Jet Freight Logistics Ltd Management Discussions

• Overview of the Indian Air Cargo Industry:

The global logistics sector experienced a stable recovery in FY 2024–25, buoyed by resilient demand in international trade, ongoing normalization of supply chains post-pandemic, and the sustained momentum in global manufacturing and e-commerce. The freight forwarding industry, particularly air and sea cargo, adapted to evolving customer needs through digitalization and capacity optimization.

In India, initiatives such as the National Logistics Policy, PM Gati Shakti, and infrastructure investments in ports, airports, and multimodal logistics parks continued to strengthen the logistics ecosystem. The maritime sector saw improved container turnaround times, while the air cargo sector benefited from robust growth in pharmaceuticals, perishables, and high-value electronics exports.

According to a report by Mordor Intelligence, the industry is expected to experience steady growth, with a projected CAGR of 9.3%, reaching around 40 lakh crores by 2029. Notably, the premium warehouse segment is expanding at a faster pace of 15%. A significant driver behind this growth is the growing preference within the domestic logistics sector for Grade A warehouse facilities. These facilities are built with high-quality materials, feature advanced automation and are strategically located to enhance transportation and distribution efficiency. The industry is highly diverse, comprising startups, SMEs, domestic firms and global players. Road transportation dominates the sector with more than 60% share, but rail, air and coastal shipping are gaining traction due to policy-driven incentives. The GOIs push for multimodal logistics parks (MMLPs), dedicated freight corridors, and digital freight platforms is improving cost efficiency and reducing transit times. Technology is playing an increasingly transformative role, with AI-driven logistics optimisation, automated warehousing and predictive analytics streamlining supply chain operations. End- to-end visibility, Internet of Things (IoT)-enabled tracking and digital freight matching are becoming industry standards, improving operational efficiency.

• Companys Business Overview along with its Outlook:

Jet Freight Logistics is a leading logistics and freight forwarding company offering a full spectrum of services including international freight forwarding, customs clearance, warehousing, transportation, and supply chain solutions. With a strong global network, advanced digital platforms, and sector-specific expertise, we cater to a diversified clientele across automotive, pharmaceuticals, engineering, retail, and FMCG sectors. Our value proposition lies in offering end-to-end logistics solutions with operational efficiency, reliability, and cost-effectiveness.

• Key Risks Identified:

Our Company, like any other enterprise, is exposed to business risk which can be internal risks as well as external risks. The normal risks of a Freight Rate Volatility, foreign exchange fluctuation, fluctuating interest rates, Government policies, competitive forces, changing technology, Geopolitical Uncertainty, and obsolescence remain.

The economic slowdown has reduced freight demand and network utilisation, impacting supply chain efficiency and profitability. Industries such as FMCG and automotive have faced increased disruptions, while logistics service providers (LSPs) are under pressure to sustain resource utilisation. The Economic Survey 2024 highlights that escalating geopolitical tensions could lead to supply chain disruptions, increased commodity prices and inflationary pressures. Such conflicts may necessitate rerouting and cause delays, impacting global trade dynamics.

• Risk Mitigation Strategy:

The Company is focusing on the following strategies in terms of technology:

• To implement robust security measures, employ network security measures with firewalls, intrusion detection, prevention systems, and network segmentation to secure the network against external threats.
• To bring new systems to mitigate process gaps and operation leakages.
• To train employees on cybersecurity awareness, phishing prevention, safe browsing habits, and the proper handling of sensitive data.
• To implement a robust business continuity plan for both IT infrastructure and operations continuity.

The Company has an elongated working capital cycle as it allows its customers a required business credit period, even though it has a payable period of 30 days from most of the airlines, for gaining a competitive advantage. The Company is opting for customers with Invoice Discounting. The company expects the receivable period to shorten further over the medium term with the planned increase in the revenue from the ocean freight segment, where the vendors are allowed a shorter credit period than air freight vendors.

By implementing the following strategies, the company can reduce the impact of potential risks and ensure business continuity.

• Monitoring suppliers risks, such as political, geographic, and economic risks, and taking appropriate measures to mitigate them.
• Prioritize cargo by expanding itself into an all-cargo airline.
• Identify alternative routes and carriers and their impacts on supply chains.
• Consider purchasing alternate insurance to protect the cargo from loss or damage during transportation.
• Opportunities:

Over the years, as Indias logistics arena has transformed, this organization has also evolved by adapting newer technologies and by making itself into more of a platform-driven/aggregator-driven business.

The Indian logistics sector is growing rapidly, especially in Tier 2 and 3 cities, fuelled by infrastructure growth, government initiatives and e-commerce expansion. Customers increasingly seek integrated, flexible, and scalable warehousing solutions to meet their evolving supply chain needs and Jet Freight Logistics Limited is well positioned to address this demand. Further Company has well experienced leadership to build and develop long-term business strategies and help bundle our services to reach untapped market clusters, thereby strengthening our revenues and bringing in more business opportunities. Jet Freight is focusing on increasing its market share in the country and is seeking to gain a stronger clientele.

• Threats:

Ongoing geopolitical tensions, including the Red Sea crisis, Ukraine-Russia conflict, and trade restrictions involving major economies, disrupted key shipping lanes and delayed cargo movement. These events increased transit times, freight costs, and led to re-routing of shipments, impacting service commitments. Fuel prices remained volatile throughout the year, driven by global oil market fluctuations, OPEC+ production decisions, and regional conflicts. This volatility increased transportation costs, particularly in long-haul and air freight segments, putting pressure on margins.

• Segment-wise Performance:

The Company operates in a single segment of freight forwarding and therefore, the segment-wise reporting is not applicable to the Company.

• Internal Control Systems and their adequacy:

The Company has adequate internal control systems commensurate with the size and nature of its operations. Internal audits are carried out periodically to assess operational effectiveness, risk management, and compliance with statutory requirements. Audit findings are regularly reviewed by the Audit Committee and corrective measures implemented.

The Board has laid down Internal Financial Controls and believes that the same are commensurate with the nature and size of its business. Internal control systems are embedded in all processes across all functions within the Company. These systems are regularly reviewed and wherever necessary, they are modified or re-designed to ensure better efficiency, effectiveness, and improved controls.

All processes and systems are subject to Quarterly Internal Audit through an annual internal audit plan approved by the Audit Committee. These are further supported by Internal Auditors and Statutory Auditors, who validate that financial reporting is true and fair, and that these controls are designed and operating effectively. Based on the framework of Internal Financial Controls, and work performed by the Internal Auditors and Statutory Auditors, the Company is able to prevent & detect frauds/errors and to ensure the accuracy, completeness of accounting records, and timely preparation of reliable financial disclosures.

• Developments in Human:

We recognize that our people are our greatest asset and a key differentiator in delivering consistent, high-quality logistics and freight forwarding services. As the logistics sector undergoes rapid transformation driven by digitalization, automation, and evolving customer expectations, we have continued to invest in building a future-ready, agile, and skilled workforce. To support our business expansion, we intensified our recruitment efforts, particularly in the areas of sales and supply chain operations. We implemented data-driven hiring strategies, streamlined onboarding processes, and focused on hiring for good talent in addition to skill alignment.

We continued to foster a performance-driven and inclusive workplace culture by Conducting quarterly town halls and feedback sessions with leadership. Hosting employee recognition programs like "Star Performers of the Quarter" and celebrating diversity through awareness weeks and inclusive hiring practices. Arranging health and wellness programs including on-site medical check- ups, mental wellness webinars, and ergonomic assessments.

• Discussion on financial performance with respect to operational performance:

Company has achieved overall Growth in Revenue by 12%. There is slight Increase in Growth Profitability keeping keen Focus on Cost Optimization? efficiently control on operating expenses reflecting better operational efficiency has resulted positive impact on PBT.

PBT as well as Interest coverage ratio of the company has been increased indicate company generates significantly more earnings than needed to cover its interest expenses. Company EPS ratio has been increased as compared to last year indicate company higher income, cost reduction, efficiency improvement, revenue grown and debt reduction. Our keen focus would also be on, cost optimization initiatives and technology driven processes in the coming future.

Jet Freight remains committed to providing its customers with the highest quality services and shall continue to serve the customers with the help of talent savvy manpower to ensure that the Company remains at the forefront of the industry.

• Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including:

Particular	Parameters	31st Mar 2025	31st Mar 2024	Change in %
Tonnage	Tons	23,406	24,983	-6.3%
TEUs	TEUs	4,182	6,803	-38.5%
Revenue	Crores	438	390	12.3%
Gross Profit (%)	GP/Revenue	9.36%	9.17%	2.1%
Debtors days	Debtors/ Sales per day	65.07	64.80	0.4%
Interest Coverage Ratio	EBITDA/ Interest Expenses	2.21	1.32	67.4%
PBT %	Profit Before Tax/ Revenue	1.44%	-0.11%	-1409.1%
Current Ratio	Current Assets/ Current Liability	1.15	1.02	12.7%
Return on Net Worth (%)	Net Income/ Share Capital	16.06%	1.14%	1308.7%
Debt/ Equity Ratio	Net Debt/Equity	0.77	0.64	20.3%
Operating Profit Margin %	EBITDA/ Revenue	3.49%	1.87%	86.6%
Earnings per share (Rs.)	Net profit/ No. of equity shares	0.08	0.06	1233.3%

Increase in Return on Net worth and EPS is due to Exceptional Item Higher Net Income generated during the year.

For and on behalf of the Board of Directors For Jet Freight Logistics Limited

Place: Mumbai	Richard Theknath	Dax Theknath
Dated: 28 August, 2025	Chairman & Managing Director	Executive Director