My fellow shareholders,
Since my last letter to you, the world has been increasingly challenged
by geopolitical uncertainties. The war between Russia and Ukraine continues unabated with
countless lives lost. Since early October 2023, we have seen enhanced hostility between
Israel and Palestine, which too has led to multiple loss of lives. The continuance of this
hostility has now spread to Red Sea transits where ships are being targeted with drone
attacks. This stretch is an important artery for global shipping, with between 5% and 20%
of trade moving through the year, depending on the sector.
More often than not, this unsettling landscape disrupts shipping
routes, often leading to a rise in freight rates. We have seen this happen again, with
many maritime sectors benefiting from this disruption.
Specific to us, the financial year 2023-24 was another strong year, and
we reported our highest ever consolidated profit of J 2614 crores. For the second
consecutive year we reported a return on equity in excess of 20%! We also declared a
dividend per share of J 28.80. To commemorate our completion of 75 years in the business,
we further declared a special dividend of J 7.50 per share. This makes the total divided
for the year at J 36.30 per share, the highest ever!
A more detailed analysis of the shipping markets, as well as the
offshore oil and gas markets, is provided in the management commentary.
The nature of our business compels us to being price takers, and
therefore, our performance is determined by extraneous factors beyond our control. So,
whilst it is satisfying for me to talk about our highest ever profits for the year, it is
eventually determined by reasons I have stated above.
Let me now focus on areas which are directly in our control and help
build our brand with our customers. These include our safety record, our unplanned
downtime, our maintenance of ships, and our audit record, be it by customers or by
multiple regulators. This year, I am particularly happy and proud to report that in each
of these areas, we have excelled and provided our best ever performance. I am particularly
proud of our teams in our offices as well as on our assets, as this has been achieved on
an ageing fleet.
As many of you know, we more often than not buy secondhand ships as
opposed to building new ones. To acquire these secondhand vessels, we inspect multiple
ships before determining any acquisition. It is this exercise that leads me to believe
that our ships are better maintained than most owners in the world. This not only enhances
our brand, but importantly shows that an Indian company and Indian seafarers can run the
finest ships globally. What is true of our shipping assets is also true of our offshore
assets. On the next page, we have shared some of the appreciative letters sent by our
customers and others!
A lot of what we are achieving is due to our emphasis on training our
seafarers. Towards this, we have created an excellent institute in Lonavala, where every
year we train close to 400 boys and girls who wish to pursue a maritime career. In
addition, this facility also continuously enhances the skills of the more experienced set
of seafarers.
Another area where we are particularly proud is our commitment to
enhancing the lives of those who are less fortunate. Since we first set up our corporate
social responsibility foundation, we have disbursed about J 94 crores, directly impacting
the lives of more than 3 lakh people across the country. Over these years, our efforts
have spread from just urban locations to some of the remotest villages of India,
particularly the Northeast, an area often neglected. We take this responsibility as
seriously as we take the responsibility of maintaining our assets to the highest
standards.
Finally, we continue to set the bar higher. It will be upto our
Company's resilience, and our thousands of employees, to collectively and individually
meet this challenge as we serve our clients and our community.
With warm regards,
K. M. Sheth Chairman
Mumbai, May 10, 2024