Accuracy Shipping Ltd Q4 FY22 Earnings Conference Call Insights

Key highlights from Accuracy Shipping Ltd (ACCURACY) Q4 FY22 Earnings Concall

Q&A Highlights:

• Dipti Kothari from Kothari Securities enquired about the sharp increase in revenue YoY, while volume growth being only 14%. Vinay Tripathi MD said that the topline increased due to the freight rates increasing.

• Dipti Kothari from Kothari Securities also asked about the steady state growth rate going forward. Vinay Tripathi MD replied that it will remain same as the market position up to 2021-2022 remains the same.

• Dipti Kothari from Kothari Securities asked that apart from the traditional services what new age service the company is providing. Vinay Tripathi MD answered that ACCURACY is proving clearing, forwarding, transportation, and end-to-end logistics.

• Dipti Kothari from Kothari Securities enquired about the margin differential between CNF vertical and the new age verticals. Vinay Tripathi MD replied that clearing and forwarding for FY22 is INR620 crores, transportation is INR109 and other services INR14 crore. Totally INR744 crores.

• Dipti Kothari from Kothari Securities asked about the revenue breakup from fuel income, sale of HCV and the four logistics services for 4Q22 and FY22. Vinay Tripathi MD said that motor division is INR38.69 crore and fuel division is INR34.82 crore.

• Vikram Suryavanshi of PhillipCapital asked about container availability and lead time. Vinay Tripathi MD answered that in the market there is container shortage, but ACCURACY has some carrier tie up for long term. So the company does not face a lot of problem about inventory and other things.

• Vikram Suryavanshi of PhillipCapital asked about the working capital requirement for the business and ROCE. Vinay Tripathi MD answered that the working capital requires only 15 to 21 days in the dealership business. ROCE is in the range of about 5-7%.

• Atul Kothari with Progwell Securities asked about the customer additions in the last two years in terms of count and industry.  Vinay Tripathi MD answered that ACCURACY added almost 250-300 new customers in tiles, tire, agri and paper.