SCILAL - Shipping Land

📊 NSE: SCILAL 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 13:13

💰 Financial Performance

Revenue Growth by Segment

Total segment revenue for FY 2024-25 was INR 103.35 Cr. The MTI segment contributed INR 15.20 Cr (14.7% of total), while the 'Others' segment (Real Estate/Leasing) contributed INR 88.15 Cr (85.3% of total).

Geographic Revenue Split

100% of revenue is derived from India, primarily from assets located in Mumbai (Shipping House, MTI Land, and residential flats).

Profitability Margins

Operating Profit Margin improved to 63.04% in FY 2024-25 from 55.70% in FY 2023-24 due to better revenue income. Net Profit Margin plummeted to (1.83)% from 48.00% YoY due to a massive one-time deferred tax charge.

EBITDA Margin

Operating Profit Margin stood at 63.04%. Profit Before Tax (PBT) grew 18.22% YoY to INR 65.14 Cr in FY 2024-25 compared to INR 55.10 Cr in FY 2023-24.

Capital Expenditure

Not explicitly disclosed in INR Cr, but the company identified a need for substantial investment to make pre-1980 flats habitable and for the redevelopment of the Malad (Jangla Nagar) property into a commercial complex.

Credit Rating & Borrowing

The company did not avail any loans in FY 2024-25 or FY 2023-24, resulting in a Debt-Equity ratio of 0. Interest coverage ratio is not applicable due to zero debt.

⚙️ Operational Drivers

Raw Materials

Not applicable as SCILAL is a real estate asset holding company and maritime training provider.

Import Sources

Not applicable.

Key Suppliers

Operations are currently managed by Shipping Corporation of India (SCI) under a Service Level Agreement (SLA) as SCILAL had zero employees on its payroll as of March 31, 2025.

Capacity Expansion

Sanctioned manpower strength is 27 positions with recruitment in progress. Planned expansion includes the redevelopment of the Malad property to increase Floor Space Index (FSI) and asset value.

Raw Material Costs

Not applicable; primary costs are administrative and service fees paid to SCI under the SLA.

Manufacturing Efficiency

MTI segment reported a loss of INR 6.90 Cr in FY 2024-25, an improvement from a loss of INR 11.56 Cr in FY 2023-24, indicating narrowing losses in training operations.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

18.22%

Growth Strategy

Growth will be driven by the redevelopment of dilapidated properties (specifically Malad) into commercial complexes, resolving legacy documentation issues to realize full asset value, and enhancing MTI enrollment through improved physical infrastructure and digital marketing.

Products & Services

Real estate leasing (commercial and residential), maritime training courses, and asset monetization of non-core shipping assets.

Brand Portfolio

SCILAL, Maritime Training Institute (MTI).

New Products/Services

Redevelopment of the Malad property into a state-of-the-art commercial complex is expected to generate a new significant revenue stream.

Market Expansion

Focus is currently on optimizing and monetizing the existing portfolio of non-core assets transferred from SCI during the demerger.

Market Share & Ranking

Not disclosed for the real estate segment; MTI faces high competition from private maritime institutes.

Strategic Alliances

Service Level Agreement with Shipping Corporation of India (SCI) for operational management; legal transfer of Irano Hind Shipping Company (IHSC) is in progress.

🌍 External Factors

Industry Trends

The Indian real estate sector is heavily regulated; there is a trend toward redeveloping old Mumbai properties to utilize higher FSI, which SCILAL plans to exploit for its Malad asset.

Competitive Landscape

MTI faces intense competition from private institutes using aggressive digital marketing and superior physical infrastructure.

Competitive Moat

Moat consists of owning prime, non-core land and commercial assets (like Shipping House) previously held by a national carrier, though sustainability is challenged by the deteriorating physical condition of pre-1980 assets.

Macro Economic Sensitivity

Highly sensitive to Indian real estate regulations and interest rates, which affect property valuations and the 8% yield earned on demerger funds.

Consumer Behavior

Shift in maritime students toward institutes with robust digital presence and modern facilities.

Geopolitical Risks

Legal transfer of Irano Hind Shipping Company (IHSC) involves international joint venture complexities.

⚖️ Regulatory & Governance

Industry Regulations

Governed by Presidential Directives from the Ministry of Ports, Shipping and Waterways and the Department of Public Enterprises (DPE).

Environmental Compliance

CSR obligation for FY 2024-25 was INR 46.32 Lakhs; INR 10.11 Lakhs was spent, with INR 36.22 Lakhs transferred to an unspent CSR account.

Taxation Policy Impact

The company recognized a massive Deferred Tax Liability (DTL) of INR 238.34 Cr in FY 2024-25 related to MTI Land, resulting in a net loss for the year.

Legal Contingencies

BSE and NSE levied fines totaling INR 19.54 Lakhs (INR 9.77 Lakhs each) in November 2025 for non-compliance with SEBI (LODR) regulations regarding the composition of the Board (lack of Independent and Woman Directors) and statutory committees.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timing of NOCs from the Maharashtra Government for land transfers, which impacts the legal title and monetization potential of major assets.