💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) grew 22% YoY to INR 502.74 Cr in FY24 from INR 411.11 Cr in FY23, primarily driven by the core helicopter charter services segment.

Geographic Revenue Split

Primarily 100% India-based operations, with major revenue contribution from ONGC (67%) and other domestic clients.

Profitability Margins

PAT turned positive at INR 1.21 Cr in FY24 (0.24% margin) compared to a loss of INR 16.63 Cr in FY23. TTM profit growth is down -585%.

EBITDA Margin

Operating margins improved in FY24 due to a 22% increase in TOI, though specific EBITDA % is not disclosed; rating agencies target a 3% PAT margin for positive rating actions.

Capital Expenditure

Fixed assets stood at INR 423 Cr as of March 2023; the company currently operates a fleet of 30 helicopters to meet increasing demand in the Oil & Gas sector.

Credit Rating & Borrowing

CARE Edge Stable outlook; overall gearing ratio stood at 3.81x in FY24 (up from 2.85x in FY23) with total outside liabilities to networth at 6.11x.

⚙️ Operational Drivers

Raw Materials

Aviation Turbine Fuel (ATF) and Helicopter Spare Parts represent the primary operational costs for the charter service business.

Capacity Expansion

Current fleet capacity is 30 helicopters as of May 2025; planned expansion timeline and unit counts are not quantified in available documents.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, aircraft maintenance obligations are identified as a key audit matter.

Manufacturing Efficiency

Efficiency is measured by fleet utilization of 30 helicopters and a high success rate in bidding for tenders.

Logistics & Distribution

Distribution of services is managed through a 30-unit helicopter fleet primarily serving offshore Oil & Gas sites.

📈 Strategic Growth

Expected Growth Rate

17%

Growth Strategy

Growth will be achieved through the renewal of existing contracts, winning new tenders in the Oil & Gas sector, and improving profitability by eliminating LD charges and implementing price escalation clauses.

Products & Services

Charter hire of helicopter services for offshore and onshore operations.

Brand Portfolio

Global Vectra Helicorp.

Market Expansion

Focusing on the increasing demand from Oil & Gas companies in India.

Market Share & Ranking

Leading player in the Indian helicopter service industry with a top-tier market position.

🌍 External Factors

Industry Trends

The industry is seeing increasing demand from Oil & Gas exploration; the company is positioning itself by maintaining a large fleet of 30 units and high bidding success.

Competitive Landscape

Limited reputed competitors in the helicopter service industry, which mitigates some customer concentration risk.

Competitive Moat

Moat is based on high entry barriers (capital intensive), specialized technical expertise, and a long track record of safety and renewals.

Macro Economic Sensitivity

Highly sensitive to the capital expenditure cycles of Oil & Gas companies and global fuel price volatility.

Consumer Behavior

Not applicable as the business is B2B; demand is driven by corporate and government tender cycles.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, Ind-AS standards, and SEBI Listing Obligations and Disclosure Requirements (LODR).

Taxation Policy Impact

No requirement to spend on CSR under Section 135 due to lack of profits in the immediately three preceding years.

Legal Contingencies

Pending litigations are disclosed in Note 31 of the financial statements; the company has also faced Liquidated Damages (LD) claims from customers.

⚠️ Risk Analysis

Key Uncertainties

Non-renewal of the ONGC contract (67% revenue) and high gearing (3.81x) pose significant risks to cash flow and solvency.

Geographic Concentration Risk

100% of revenue is concentrated in India, primarily offshore Mumbai and other domestic regions.

Third Party Dependencies

Extreme dependency on ONGC for 67% of revenue and top 5 clients for 90% of revenue.

Technology Obsolescence Risk

Risk is managed through a regular program for physical verification and maintenance of Property, Plant, and Equipment.

Credit & Counterparty Risk

Trade receivables are assessed for recoverability; provision or write-offs are monitored to ensure revenue recognition accuracy.