[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  STR [@sachprat07](/creator/twitter/sachprat07) on x 2449 followers Created: 2025-07-22 08:52:58 UTC #SME #AFCOM #AfcomHoldings #AfcomCargo Afcom Holdings FY25 Concall Highlights: 👉FY 2026 & Future Outlook : ▫️ No explicit figures were shared, due to regulatory constraints (not an earnings call), but assured that strategies are in place to achieve results as per figures shared previously 💠Mention of achieving 1000cr topline for FY26 was positively acknowledged by the management ▫️EBITDA margins (~29% FY25) would not only be maintained but could improve due to economies of scale as more aircrafts are operationalized. Fixed overheads would be amortized over multiple aircraft, enhancing margins 💠Domestic Cargo Margins: Domestic cargo operations yield approximately 80–85% of the typical yield from international operations, calculated on a per-trip basis 💠Dry lease operations target higher margins than wet lease, with the dip in H2 FY25 attributed to shifting high-yield routes to dry lease operations ▫️Management confirmed quarterly updates with audited results underway, results to be declared in August 1st week 👉Current projects and pipeline: ▫️Current operations: 💠Fleet Status: Operates two Boeing 737-800 BCF aircraft (dry lease) at full operational capacity, with the second aircraft at partial utilization (43–42%) to serve as a backup for dispatch reliability 💠The third and fourth aircraft are expected to be commercially operational by the end of Aug'25, despite a 40-day delay due to security clearances and regulatory constraints (heightened security requirements due to northwestern border tensions, the AI171 crash, and six helicopter crashes in Uttarakhand, straining DGCA resources) 💠Once the third and fourth aircraft are operational, the first three will operate at full capacity, with the fourth as a partial backup 💠Confirmed achieving XX% utilization in the balance sheet period (Load Factor). A XX% utilization rate is sufficient to break even on rentals and OpEx, achievable within the first week of operation of new aircraft due to pre-planned capacity and partnerships ▫️Operational Routes: 💠Southeast Asia: Regular operations to Bangkok, Yangon, Colombo, Maldives, and Hanoi. New sectors include Hanoi (started July 2025) with an interline agreement with Vietjet Air for connectivity to Taiwan and Korea 💠Maldives Hub: Established as a hub for westbound cargo, leveraging lower freight rates (e.g., $0.90/kg to the US from Maldives vs. $4/kg from India) by utilizing empty passenger aircraft capacity 💠Domestic Operations: Conducted XX trips for specific product movement (e.g., mobile phones), contributing X% of dry lease revenue ▫️Trip Frequency: In the given financial period, Afcom operated XXX trips on dry lease aircraft and XXX trips on a weekly schedule. Expectations are of a minimum average of six trips per week per aircraft once all four are operational, with potential for more ▫️GSSA Partnerships: Appointed General Sales Agents (GSAs) in Sri Lanka, Maldives, Thailand, and Vietnam to strengthen market presence and ensure sustainable partnerships with freight forwarders 💠GSSA commissions are 3–5%, backed by bank guarantees and a XX% cargo load factor guarantee. The credit period is 30–45 days, but reconciliation extends it to 60–65 days. The 90-day debtor cycle in FY25 was due to wet lease operation reconciliations, expected to reduce to 50–55 days with IATA Clearing House participation ▫️Tonnage and Market Share: At Chennai Airport, Afcom is the third-largest cargo carrier by tonnage, behind Emirates and Qatar, with an estimated 7–8% market share of the XXXXX tons shipped monthly ▫️Pipeline: 💠Fifth Aircraft: Discussions are underway with lessors, with a Letter of Intent signed, targeting induction by Oct'25 💠Boeing 777: Plans to induct two Boeing XXX freighters by Q3 2026, leased (not purchased), through a tripartite agreement involving Boeing, a lessor, and Afcom. The company is in advanced discussions with Boeing 💠Geographical Expansion: By 2027, aims to cover trade lanes from Japan and Korea through Southeast Asia, India, to West and South Africa. South America is a potential future market in 2–3 years, for positioning as a global cargo airline 💠Interline Agreements: Additional interline agreements for westbound and eastbound cargo are in the pipeline, to be disclosed after signing to avoid UPSI issues 👉 Others : ▫️ Safety and Reliability: Post the Air India incident, fuel systems and cut-off switches inspection was carried out, submitting satisfactory reports to the DGCA. A safety review board meeting was held to enhance flight operation safety. Maintains a 24/7 operational control center and adheres to international safety standards ▫️Dispatch Reliability: Achieved XXX% dispatch reliability over the last six months, with no delays or cancellations ▫️Financial and Operational Details: 💠Working Capital: Increased from 15cr to 25cr, with bankers willing to extend up to 75cr as new aircraft are inducted. Additional instruments are being explored 💠IATA Clearing House (ICH): Enrollment in ICH ensures payment security and reduces credit risk, with an effective credit period of 50–55 days. Over XX% of revenue is in USD, with XX% of expenditures in forex, providing a natural hedge 💠Asset Increases: An increase of 17.5cr in PPE was due to 16.4cr for ground operation equipment and 1cr for vehicles. Other non-current assets increased by 100cr, including fixed deposits (38.7cr), lease rental deposits (40.9cr), fuel deposits (3.56cr), maintenance deposits (2.05cr), and deferred revenue expenditure (64.6cr), to be amortized over XX months 💠Yield Metrics: Achieved an average yield of $XXXX per ton-kilometer, varying by sector and transit time 💠Cash Flow Reclassification: A discrepancy in cash flow from operating activities (from negative 23cr in Sept'24 to positive 31cr in Mar'25) was attributed to capitalizing expenditures for obtaining the air operator’s permit and operationalizing aircraft. The management promised to provide detailed clarification offline ▫️ Fly SBS Relationship: Afcom and Fly SBS are distinct entities (cargo vs. private jet charter), with no overlap except for common promoters and some vendor leverage ▫️Pre-IPO Anchor Investors: No specific information was provided on anchor investors exiting, with the management open to offline discussions ▫️Geopolitical Impact: Westbound freight rates have hardened due to ongoing conflicts (Suez Canal navigation issues, Pakistani airspace closure, and West Asian tensions), presenting a revenue opportunity XXXXXX engagements  **Related Topics** [quarterly earnings](/topic/quarterly-earnings) [Post Link](https://x.com/sachprat07/status/1947580619258818788)
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STR @sachprat07 on x 2449 followers
Created: 2025-07-22 08:52:58 UTC
#SME #AFCOM #AfcomHoldings #AfcomCargo
Afcom Holdings FY25 Concall Highlights:
👉FY 2026 & Future Outlook : ▫️ No explicit figures were shared, due to regulatory constraints (not an earnings call), but assured that strategies are in place to achieve results as per figures shared previously
💠Mention of achieving 1000cr topline for FY26 was positively acknowledged by the management
▫️EBITDA margins (~29% FY25) would not only be maintained but could improve due to economies of scale as more aircrafts are operationalized. Fixed overheads would be amortized over multiple aircraft, enhancing margins
💠Domestic Cargo Margins: Domestic cargo operations yield approximately 80–85% of the typical yield from international operations, calculated on a per-trip basis
💠Dry lease operations target higher margins than wet lease, with the dip in H2 FY25 attributed to shifting high-yield routes to dry lease operations
▫️Management confirmed quarterly updates with audited results underway, results to be declared in August 1st week
👉Current projects and pipeline:
▫️Current operations: 💠Fleet Status: Operates two Boeing 737-800 BCF aircraft (dry lease) at full operational capacity, with the second aircraft at partial utilization (43–42%) to serve as a backup for dispatch reliability
💠The third and fourth aircraft are expected to be commercially operational by the end of Aug'25, despite a 40-day delay due to security clearances and regulatory constraints (heightened security requirements due to northwestern border tensions, the AI171 crash, and six helicopter crashes in Uttarakhand, straining DGCA resources)
💠Once the third and fourth aircraft are operational, the first three will operate at full capacity, with the fourth as a partial backup
💠Confirmed achieving XX% utilization in the balance sheet period (Load Factor). A XX% utilization rate is sufficient to break even on rentals and OpEx, achievable within the first week of operation of new aircraft due to pre-planned capacity and partnerships
▫️Operational Routes: 💠Southeast Asia: Regular operations to Bangkok, Yangon, Colombo, Maldives, and Hanoi. New sectors include Hanoi (started July 2025) with an interline agreement with Vietjet Air for connectivity to Taiwan and Korea
💠Maldives Hub: Established as a hub for westbound cargo, leveraging lower freight rates (e.g., $0.90/kg to the US from Maldives vs. $4/kg from India) by utilizing empty passenger aircraft capacity
💠Domestic Operations: Conducted XX trips for specific product movement (e.g., mobile phones), contributing X% of dry lease revenue
▫️Trip Frequency: In the given financial period, Afcom operated XXX trips on dry lease aircraft and XXX trips on a weekly schedule. Expectations are of a minimum average of six trips per week per aircraft once all four are operational, with potential for more
▫️GSSA Partnerships: Appointed General Sales Agents (GSAs) in Sri Lanka, Maldives, Thailand, and Vietnam to strengthen market presence and ensure sustainable partnerships with freight forwarders
💠GSSA commissions are 3–5%, backed by bank guarantees and a XX% cargo load factor guarantee. The credit period is 30–45 days, but reconciliation extends it to 60–65 days. The 90-day debtor cycle in FY25 was due to wet lease operation reconciliations, expected to reduce to 50–55 days with IATA Clearing House participation
▫️Tonnage and Market Share: At Chennai Airport, Afcom is the third-largest cargo carrier by tonnage, behind Emirates and Qatar, with an estimated 7–8% market share of the XXXXX tons shipped monthly
▫️Pipeline: 💠Fifth Aircraft: Discussions are underway with lessors, with a Letter of Intent signed, targeting induction by Oct'25
💠Boeing 777: Plans to induct two Boeing XXX freighters by Q3 2026, leased (not purchased), through a tripartite agreement involving Boeing, a lessor, and Afcom. The company is in advanced discussions with Boeing
💠Geographical Expansion: By 2027, aims to cover trade lanes from Japan and Korea through Southeast Asia, India, to West and South Africa. South America is a potential future market in 2–3 years, for positioning as a global cargo airline
💠Interline Agreements: Additional interline agreements for westbound and eastbound cargo are in the pipeline, to be disclosed after signing to avoid UPSI issues
👉 Others : ▫️ Safety and Reliability: Post the Air India incident, fuel systems and cut-off switches inspection was carried out, submitting satisfactory reports to the DGCA. A safety review board meeting was held to enhance flight operation safety. Maintains a 24/7 operational control center and adheres to international safety standards
▫️Dispatch Reliability: Achieved XXX% dispatch reliability over the last six months, with no delays or cancellations
▫️Financial and Operational Details: 💠Working Capital: Increased from 15cr to 25cr, with bankers willing to extend up to 75cr as new aircraft are inducted. Additional instruments are being explored
💠IATA Clearing House (ICH): Enrollment in ICH ensures payment security and reduces credit risk, with an effective credit period of 50–55 days. Over XX% of revenue is in USD, with XX% of expenditures in forex, providing a natural hedge
💠Asset Increases: An increase of 17.5cr in PPE was due to 16.4cr for ground operation equipment and 1cr for vehicles. Other non-current assets increased by 100cr, including fixed deposits (38.7cr), lease rental deposits (40.9cr), fuel deposits (3.56cr), maintenance deposits (2.05cr), and deferred revenue expenditure (64.6cr), to be amortized over XX months
💠Yield Metrics: Achieved an average yield of $XXXX per ton-kilometer, varying by sector and transit time
💠Cash Flow Reclassification: A discrepancy in cash flow from operating activities (from negative 23cr in Sept'24 to positive 31cr in Mar'25) was attributed to capitalizing expenditures for obtaining the air operator’s permit and operationalizing aircraft. The management promised to provide detailed clarification offline
▫️ Fly SBS Relationship: Afcom and Fly SBS are distinct entities (cargo vs. private jet charter), with no overlap except for common promoters and some vendor leverage
▫️Pre-IPO Anchor Investors: No specific information was provided on anchor investors exiting, with the management open to offline discussions
▫️Geopolitical Impact: Westbound freight rates have hardened due to ongoing conflicts (Suez Canal navigation issues, Pakistani airspace closure, and West Asian tensions), presenting a revenue opportunity
XXXXXX engagements
Related Topics quarterly earnings