Shreeji Shipping Global IPO

The company relies on high cargo volumes to offset fixed costs, handling 15.71 MMT in FY25, which is 83.65% from non-major Indian ports and 16.35% from overseas, mainly Sri Lanka. Volumes dipped to 13.78 MMT in FY24 from 13.87 MMT in FY23 due to reduced coal handling at Hazira (2.63 MMT in FY22 to 0.02 MMT) and a steel industry client shifting operations. Any disruption, such as a drop in customer consignments or shifting cargo operations, can significantly impact our financial performance.

A significant 72.23% of FY25 revenue came from operations generated by them from cargo handling services on the west coast of India. While this concentration allows operational familiarity, it also heightens exposure to region-specific factors such as port congestion, infrastructure limitations, monsoon-related disruptions, and changes in regional trade flows.

A substantial portion of annual revenue is concentrated in the second half of the fiscal year due to seasonality in port operations. Specifically, the second half generated 50.73% of revenue in FY25, 50.24% in FY24, and 63.58% in FY23. This reliance exposes the company to challenges like cash flow constraints and reduced profitability in the first half, as well as increased vulnerability to seasonal disruptions such as monsoon-related port closures