Lancer Container Lines Ltd, a leading integrated shipping and logistics solutions provider in India, has entered into a strategic agreement with the prominent Indonesian company, P.T. Map Trans Logistic, Surabaya. The agreement involves leasing 10,000 TEUs (Twenty-Foot Equivalent Units and Forty-Foot Equivalent Units). The partnership was formalized in the presence of Mr. Khalik Chataiwala, Managing Director of Lancer Container Lines Limited, and Mr. Praful Jha, Director of P.T. Map Trans Logistic, Surabaya.
The management at Lancer Container Lines views this partnership as a significant step in expanding its leasing activities, which will drive the company’s business growth and enhance shareholder value. This collaboration is expected to positively impact the company’s financial performance, bolster overall growth, and strengthen its market position in the competitive logistics sector.
Earlier, Lancer announced its ambitious expansion plans to scale up its TEU capacity to 45,000 by FY26, up from nearly 20,000 in FY24. To meet the rising demand, the company plans to steadily grow its container inventory by adding 200-300 containers each month. Lancer also aims to become a fully integrated service provider and is actively exploring opportunities to purchase a new vessel. These initiatives are expected to drive healthy revenue and margin growth in the coming years.
Mr. Abdul Khalik Chataiwala, Chairman and Managing Director, stated, “Our focused efforts on expanding our container fleet and optimizing our service routes have led to a significant rise in the number of containers handled. The company’s expanded container fleet now stands at 22,707 TEUs. This growth highlights our strategic investments in fleet expansion and logistics optimization, demonstrating our ability to meet the increasing demands of global trade. In Q1FY25, we added 3,008 TEUs to our existing portfolio.”
Lancer reported impressive financial results for Q1FY25, with revenue of Rs. 172.4 crore, EBITDA of Rs. 15.91 crore, and a net profit of Rs. 12.1 crore. This performance is noteworthy amid a challenging macroeconomic environment, rising container shipping rates, persistent port congestion, and geopolitical tensions. Despite these headwinds, Lancer’s focus on optimizing operations and leveraging market opportunities has enabled the company to maintain its competitive edge.
For FY24, the company reported total revenue of Rs. 646.8 crore, an EBITDA of Rs. 88.1 crore (EBITDA Margin 13.9%), and a net profit of Rs. 58.3 crore (PAT Margin 9.2%). The improvement in EBITDA and PAT margins, rising by 320 bps and 280 bps respectively, underscores the company’s enhanced operational and financial performance.
India’s shipping logistics sector is integral to its economic growth, with the government aiming to increase waterways transport’s share from 6% to 12% by 2025. The logistics market is projected to grow to USD 317.26 billion in 2024 and reach USD 484.43 billion by 2029, at a CAGR of 8.8%.
To support this growth, the government has launched initiatives like the LEADS platform, a single-window online solution providing logistics services, including transport and warehousing. Additional incentives, such as a 12% subsidy for Indian-built and flagged vessels, along with support for shipbuilding and repairs, further stimulate the sector.
The Bharatmala Pariyojana scheme outlines the development of 35 Multimodal Logistics Parks (MMLPs) with a combined investment of Rs. 46,000 crore (USD 5.5 billion). These parks are expected to handle around 700 million metric tonnes of cargo, with 15 key locations identified for Rs. 22,000 crore (USD 2.6 billion) in funding.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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