East West Holdin Management Discussions

  2. As we stand at the crossroads of unprecedented change, the global logistics arena has weathered the storms of the pandemic, only to face a new set of challenges in 2022. From re-globalization and fuel price hikes to the aftershocks of trade wars, the logistics sector has proven its resilience amid disruptions.

    In 2021, the global logistics market soared to USD 4.92 trillion, and projections indicate a continued ascent, reaching USD 6.55 trillion by 2027. Closer to home, the Indian logistics sector is on an inspiring trajectory, set to grow from USD 250 billion in FY2021 to an estimated USD 380 billion by 2025, reflecting a robust CAGR of approximately 11%.

    Our nation, recognizing the pivotal role of logistics, is steering focused efforts towards infrastructure development, exemplified by dedicated freight corridors, tech-driven warehousing, and multimodal logistics parks. The governments commitment aligns seamlessly with our vision for a resilient and agile logistics future.

    The challenges of the past year have magnified the imperative for a robust infrastructure capable of withstanding unforeseen disruptions. In response, the industry is not merely recovering; it is emerging stronger and more adaptable than ever before.

    As we navigate through the challenges and opportunities presented by the global economic landscape, the macroeconomic outlook for FY23 is marked by both uncertainty and resilience. The conflict in Ukraine, coupled with sanctions on Russia, a major energy supplier, has strained global growth and disrupted supply chains. Additionally, central banks globally have responded to inflationary pressures by tightening monetary policies, contributing to a projected decline in global economic growth from 3.5% in 2022 to 3.0% in 2023.

    Despite these headwinds, India has exhibited remarkable resilience, achieving a growth rate of 7.2% in FY23, the highest among major economies. With a GDP of US$3.4 trillion in 2022, India aims to reach US$5 trillion by 2025. The logistics and transportation sector is poised to capitalize on this economic upturn.

  3. Global Logistics Industry Overview:
  4. The global logistics market, valued at US$7.98 trillion in 2022, is anticipated to reach US$18.23 trillion by 2030, driven by a robust CAGR of 10.7% from 2023 to 2030. The surge in online retail is a primary catalyst for this growth, with the Asia-Pacific region leading the way, leveraging advancements in technology such as automated material handling equipment, GPS, and biometrics.

  5. India Logistics Industry Overview:
  6. In India, the logistics sector constitutes 14.4% of the GDP and employs over 22 million people. Valued at US$382 billion in 2021, the market is projected to reach US$531 billion by 2026, growing at a 6-7% y-o-y rate. Notably, India has climbed six places to 38 out of 139 countries in the Logistics Performance Index (LPI 2023). The governments goal is to rank among the top 25 countries by 2030.

  7. Key Sectors in Indian Logistics:
    1. Domestic Air Express Transportation: Despite being a more expensive option, it remains preferred for critical shipments such as medical supplies and time-sensitive products.
    2. Cross-Border Transportation: This includes both air and sea freight, with a well-organized international air cargo industry.
    3. Supply Chain Services: Evolving into more sophisticated forms, integrated services cover warehousing, transportation, and value-added services, driven by factors like GST and government policies.
    4. Key Trends Driving Growth:
    5. Economic Growth: India is projected to grow at 6.1% and 6.3% in FY23 and FY24, respectively, outpacing other Asian economies.

      Changing Consumer Dynamics: Rising incomes, changing preferences, and a digitally native population are fueling online purchases, driving the need for reliable logistics.

      B2B and B2C Commerce Models: New business models like social commerce and direct-to-consumer commerce are reshaping traditional retail, increasing demand for logistics services.

    6. Technological Transformations:
    7. ONDC (Open Network for Digital Commerce): Enhances SME participation in e-commerce by facilitating direct integration with national-scale logistics players.

      Technology-led Solutions: From route consolidation to inventory management, technology is optimizing logistics operations, with a focus on speed, efficiency, and reduced operational costs.

    8. Challenges Ahead:

    Rising Fuel Prices: Fluctuating international crude oil prices impact transportation costs, affecting industry margins.

    Truck Driver Shortage: Despite improvements in road infrastructure and safety measures, attracting truck drivers remains a challenge.

    Reverse Logistics Cost: The growing e-commerce sector faces challenges in managing return logistics, impacting operational complexity and costs.



At the heart of this transformative era stands West East Freight Carriers Limited (EWFCL), a beacon of reliability and innovation in the logistics realm for over 45 years. Our strategic affiliations with industry bodies and global partnerships affirm our commitment to delivering superior logistics and freight forwarding services. The commitment of our team, coupled with cutting-edge technology adoption, positions us as a trusted industry player.


Acknowledging the risks intrinsic to our operations is paramount. From transportation challenges and port sector complexities to tax intricacies and the ever-present specter of competition, we remain vigilant. These challenges, while formidable, are opportunities for us to showcase our resilience and adaptability.


In the face of challenges lie unprecedented opportunities. The logistic sector in India is undergoing a metamorphosis, and we are at the forefront of this transformation. Government initiatives, structural reforms, and technological advancements pave the way for our continued growth. The digital revolution in logistics, marked by IoT, automation, blockchain, and AI, is not a distant future but a present reality that we embrace with open arms.


As we navigate this transformative journey, we are not blind to the challenges that lay ahead. Fluctuating fuel costs, ocean freight rate volatility, and external geopolitical factors demand our attention. Yet, they are challenges we are well-equipped to address, ensuring our sustainability in an ever-changing environment.

In conclusion, as we stand on the precipice of industry shifts and global dynamics, our vision remains unwavering. We are not just adapting; we are shaping the future of logistics. Our commitment to excellence, coupled with technological prowess, ensures that we not only endure challenges but thrive amid them.

Thank you for your steadfast support on this journey. Together, we continue to chart the course for a future where challenges are not roadblocks but stepping stones to success.


The Company operates in one segment i.e Transportation, Logistic and allied activities.

Discussion on financial performance with respect to operational performance


Particulars 2022-2023


Revenue from Operations 1658.67


Other Income 4.67 61.58
Total 1663.34


Profit/loss before Depreciation, Finance Costs,

Exceptional items and Tax Expense

(67.63) 8.67
Finance Costs - -
Profit /loss before Tax Expense (67.77) 8.55
Less: Tax Expense
-Current Tax - 2.20
-Deferred Tax - -
-Prior Period Tax - -
Profit /loss for the year (1) (67.77) 6.30

The Revenue from operations for FY 2022-2023 has increase by 22% approx. to Rs. 1658.67/- lakhs as compared to Rs. 1,354.40/- lakhs in the previous year. However the Company has incurred loss of Rs. 67.77/- lakhs as compared to profit of Rs. 8.55/- lakhs in the previous year due to increase in operational expenses.


The Company is gearing for an optimal juncture for its structure and scalability. We are planing to leverage our legacy into delivering performance-driven logistics solutions, powered by globally-integrated backend and ecosystems. The changes we are continuing to make are expected to accelerate the business9s operational model. We will continue to grow our value-added offerings in both India and globally to serve our stakeholders=. The company has forayed into turnkey projects as well as dangerous and hazardous goods as key verticals among more significant announcements in the pipeline. Looking at the business performing in the year under review the Management is confident that it has a great future prospect and will continues to grow in the coming year.


For the purposes of effective internal financial control, the Company has adopted various policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to company9s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information. There has not been any significant change in such control systems. The control systems are reviewed by the management regularly. The same are also reviewed by the Statutory Auditors and Internal Auditors from time to time. The Company has also adopted various policies and procedures to safeguard the interest of the Company. These policies and procedures are reviewed from time to time. There has also been proper reporting mechanism implemented in the organization for reporting any deviation from the policies and procedures. Compliance audit is also conducted from time to time by external agencies on various areas of operations.


Success of a service company largely depends on its human resources. We have necessary policies and processes in place for performance management of our employees to help us to identify training needs, etc. We have taken measures to empower and incentivize our employees to enable them to contribute towards our organizational goals. The total Strength of the Company is 230+ employees and your management feels proud to state that the employer 3 employee relations remained extremely cordial throughout the year. There were no instances of strikes, lockouts or any other action on part of the employees that affected the functioning of the Company. It is noteworthy that there is no Employee Union / Trade Union / Union within the organization.

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


Ratio Current year Previous year % variance
Revenue 1,354.40 583.81 132%
Current ratio (in times) 4.26 2.64 61%
Debt-Equity ratio (in times) - -
Debt service coverage ratio (in times) -
Return on equity ratio (in %) 0.10% 0.47% -78%
Gross profit ratio (in%) 0.88% 1.90% -54%
Trade receivable turnover ratio (in times) 8.76 6.39 37%
Trade payable turnover ratio (in times) 5.80 2.27 156%
Net capital turnover ratio (in times) 1.95 1.39 40%
Net profit ratio (in%) 0.47% 4.30% -89%
Return on capital employed (in %) 0.14% 0.65% -79%
Return on investments (in %) NA NA NA


Statements in the Management Discussion and Analysis describing the Company9s objectives, projections, estimates and expectations may be 8forward looking statements9 within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company9s operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates changes in the Government regulations, tax laws, and other statutes and other incidental factors.