For the Financial Year 2024 25
(Annexure to the Directors Report)
1. Industry Structure and Developments (i) Logistics Industry
Indias logistics industry, valued at approximately USD 250 billion, is undergoing significant transformation driven by policy reforms, technology adoption, and e-commerce penetration. The National Logistics Policy (NLP), PM Gati Shakti initiative, and digitization efforts aim to reduce logistics costs from the current 13 14% of GDP to 8 9%. Key developments: Emphasis on integrated multimodal logistics networks. Introduction of Unified Logistics Interface Platform (ULIP) to streamline cargo movement. Growing demand for tech-enabled fleet and warehouse management systems.
(ii) Agricultural Commodities Trading
The agriculture trading sector remains vital, leveraging the countrys agrarian base. With India being a major producer of cereals, pulses, and oilseeds, there is sustained demand for logistics support in rural and semi-urban regions. However, fluctuations in MSP (Minimum Support Price), climatic conditions, and global trade disruptions affect supply chains and margins.
2. Business Overview
GB Logistics Commerce Limited is engaged in:
Full Truck Load (FTL) logistics services with pan-India reach.
Agri-commodities trading, which supplements logistics through backward and forward integration. The Company leverages its fleet (light, medium, heavy-duty, trailers) and third-party services to ensure cost-efficient, timely deliveries. Specialized offerings like delivery to out-of-delivery zones and above-ground-floor consignments make GB Logistics a preferred partner for SMEs and agro-processors. The Company also operates through its wholly owned subsidiary, GB Hospitality (India) Pvt. Ltd., focusing on aligned operations.
3. Financial and Operational Performance
(iii) Standalone Performance:
Particulars |
FY 2024 25 ( | in lakhs)FY 2023 24 ( in lakhs) | |
Income from Operations6,505.47 |
6,445.73 | ||
Total Expenses |
6,022.21 | 5,944.90 | |
Profit Before Tax (PBT) |
483.26 | 500.82 | |
Tax Expense |
122.71 | 140.45 | |
Particulars |
FY 2024 25 ( |
in lakhs)FY 2023 24 ( in lakhs) | |
Profit After Tax (PAT) |
360.55 |
360.37 | |
Earnings per Share ( ) |
88.02 |
7.17 | |
Observations:
Marginal increase in income indicates steady client retention and stable volumes. Rise in operational cost is mainly attributed to fuel price fluctuations and infrastructure maintenance. The PBT declined slightly, reflecting inflationary pressures in logistics inputs.
(iv) Consolidated Performance:
Particulars |
FY 2024 25 ( | in lakhs)FY 2023 24 ( in lakhs) |
Income from Operations |
20,601.76 | 11,563.31 |
Total Expenses |
19,415.78 | 10,886.78 |
Profit Before Tax (PBT) |
1,185.98 | 676.93 |
Profit After Tax (PAT) |
880.90 | 486.24 |
EPS ( ) |
14.33 | 9.67 |
Observations:
A growth of over 78% in consolidated revenue driven by higher agri-trading volume and contribution from the subsidiary. Significant improvement in profitability indicating improved scale economies and better operational execution.
4. Segment-wise or Product-wise Performance
Logistics: Core logistics operations contributed majorly to the revenue. Consistent FTL movement and contractual customers provided resilience amid fluctuating fuel and freight rates.
Agri-Trading: This vertical showed a remarkable rise due to high seasonal demand and a better procurement-distribution network.
5. Opportunities and Threats
Opportunities
Governments push for logistics parks and multimodal connectivity. Increased warehousing demand in Tier-2 and Tier-3 cities. Growth in e-commerce and agri-supply chain digitization.
Use of EVs and green fleet could reduce operational costs in the long run.
Threats
Intense competition from organized national players and aggregators. Weather dependency affecting agri-commodity volumes.
Regulatory risks in the agricultural and transportation sectors. Fuel price volatility and macroeconomic disruptions.
6. Risk Management
A structured Risk Management Policy is in place, focusing on: Operational Risk (vehicle availability, driver reliability) Market Risk (pricing pressure, seasonal demand) Regulatory Risk (E-way bill, GST, motor vehicle norms) Financial Risk (credit cycles, IPO utilization compliance)
All critical risks are reviewed periodically by the Board and Audit Committee.
7. Internal Control Systems and Their Adequacy
The Company has put in place internal control systems commensurate with the size and nature of its operations. These include: Real-time tracking of logistics transactions. Periodic audit and reconciliation of warehouse and fleet operations. Role-based access and approvals in its cloud-based ERP system. Internal Audit is carried out regularly and reviewed by the Audit Committee. No material weakness was reported in internal control during the year.
8. Human Resources / Industrial Relations
The Company considers its human capital as one of its key resources. With trained drivers, operational staff, and a dedicated business development team, GB Logistics fosters a culture of accountability and safety. Initiatives include: o Fuel-efficiency training for drivers. o Warehouse safety and compliance workshops. o Employee grievance redressal via centralized portals. The employee relations remained cordial throughout the year.
9. Key Financial Ratios
Ratio |
FY 2024 25 | FY 2023 24 | Remarks |
Operating Profit Margin (%) |
7.42% | 7.77% | Slight dip due to rise in diesel and maintenance cost |
Net Profit Margin (%) |
5.54% | 5.59% | Stable YoY margins |
Debt-to-Equity Ratio |
Low | Low | Company maintained a lean debt profile |
Interest Coverage Ratio |
Strong | Strong | Interest costs remain manageable |
Current Ratio |
>1 | >1 | Comfortable liquidity |
EPS ( ) |
80.02 | 7.17 | Lower due to share dilution from IPO |
10. Outlook
The Company plans to:
Expand its owned fleet and reduce overdependence on third-party vehicles.
Automate warehousing and dispatch centers. Digitize agri-trading through direct farm-gate sourcing.
Explore inland multimodal logistics and consolidate client base in new regions. The IPO proceeds have bolstered liquidity for growth-oriented capex and expansion activities.
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