ABC India Ltd Management Discussions

Industry structure and development

The business of transportation is in the hands of operators both in organized as well as in unorganized sector. A large portion of the transportation business is undertaken conventionally by operators in unorganized sector. Our

Company being an operator in organized sector has to compete with operators in unorganized sector. In the process of the transportation business we also offer logistics and specialized project transportation services. The project transportation services involve logistics of Over Dimensional/Over Weight Consignments where also several new operators have started offering the same services, thereby increasing competition.

Opportunities and Threats

Performance, growth and development of transport and logistics service business is directly linked with and related to performance, growth and development of industry in our country. The specialized project logistics business is linked with setting up of new projects requiring Over Dimensional Plant & Machinery. Road transportation & Logistics solutions are one of the most important prerequisites for development of trade and industry and setting up of new industrial projects. The project transportation also suffers from ambiguous government regulations. In cycles of economic growth and development of Indian Industry, our Company finds opportunities, whereas in cycles of economic slowdowns in Indian industry our Company faces challenges and threats of fierce competition from operators in unorganized sector.

Segment-wise or product-wise performance

The Company has two primary business segments namely, Freight & Services and Petrol Pump. Out of the total earnings for these two segments amounting to 18495.29 lakhs, the Freight & Services Segment?s earning was 11966.94 lakhs, Petrol Pump Segment?s share was 6528.35 lakhs.

Outlook

The Company has presence all over India and especially in North Eastern States. The Company has proven capabilities and competency to offer domestic road transportation, complex Consignments by multi modal routes and international freight forwarding services to its customers. The Company is also providing innovative logistics solutions to its customers with value addition in its services. With these advantages, we have good prospects of demand for Company?s services.

The Company is making sustained marketing efforts for its services in infrastructure sector & power sector which is expected to see revival, over the next few years. Besides, to improve the profitability, the Company has reduced its work force and other cost reduction measures are underway to sustain in the business. The Company received a Letter of Acceptance from Numaligarh Refinery Limited (NRL) on October 29, 2021, worth 69.39 crores for project management, transportation engineering, and multimodal transportation of ODC/OWCs for NREP from Haldia Port/Kolkata Port to NRL site. In FY 2023-24, the contract value was extended by 22.78 crores, bringing the total to 92.17 crores. We have largely completed the work under this contract as of FY 2023-24, with residual work worth 23 crores expected to be executed in FY 2025-26. Looking ahead, we anticipate NRL will award us a new work order for transporting ancillary equipment for the refinery?s capacity expansion, which is expected to boost our revenue and profitability in FY 2025-26.

The Company?s Full Truck Load (FTL) business has been growing steadily over the past few years. We achieved a sales growth of 4.6% in FY 2024-25, with revenues increasing from 56.96 crores in FY 2023-24 to 59.55 crores

FY 2024-25.

The Company currently serves a diverse range of prestigious FTL clients, including Varun Beverages Ltd, Bisleri International Pvt Ltd, Dabur India Ltd, Century Plyboards (India) Ltd, Sundrop Brand Limited, Parle Agro Pvt Ltd, Nestle India Ltd, Skipper Limited, Keventar Agro Limited, KEC International, N Rangarao & Sons Pvt Ltd, Godrej &

Boyce, Apar Industries Ltd, and VIP Industries, among others.

With new clients being added regularly, we expect to achieve sales of 70-75 crores in FY 2025-26. Accordingly, the performance of the Company in current year as well as coming years shall continue to be highly dependent upon revival of infrastructure sector, power sector, industrial project and procurement of orders.

Risks and concerns

Our Company, as in case of any other body corporate, is exposed to specific risks that are particular to its business and the environment within which it operates. These include credit risks, market risks and operational risks. We have established policies and procedures to manage these risks. Such policies and procedures are continuously bench marked with best practices in Indian Road Transport Sector.

Internal control system and their adequacy

The Company has a well-definedorganizationstructure, authority levels and internal policies and procedures for conducting business transactions. The Company has an internal audit system, and the audit plans. The Audit Committee periodically reviews internal audit reports and adequacy of internal controls.

Discussion on financial performance with respect to operational performance

The Company?s total earnings including other income for the year amounting to 18666.15 lakhs as compared with previous year?s total earnings of 16515.09 lakhs. For the year the profit before exceptional items, finance cost, depreciation & amortization expenses and taxation is 595.15 lakhs. Finance cost for the year amounted to 200.99 lakhs, Depreciation Amortisation expenses amounted to 136.36 lakhs. The Profit after taxation for the & year is 246.93 lakhs.

Material developments in Human Resources/Industrial Relations front, including number of people employed

The key resource for the Company is its employees, which is giving the Company a competitive edge in the business environment. The Company has been able to create a favourable work environment that encourages innovation and meritocracy.

For this purpose, we have a practice of rigorous job rotation, training in new age skills and multi-functionalexposure and responsibilities.

The Company had 88 permanent employees at the end of the year. As in the past, the industrial relations continued to remain cordial at all the locations of the Company.

Significant changes in Key Financial Ratios & Return on Net Worth Key Financial ratios

Pursuant to Schedule V (B) to the Securities and Exchange Board of India (Listing Obligations Requirements) Regulations, 2015

Cautionary Statement

Statements in this management discussion and analysis describingtheCompany?sobjectives, projections,estimates and expectations may be forward looking statements within the meaning of applicable laws results may differ substantially or materially from those expressed or implied. Important developments that could affect the Company?s operations include a downtrend in the industry-global or domestic or both, significant changes in political and economic environment in India, applicable statues, litigations etc.