Glottis Limited — Q4 FY26

Glottis Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Lu1H4b3ZqaY Published: 3 weeks ago

0:00 Ladies and gentlemen, good day and welcome to the Glottus Limited Q4 and FY26 earnings conference call. As a reminder, all participant lines will be 0:09 9 seconds in the listenon mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this 0:17 17 seconds conference, please signal for an operator by pressing star and then zero on your touchdown telephone. Please note that this conference is being recorded. 0:25 25 seconds I now hand the conference over to the management of Glottus Limited. Thank you and over to you. 0:32 32 seconds Good afternoon everyone. This is Manning and managing director of blottis. We welcome you all for a uh for a call uh 0:40 40 seconds here today. Uh thank you for joining the earnings call to discuss on our performance for the quarter and financial year ending 31st March 2026. 0:49 49 seconds I appreciate your participation and support as we complete our first full financial year as a listed company. 0:57 57 seconds The logistics and flight environment during the year remained challenging across global market. Container movement 1:05 1 minute, 5 seconds across several trade corridors stayed lower than yearly levels. Price rates 1:11 1 minute, 11 seconds remain soft and customer across industry plant shipment cautiously due to uneven demand visibility and inventory optimization. 1:22 1 minute, 22 seconds During this period, our focus remained on maintain maintaining customer relationship, improving service reach and managing cost in a disciplined 1:30 1 minute, 30 seconds manner. For a quarter under review, revenue from operation was rupees,959 1:37 1 minute, 37 seconds million. Either was rups 105 million with a margin of 5.4%age. 1:43 1 minute, 43 seconds While profit after tax was rupes 107 million with a margin of 5.4%. 1:50 1 minute, 50 seconds For a full year financial year 2026, revenue from operation was 7,226 million. C imported to remain the 1:59 1 minute, 59 seconds largest business vertical contributing nearly 78% of total revenue. The export vertical recorded good progress during 2:08 2 minutes, 8 seconds the year. Our import revenue grew 23.6% yearonear 2:15 2 minutes, 15 seconds with its contribution to revenue increasing to 2.4% 4% from 1.5% in FY 2025. 2:23 2 minutes, 23 seconds Our exports recorded even stronger momentum and revenue more than doubling during the year and its contribution 2:30 2 minutes, 30 seconds increased to 1.2% from 0.4% in the previous year. From the pro 2:37 2 minutes, 37 seconds profitability perspective, EIA for year 2026 was rupees 495 million with margin 2:44 2 minutes, 44 seconds of 6.9% while profit after tax was rupees 377 million. With margin of 5.2%. 2:53 2 minutes, 53 seconds Profitability during the year was impacted by software softener fight rates and lower shipment volumes across global market. Despite this environment, 3:02 3 minutes, 2 seconds we continue to prioritize customer retention, service continuity and expansion of our operating network to strengthen their business over the long 3:10 3 minutes, 10 seconds term. In terms of volume, container throughput per year FI26 was 89,098US. 3:19 3 minutes, 19 seconds Volume remained lower compared to last year largely due to slower global trade movements. Inventory correction across 3:27 3 minutes, 27 seconds major market and cautious procurement activity across manufacturing sector. 3:32 3 minutes, 32 seconds These strengths were visible across broader price industry during the year. 3:37 3 minutes, 37 seconds From the industry perspective, renewable energy remained the largest contributor to the revenue accounting for 40.9% of the total revenue during FY 2026. 3:47 3 minutes, 47 seconds Alongside this, we continue to diversify our presence across multiple sector including automoil, agro product, chemical, textile and medical products. 3:58 3 minutes, 58 seconds Revenue contribution from automoil segment more than doubled during the year with its share increasing to 4.2% 4:06 4 minutes, 6 seconds from 1.5% in the FI 2025. Agro product also showed good traction with revenue 4:13 4 minutes, 13 seconds from the segment increasing to 8.7% year on year contributing to 57 7% total revenue. 4:20 4 minutes, 20 seconds This diversification is helping us reduce dependency on any single industry and improve customer coverage across different cargo categories. 4:29 4 minutes, 29 seconds Geographically, Asia remained our largest region contributing around 85% of the total revenue during FI 2026. The 4:38 4 minutes, 38 seconds region continues to offer strong sourcing and manufacturing activity across sector where many of our customer 4:46 4 minutes, 46 seconds operate. We are also seeing better engagement across interia trade routes where shipment activity has remained 4:53 4 minutes, 53 seconds relatively stable compared to other global corridors. 4:59 4 minutes, 59 seconds We also focused on expanding our operational infrastructure and service capabilities. 5:05 5 minutes, 5 seconds Our customer base also expanded steadily during FI 2026. We added 163 new 5:12 5 minutes, 12 seconds customers during the year while the number of repeated customer increased to 959 from 871 in the previous year. 5:20 5 minutes, 20 seconds Revenue contribution from our top five customers remained stable at around 33%. 5:26 5 minutes, 26 seconds Reflecting long-standing relationship and higher valid share with key accounts while we continue to diversify the overall customer mix. 5:35 5 minutes, 35 seconds As we move into the new financial year, our focus will remain on improving customer engagement, increasing service depth across both C and R price and 5:44 5 minutes, 44 seconds strengthening our presence across industry where we see scalable opportunity. We will also continue to 5:52 5 minutes, 52 seconds focus on operational discipline and selective network expansion to improve service quality and exe execution 5:59 5 minutes, 59 seconds capabilities. Before closing I would like to thank all our customer for the continued trust our employees for their 6:07 6 minutes, 7 seconds effort throughout the year and our shareholders for their support during the first full year of the listed company. With that now I will hand over 6:15 6 minutes, 15 seconds to call to Rashi to take through the financial performance in greater in detail. 6:22 6 minutes, 22 seconds Thank you sir. Good afternoon everyone on the call. 6:27 6 minutes, 27 seconds I will now take you through the financial and operational performance for the quarter and financial year ended 31st March 2026. Starting with the 6:35 6 minutes, 35 seconds quarterly performance revenue from operations for Q4 FY26 was,959 million as compared to,439 million in Q3 6:45 6 minutes, 45 seconds FY25 26 sorry the sequential improvement was supported by better shipment activity across key customers and 6:53 6 minutes, 53 seconds improved contribution from export link movements during the quarter. On a year-on-year basis, revenue remained lower due to for softer flight rates and 7:02 7 minutes, 2 seconds lower container movement across global trade trade lanes compared to the previous year. EITA for the quarter was 7:09 7 minutes, 9 seconds 105 million with an IITA margin of 5.4%age and the PAT was 107 million with a margin of 5.4%age. 7:18 7 minutes, 18 seconds For the full year FY 2026, the revenue from operations was 7,226 million. EIT 7:25 7 minutes, 25 seconds for the year was 495 million with a margin of 6.9%age while the profit after tax was 377 million with a PAT margin of 5.2%age. 7:36 7 minutes, 36 seconds Coming to the operational matrix TU's handled during Q4 FY 2026 was 21,356. 7:44 7 minutes, 44 seconds For the full year TU's handled stood at 89,98. 7:49 7 minutes, 49 seconds The volumes during the year remained lower compared to FYI 2025 largely due to slow slower global trade activity and 7:57 7 minutes, 57 seconds inventory correction across key importing markets and cautious shipment planning by customers across sectors. In 8:04 8 minutes, 4 seconds terms of segment wise contribution, C imported to remain the largest business vertical contributing around 73% of 8:12 8 minutes, 12 seconds revenue in Q4 FY26 and around 78 78% of the full year FY 2026. C export 8:20 8 minutes, 20 seconds contribution improved to around 15% during Q4 and 14% for the full year reflecting a better traction across 8:28 8 minutes, 28 seconds export oriented customers and trade lanes. The ad segment also recorded good growth during the year. Air import 8:35 8 minutes, 35 seconds revenue increased 23.6%age year on year during FI 2026 with its contribution to the revenue increasing 8:42 8 minutes, 42 seconds 2.4%age from 1.5%age in FI 2025. Air export revenue more than doubled during 8:49 8 minutes, 49 seconds the year and its contribution increased to 1.2%age to 0.4%age in the previous year. Roads transportation contribution 8:58 8 minutes, 58 seconds also improved to around 5% of the revenue in FY 2026. 9:05 9 minutes, 5 seconds From a geographical perspective, Asia continued to be the largest contributor accounting for around 85% of the TUS 9:12 9 minutes, 12 seconds handled during FI 2026. North America contributed around 7% while Europe accounted for approximately 3% with the 9:20 9 minutes, 20 seconds balanced contribution coming from Africa, South America and Australia. On the balance sheet side, the company remains comfortable in the financial 9:28 9 minutes, 28 seconds positions. Net worth increased to 28.9 million as on 31st March 2026 compared 9:35 9 minutes, 35 seconds to 978 million as on 31st March 2025 supported primarily by the IPO profits and retained earnings. Cash and cash 9:43 9 minutes, 43 seconds equivalent was,07 million at the end of the year. Total debt as on 31st March 2026 was 497 million and the company 9:53 9 minutes, 53 seconds remained net cash cash positive with a net cash position of 510 million as compared to the net debt of 73 million 10:01 10 minutes, 1 second in FI 2025. Debt to equity ratio improved to 0.18x 10:07 10 minutes, 7 seconds as on 31st March 2026 from 0.23x in the previous year. With that, with that I 10:14 10 minutes, 14 seconds conclude my remarks and request the operator to open for the floors for questions. Thank you. 10:20 10 minutes, 20 seconds Thank you very much. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may enter star 10:28 10 minutes, 28 seconds followed by one on the touchstone telephones. If you wish to remove yourself from the question, you may enter star and two. Participants are 10:37 10 minutes, 37 seconds requested to use only handsets while asking a question. We will wait for a moment while the queue assembles. 10:46 10 minutes, 46 seconds To ask a question, please enter star and one. 11:05 11 minutes, 5 seconds Ladies and gentlemen, if you have any questions at this time, you may enter star and one on your handset. 11:20 11 minutes, 20 seconds The first question is from the line of Himmanu from Walford PMS. Please go ahead. Hello, sir. Am I a honorable? 11:28 11 minutes, 28 seconds Yes, please go ahead. Yes, sir. 11:31 11 minutes, 31 seconds I have I have two questions on the balance sheet side. First is why the trade receivable has increased to 70 70% 11:40 11 minutes, 40 seconds increased by 70%. And what is the break up of other current industries like it has all it it is also increased significantly. 11:50 11 minutes, 50 seconds Uh yes uh actually uh the balance sheet the overall u trade receivable increased. So this is only with respect 11:59 11 minutes, 59 seconds to the expansion plans and the growth aspects. So we also extended the u credit uh limits or credit days with the 12:06 12 minutes, 6 seconds customers. So in the uh future prospective we have uh increased the credit days and it resulted in the 12:13 12 minutes, 13 seconds increase in the trade receivables and also um most of the new customers we have added. So if you you also know that 12:20 12 minutes, 20 seconds the on the global level there was a lot of uh uh uh things are going on the changes are coming. So we wanted to retain the customers. So in order to do 12:30 12 minutes, 30 seconds that we have given extended credit days because of that our trade receivables increased. 12:37 12 minutes, 37 seconds Okay. Okay. And uh like what is the build up of other current assets like it has also increased significantly. What is the reason? 12:46 12 minutes, 46 seconds Uh other current assets. So if you see the other current assets uh you have just uh advanced paid to our suppliers 12:54 12 minutes, 54 seconds and the prepaid expenses actually. See in our trade what happens is we will make the early payment to our liners or 13:02 13 minutes, 2 seconds the uh I mean shipping lines and the agents but our uh I mean uh our uh we will raise the invoice only after uh 13:10 13 minutes, 10 seconds maybe 15 20 days to our customers. So in this case we have some prepaid expenses and advanced pay to our suppliers. So 13:18 13 minutes, 18 seconds because of that only there is increase in the other current assets. Okay. Okay. And it's promising. 13:28 13 minutes, 28 seconds Thank you participants. If you have any questions at this time, you may enter star and one. 13:53 13 minutes, 53 seconds To ask a question, please enter star followed by one on your handset. 14:12 14 minutes, 12 seconds Participants, if you have any questions, you may enter star and one. The next question is from the line of Rahul Sha 14:18 14 minutes, 18 seconds from Arham, India. Please go ahead. Am I honorable? Yes sir. Yes sir. 14:26 14 minutes, 26 seconds Yes. So my question is uh the current global crisis and the fluctuating oil prices how does it affect the business 14:39 14 minutes, 39 seconds the current uh uncertaintity on the bunker the crude oil uh which is happening in last months 14:47 14 minutes, 47 seconds uh it is uh so here what's happening is uh so the back bunker adjustment factor we call as bunker adjustment factor and 14:56 14 minutes, 56 seconds this uh crude oil rate increase and decrease it is being adjusted and it has been uh passed to the end customer 15:04 15 minutes, 4 seconds either exporter or with importers. So uh this is how it works in this and there is no impact as of now. 15:14 15 minutes, 14 seconds Okay. And uh what do I attribute the foreign income of the currency? 15:21 15 minutes, 21 seconds Sorry. Why is the income falling for this year? 15:28 15 minutes, 28 seconds So you're talking about 26 income decreased. Yes. 15:33 15 minutes, 33 seconds Yeah. See uh just due to the peak levels which has softened uh last year I think one of the reason and the demand also uh 15:42 15 minutes, 42 seconds it was little uh slow. So these are one of the reasons two of the reasons major why uh the revenues have come down. 15:52 15 minutes, 52 seconds So will I expect uh the revenue to decrease for the next year or two? 15:57 15 minutes, 57 seconds Uh uh we are very positive uh in uh 26 27 and uh we are taking lot of measures 16:05 16 minutes, 5 seconds to cover up this uh opinion and uh we are positive on this. Okay. Thank you. 16:13 16 minutes, 13 seconds Thank you participants. If you have any questions at this time you may please enter star and one on your handsets. 16:26 16 minutes, 26 seconds To ask questions, you may enter star and one. 16:34 16 minutes, 34 seconds As there are no further questions from participants, I hand the floor back to the management for closing remarks. 16:43 16 minutes, 43 seconds Um, thank you. Uh thank you once again for joining us today and uh for your continued interest in Glattus. We 16:50 16 minutes, 50 seconds appreciate the confidence uh you place in our company. As we look ahead, our priorities remain centered 16:58 16 minutes, 58 seconds and disciplined execution strengthening customer relationships and building long-term value for all stakeholders. 17:05 17 minutes, 5 seconds If you have any uh additional further questions, please free uh free to reach out to investor relation uh judge gate 17:13 17 minutes, 13 seconds partners and we will be glad to assist you. Thank you for your time and your support. Thanks again. 17:20 17 minutes, 20 seconds Thank you very much. On behalf of Glauus Limited, that concludes this conference call. Thank you all for joining us and you may now disconnect your lines. Thank you. 17:30 17 minutes, 30 seconds Thank you.