Shreyas Shipping and Logistics, which returned to making profits in the September quarter, will be raising Rs 100-crore for expansion in the next eight- months, a top company official said.
The Mumbai-based company posted a net profit of Rs 4.86-crore for the July-September (Q2 FY 11) period, as against a Rs 6.77-crore loss in the same period last year on the back of revival in the shipping and logistics trade.
Shreyas is currently carrying out due diligence for a possible acquisition of a small logistics company, which will help it consolidate its presence in the market, its Chairman, Ramesh Ramakrishnan, told newsmen here today.
"The shareholders have given us an approval to raise up to Rs 100-crore...We will be raising the money in 6-8 months. The money raised will be used for expansion," Chief Financial Officer, Vinay Kshirsagar, said.
A substantial portion of the funds to be raised will be through the debt route, he said.
The company has also firmed-up plans to acquire two container vessels in view of the increased demand and will also be creating 1,00,000 square feet of warehousing space in the near term, Ramakrishnan said.
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Kshirsagar attributed the spurt in numbers to better freight rates, which have gone up by up to 15 per cent, a better economic climate and better cost management by the company.
The 22-year-old company is targeting to close FY 11 with revenues of Rs 190-crore as against last fiscal's Rs 148-crore and a net profit of Rs 15-crore against Rs 15-crore loss for 2009-10.