Committed Cargo Care Ltd Management Discussions

l. GLOBAL LOGISTICS INDUSTRY

The years 2024-25 witnessed a period of significant growth and transformation for this sector, driven by a confluence of factors including e-commerce boom, technological advancements, and increasing globalization. Ongoing geopolitical conflicts and trade disputes have disrupted supply chains, forcing businesses to diversify sourcing and explore alternative routes.

Tariff adjustments have been another defining feature of 2024 and 2025, reshaping international trade flows, introducing new trade policies and tariffs targeting goods from key manufacturing hubs causing significant ripple effects. Businesses are forced to reassess supply chain strategies, diversify sourcing and explore tariff mitigation options. This has increased demand for bonded facilities and specialized customs brokerage services as companies seek to navigate a complex regulatory landscape.

Current challenges for the logistics sector have been Rising Logistics Costs, Disrupted Trade routes, infrastructure gaps, and Economic uncertainty.

The logistics industry in 2025 is characterized by rapid technological advancement, a strong emphasis on sustainability, and the need for resilient supply chains. While challenges such as rising costs and geopolitical instability persist, Companies that invest in innovation and adapt to the evolving landscape, will be well-positioned to thrive in the coming decade.

2. LOGISTICS INDUSRY AHEAD

The global logistics market was valued at USD 9407.5 billion in 2023, the market is projected to further grow at a CAGR of 6.4% between 2023 and 2032 to reach a value of USD 15978.2 billion by 2032.

Sustainability and technology will also dominate discussions in 2025. Businesses must balance operational efficiency with environmental responsibility, and strengthen automation and green logistics solutions.

The reopening of the Suez Canal for cargo traffic in 2025 could be a potential game-changer. If opened, the capacity swell would alter shipping times for key markets. While the Canals reopening could alleviate strain on traditional lanes, it may also introduce new capacity challenges for carriers.

As we enter 2025, tariffs remain a critical focus. Potential shifts in U.S. trade policies could increase duties on key imports, compelling businesses to look at alternatives.

Looking ahead to 2025-26 and beyond, logistics Providers are gearing up for busier years. E-Commerce will grow exponentially especially with technological advancements like same day delivery and drone logistics becoming more mainstream. Additionally, geopolitical shifts could further impact trade policies and tariffs, requiring businesses to stay agile, informed and flexible.

A 3. LOGISTICS INDUSRY IN INDIA

The International Monetary Fund has projected Indias economy to grow at 6.8 percent in financial year 2025 and 6.5 percent in financial year 2026.This is in stark contrast to be projected globed growth. Indias growth is expected to come on the back of resilient domestic demand and private sector CAPEX which is expected to take over from government CAPEX. Overall manufacturing activity continues to remain buoyant in India, the manufacturing Purchasing Managers Index (PMI) scaling high rates of gross expenses. This growth in overall exports has come despite global headwinds. During the financial year 2024-25 Goods and Service Tax collection saw highest ever collection thus signifying strong economic activity.

While the global economic recovery is expected to remain steady and slow, India will continue to gallop on its path to growth, Government initiatives to boost manufacturing and Infrastructure, strong domestic consumption, and investments by private sector augurs well for economic growth in India. Consumer price inflation in India is expected to decline from an average of 5.4 percent in financial year 2024 to 4.6 percent in financial year 2025 and 4.2 percent in financial year 2026.

With India poised to become one of the leading economies in the world, logistics as a sector is bound to play am important role as economic growth is always coupled with growth of the logistics sector. This also includes Indias undertaking of significant changes like implementation of GST, e-invoicing, improvement in infrastructure and digitization.

Few initiatives undertaken by the government that will shape the future of logistics sector in India are:

1) Infrastructure development:

Under which the government plans to accelerate work for enabling movement of goods across the country. According to the Ministry of Road Transport and Highways, National Highway (NH) network has increased to 1,46,145 km in year 2023 from 91,287 km in year 2014.

2) PM Gati Shakti:

Under this scheme, the government plans to facilitate multimodal connectivity. Even during the recent interim budget announcement, focus was laid on further boosting railway corridors, energy, mineral and cement corridors; port connectivity, and high traffic density corridors.

3) Manufacturing:

There is thrust by the government to boost manufacturing in India. It aims to increase the contribution of manufacturing to Indias GDP from 17% currently to 25% by 2025. Various schemes such as the Production Linked Incentive (PLL) scheme are being supported. Technology is also bound to play an important role in supporting logistics. It will help in improving efficiency and providing visibility of shipments.

4) Global Logistics Sector:

Global ocean trade was marred by a turbulent globed environment in 2024-25. Geopolitical crisis coupled with a slowdown in consumer spending had an adverse impact on trade. The demand was impacted by rising inflation on account of the Russia Ukraine war and tensions in the Middle East. The conflicts in the Middle East also led to disruptions in vessel movement, many carriers were forced to reroute vessel progress through the Red Sea.

4. Brief introduction of companys business model and operations

At Committed Cargo, we define excellence through the highest level of Logistics Services. Having started the journey in 1998, we completed 27 years of unparalleled services. During this span of 27 glorious years, we have served a robust clientele by delivering logistics services of global standards. Our commitment to innovation within the Logistics realm continues as we introduce and implement innovative concepts while customizing solutions for our clients unique needs. Our dedicated professionals are ceaselessly innovating and enhancing operational efficiencies.

With ISO 9001: 2015 Certification, Committed Cargo specializes in the seamless handling of Import and Export Cargo, earning a distinguished reputation for delivering dependable and comprehensive cargo movement solutions globally. Its guiding principle ‘Customer Pride has been instrumental in establishing a lasting presence in the dynamic cargo industry.

The Operational Team at Committed Cargo consists of 215 in-house, well-trained, and dynamic employees. These individuals collectively possess several years of experience in international freight forwarding and a proactive history with reputable shipping lines and air lines. This operational prowess empowers Committed Cargo to adopt a ‘Toted Freight Management approach enabling the provision of end-to-end logistics services.

Comprehensive list of services being rendered by Committed Cargo include Custom Brokerage, Air Freight, Sea Freight., Express Freight, and 4 PL and Supply Chain Management. In addition, our company provides special services handling Dangerous goods, Human Remains relocations, Diplomatic relocations, Exhibition Cargo, Critical Logistics, and many more.

In this Current Year, Committed Cargo has extended its focus on Express Logistics by investing into a Subsidiary Company, Committed Cargo Solutions (P) Ltd.

5. Financial performance review

Our Company recorded total revenue of Rs. igi.00 Crs. against Rs. 143.36 Crs. in the previous years which is 33% more in the current year as compared to the last year. The EBITDA for the year has been Rs. 10.8 crores and Profit after tax (PAT) has been Rs. 7.80 crores.

The Board has recommended a dividend of Rs. 0.50 per share (5% on the face value of equity shares of Rs. 10 each) for the financial year ended March 31, 2025, in line with the previous year.

The Company continues to be largely Debt Free Company with Shareholders Net worth being Rs. 76.31 Crs. and Debt of Rs. 0.57 Crs only.

During the year, the Company allotted, on a preferential basis 55,00,000 Fully Convertible Warrants, on 11th February, 2025 to the persons belonging to "Promoter/Promoter Group" and "Non-Promoter, Public Category", at an issue price of Rs. 81/- per warrant higher than the floor price determined in accordance with the provisions of Chapter V of SEBI ICDR Regulations, payable in cash for aggregating amount of Rs. 44.55 Crs.

6. Key financial ratios

During the year, Companys revenue increased by -33%. With the result, the Net Worth of the Company has gone up substantially to Rs. 65.17 Crs. (Comprising Premium and Net Profit for the year) as on 31st March 2025 as against Rs. 57.91 Crs. as on 31^st March 2024.

\ 7. Internal control system

With a view to manage the business operations efficiently, Internal Control System has been put in place and is reviewed periodically by Companys Team and further by Internal Auditors. In Managements opinion, the systems being followed are adequate, keeping in view the nature and size of Companys operations.

8. Human Resources

Committed Cargo employs, as on date, 215 people in different categories. The Company practises people-friendly working environment and gives sufficient opportunities to its people to grow within the organization. Your Company has also laid emphasis on improving the skills of its human resources for achieving better quality and performance. This has resulted in very high retention % of people since its inception.

g. Outlook and future strategies

In the previous year 2023-24, the Company expanded its geographical presence hy setting up new Branches. These Branches were equipped with experienced manpower, infrastructure and processes. These Branches are in the process of stabilization and should yield high returns in the current year and beyond.

The process of digitization of Companys operations was started last year by investing into a subsidiary company. The Company has made significant progress during the year and is on course to make CCCL digitally abled.

Having entered FY 2023-24 with strong momentum coupled with robust growth and sustainable free cash flows, CCCL has, with a view to focus on fast-growing Express Logistics business, invested into a subsidiary company, Committed Cargo Solutions (P) Ltd. The company has begun its operation with a Team comprising of Senior Professionals in the industry with long-standing experience.

CONCLUSION

Committed Cargo, like in past, aims to be a customer-centric and technology-abled logistics company. The company will continue to strive for excellence in all its activities and will pursue value-based policies to satisfy the aspirations of its customers, vendors, employees, shareholders and society at large.

In the current scenario of tariff adjustments, Committed Cargo will continue helping its clients managing these changes by identifying cost saving opportunities and optimizing supply chains.