Lancer Container Lines Reported 21.50 per cent Revenue Growth & Expansion Plans – Know more here!
The company has reported revenue growth of 21.50 per cent while net profit surged by 12 per cent YoY basis.
Lancer Container Lines Ltd jumped by 3 per cent on Thursday's trading session as soon as the company revealed its financial result for the quarter ending on September 30th, 2024.
In the Quarterly Results of Q2FY25, the company reported a revenue from operations of Rs 202.09 crore, marking a growth of 21.50 per cent compared to Rs 166.33 crore in Q2FY24. The Profit After Tax (PAT) for Q2FY25 stood at Rs 15.91 crore, a 12.00 per cent increase from Rs 14.21 crore in the same period last year. However, the PAT margin for Q2FY25 declined slightly to 7.90 per cent from 8.50 per cent in Q2FY24. The company continues to face disruptions in global supply chains, leading to elevated slot charges, driven by geopolitical tensions and security issues in critical trade routes such as the Suez Canal.
For the half-yearly results, the revenue from operations in H1FY25 was Rs 374.53 crore, an increase of 13.30 per cent compared to Rs 330.58 crore in H1FY24. The PAT for H1FY25 was Rs 27.97 crore, slightly lower than Rs 28.33 crore in H1FY24. The PAT margin also saw a decline, moving to 7.50 per cent in H1FY25 from 8.60 per cent in H1FY24.
DSIJ offers a service 'Pop Stock" with recommendations for intraday trading based on research and analysis to help subscribers make healthy profits. If this interests you, then do download the service details pdf here
A notable highlight of Q2FY25 has been the increase in TEU volumes. One of the key achievements of this quarter was the increase in the size of TEUS volume, reaching 23,359 TEUS. The company’s focused efforts on expanding our container fleet and optimising our service routes have led to a significant rise in the number of containers handled.
The company is set to double its container capacity by 45,000 TEUs by FY26, capitalizing on the global container shortage, rising freight rates, and China’s move to offer containers at lower costs. With a fleet of over 23,000 containers, Lancer is well-positioned to meet high demand by offering flexible leasing options, maximising fleet utilisation, and commanding premium rates. Geopolitical tensions and disrupted shipping routes like the Red Sea have further increased demand, strengthening Lancer’s market position.
Additionally, India’s National Maritime Development Program (NMDP) will help Lancer boost efficiency with improved port infrastructure, faster turnaround times, and expanded coastal and inland routes. Leveraging advanced technologies and workforce training, Lancer is ready to enhance service quality, productivity, and sustainability. With major shipping companies facing stock shortages and production lines working at full capacity, Lancer is well-timed to capitalize on the container demand surge.
Lancer Container Lines Ltd. engages in the provision of logistics services. It is engaged in the business of freight forwarding, clearing and forwarding, non-vessel operating common carrier, and trading in containers and related activities. The firm also offers less-than-container load (LCL) consolidation and break-bulk cargo services.
Investors should keep a close eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.