Established in **1985**, Shahi Shipping Limited is a pioneer in the Indian transshipment and coastal logistics sector. Headquartered in **Mumbai** with a strategic branch in **Goa**, the company specializes in sea logistics and cargo transportation within the inland water limits of Indian ports. Shahi Shipping is recognized for introducing **3,000 DWT** multipurpose cargo vessels to the Indian market and continues to focus on niche coastal operations. --- ### **Core Operational Capabilities & Fleet Infrastructure** Shahi Shipping operates exclusively within the **Shipping segment**, providing essential maritime services that bridge the gap between deep-sea vessels and inland distribution. * **Service Portfolio:** * **Lighterage & Transshipment:** Handling liquid cargo (Petroleum and Chemicals) and bulk cargo. * **Specialized Distribution:** Fuel oil distribution for **Indian Oil Corporation (IOCL)** and bunker supply to vessels. * **Port Support:** Tug services for port activities and container feeder services along the Indian coastline. * **Fleet Specifications:** * The company currently owns **8 vessels** (downsized from **13** in 2024). * Vessel capacities range from **150 DWT to 3,500 DWT**. * **Design Advantage:** Expertise in **low-draft vessels** specifically engineered for shallow Indian coastal waters and riverine navigation. * **Maintenance Cycle:** Vessels undergo major drydocking and repairs every **5 years**. While essential for safety and compliance, these cycles result in periodic short-term charter unavailability. --- ### **Financial Performance & Earnings Summary** The company has recently faced a volatile financial environment, transitioning from profitability in FY 2023-24 to a loss-making position in FY 2024-25, primarily due to non-recurring write-offs. **Three-Year Financial Comparison (Standalone):** | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **₹10.58 Crore** | **₹12.43 Crore** | **₹10.89 Crore** | | **EBITDA** | **₹3.20 Crore** | **₹3.17 Crore** | **₹1.36 Crore** | | **Profit Before Tax (PBT)** | **₹(3.73) Crore** | **₹2.45 Crore** | **₹0.35 Crore** | | **Profit After Tax (PAT)** | **₹(3.57) Crore** | **₹2.59 Crore** | **₹0.41 Crore** | **Historical Per-Share Data:** * **Basic & Diluted EPS (FY 2022-23):** **₹0.28** * **Basic & Diluted EPS (FY 2021-22):** **₹(0.06)** * **Weighted Average Shares:** **14,494,870** (Face Value **₹10.00**) --- ### **Strategic Growth Drivers & Macro Alignment** Management is pivoting toward a growth strategy that leverages India’s massive maritime infrastructure overhaul. * **The Sagarmala Initiative:** Shahi Shipping is positioning itself to benefit from the **$123 billion** government spend aimed at doubling the port industry’s share in cargo movement by **2025** and operationalizing **23 waterways by 2030**. * **Fleet Diversification:** Following a market survey, the company is proposing the acquisition of **petroleum and allied carrying vessels** to capture demand in India, China, the Middle East, and Southeast Asia. * **Technological Integration:** Implementation of **Automation, Big Data Analytics, and AI** to enhance operational safety and reduce costs. * **Sustainability:** Exploring **eco-friendly technologies** and cleaner fuels to comply with new **IMO and CII** greenhouse gas regulations. **Market Context & Targets:** | Initiative | Target / Impact | | :--- | :--- | | **Maritime India Vision 2030** | **150+ initiatives** for comprehensive maritime development. | | **Coastal Freight Growth** | **16% increase** recorded in 2022-23; non-metro port capacity growing at **6%**. | | **Revenue Potential** | Annual industry potential estimated at over **US$81 billion**. | --- ### **Exceptional Items & Asset Impairments** The FY 2024-25 losses were significantly influenced by the management's decision to clean up the balance sheet through prudent write-offs: * **Interest Subsidy Write-off:** **₹6.45 Crore** previously due from the **Central Government/Inland Waterways Authority** was written off as recovery became uncertain despite legal petitions. * **Capital WIP Write-off:** **₹2.10 Crore** related to the **Mankhule Drydock Project** was written off following the expiry of the project's lease period. --- ### **Risk Factors & Contingent Liabilities** Investors should note several operational and regulatory hurdles that impact the company’s risk profile. **1. Litigation & Tax Disputes:** * **Service Tax:** Disputed demand of **₹7.17 Crore** (2009-2017) currently under appeal. * **Customs Interest:** **₹33.53 Lakh** demand challenged in the **Mumbai High Court**. * **GST:** **₹14.13 Lakh** dispute for FY 2017-18; interest and penalties are under appeal. **2. Audit & Compliance Observations:** * **Internal Controls:** Auditors issued a modified opinion regarding the lack of adequate **Internal Financial Controls (IFC)**. * **Verification Gaps:** Lack of third-party confirmations for **Trade Payables (₹2.09 Crore)** and **Trade Receivables (₹1.77 Crore)**. * **BSE Listing Status:** Trading was previously suspended due to non-payment of **Annual Listing Fees (2018-2023)**, and promoter shares were frozen. * **Dematerialization:** Promoter holdings are **not 100% dematerialized**, in violation of SEBI norms. **3. Industry & Operational Risks:** * **Human Capital:** A critical shortage of **trained seafarers** and maritime executives. * **Seasonality:** Operations are heavily impacted by monsoon patterns and mandatory drydocking schedules. * **Geopolitics:** Rising threats of **piracy** in Southeast Asia and global trade sanctions affecting insurance and freight rates. --- ### **Contractual Commitments & Guarantees** The company maintains active bank guarantees (BG) totaling **₹69.86 Lakhs** to support its bidding and operational activities: * **IOCL Goa Tender:** **₹15.00 Lakh** (100% margin). * **ONGC Water Tender:** **₹25.93 Lakh** (25% margin). * **JSW Steel Ltd Tender:** **₹15.00 Lakh** (25% margin). * **Ministry of Defence:** **₹1.92 Lakh**. * **Port Trusts:** **₹12.00 Lakh** in security deposits for Mumbai and Mormugao.