capacity to the best possible way. As far as this SCILAL and SCI reversal is concerned, SCILAL is a separate legal entity. This is a matter where government, our ministry will take decision, if at all anything is there. We have no information regarding this at this stage.
Okay. Thank you.
Thanks.
Thank you. The next question is from the line of Suraj from [Bridget Global]. Please go ahead.
Good evening, sir.
Good evening, Ji.
Hello. 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-hand vessels. Since you mentioned recently, and also on the tenders page, all I could see is new vessels being acquired. Are there any changes in plans or any sense on that? Secondly, I wanted to understand on the insurance thing. Recently, we heard that India would be having its own insurance set up for shipping instead of the global insurance set up which everyone's following. Would that have any impact on our financials?
First your question. SCI always had the plan to purchase new vessel as well as the second-hand. This number may vary with the time as 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. To realize that, in fact, some of the vessels were not getting even the insurance cover. Government of India came forward, and they have already created a pool, insurance pool.
That pool will help in this situation for the ship owners with the help of our insurance companies, public sector, so that Indian ship owners can get the insurance cover at a reasonable price and international market should not basically make money out of this. There this pool will come in picture, and this is very good initiative taken by Government of India.
Understood, sir. Thank you.
Thanks.
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. Basically, in terms of what you all mentioned in the last con call, with respect to the aspiration of growing the revenue by 2x-3x in the next four-f ive years. That is basically taking into account whatever is happening in the JV, right? 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?
Yes.
That's the precise question. That will be on the equity method. That will be on equity method.
Okay sir, basically the numbers would not be consolidated just before the PBT it would be share of JV.
Yeah.
Correct. Okay, got it. Yeah, that's it from my side.
Thank you.
Thank you. The next question is from the line of Bhavya Gandhi from Bajaj Alternate 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. There is no compulsion either side. In fact, SCI are good company operate in international and very serious competition.
Okay. With respect to JV, because already we were doing business with all these oil companies, right? 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. 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. 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 three, four companies?
We have to check the number. We need to check this number with the help of the OMC. We will not be able to answer at this stage.
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.
Thank you so much for the opportunity, sir. Congratulations on good performance. [Non-English content]
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Okay.
Yes, sir. Line's reconnected.
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Thank you. Ladies and gentlemen, that was the last question. I now hand the floor over to Mr. Varatharajan Sivasankaran from Antique Stock Broking. Over to you, sir.
Thank you, Farah. In case let me know there are any participant with more questions, you can share it with us or directly take it up with the SCI Investor Relation team. I would like to thank the management of SCI for all the detailed answers as well as giving us the opportunity to host the call. If you have any closing remarks to be made, please go ahead, sir.
Thank you, Varatharajan . At the end, I would like to thank the investors and analysts who have joined the conference and have reposed their continued confidence in SCI. We are committed for continuous improvements which have been witnessed over the last three years. Strategic initiatives would earn manifold growth for the organization and ultimate value to our shareholders in the years ahead. In case you have any further queries or questions, you can get in touch with our Investor Relations cell. Thank you, ladies and gentlemen. Best wishes to everyone. Thank you.
Thank you very much. On behalf of Antique Stock Broking Limited, that concludes this conference call. Thank you all for joining us and you may now disconnect your lines. Thank you.