Monitoring Agency Report for Western Carriers (India) Limited for the quarter ended March 31, 2025
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Crisil Ratings Limited, the monitoring agency, has submitted its report on Western Carriers (India) Limited's use of IPO proceeds for the quarter ended March 31, 2025. The company raised Rs 4,000 million as fresh issue (net proceeds Rs 3,629.38 million after Rs 370.62 million issue expenses) in September 2024. Of this, the full Rs 1,635 million earmarked for prepayment of borrowings has been deployed. However, only Rs 193.42 million has been used against Rs 1,517.10 million planned for capital expenditure (commercial vehicles, containers, reach stackers), and Rs 245.75 million out of Rs 477.28 million for general corporate purposes. Total utilization stands at Rs 2,417.76 million, leaving Rs 1,582.24 million unutilized, which has been parked in HDFC Bank fixed deposits earning 7.5% interest (maturity October 24, 2025) and in the public issue account. The company cited a delay in purchasing 167 Tata Signa trucks as it evaluates EV technology options, and noted internal factors including prioritizing use of internal accruals for working capital.
The company has fully deleveraged using IPO funds, which is a positive signal. However, both the capex and general corporate purpose deployment are behind schedule — only 12.7% of the capex allocation and 51.5% of the GCP allocation have been used as of FY25 end. The unutilized Rs 1,582.24 million sitting in FDs at 7.5% provides some income offset, but shareholders may want to watch whether the company accelerates truck/container purchases and clarifies its EV transition plans in coming quarters.