Balurghat Technologies Ltd Management Discussions

OVERVIEW OF THE GLOBAL ECONOMY

The latest World Economic Situation and Prospects report for 2025 paints a sobering picture of the global economic landscape. The world economy continues to face multiple crises, jeopardizing progress towards the Sustainable Development Goals (SDGs). Although global economic growth outperformed expectations in 2023 with several large economies showing remarkable resilience, simmering geopolitical tensions and the growing intensity and frequency of extreme weather events have increased underlying risks and vulnerabilities. Furthermore, tight financial conditions also pose increasing risks to global trade and industrial production. The report forecasts a deceleration in global GDP growth, from an estimated 2.7% in 2023 to 2.4% in 2024, signalling a continuation of sluggish growth trends. Developing economies, in particular, are straggling to recover from pandemic-induced losses, with many facing high debt and investment shortfalls. Global inflation, a key concern over the past two years, is showing signs of easing. Global headline inflation fell from 8.1% in 2022 to an estimated 5.7% in 2023 and is projected to decline to 3.9% in 2024.

The baseline forecast is for the world economy to continue growing at 3.2 percent during 2024 and 2025, at the same pace as in 2023. A slight acceleration for advanced economies—where growth is expected to rise from 1.6 percent in 2023 to 1.7 percent in 2024 and 1.8 percent in 2025—will be offset by a modest slowdown in emerging market and developing economies from 4.3 percent in 2023 to 4.2 percent in both 2024 and 2025. The forecast for global growth five years from now—at 3.1 percent—is at its lowest in decades. Global inflation is forecast to decline steadily, from 6.8 percent in 2023 to 5.9 percent in 2024

OVERVIEW OF THE INDIAN ECONOMY

Indias economy continues to demonstrate robust growth, solidifying its position as the fastest-growing major economy globally. For the financial year 2025, real GDP growth is projected to be around 6.5%. This strong performance is complemented by a significant increase in nominal GDP and the increasing integration of the Indian economy into global markets, reflected in rising exports and foreign investment. Leading international bodies corroborate this positive outlook:

• The DIF projects Indias economy to grow by 6.4% in 2025 and 2026.

• The World Bank forecasts a 6.5% growth rate for India in fiscal year 2025-26.

• The UN forecasts a 6.6% growth rate for India in 2025.

Beyond the broader economic indicators, the Indian logistics sector, a critical enabler of economic activity, is anticipated to experience substantial expansion, with projections indicating a 7.7% Compound Annual Growth Rate (CAGR) from 2025 to 2030. This growth underscores the increasing efficiency and dynamism within Indias supply chain infrastructure.

The Union Budget 2024-25 serves as a strategic blueprint for this continued growth, focusing on several key pillars:

1. Agricultural Productivity and Resilience: Prioritizing the development of new high-yielding and climate-resilient crop varieties to enhance agricultural output and sustainability.

2. Employment Generation and Skilling: A major emphasis on creating employment opportunities and equipping the workforce, particularly the youth, with the skills required to meet the demands of a growing economy.

3. Inclusive Growth: Committed investments in education, healthcare, and social welfare programs, with a dedicated focus on uplifting the poor, women, youth, and farmers.

4. Boosting Manufacturing and Services: Implementing various policy measures and incentives to enhance the competitiveness and contribution of these vital sectors to the national GDP.

5. Urban Development: Focusing on infrastructure development, smart city initiatives, and improving urban governance to support sustainable urbanization.

6. Energy Security: Strategic investments in renewable energy, promotion of energy efficiency, and exploration of alternative energy sources to ensure a secure energy future.

7. Infrastructure Development: Significant investments planned for critical infrastructure projects, including roads, railways, and ports, to enhance connectivity and stimulate economic

activity.

8. Innovation and R&D: Encouraging innovation and fostering research and development activities across diverse sectors to cultivate a culture of technological advancement.

9. Governance Reforms: Introducing a range of reforms aimed at simplifying regulations and promoting the ease of doing business, thereby creating a more conducive environment for investment and growth.

These focused initiatives from the government, combined with favourable economic conditions, are poised to sustain Indias strong growth trajectory in the coming years.

GOVERNMENT MEASURES TARGETING INDIAS LOGISTICS AND SUPPLY CHAIN INDUSTRIES

The logistics and supply chain industries in India are currently experiencing a significant transformation, driven by several government initiatives aimed at boosting the sector. Notably, the implementation of the GST and the recognition of logistics as infrastructure status are two critical moves that have been instrumental in driving this change.

GOVERNMENT MEASURES TARGETING INDIAS LOGISTICS AND SUPPLY CHAIN INDUSTRY

Indias logistics and supply chain industry is experiencing a major transformation, led by several government initiatives aimed at boosting the sector. Notably, implementing GST and recognising logistics as infrastructure status are two critical moves that have been instrumental in driving this change. Initiatives that have been implemented to streamline goods movement and reduce turnaround times are listed below.

Dedicated freight corridors: To facilitate the seamless transportation of goods and commodities across India, high-speed, large-capacity railway corridors - known as dedicated freight corridors - have been established. These corridors integrate state-of-the-art technology and improved infrastructure, promising enhanced efficiency, and effectiveness in logistics operations. Eastern Freight Corridor is fully operational whereas Western Freight Corridor has 85% operational status. Overall, 90% of the network is operational. 300 trains run on the lines every day.

Multi-modal logistics parks: The development of multi-modal logistics parks is a strategic step towards providing comprehensive freight-handling facilities. Spread across at least 100 acres, these parks offer access to various modes of transportation, including road, rail, and air. They also provide advanced storage solutions such as mechanised warehouses, cold storage facilities, and essential services like customs clearance and quarantine zones. These parks aim to optimise logistics operations and enhance overall supply chain efficiency by lowering freight costs, warehouse expenses and vehicle congestion. Multi-modal logistics parks have been established at 35 important strategic sites, with a total investment of Rs. 50,000 crores. These parks facilitate smooth transportation of goods using various modes of transport.

Pari-Vahan portal: To standardise processes and promote seamless information sharing across locations, the government has introduced the Pari Vahan portal. This digital platform encompasses ‘SARATHI for driving license processes and ‘VAHAN for vehicle registrations. Both functionalities are consolidated within a user-friendly mobile application, m Pari-Vahan. This initiative streamlines administrative procedures and provides easy access to information related to registration cards and drivers licenses, facilitating smoother logistics operations.

Introduction of e-wav bill: Implementing the e-way bill system mandates using electronic documentation for truckloads valued above Rs. 50,000. This digital documentation eliminates the need for physical paperwork and state boundary check posts, simplifying inter-state vehicle movement. The e-way bill initiative enhances logistics efficiency and expedites overall supply chain movement by shortening turnaround time and bureaucratic hurdles.

Gati Shakti: PM Gati Shakti, launched by the Prime Minister in October 2021, aims to improve logistics efficiency, and reduce costs by coordinating planning among different agencies. This initiative emphasizes breaking down barriers between departments, and integrating infrastructure and logistics networks. PM Gati Shakti seeks to minimise disruptions and enhance efficiency by focusing on multi-modal connectivity and timely project completion. Through a National Master Plan, it intends to create an integrated transportation and logistics network, fostering value addition and generating job opportunities. The Prime Minister noted a capital expenditure of Rs. 7.5 lakh crore (USD 90.26 billion) in 2022-23 by the central government.

National Logistics Policy: The Indian government released the National Logistics Policy 2022 (NLP). NLP aims to boost economic growth by making the logistics sector more seamless and integrated. It plans to create a single-window e-logistics market and make MSMEs more competitive. This would lower logistics costs as a percentage of GDP.

Logistics Efficiency Enhancement Programme (LEEP): LEEP is designed to improve freight transport efficiency. Associated cost, transportation time, and logistics practices like goods transferring and fracking through infrastructure technology and process interventions

Trade facilitation: The logistics industry plays a pivotal role in facilitating domestic and international trade. Efficient logistics networks enable the smooth movement of goods across borders, fostering trade relationships and contributing to economic growth.

Navigating Growth: Outlook for Logistics Markets Steady Expansion Over Next Five Years

The Indian logistics sector stands as one of the worlds largest and plays a crucial role in driving economic growth. Following a 2% contraction in FY21, the market experienced a robust post- COVID recovery in FY22, witnessing a remarkable 14% growth and reaching a value of US$435 billion. As per the projections from EY, a leading global consulting firm, the logistics market in India is poised to expand further, reaching US$591 billion by FY27.

The report further states that in FY22, organised players represented only 5.5-6% of the logistics market segments, encompassing road transportation, warehousing, and supply chain services. However, organised players are anticipated to exhibit a notable CAGR of approximately 32% between 2022 and 2027. Consequently, their market share is expected to reach 12-15% by FY27. This transformation is expected to be led by organised players capacity to provide integrated services, leverage network- and scale-driven efficiencies, and make substantial investments in technology and engineering. These efforts are projected to promote their market competitiveness and capture a larger share of customer business.

TRAVEL AND TQLRISM SEC TOR IN INDIA:

Indias Travel & Tourism market has been experiencing significant growth in recent years, attracting both domestic and international travelers.

Customer preferences: Travelers in India are increasingly seeking unique and authentic experiences. driving the demand for off-the-beaten-path destinations and cultural immersion. Additionally, there is a growing preference for sustainable and eco-friendly travel options among Indian tourists.

Trends in the market: One notable trend in the Indian Travel & Tourism market is the rise of digital platforms and online booking services, making travel more accessible and convenient for consumers. Another trend is the increasing popularity of adventure tourism and wellness retreats, catering to the evolving preferences of travelers.

Local special circumstances: Indias diverse cultural heritage, rich history, and scenic landscapes make it a popular destination for both domestic and international tourists. The countrys vibrant festivals, bustling markets, and mouth-watering cuisine also contribute to its appeal as a travel destination.

Underlying macroeconomic factors: The growing middle class in India, coupled with rising disposable incomes, has fueled the demand for travel and tourism services. Government initiatives to promote tourism, improve infrastructure, and simplify visa processes have also played a crucial role in driving the growth of the industry. Additionally, the increasing connectivity through air, road, and rail networks has made travel within India more convenient and affordable for travelers.

INDUSTRY STRUCTURE AM) DEVELOPMENTS

The company operates in the fields of Logistic Solutions, Supply Chain Services, and Travel and Tourism. Compared to Financial Year 2023-24, the performance of our company during this financial year (2024-25) has exhibited positive results. As we move forward, we remain focused on sustaining this positive momentum, capitalizing on emerging opportunities, and addressing challenges proactively. We are confident that with our strong foundation and the continued efforts of our talented employees, we will achieve even greater success in the coming years.

The significant changes in the financial of the Company, as compared to the previous year, are summarized as follows:

Revenue from operation increased to Rs. 8,700,582 /- hundreds for the year as against Rs. 79,32,936/- hundred of the previous year. PBDIT increased to Rs. 4,43,683/- hundred for the year as against Rs. 4,17,561/- hundred of the previous year. Profit before tax increased to Rs. 2,97,423/- hundred for the year as against Rs. 2,92,292 /- hundred of the previous year. Net Profit falls to Rs. - 2,15,187/-hundred for the year as against Rs. 2,54,198 /- hundred of the previous year.

OPPORTUNITIES AND CHALLENGES: LOGISTICS AND SUPPLY CHAIN SERVICES

Opportunities

Indias economy is growing rapidly, and with that comes increased demand for efficient logistics services. The country has a thriving manufacturing sector, rising e-commerce activity, and increasing domestic consumption, all of which require robust logistics infrastructure to support their operations. The Indian government has implemented several initiatives to enhance the logistics industry. The introduction of the Goods and Services Tax (GST) has streamlined the tax system, reduced logistics costs and improving efficiency. Additionally, projects such as the Dedicated Freight Corridors (DFCs) and the Bharat mala Pariyojana are aimed at developing modem infrastructure and improving connectivity across the country.

India is experiencing rapid growth in its e-commerce sector, driven by increasing internet penetration and smartphone usage. As more consumers turn to online shopping, there is a growing need for reliable and efficient logistics networks to handle last-mile delivery, warehousing, and fulfillment services. The Indian governments focus on infrastructure development presents opportunities for logistics players. Investments in ports, airports, roadways, and rail networks will enhance connectivity and reduce transportation bottlenecks, enabling faster and more efficient movement of goods across the country.

Challenges

Indias logistics industry is hindered by inadequate infrastructure, including poor road conditions, congested ports, and outdated warehouse facilities. The lack of efficient transportation networks and storage facilities increases transit times and costs.

Rising crude oil prices leading to high transport costs. Severe volatility in crude oil prices resulting in fuel prices reaching an all-time high in India impacted our transportation business in 2024-25. Crude oil prices continue to stay volatile because of geo-political tensions.

Pricing pressure from customers. Rising input costs due to increase in commodity and crude oil prices made most of our customers focus on cost rationalization. This led to increased pricing pressure on us. Increased pricing pressure was witnessed in Contract Logistics & Last Mile Delivery. We are addressing this challenge by focusing on value addition and driving cost-reduction initiatives across the organization.

OPPORTUNITIES AND CHALLENGES: TRAVEL & TOURISM

Opportunities

India is known for its rich cultural heritage, historical monuments, and diverse traditions. This attracts a significant number of international tourists who are interested in exploring Indias unique culture. India is blessed with diverse geographical features, including beautiful beaches, majestic mountains, dense forests, and wildlife reserves. These natural attractions offer immense potential for adventure tourism and eco-tourism. India has emerged as a popular destination for medical tourism due to its advanced healthcare facilities, skilled doctors, and cost-effective treatments. Many people from around the world travel to India for specialized medical procedures.

The rise of the middle class in India has led to an increase in domestic tourism. As more people have disposable income, they are willing to spend on leisure travel, which contributes to the growth of the domestic tourism industry. The widespread availability of the internet and the growth of online travel platforms have made it easier for travelers to access information, book flights and accommodations, and plan their trips. This has opened up new avenues for the travel and tourism industry in terms of marketing and distribution.

Challenges

Despite significant improvements in recent years, Indias travel and tourism infrastructure still faces challenges. There is a need for better roads, airports, railways, and accommodations to support the growing number of tourists. Ensuring the safety and security of tourists is crucial for the growth of the industry. Incidents of crime, harassment, and terrorism can negatively impact the perception of India as a safe travel destination.

Dealing with regulatory frameworks, obtaining permits, and complying with government regulations can be complex and time-consuming for travel and tourism businesses. Streamlining these processes and reducing bureaucracy would encourage investment and growth in the industry.

The Company operates in the travel products and services sector, which is highly competitive. The success of the company depends upon its ability to compete effectively against numerous established and emerging competitors, including other online travel agencies, traditional offline travel companies, travel research companies, payment wallets, search engines and meta-search companies, both in India and abroad.

Indias tourism industry is highly seasonal, with peak periods coinciding with festivals and favorable weather conditions. This can result in fluctuations in visitor numbers and challenges for businesses in maintaining a steady flow of revenue throughout the year.

Risks and Concerns

Economic Uncertainty: These industries are highly sensitive to economic fluctuations. During periods of economic downturns or recessions, consumer spending on travel and tourism may decline, impacting the companys revenue. Similarly, reduced demand for logistics and supply chain services due to lower production or consumption can affect profitability.

Regulatory Compliance: The logistics, supply chain, and travel and tourism sectors are subject to numerous regulations and compliance requirements. Companies must adhere to safety standards, licensing, permits, insurance, environmental regulations, labor laws, and other legal obligations. Failure to comply can result in fines, penalties, reputational damage, or even suspension of operations.

Security and Safety Risks: In these industries, security threats and safety concerns are significant. Companies must address issues such as theft, fraud, cyberattacks, terrorism, accidents, and natural disasters. Ensuring the safety of employees, customers, and goods during transportation, in warehouses, or at travel destinations is crucial.

Volatile Fuel Prices: Fluctuations in fuel prices directly impact logistics and transportation costs. Companies in these sectors heavily rely on fuel for their operations, and unexpected price increases can squeeze profit margins. Mitigating these risks often involves implementing fuel hedging strategies or optimizing transportation routes and modes.

Intense Competition: The logistics, supply chain, and travel and tourism sectors are highly competitive, with numerous players vying for market share. Companies need to differentiate themselves through superior service quality, cost efficiency, technology adoption, or unique offerings to maintain a competitive edge.

Technological Advancements: Embracing technological advancements is crucial to stay competitive and meet customer expectations. However, rapid technological changes can pose challenges in terms of investment costs, staff training, integration of new systems, and maintaining data security and privacy. Changing Consumer Preferences: Consumer preferences in the travel and tourism industry can change rapidly, influenced by factors such as health concerns, sustainability, digitalization, and personalized experiences. Companies need to adapt to these evolving preferences and consumer demands to remain relevant and attract customers.

Outlook

Companies are striving to enhance their supply chain efficiency, reduce costs, and improve overall operational effectiveness. This has led to increased demand for advanced logistics solutions, such as real-time tracking, warehouse automation, and predictive analytics.

The logistics industry is experiencing significant technological disruptions, including the Internet of Things (IoT), blockchain, and artificial intelligence. These innovations streamline processes, optimize route planning, and improve visibility throughout the supply chain.

The travel industry is embracing digitalization to enhance customer experiences, improve safety measures, and streamline operations. Contactless check-ins, mobile apps, and virtual experiences are becoming increasingly prevalent.

Your Company will continue to focus on both development and expansion of markets and share gains as appropriate to secure competitive growth. Supply Chain Security & Risk Management will be a key area to prevent disruptions due to factors like weather, labour issues.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The management of the Company is committed to ensuring effective internal control systems commensurate with the size and the complexity of the business. The Company has an effective and reliable internal control system. In line with the business operations. Company has well-planned internal control framework, which covers various aspects of governance, compliance, audit, control, and reporting. It ensured adherence to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information.

Audit Committee monitors and provides an effective supervision of the financial reporting process of the Company with a view to ensure accurate and timely disclosures with the highest level of transparency, integrity, and quality. It also confirms adequacy and effectiveness of internal control systems and suggests for the improvements required, if any.

DISCUSSION ON FINANCIAL PERFORMANCE

This has been adequately stated in the Directors Report.

SEGMENT WISE PERFORMANCE

The Company operates within a single business segment.

HUMAN RESOURCES DEVELOPMENT

Your company strongly believes that its intrinsic strength lies in the quality of its pool of dedicated and motivated employees. All the success so far achieved by Balurghat Technologies Limited is mainly on their account. Management remains confident of the ability of our company employees to stand up to business expectations in various scenarios and serve the Company satisfactorily in the days to come.

	for and on behalf of the Board of Directors
	Balurghat Technologies Limited
	Sd/-	Sd/-
	Geetika Khandehval	Pawan Kumar Sethia
Dated: 26.05.2025	Chairperson	Managing Director
Place: Kolkata	DIN 10061631	DIN 00482462