dtdc courier cargo ltd Management discussions

DTDC COURIER AND CARGO LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS Financial Results: The performance of the Company for the Year ended 31st March, 2008 is summarized (Rs.in Lacs) Particulars 2007-08 2006-07 Net Sales/Income 17480.00 15281.03 Total Expenditure 16344.55 14192.22 Operating Profit 1136.05 1088.81 Add: Other Income 446.44 714.70 Profit before Depreciation & Tax 1582.49 1803.51 Less : Depreciation 337.26 296.34 Prior period Adjustment - 56.88 Profit before Tax 1245.23 1450.29 Less: Provision for Current Taxation 520.00 412.53 Fringe Benefit Tax 62.00 53.28 Provision for Deferred Tax (74.39) 32.72 Wealth Tax - - Profit after Tax 737.62 951.75 Add: Balance brought forward from Previous Year 1703.04 995.75 Add: Transitional Adjustment 3.35 - Amount Available for Appropriation 2444.01 1947.50 Appropriations: General Reserve 100.00 110.00 Dividend: Proposed Final Dividend 101.25 117.92 Tax on Dividend 17.21 16.54 Surplus Carried to Balance Sheet 2225.56 1703.04 244.01 1947.50 Earning Per Share (EPS) 22 28 REVIEW OF OPERATIONS: During the year under review, your Company continued to accelerate the pace of growth which has boosted up during the previous year. Your Directors are delighted to announce that during the year the Company has posted excellent results. The Company has achieved a turnover of Rs.17480.60 Lakhs during the year as against Rs. 15281.03 Lakhs, registering an increase of 14.39% over the previous year. But due to the escalation of various input costs and high inflation the Profit before tax (PBT) has gone down from Rs. 1450.28 Lakhs to Rs. 1245.23 Lakhs and correspondingly the Net Profit (PAT) has also gone down from Rs. 951.75 Lakhs to Rs.737.62 Lakhs as compared to previous year. FUTURE PLANS: The company has successfully launched priority/time definite delivery product in the current financial year. The Company is the pioneer for such a product in the Country as it is felt that such product shall be the future of the Industry. We plan to grow the product and similar other product in the near future to establish the Company as the most preferred service provider in the Industry. To further reinforce and enhance the service delivery , the Company plans foray into its own onboard dedicated service between the 5 metros of the Country. By this process the company envisages to move its business to high yielding value added services. The Cargo business, especially the surface cargo business shall also be a thrust area. There are large number of enquiries and request from customers for full/half load truck delivery mainly for movement between the main metros. In the international business , we are moving towards being a preferred service provider especially for distribution within the country for inbound express and priority products. We have already signed and servicing Saudi Arabia Post. Similar arrangements are being worked out with French Post and UAE post. This arrangement has the benefit of two way business for the Company as there are large number of expatriate population in these Countries.