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Yashpal Sharma, Chairman and Managing Director of Skyways Air Services, said the company will keep growing its air cargo, ocean freight and warehousing volumes now that it has listed on the stock market. Sharma said Skyways expects to hold on to its operating profit margin gains and repeat the growth pattern of the past several years.
Skyways listed at a slight discount to its issue price of ₹138 per share. The IPO was subscribed nearly 50 times. Part of the IPO proceeds will go toward paring down debt, while the rest will support working capital, technology and expansion into new markets in India and overseas, he said.
Sharma also addressed the delay in renewing the company's contract with Qatar Airways, a partner he called critical to the business. He said the war in West Asia had pushed back the signing, but the process is now close to being done. "All the agreements are now finalised, and it's just the signing which is left, which should happen very soon," he said.
Skyways is headquartered in Delhi and runs an integrated logistics business spanning air cargo, ocean freight, trucking, warehousing and cold chain solutions. Sharma said the company operates in 12 countries and holds a leading position in India's air cargo segment.
Revenue grew from ₹2,200 crore to ₹2,800 crore in the year before the IPO. The earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin rose from 3.75% to 4.47% over the same period. Operating cash flow rose from ₹2 crore to ₹113 crore, a turnaround after a negative ₹9 crore figure in FY24.
Sharma linked the improvement to investment in technology and to new offices reaching profitability over time. He said each new office typically takes two to five years to turn profitable, and a growing number of them are now contributing to earnings. "We will continue to drive our volumes and EBITDA, and we hope to replicate what we've been doing in the past in the future as well," he said.
On the Qatar Airways relationship, Sharma said no single airline partner accounts for more than 12-15% of the company's business. He said Skyways continues to receive capacity support from Qatar Airways and other airline partners while the contract signing is pending.
Skyways raised ₹408 crore through the IPO. Of this, ₹217 crore is set aside for debt repayment, which management expects will cut annual interest costs by ₹16-18 crore. The remaining funds will go toward working capital, technology spending and expansion in India and overseas markets.
Sharma also addressed contingent liabilities of about ₹300 crore on the company's books, a figure close to its net worth. He said ₹280 crore of this relates to collateral pledged for credit limits taken by Skyways' subsidiaries, and that the company holds ₹400 crore in cash and cash equivalents. "They're only done for the working capital requirement for our subsidiaries," he said.
For the full interview, watch the accompanying video
Catch all the latest updates from the stock market here
Skyways listed at a slight discount to its issue price of ₹138 per share. The IPO was subscribed nearly 50 times. Part of the IPO proceeds will go toward paring down debt, while the rest will support working capital, technology and expansion into new markets in India and overseas, he said.
Sharma also addressed the delay in renewing the company's contract with Qatar Airways, a partner he called critical to the business. He said the war in West Asia had pushed back the signing, but the process is now close to being done. "All the agreements are now finalised, and it's just the signing which is left, which should happen very soon," he said.
Skyways is headquartered in Delhi and runs an integrated logistics business spanning air cargo, ocean freight, trucking, warehousing and cold chain solutions. Sharma said the company operates in 12 countries and holds a leading position in India's air cargo segment.
Revenue grew from ₹2,200 crore to ₹2,800 crore in the year before the IPO. The earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin rose from 3.75% to 4.47% over the same period. Operating cash flow rose from ₹2 crore to ₹113 crore, a turnaround after a negative ₹9 crore figure in FY24.
Sharma linked the improvement to investment in technology and to new offices reaching profitability over time. He said each new office typically takes two to five years to turn profitable, and a growing number of them are now contributing to earnings. "We will continue to drive our volumes and EBITDA, and we hope to replicate what we've been doing in the past in the future as well," he said.
On the Qatar Airways relationship, Sharma said no single airline partner accounts for more than 12-15% of the company's business. He said Skyways continues to receive capacity support from Qatar Airways and other airline partners while the contract signing is pending.
Skyways raised ₹408 crore through the IPO. Of this, ₹217 crore is set aside for debt repayment, which management expects will cut annual interest costs by ₹16-18 crore. The remaining funds will go toward working capital, technology spending and expansion in India and overseas markets.
Sharma also addressed contingent liabilities of about ₹300 crore on the company's books, a figure close to its net worth. He said ₹280 crore of this relates to collateral pledged for credit limits taken by Skyways' subsidiaries, and that the company holds ₹400 crore in cash and cash equivalents. "They're only done for the working capital requirement for our subsidiaries," he said.
For the full interview, watch the accompanying video
Catch all the latest updates from the stock market here
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