Shipping Corporation of India Ltd — Q4 FY26

Shipping Corporation of India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=he572iy_RNw Published: 2 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Shipping Corporation of India Q4 FYI26 results conference call hosted by Antique Stock Broking Limited. 0:11 11 seconds As a reminder, all participant lines will be in the listenonly mode. There will be an opportunity for you to ask questions after the presentation 0:19 19 seconds concludes. Should you need any assistance, please signal for an operator by pressing star and then zero on your touchstone telephones. Please 0:27 27 seconds note that this conference call is being recorded. I now hand the conference over to Mr. Barthar Rajan Sasankaran from Antique Stock Broking Limited. Thank you and over to you sir. 0:37 37 seconds Thank you Far. Uh very good evening to everyone. It's my pleasure to welcome all the participants on the call. I'm 0:44 44 seconds the top management of uh SEI. We have with us the senior management team of SEI represented by Captain BK Tagi, 0:52 52 seconds chairman managing director, Mr. Vikram Bing director technical and offshore services holding additional charge in 0:58 58 seconds director sorry and rear admiral Jasmine Ging director liner and passenger services 1:06 1 minute, 6 seconds captain Som Raj director personnel and administration Mr. Nitin Kamsa, director of finance and captain Daniel Chandran, 1:14 1 minute, 14 seconds general manager incar and tankers. Id like to hand over the floor to captain BKI for his initial remarks. The floor is yours. 1:23 1 minute, 23 seconds Thank you Rajan. 1:27 1 minute, 27 seconds A very warm welcome to all our investors, analysis and stakeholders who have joined us today for the shipping 1:34 1 minute, 34 seconds corporation of India's earning call to discuss our financial performance for FY 2526. 1:42 1 minute, 42 seconds Let me by thanking you for your continued trust and partnership as we navigate a dynamic global shipping 1:50 1 minute, 50 seconds environment and continue to strengthen SBI's leadership in India's maritime sector. I am pleased to share that we 1:58 1 minute, 58 seconds have delivered a momentous performance this year despite global market volatility and mixed freight trends across segments. 2:07 2 minutes, 7 seconds Our standalone net profit stood at rupees 1,326 K while the consolidated net profit was 2:16 2 minutes, 16 seconds 1,353 cr. Last financial year we had passed postage standalone profit of rups 814 2:24 2 minutes, 24 seconds crores and consolidate profit of rups 844 crores the operating revenue came in 2:31 2 minutes, 31 seconds at rups 5,778 cr visa w 5592 2:38 2 minutes, 38 seconds cr in last fy aida for the financial year 26 is 2633 2:45 2 minutes, 45 seconds crores we continue to maintain a Strong balance sheet with a net worth of rups 8,489 2:53 2 minutes, 53 seconds crash and liquid investment of rups 2,676 cr and long-term debt of rups 249 3:03 3 minutes, 3 seconds cr. This translate to a debt equity ratio of 0.29 and a DSCR of 4.61 demonstrating our 3:12 3 minutes, 12 seconds sound financial position liquidity. The board has also declared total dividend of 75% that is rupees 7.5 per share 3:23 3 minutes, 23 seconds reflecting our commitment to delivering consistent value to our shareholders. 3:29 3 minutes, 29 seconds Coming to operations, our own fleet now stand at 58 vessels and we manage an additional 40 vessels across various 3:37 3 minutes, 37 seconds categories for government organization with an average age of 15.5 years. This financial year we were provide uh proud 3:46 3 minutes, 46 seconds to induct two very large gas carriers Shahadri and Shivalik built by HHI each 3:54 3 minutes, 54 seconds has a capacity of around 82,000 cubic meters and their index significantly strengthens our position energy 4:01 4 minutes, 1 second transport segment we have also entered into a contract with MDL that is a maj 4:08 4 minutes, 8 seconds limited for building a 3000 dead weight methanol dual fuel control diesel electric PSV. This is a pilot project 4:16 4 minutes, 16 seconds under a national green hydrogen mission of government of India. We are proud to mention that SCI was the first Indian 4:24 4 minutes, 24 seconds ship owner to clear its guest carrier from state of Armuse to serve the LPG requirement of the nations. Ladies and 4:32 4 minutes, 32 seconds gentlemen, you must have heard the name of the LPG Shialik and Nanda Dvi on the TV for good reasons. 4:40 4 minutes, 40 seconds Let me briefly touch upon our key business segments. Now tanker segments, crew tanker market, the tanker market 4:50 4 minutes, 50 seconds during FY226 quarter 4 has seen very high volatility due to the conflict in the Middle East Gulf after the low of end December 25. 5:01 5 minutes, 1 second Tanker market rapidly picked up in January 26 and February 26 and BLCC 5:08 5 minutes, 8 seconds earning on key routes such as TD2 and TD3 were in the range of $80,000 to $150,000 per day. After the beginning of 5:18 5 minutes, 18 seconds the conflict, the rates rose to very high levels. Uh while there were hardly any westward transit through state of 5:26 5 minutes, 26 seconds Hormos, a few fixtures at substantially high freight levels from Red Sea ports were reported. 5:33 5 minutes, 33 seconds Presently the state of Hormus transit are disrupted for more than two months now. Since the beginning of the war in 5:40 5 minutes, 40 seconds MEG, global SIBO crude oil shipments have fallen drastically compared to 5:47 5 minutes, 47 seconds Pride uh last year. While the tanker market is elevated, it is seen that many owners are competing for the available 5:54 5 minutes, 54 seconds cargo from Gulf of Oman or the Red Sea ports. Uh last Friday TD3 was at 460 6:04 6 minutes, 4 seconds that itself speak a very very different level. The FRAMX market benefited from the broader bullish sentiments in food 6:12 6 minutes, 12 seconds tankers, but the daily was not uniform across all trading areas and were regionally concentrated. In January 26, Afrax earning were relatively modest. 6:24 6 minutes, 24 seconds February 26 saw a gradual strengthening in Afrox rates with earning increasing to approximately 47,000 to 56,000 per 6:33 6 minutes, 33 seconds day for TD14 and TD8 respectively. In March 26, the primate segment displayed 6:41 6 minutes, 41 seconds divergent performance across roots. TD3 experienced a sharp spike with time 6:48 6 minutes, 48 seconds charter earnings rising to around $138,000 per day. However, other routes such as 6:56 6 minutes, 56 seconds CD14 remain relatively stable with earning around $42,000 per day. clean 7:03 7 minutes, 3 seconds petroleum product. The disruption to supply chains due to the closure of the state of Armos and ongoing attack on 7:11 7 minutes, 11 seconds refineries in the region have created a shortage of refined products. LR2 and LR1 segments also demonstrated steady 7:20 7 minutes, 20 seconds improvement through quarter with a more balanced growth profile. 7:27 7 minutes, 27 seconds In terms of bulk areas, the dry bulk market showed a notable recovery led by former freight indices. Uh last Friday, 7:36 7 minutes, 36 seconds BDA was at nearly 3,000 level and this shows a stable demand for coal and gain exports. Earnings and panics and subx 7:45 7 minutes, 45 seconds category rose nearly 30 to 35% quarteron quarter. Liner and coastal setting. Our coastal liner business remains a key 7:54 7 minutes, 54 seconds growth driver with freight rates up by 10% year on year and utilization levels as high as 99%. 8:02 8 minutes, 2 seconds Reflecting strong domestic demand and high operational reliability. While the global axim container trade continues to 8:11 8 minutes, 11 seconds face pricing pressure, we maintain 95% utilization and uninterrupted services 8:17 8 minutes, 17 seconds by proactively rrooting vessels via the cape of Cape of Good Hope to ensure reliability amid Red Sea disruptions. 8:26 8 minutes, 26 seconds Offshore and technical services. The offshore segment continues to gain momentum with OMGC, oil India and 8:33 8 minutes, 33 seconds private operators expanding exploration and production activity. SEI DP2 class reserves remain well positioned to gain benefit from this rising demand. 8:46 8 minutes, 46 seconds In terms of strategic development, ladies and gentlemen, a key strategic decision of the company involves the 8:53 8 minutes, 53 seconds signing of MOU. Uh this happened on 19th September 2025. 8:59 8 minutes, 59 seconds uh thisou was signed with oil PSUs and Sajarala Financial Corporation Limited. 9:04 9 minutes, 4 seconds Further one more was signed on 3rd February 2026. This was to form Bhat container shipping line and MOU was 9:13 9 minutes, 13 seconds signed with Concore and other major ports. Uh overall objective of Bhat 9:20 9 minutes, 20 seconds container shipping line is to have the Indian container fleet. Currently Indian container fleet is as good as negligible. 9:30 9 minutes, 30 seconds These uh proposed initiative supports the vision of atar bharat strengthen India's shipping capacity and reinforce 9:39 9 minutes, 39 seconds role as a critical partner in enhancing national energy security and self-sufficiency for transportation of Indian cargos wide Indians. 9:50 9 minutes, 50 seconds I now hand over to Sri Nitin Kamsira, director of finance of SEI to provide a brief overview of the financial 9:58 9 minutes, 58 seconds performance of the company during 2025, 2025 and 26. Thank you ladies and 10:05 10 minutes, 5 seconds gentlemen. Over to you. Uh thank you CMD sir. Good evening everyone and warm 10:12 10 minutes, 12 seconds welcome for today's FCI's earning town hall for financial year 2526. 10:19 10 minutes, 19 seconds 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 10:28 10 minutes, 28 seconds largest Indian shipping company with a navat status, FCI is more than just a commercial venture. It is a national 10:34 10 minutes, 34 seconds carrier and has consistently maintained India supply line through challenging times. Today I am pleased to share that 10:42 10 minutes, 42 seconds SEI sailing on a path of exceptional performance setting new records in financial and operational excellence. 10:49 10 minutes, 49 seconds I'm pleased to share that FY2526 has been an exceptional year for SBI with the company delivered its highest ever 10:57 10 minutes, 57 seconds consolidated PBT of 1423 crores representing a growth of nearly about 11:03 11 minutes, 3 seconds 67% over the previous year. Consolidated to total income increased by rupees 426 crores during the year reflecting a growth of nearly 7% year-on-year basis. 11:16 11 minutes, 16 seconds The strong performance was delivered driven primarily by the robust earning in the tanker segment supported by the 11:23 11 minutes, 23 seconds favorable global shipping dynamics and disciplined operational execution. 11:28 11 minutes, 28 seconds During the FI2526, revenue from the tanker segment increased to rupees 3940 crores from 3609 crores in the previous year. 11:38 11 minutes, 38 seconds Segmental profitability witnessed a substantial improvement increased from rupees 680 crores in FI25 to 1190 crores 11:46 11 minutes, 46 seconds in FI26 representing a growth of nearly 75%. 11:50 11 minutes, 50 seconds The strong tanker performance was supported by a highly favorable safe market environment during the year. 11:58 11 minutes, 58 seconds Another important development during the year was the induction of two VDC carriers that is Shiadri and Shalik. 12:05 12 minutes, 5 seconds This vessel have been deployed on the Parisian Gulf India route and further strengthen FCI presence in the Gas transport segment while diversifying the 12:14 12 minutes, 14 seconds earning portfolio of the tanker business. 12:18 12 minutes, 18 seconds The bulk area segment recorded an improvement in revenue which increased to rupees 789 crores in FI26 from 711 12:27 12 minutes, 27 seconds crores in FI25 reflecting a growth of around 11%. The segment also reported a reduction in 12:34 12 minutes, 34 seconds losses during the year. The improvement in revenue was mainly driven by the higher number of voice tracker and improved deployment. In the liner 12:42 12 minutes, 42 seconds segment revenue from operation stood at 784 crores in FI26 as against 1036 crores in FI25 12:51 12 minutes, 51 seconds while segment profit declined rupees 75 crores from rupees 166 crores in the previous year. The decline is both 12:58 12 minutes, 58 seconds revenue and profitability was primary on account of moderation in the freight rate and lower cargo volume during the year. 13:06 13 minutes, 6 seconds From the financial perspective, SBI continues to maintain a strong and healthy balance sheet. Operation cash flow during the year has grown by 58% 13:15 13 minutes, 15 seconds enabling the company to further strengthen its liquidity position while continuing to pursue its growth and 13:22 13 minutes, 22 seconds fleet expansion plan. Our capital allocation policy and strategy remains focused on the three key priorities that 13:30 13 minutes, 30 seconds is reinvestment in the business maintaining a financial strength and delivering value to the stakeholders. 13:37 13 minutes, 37 seconds During the year company added two VCs to its fleets and recently also placed an order of a dual tier PSV vessel. In 13:46 13 minutes, 46 seconds addition, FCI currently has some vessel acquisition tender market which we intend to conclude expediently as a part 13:53 13 minutes, 53 seconds of our long-term free renewal and expansion strategy. 13:58 13 minutes, 58 seconds In line with the improved financial performance, the board has recommended a dividend of rupees 7.5 rupees uh per share for FI2526. 14:08 14 minutes, 8 seconds The company also delivered a healthy return of equity of more than 16% during the year. I would also like to highlight 14:16 14 minutes, 16 seconds that FBI continue to maintain a very comfortable debt equity position which provides us with significant financial flexibility and sufficient headroom to 14:25 14 minutes, 25 seconds support our future expansion and capital expenditure plan. Overall financial year 2526 has been a landmark year for SCI 14:33 14 minutes, 33 seconds reflecting the strength of our diversified business model, student financial management and dedication of our employees and stakeholders. To 14:42 14 minutes, 42 seconds conclude, I would like to reassure that the shipping corporation of India is not just not just riding the wave of the current market. It is shaping them with 14:50 14 minutes, 50 seconds a strong commitment to safety, a robust financial strategy and a proactive growth. SI is and will continue to be 14:58 14 minutes, 58 seconds the flagship Indian maritime prosperity. Thank you once again for joining us today. We would now open the floor for the Q&A. 15:08 15 minutes, 8 seconds Thank you. Thank you very much. Thank you sir. 15:11 15 minutes, 11 seconds Ladies and gentlemen, we will now begin with the question and answer session. 15:15 15 minutes, 15 seconds 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 15:24 15 minutes, 24 seconds may enter star and two. Participants are requested to please use only handsets while asking a question. Ladies and 15:31 15 minutes, 31 seconds gentlemen, we will wait for a moment while the question Q assembles. 15:35 15 minutes, 35 seconds The first question is from the line of Vigan Taray from Green Edge Wealth. Please go ahead. 15:41 15 minutes, 41 seconds Yeah. Hi, thank you for the opportunity and congratulations for the performance and also you know in the presentation you have put a lot of details. So thank 15:49 15 minutes, 49 seconds you for that. Uh my I have two questions. Uh first question is uh you know on our tanker segment that you know 15:57 15 minutes, 57 seconds we have around 31 vessels and and you know in your presentation and in your speech you wrote that you know the rates have gone up quite significantly in 16:05 16 minutes, 5 seconds March but you know when we look at your revenue and your profit before tax in the tanker segment you know on a Q basis 16:13 16 minutes, 13 seconds there has been very little growth uh so to say. So just wanted to know if all of these 31 tankers that we have uh you 16:20 16 minutes, 20 seconds know is 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? 16:29 16 minutes, 29 seconds So if you can just explain that part that would be great. 16:33 16 minutes, 33 seconds Okay thank you very much for your question. See SCI we have got a majority fleet is the tanker vessels and some of 16:41 16 minutes, 41 seconds these vessels are on time charter with the Indian industry in the month of March after the war 16:49 16 minutes, 49 seconds uh some of the vessel got stuck inside the Persian Gulf they could not transit state of Hormos uh the difference what 16:57 16 minutes, 57 seconds we could have got if this was state of hormos was operational then this number would have been much much better than 17:05 17 minutes, 5 seconds And what we have explained is the overall scenario for the year 25 26 towards quarter 4 the numbers have gone 17:14 17 minutes, 14 seconds up and the market was firm and after break of all definitely those uh numbers uh March was as good as idle for the uh 17:23 17 minutes, 23 seconds most of the shipping which were operating in the state of Hormos. So this number what we have given you is the basically Q4 cents the numbers have 17:32 17 minutes, 32 seconds gone up for the tanker fleet and this whatever the results you see the major contribution is for the tankers. 17:40 17 minutes, 40 seconds Right. Right sir. So so now now are there any ships stuck or you know we are on track like all our 31 tankers they operate now regularly. 17:50 17 minutes, 50 seconds See I'll give you update. 17:52 17 minutes, 52 seconds Three tankers of SCI, two LPG, one crude carrier is already out of state of almost as we speak now. Three crude 18:01 18 minutes, 1 second carrier are still inside and one LNG which is a part of IoT company as a joint venture. So total four vessels of 18:10 18 minutes, 10 seconds SCI are still inside. Government of India is uh trying coordinating with various agencies and efforts are on to 18:19 18 minutes, 19 seconds get these four vessels also out of a state of homes. 18:22 18 minutes, 22 seconds All right. All right sir. So thank you for that. Uh so second question is on our joint venture you know with the oil marketing companies. So there you know 18:31 18 minutes, 31 seconds we have ordered you know quite a few number of ships. So with this entire disturbance in the market uh you know 18:38 18 minutes, 38 seconds 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 18:45 18 minutes, 45 seconds the rate to purchase those uh you know the Afra and you know the orders that we have given they may also vary. So just wanted you know your views on that that 18:54 18 minutes, 54 seconds you know have we been able to freeze our rates of buying those. 18:59 18 minutes, 59 seconds See so far only one vessel that is a platform supply vessel that we have finalized order is placed with the MDL. 19:07 19 minutes, 7 seconds Uh remaining they are in the tank this tender stage at various stages. So far we are not finalized any tender and your 19:16 19 minutes, 16 seconds observations are absolutely right. Today tanker market is uh basically very very abnormal and so the price of assets 19:25 19 minutes, 25 seconds would be also in the same uh range. So we will take definitely note of this all things when we finalize the uh numbers 19:34 19 minutes, 34 seconds and the when and we uh give the contract to the NCBR. 19:38 19 minutes, 38 seconds Right. Right. So we'll not rush because I think we have tenders for four Afra and you know some six container vessels 19:45 19 minutes, 45 seconds and you know four MR tankers. Right. So uh so we may we may wait right if the prices become too irrational because if 19:52 19 minutes, 52 seconds we buy at this peak of the cycle you know then maybe our future revenues can you know actually suffers. So that that was my you know point of asking that question. 20:02 20 minutes, 2 seconds Very well noted and definitely board when we take the decision uh will definitely take this point into account. 20:09 20 minutes, 9 seconds Right. Right sir. So and last question would be in April you know we are like 40 days into this quarter also. So are the rates still as firm and uh like you 20:18 20 minutes, 18 seconds know our ships are earning all the profits out of you know whatever rates are there. 20:24 20 minutes, 24 seconds See you can monitor the market how the tanker indices are behaving that is only indication which I have given in my 20:32 20 minutes, 32 seconds speech also but the rest performance of the SCI in terms of the app and all at this stage it will be inappropriate to comment. Right. 20:42 20 minutes, 42 seconds Thank you. Thank you very much and all the best sir. Thank you. Thank you. 20:46 20 minutes, 46 seconds Thank you. The next question is from the line of Chetan Gindoria from Mahindra Manual Life Mutual Fund. Please go ahead. 20:55 20 minutes, 55 seconds Uh yes. Hi sir. Uh sir, thank you for the opportunity. I wanted to understand uh uh regarding the with the company. Uh 21:05 21 minutes, 5 seconds has there been any more uh details if you can share uh now that uh we have finalized with some bit of ordering and 21:13 21 minutes, 13 seconds some uh tampering is also been started as you said uh so how the financial model will sort of work uh on what what 21:22 21 minutes, 22 seconds proportion of the vectors will be at spot or fixed rate and what sort of you know roe or IRS we can generate from 21:30 21 minutes, 30 seconds this uh or any revenue ITA or any sort of you know financial metric that you can share regarding uh you know over 3 to 5 years what we can generate from 21:39 21 minutes, 39 seconds this. Yeah that's yeah see this oil and gas proposed JV with the OMC's 21:47 21 minutes, 47 seconds uh this is at this stage is under consideration of our ministry uh parallelly uh we have we have floated 21:56 21 minutes, 56 seconds some tender which are meant for SCI tates and maybe some of this vessel will be for the proposed JVC also. So at this 22:04 22 minutes, 4 seconds stage that is updates as far as this uh what will be the IR what will be the revenue and all. Uh this we will see 22:13 22 minutes, 13 seconds once we have those tenders going further and once we have got the approval in place and how the financial quotes will 22:21 22 minutes, 21 seconds be received uh during those tendering then we will have a better information and at appropriate time we will definitely share with the all the stakeholders through the stock exchange. 22:33 22 minutes, 33 seconds Uh got it. Uh thank you sir. And uh just nasty uh this Q4 as you said uh because some of our vessels got stuck uh uh in 22:42 22 minutes, 42 seconds the straight upwards we couldn't realize the full potential at the current rate. 22:47 22 minutes, 47 seconds Uh so fair to say that uh over the next uh coming one to two quarters the uh numbers could improve substantially for 22:55 22 minutes, 55 seconds us uh as uh you know the rates continue to stay elevated and uh there is free movement of our vessel. 23:04 23 minutes, 4 seconds See the vessels which are stuck inside the state of hormoni vessels and any other sip owners they are basically at 23:12 23 minutes, 12 seconds this stage whatever the market they are not able to tap those market but the vessels which are outside the state of hormos whatever few fixtures are there 23:22 23 minutes, 22 seconds few cargos are there definitely they will have a lot of basically potential in terms of the freight uh but uh let's 23:30 23 minutes, 30 seconds see uh this is a very dynamic very volatile situation and uh we will have clarity uh because every day some 23:37 23 minutes, 37 seconds negotiations are happening uh between uh Iran between USA and other parties also. 23:43 23 minutes, 43 seconds So we have to wait and watch and then see the how this situation how fast this war settles and then we can evaluate 23:51 23 minutes, 51 seconds overall uh how good and bad the impact will be there. But the currently the tanker market is definitely very very high but the cargos are very few. 24:04 24 minutes, 4 seconds Understood. Thank you. Thanks a lot sir and all the thank you. The next question is from the line of Hitesh Doshi from Nirar Securities. Please go ahead. 24:20 24 minutes, 20 seconds Mr. Dshi, your line is unmuted. Please go ahead. 24:27 24 minutes, 27 seconds There appears to be no response from the participant. We'll take the next question from the line of Chaitan Fal from Tertan Capital. Please go ahead. 24:36 24 minutes, 36 seconds Yeah. Uh thank you for the opportunity sir. So in last uh uh call uh you mentioned that we would prefer to go 24:44 24 minutes, 44 seconds ahead with the vessel acquisitions at and have an IR of 10 to 11%. at least 24:50 24 minutes, 50 seconds otherwise we would not go ahead and also there is some uh transparent formula which will be worked out wherein it will 24:58 24 minutes, 58 seconds be linked to certain underlying global indexes and there will be some plus or minus formula so if you can just uh you 25:06 25 minutes, 6 seconds know help us understand around these two pointers sir I mean how will we navigate through the shipping uh cycle volatility 25:13 25 minutes, 13 seconds by using these two things and still achieve our uh expected IR or has have things changed after the recent volatility that we have seen. 25:23 25 minutes, 23 seconds See this current war and this current uncertainty volatility is a temporary phase 25:30 25 minutes, 30 seconds uh this uh will not last long. We are very confident as a CI. Further any 25:37 25 minutes, 37 seconds project any vessels when we purchase secondand assets or the new assets uh as 25:43 25 minutes, 43 seconds a vessel we evaluate as a project each and every vessel separately indently and if IR is making commercial sense then 25:52 25 minutes, 52 seconds only our board approves this that is our procedure one. Second when we will out charter this vessel to maybe OMC or 26:00 26 minutes outside market then if it is OMC definitely it will be linked to the some market indexes. Uh so that there is a uh 26:09 26 minutes, 9 seconds basically at arms length uh earnings and the expenses for both the sides and that will be quite fair for the prevailing 26:16 26 minutes, 16 seconds market. So it will capture what is the prevailing market sentence uh sentiments and the whatever the prevailing market 26:23 26 minutes, 23 seconds rates basically. So these are the two points which you have asked. Uh hope I have clarified this. 26:29 26 minutes, 29 seconds Uh yes sir. But any minimum IR threshold that we have in mind considering the full cycle in mind or let's say over the longer run. 26:38 26 minutes, 38 seconds Uh as earlier also I mentioned we look for at least a 10 to 12% range of error. 26:45 26 minutes, 45 seconds 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 in let's say in other 26:53 26 minutes, 53 seconds 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 27:00 27 minutes give us some more color uh uh with that respect I mean so from what I understand there will be it will be linked to global index plus there will be some 27:08 27 minutes, 8 seconds plus minus formula and plus over and above we the shipping corporation will have some management fees am I right 27:15 27 minutes, 15 seconds see uh as far as this global indexes as you said it's a global it is not a restricted to India entire world 27:24 27 minutes, 24 seconds shipping use this indices one. Second this formulas what uh we 27:30 27 minutes, 30 seconds have in mind these kind of formulas are being used by various international sip owners charterers even India also when 27:39 27 minutes, 39 seconds we have the coa with the OMC's similar kind of formulas are used they use the prevailing market condition and some 27:47 27 minutes, 47 seconds plus minus uh factors some of the factors may be the bunker adjustment factor and maybe some floor some ceiling 27:56 27 minutes, 56 seconds also may be there just to rule out any abnormal variations in freight. So this is a normal uh practice in shipping and 28:05 28 minutes, 5 seconds uh we have used as SCI and this is what we are thinking also to keep it transparent from the uh JV perspective 28:13 28 minutes, 13 seconds also and from the charter perspective also. 28:16 28 minutes, 16 seconds Okay. Okay. And just in case if the shipping cycle turns the other way, what downside protection does this kind of 28:23 28 minutes, 23 seconds arrangement uh uh gives us or or is it how is it embedded into this uh arrangement? 28:30 28 minutes, 30 seconds See normally in this kind of formula we have got the two ceilings floor and the top also so that just in case it goes 28:38 28 minutes, 38 seconds beyond some certain level then uh basic operating costs are covered and top side 28:45 28 minutes, 45 seconds also it goes uh in a normal manner then charter also is not penalized unnecessary. So we 28:56 28 minutes, 56 seconds but the management line got disconnected. We'll just try connecting again. Please be connected. 29:17 29 minutes, 17 seconds We have the management line reconnected. Please go ahead. 29:21 29 minutes, 21 seconds 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. 29:29 29 minutes, 29 seconds Okay. Okay. Got it sir. And sir with respect to this JV only oil PSU is JV. 29:35 29 minutes, 35 seconds Uh what uh percentage of their overall demand will be routed through this JV. 29:42 29 minutes, 42 seconds See uh you know this India today we are basically nearly $80 billion is going 29:50 29 minutes, 50 seconds out of country in terms of rate. So this proposed concept this model is an action in that direction to basically minimize 29:59 29 minutes, 59 seconds that this demand aggregation done by FCI by our ministry and by oil companies uh 30:06 30 minutes, 6 seconds is just initial phase in the direction and currently this is to capture basically maybe 25 to 30% of that component. 30:16 30 minutes, 16 seconds Okay. But eventually it can go up as well. 30:18 30 minutes, 18 seconds Yeah. Yeah. See our overall idea is this whatever the money is going out of country directly indirectly that all 30:26 30 minutes, 26 seconds should be basically uh it should be retained within the country and the economy. 30:32 30 minutes, 32 seconds Okay. Okay. Because we have done similar GV with I think SE or other uh PSC organizations as well. So can we expect 30:39 30 minutes, 39 seconds extension of this model into other areas of the economy as well or other uh other imports that we are doing? 30:46 30 minutes, 46 seconds You see sale we have not done yet. Uh but uh there will be definitely uh this 30:52 30 minutes, 52 seconds is just an experiment and this uh model will work. We are very sure. Uh we have got the support from the oil companies. 31:00 31 minutes SEI is there and this is under direct control of the basically ministry. So we will take similar model in other areas 31:07 31 minutes, 7 seconds also. This is in the oil and gas. Maybe in the dry bulk also we may go ahead with this same formula. 31:14 31 minutes, 14 seconds Okay. answer you what's the status of the JV at what uh stage of approval it is when is it going to come online so 31:24 31 minutes, 24 seconds uh at this is under active consideration of our ministry okay any expected timelines for it to 31:31 31 minutes, 31 seconds get operationalized uh no at this timeline uh we do not have the information but once we have the 31:39 31 minutes, 39 seconds information once uh this is approved definitely we'll inform all the our shareholders We will disclose at the stock exchange. 31:48 31 minutes, 48 seconds Okay. Okay. Sure. Thank you very much, sir. 31:52 31 minutes, 52 seconds Thank you. The next question is from the line of Ronak Singh from NFA asset managers. Please go ahead. 32:00 32 minutes Hello. Can you hear me? 32:04 32 minutes, 4 seconds Hello. So I would want to know the dry docking schedule for the next two financial years. 32:12 32 minutes, 12 seconds Dry talking schedule for next two financial years. 32:16 32 minutes, 16 seconds Just a minute. Just a minute. Let me uh take help of my pens and director. How many tankers bulkies are planned? 32:25 32 minutes, 25 seconds Just be online please. Yeah. Yeah. 32:31 32 minutes, 31 seconds Otherwise what we can do we can share this information with you and uh see the dry dock is done uh normally twice in 32:39 32 minutes, 39 seconds five years and uh it's a requirement how many bulkheads are planned this time 32:51 32 minutes, 51 seconds what we'll do we'll share this information with you after this call okay thank you thank 32:59 32 minutes, 59 seconds Thank you. The next question is from the line of Isha Sha from Nirzar Enterprise. Please go ahead. 33:07 33 minutes, 7 seconds Hello. Good afternoon. Am I audible? Yes. Good afternoon. Loud and clear. Please go ahead. 33:14 33 minutes, 14 seconds Yeah. Um hope you're doing well sir and uh congratulations on good set of numbers. Sir, I had two questions. Okay. 33:22 33 minutes, 22 seconds First one it is on uh we uh as you mentioned in the notes two accounts you know of the recent quarter that our 33:30 33 minutes, 30 seconds three vessels are still uh stuck in state of war moves and there you have explained that the freight has been recognized on the basis of how muchever 33:39 33 minutes, 39 seconds the percentage of voyage completion so I'm trying to understand I is this accounting treatment or irrespective of 33:47 33 minutes, 47 seconds of the type of agreement we are into like time charter voyage charter or spot or is it only for the voyage contract 33:56 33 minutes, 56 seconds that we have these uh uh accounting and also like how much revenue can be recognized from these vessels or would we get any revenue? 34:07 34 minutes, 7 seconds Uh see number one these vessels three vessels which are mentioned all three are on the voyage. void. Okay, 34:16 34 minutes, 16 seconds correct. And whatever the this uh uh proportionate revenue we have recorded 34:23 34 minutes, 23 seconds in our books uh that is as per accounting system and that is as per the charter party. 34:30 34 minutes, 30 seconds Okay. So going forward we can expect more revenue to be recognized for this right? 34:35 34 minutes, 35 seconds Yes. The remaining part once the voice gets over rest will come in the next FY. 34:41 34 minutes, 41 seconds Uh okay sir sir and uh recently to one of the questions about that you mentioned uh that operate uh like you 34:47 34 minutes, 47 seconds know if for the cycle goes down then the operate like what the the flooring would be in such a way that the operating cost 34:55 34 minutes, 55 seconds gets covered but what about the interest cost would that also get covered interest 35:03 35 minutes, 3 seconds part of that formula uh but uh this formula is normally for that only EOA Okay. Or at the most it 35:12 35 minutes, 12 seconds can be in time charter also. If it is in export for the voyage then the prevailing market condition uh uh we have to basically use it. 35:23 35 minutes, 23 seconds So for time charter will the interest and depreciation cost also be covered. Would you like to comment on this? 35:32 35 minutes, 32 seconds Yeah good evening. Uh this is Nan Kamishra director of finance website. 35:37 35 minutes, 37 seconds Hello. Uh yeah, good evening. Uh from the time charter perspective, whenever we are basically deploying any vessel on 35:45 35 minutes, 45 seconds the time charter, it has uh standing charges built into it. It has the uh 35:52 35 minutes, 52 seconds basically the interest and the other indirect operating expenses also built into it. then return on the effort is also built into it to ensure that the 36:01 36 minutes, 1 second time charter market is basically giving the adequate financial benefit to FCI. 36:09 36 minutes, 9 seconds Now uh to answer your question whether in the formula we can build any floor or gap normally whenever it's a contractual 36:17 36 minutes, 17 seconds task whenever in the future uh let's say for the example of the JV when we are trying to build it definitely we would 36:24 36 minutes, 24 seconds like to cover as much as of the cost standing cost indirect operating expense and to the extent whatever be the 36:31 36 minutes, 31 seconds financial cost we can basically built into the floor but it all depends on the commercial agreement with the counterparty. 36:38 36 minutes, 38 seconds So it's very so sir the standing cost of does does it also include depreciation? 36:45 36 minutes, 45 seconds Yeah, it includes depreciation, right? And also so in the JV can then can we expect like a 10 year 10 to 12 year of time 36:54 36 minutes, 54 seconds charter as an SEI we would love to have the 37:02 37 minutes, 2 seconds maximum possible of the uh useful life of the asset covered through the time charter model. But that uh modalities 37:10 37 minutes, 10 seconds will be finalized once once we have the vessel acquisition uh process in place. 37:15 37 minutes, 15 seconds we will sit with the counterparty for the commercial terms and condition then these terms can be worked out. 37:21 37 minutes, 21 seconds Okay. and any minimum RO fee or anything uh that you would have planned for the JV or at least would have thought of since we are going with the acquisition. 37:32 37 minutes, 32 seconds uh it it's it's a similar lines what uh CMD sir has al also mentioned for the SPI acquisition plan we would like to 37:40 37 minutes, 40 seconds have basically IRRa in range of around 10 to 12% broadly so IRRa would be what covering your 37:48 37 minutes, 48 seconds depreciation interest and operating cost or ROC like what's the definition of IRRa here 37:54 37 minutes, 54 seconds uh it's the IRRa is basically the over the project life what is the return is generated out of that particular project 38:02 38 minutes, 2 seconds on a discounted basis. That is the definition of IR. Okay. It's not RO, right? No, no, it's not ROC. 38:10 38 minutes, 10 seconds 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 38:19 38 minutes, 19 seconds impact on earnings, ETI or profitability with a current charter book? 38:24 38 minutes, 24 seconds Uh it's 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. 38:33 38 minutes, 33 seconds Okay. But any delta that you can like you all would have thought of. 38:38 38 minutes, 38 seconds That's the market indices you can compare uh 3 months before market to the current market the delta will be available to you. 38:46 38 minutes, 46 seconds Okay. Okay. Thank you so much sir. 38:48 38 minutes, 48 seconds Thank you. Thank you. It will be basically all prevailing market conditions. Okay. Okay. 38:56 38 minutes, 56 seconds Thank you. The next question is from the line of Adita Ladhard from Stallion Asset. Please go ahead. 39:03 39 minutes, 3 seconds Uh hello sir. Am I audible? Yes sir. Please go ahead. 39:08 39 minutes, 8 seconds Yes. So congratulations firstly on a great set of numbers. uh from what I understand broadly the TAM for us is huge as you mentioned $80 billion of 39:17 39 minutes, 17 seconds freight to overseas uh uh you know overseas shipping companies and I guess the top three OMC's also spent close to 39:23 39 minutes, 23 seconds 40,000 cr on their freight bill and then with the Bhatamitkal Marine mission last year we really sort of put the trigger 39:32 39 minutes, 32 seconds into the shipping uh sector of India. So with this JV announced also 59 vessels. 39:39 39 minutes, 39 seconds Uh so right now I wanted to know is given the importance of this sector to our country right now is the government uh having any other additional 39:48 39 minutes, 48 seconds incentives for the uh procurement of ships that would that we would do in the JV or outside the JV maybe in terms of 39:55 39 minutes, 55 seconds some uh tax tax writebacks or GST taken off or any other way of incentive. 40:04 40 minutes, 4 seconds The government of India has taken various initiatives today as a country. 40:09 40 minutes, 9 seconds There are two clearcut priorities for the government of India. One is the have the ship construction now done in India 40:17 40 minutes, 17 seconds especially the commercial big vessels should be built in India. That is a priority one. Uh parallelly that Indian 40:24 40 minutes, 24 seconds tonnage should increase. These are the two clearcut priorities not to support the ecosystem for the building in India. 40:33 40 minutes, 33 seconds uh already various schemes have been announced and these are the ship building financial assistance even uh at 40:40 40 minutes, 40 seconds the time of scrapping of vessels credit notes policies announced. So this is uh working all in the circular economy. Uh 40:49 40 minutes, 49 seconds government of India at every stage is trying to support the especially the ship builders uh so that this they become competitive to build the vessels 40:58 40 minutes, 58 seconds in India and they can we can compete as a country with the China maybe South Korea. Now coming to the ship owner side 41:07 41 minutes, 7 seconds also there are some uh minor incentives are there and with the help of this assistance going to the ship holder then 41:15 41 minutes, 15 seconds that uh benefit uh we expect this will be transferred to the ship owners also. 41:20 41 minutes, 20 seconds So these are the overall basically ecosystem what government of India especially our ministry of shipping is 41:27 41 minutes, 27 seconds working on and this various schemes policies are already uh announced they are published they are available for the industry today. 41:37 41 minutes, 37 seconds Got it understood. So what would be the name of our current ships? 41:44 41 minutes, 44 seconds Sorry can you repeat your question please? 41:47 41 minutes, 47 seconds What would be the NAV of the ships that we have in a portfolio entry? 41:53 41 minutes, 53 seconds Yeah, I'll answer your question. Uh the NAV on a consolidated basis is roughly around 300. 42:01 42 minutes, 1 second 300. Got it. Got it. And so lastly on this Bharat shipping line, uh that also sounds like a very interesting JV that 42:09 42 minutes, 9 seconds they'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 42:17 42 minutes, 17 seconds and you know what would be our share of uh and what would be our share in the JV overall. 42:26 42 minutes, 26 seconds See this proposed JV for the container is Bat container shipping line. In this SEI will be the one of the partner 42:35 42 minutes, 35 seconds Concore also will be the one of the uh partner where Concore and SEI we are expected to have around 30% shareholding. 42:46 42 minutes, 46 seconds uh this number of vessels uh at the initial phase we have identified 51 vessels as a demand aggregation for this bat container shipping line. 42:58 42 minutes, 58 seconds So any timeline for this 51 missiles? 43:01 43 minutes, 1 second Uh these are this is over basically next uh 5 years. Next 5 years. 43:09 43 minutes, 9 seconds Got it. 43:10 43 minutes, 10 seconds Uh sorry can you end this? This is for up to 20 4751. Okay. Up to 2047. Got it. Understood. 43:19 43 minutes, 19 seconds And so any uh so Mr. L could you just return to the question? We have many participants. 43:25 43 minutes, 25 seconds Last last question ma'am. Also, it's a request. Please return to the question queue. Okay. 43:32 43 minutes, 32 seconds Thank you. Participants, please limit your questions to one question per participant so that all the participants can address their questions. The next 43:40 43 minutes, 40 seconds question is from the line of Divraal from Fitcom Family Office. Please go ahead. 43:46 43 minutes, 46 seconds Yeah. Hi sir, thanks for taking my question. Uh so sir, I just had one question. So uh given the current geo geopolitical scenario, can you give us a 43:54 43 minutes, 54 seconds sense of how the mix has changed between the long-term contract versus the spot contract and and also can you can you give us a sense of uh the mix that we 44:03 44 minutes, 3 seconds have right now for our 58 vessels between the long-term contract and the spot contracts? 44:09 44 minutes, 9 seconds See today especially in the tanker segment the spot rates are very very high multiple times what were prevailing 44:18 44 minutes, 18 seconds pre-war and uh we are sure after war these numbers will definitely will come down 44:24 44 minutes, 24 seconds to the whatever were prevailing pre-war asci we have got this uh voyage and the 44:31 44 minutes, 31 seconds time charter we have nearly 60% of tanker fleet on voyage and nearly 40% on the time charter 44:41 44 minutes, 41 seconds Right. So just a follow up on this. So the uh so the rate increase that we are witnessing right now revenue recognition would be uh in the coming quarters. Is that right? 44:51 44 minutes, 51 seconds Yes. Yes. This all impact should be visible should be reflected in any owners uh uh P&L in the next quarter. 44:59 44 minutes, 59 seconds Right. So thank thanks a lot sir. 45:02 45 minutes, 2 seconds Thank you. The next question is from the line of Rakkesh Roy from Boring AMC. Please go ahead. 45:09 45 minutes, 9 seconds Hi sir. Uh my first question regarding as you mentioned on 31st March uh four ship is stuck in almost how much revenue is impacted from this one sir in Q4. 45:21 45 minutes, 21 seconds Can you tell me see uh what will be the total impact 45:31 45 minutes, 31 seconds uh these voes remains unfinished voyages. 45:35 45 minutes, 35 seconds So overall final tuning as far as the revenue is concerned will happen once the voice gets over. 45:44 45 minutes, 44 seconds Okay. 45:46 45 minutes, 46 seconds Yeah. The are still in progress unfinished. 45:51 45 minutes, 51 seconds Okay. Any idea any any rough figure as per your estimate estimate how much revenue come to a Q1 and how much revenue we recognize in Q4? 46:01 46 minutes, 1 second No, it will be very difficult to give you number at this stage. Uh we we can watch and get this uh voyages completed 46:09 46 minutes, 9 seconds then we can uh this will reflect in the Q1 definitely. 46:13 46 minutes, 13 seconds Okay. One one more question sir. Uh ad plan to add old or new ship in SEI books 46:20 46 minutes, 20 seconds in FI27 as you mentioned because in FI27 old secondhand or new ships. 46:26 46 minutes, 26 seconds Yes. Yes. We have got a clearcut plans and uh we would be our plan is to order some new vessels as well as purchase 46:34 46 minutes, 34 seconds some second assets also need for in FI27 to add in FI27. 46:42 46 minutes, 42 seconds Yes. Yes. In current 26 27 we have a plans and uh in fact uh on 29th October 46:51 46 minutes, 51 seconds honorable prime minister has announced our long-term business plan which is up to 40 47. 46:58 46 minutes, 58 seconds Okay. Right. One more question. Please return to the question. Yeah please. Yeah yeah yeah. 47:05 47 minutes, 5 seconds Thank you so much. 47:08 47 minutes, 8 seconds The next question is from the line of Anushi from Alpha Invesco. Please go ahead. 47:16 47 minutes, 16 seconds Anushi ma'am your line is unmuted. Please go ahead. Hello. Am I audible? Yes ma'am. Please go ahead. 47:23 47 minutes, 23 seconds Yeah. Hello sir. Congratulations on a good set of numbers. So I had a question. So earlier during maritime 47:30 47 minutes, 30 seconds India vision we had indicated that we are going to purchase around 216 vessels approximately with investments of 1 lakh 47:39 47 minutes, 39 seconds cr by 2047. So can you just clarify how this larger fleet expansion will be executed? Will it be through the JV 47:48 47 minutes, 48 seconds route? Like you mentioned there is also some planned vessels under the Bharat shipping line. So how much will be included rate and how much will be 47:57 47 minutes, 57 seconds independently done by SBI and also does this 216 vessels also include the UV where 59 vessels demand 48:07 48 minutes, 7 seconds that we have planned under the SHUs and so how much of these vessels do you 48:13 48 minutes, 13 seconds think are you planning uh will be secondhand vessels and how much of it will will be new builds I think 48:22 48 minutes, 22 seconds these are my questions Yeah, see the number of vessels uh you have already read in various uh uh 48:30 48 minutes, 30 seconds publications 59 vessels are scheduled under oil and gas at this stage as a part of demand aggregation. 48:38 48 minutes, 38 seconds uh nearly 51 ships are planned under Bat container shipping line and rest of the vessels this will be basically under SEI 48:48 48 minutes, 48 seconds or maybe then uh some further plans of this both the JBs or maybe some new JVS also but this plan is up to 2047 48:56 48 minutes, 56 seconds long-term plan uh so uh this definitely will be reviewed periodically by the CI board and by the board of this proposed 49:05 49 minutes, 5 seconds JBs also And so my uh last question was what was uh what is the plan of the new build 49:13 49 minutes, 13 seconds versus secondhand vessel? How many are going to be new build versus second hand? See at this stage if we order new 49:22 49 minutes, 22 seconds vessel as a company and our intention clearcut intention is that we order this vessel in India so that Indian civility get some orders form order and it grows. 49:34 49 minutes, 34 seconds Uh by the time we get the delivery of those new vessels built in India, it will take at least couple of years. So in meantime to basically augment our 49:42 49 minutes, 42 seconds fleet, we will be purchasing secondhand vessels also. So this will be the initial phase where first, second, third 49:49 49 minutes, 49 seconds year we will be adding second and 10 age and then a new fleet will start joining the fleet. Okay. 49:55 49 minutes, 55 seconds So any number you have in your plans how many are you going to add in the first three years the second? 50:03 50 minutes, 3 seconds Uh 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. 50:11 50 minutes, 11 seconds Okay. Thank you. Yeah. Thank you. Thank you. 50:14 50 minutes, 14 seconds Thank you. The next question is from the line of Amitab Watsia from Sadanan Ventures. Please go ahead. 50:23 50 minutes, 23 seconds Yeah, thank you for the opportunity. U my question is with respect to the land asset holding company SL. 50:32 50 minutes, 32 seconds So can uh can is there are some rumors or some news about reverse merger of SL 50:40 50 minutes, 40 seconds with SCI? Uh is there a possibility or because some development is happening with NBCC contract MOU has been signed. 50:48 50 minutes, 48 seconds So some color on that is possible. 50:53 50 minutes, 53 seconds See number one this NBCC MOU science a few days back and idea is we have a one 51:01 51 minutes, 1 second big training institute in Pav uh company wants to upgrade that and uh that company has already done the MOU 51:09 51 minutes, 9 seconds with the one of the big international ship manager synergy. So we want to upgrade we want to utilize that capacity 51:17 51 minutes, 17 seconds to the best possible way. As far as this SEI L and SEI reversal is concerned. SEI 51:24 51 minutes, 24 seconds L is a separate legal entity and this is a matter where the government or ministry will take decision if at all 51:33 51 minutes, 33 seconds anything is there. Uh we have no information regarding this at this stage. Okay. Thank you. 51:41 51 minutes, 41 seconds Thanks. 51:41 51 minutes, 41 seconds Thank you. The next question is from the line of Suraj from Bridget Global. Please go ahead. 51:49 51 minutes, 49 seconds Good evening sir. Good evening G. Hello. 51:54 51 minutes, 54 seconds Uh so my first question is that uh during the last phone call uh it was mentioned that all the vessels that are going to be acquired would be secondend 52:03 52 minutes, 3 seconds vessels but since you uh mentioned uh recently and also on the tenders page all I could see is uh new vessels being 52:11 52 minutes, 11 seconds acquired. So uh are there any changes in plans or any sense on that? And secondly I wanted to understand on the insurance 52:20 52 minutes, 20 seconds thing. Recently we heard that uh uh India would be having its own insurance 52:27 52 minutes, 27 seconds setup for shipping instead of the global insurance setup which everyone's following. Would that have any impact on our financials? 52:36 52 minutes, 36 seconds See first your question uh SCI always had the plan to purchase new SL as well 52:44 52 minutes, 44 seconds as a second hand and this number may vary with the time as and when we review with the dynamic condition of the 52:51 52 minutes, 51 seconds market. Today we have got a still same plan we will purchase new as well as the second end vessel. Coming back to the 52:59 52 minutes, 59 seconds insurance part, uh during this war situation, we all have seen the insurance cost for the vessels has gone 53:07 53 minutes, 7 seconds multiple times especially vessels which were stuck inside the straight of Hormos or operating in the high-risk area. So 53:15 53 minutes, 15 seconds to realize that in fact some of the vessels were not get getting even the insurance cover. So government of India 53:23 53 minutes, 23 seconds came forward and they already created a pool insurance pool. uh that pool will help in this situation uh for the SIP 53:30 53 minutes, 30 seconds owners with the help of our insurance companies public sector so that Indian sip owners can get the insurance cover 53:38 53 minutes, 38 seconds at a reasonable price and uh international market should not basically make money out of this. Uh there this food will come in picture and 53:47 53 minutes, 47 seconds this is a very good initiative taken by government of India. Understood sir. Thank you. Thank you. 53:54 53 minutes, 54 seconds Thank you. The next question is from the line of H Sha from GM Financial PMS. Please go ahead. 54:02 54 minutes, 2 seconds Uh yeah uh thanks for the opportunity. 54:04 54 minutes, 4 seconds Uh just one question from my end. Uh so basically uh in terms of uh what you all 54:11 54 minutes, 11 seconds mentioned uh in the last con call uh with respect to the aspiration of uh growing the revenue by two to three 54:18 54 minutes, 18 seconds times in the next four to five years. So that is basically uh taking into account uh whatever is happening in the JV 54:26 54 minutes, 26 seconds right. So the accounting of that JV uh would be uh done via the equity method or the numbers would be uh consolidated. 54:37 54 minutes, 37 seconds Just wanted a clarification on that. 54:44 54 minutes, 44 seconds Yeah, Mr. Nin will answer this. uh means uh the question what you are asking whether the once the JV is in place how 54:52 54 minutes, 52 seconds the revenue will flow to the FCI book yes that that's the precise question that will be on the equity man that will be 54:59 54 minutes, 59 seconds on equity method okay so basically the numbers would not be consolidated just before the PBT it would be uh share of 55:09 55 minutes, 9 seconds correct okay got it yeah uh that's it from time thank you thank The next question is from the line of 55:17 55 minutes, 17 seconds Bhavya Gandhi from Bajage Alternative Investments. Please go ahead. Yeah. Uh hello. Can you hear me? 55:26 55 minutes, 26 seconds Yes. Yes, please go ahead. 55:27 55 minutes, 27 seconds Yeah. I just wanted to understand is there any mandatory requirement for oil companies to use the services of SEI as of now? 55:35 55 minutes, 35 seconds No, no, no. There is no compulsion either side. In fact, SEI or good company operate in international and very serious competition. 55:48 55 minutes, 48 seconds Okay. And uh with respect to JV because already we were doing business with uh all these oil companies, right? Uh so 55:56 55 minutes, 56 seconds special purpose of forming this JV is it just to purchase assets and then rent it out? 56:03 56 minutes, 3 seconds See the overall purpose as I mentioned uh we have got the cargo in hands of OMC's and if OMC's or the proposed JV 56:13 56 minutes, 13 seconds has got the ships also then this freight which was going out of country can be retained to a certain extent that is a basic intention of this 56:22 56 minutes, 22 seconds okay and what is the spend currently by all these oil companies what is can you repeat your question 56:30 56 minutes, 30 seconds what is the total spend by All this top three four companies we have to check to check uh this number with the help of 56:39 56 minutes, 39 seconds the OMC we 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 56:47 56 minutes, 47 seconds thank you the next question is from the line of Akia an individual investor please go ahead 56:55 56 minutes, 55 seconds yes uh thank you so much for the opportunity sir and uh congratulations on uh good performance 57:02 57 minutes, 2 seconds So uh last call 57:14 57 minutes, 14 seconds around 57:30 57 minutes, 30 seconds uh concentrated. 57:44 57 minutes, 44 seconds So we had to wait for some more time. 57:52 57 minutes, 52 seconds It's a basically strategic need for the country. 58:05 58 minutes, 5 seconds participants question 11% 11% broadange 58:20 58 minutes, 20 seconds forward floor and ceiling you see proposal 58:35 58 minutes, 35 seconds need strategic importance of project key then board has got power to take some decisions 58:48 58 minutes, 48 seconds and uh sir which questions Followest. 59:20 59 minutes, 20 seconds Hello. 59:25 59 minutes, 25 seconds No, the management line's been disconnected. 59:29 59 minutes, 29 seconds I'm just calling them again. Just a minute, please. Yes, the line's reconnected. 59:41 59 minutes, 41 seconds Hello. 59:59 59 minutes, 59 seconds finance department. 1:00:08 1 hour, 8 seconds Thank you. Thank you so much. 1:00:20 1 hour, 20 seconds Nothing abnormal. It's a normal ECL provision means nothing significant which is need to be shared at this point of time. 1:00:28 1 hour, 28 seconds Okay. Okay. Thank you so much sir. 1:00:37 1 hour, 37 seconds India as a country. 1:00:56 1 hour, 56 seconds Thank you ladies and gentlemen. That was the last question. I now hand the floor over to Mr. Vart Raj Rajan Sasankaran from Antique Stock Broking. Over to you sir. 1:01:06 1 hour, 1 minute, 6 seconds Thank you SA. Uh in case like you know there are any participant with more questions. So you can share it with us or directly take it up with the SEI 1:01:14 1 hour, 1 minute, 14 seconds investor relation team. I'd like to thank the management of SEI for all the detailed answers as well as giving us the opportunity to host the call and if 1:01:23 1 hour, 1 minute, 23 seconds you have any closing remarks to be made uh please go ahead. 1:01:28 1 hour, 1 minute, 28 seconds Thank you Vajan G. At the end I would like to thank the investors and analysis who have joined the conference and have 1:01:36 1 hour, 1 minute, 36 seconds reposed their continued confidence in SEI. We are committed for continuous improvement which have been witnessed 1:01:44 1 hour, 1 minute, 44 seconds over the last three years and strategic initiatives would earn manifold growth for the organization and ultimate value to our shareholders in the years ahead. 1:01:56 1 hour, 1 minute, 56 seconds In case you have any further queries or questions, you can get in touch with our investors relation. Uh thank you ladies and gentlemen. Best wishes to everyone. 1:02:05 1 hour, 2 minutes, 5 seconds Thank you. 1:02:06 1 hour, 2 minutes, 6 seconds 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. 1:02:16 1 hour, 2 minutes, 16 seconds Thank you everyone.