Gconnect Logitech & Supply Chain Ltd Management Discussions

Industry Structure and Development:

Our Company was incorporated as "Gconnect Logitech and Supply Chain Private Limited" pursuant to a certificate of incorporation bearing CIN U63030GJ2022PTC134029 dated July 20, 2022, issued by the Deputy Registrar of Companies, Central Registration Centre. Thereafter, pursuant to a resolution passed by our Shareholders in the extraordinary general meeting held on March 24, 2023, wherein the business of M/s Prithvi Enterprise, a sole proprietorship concern was taken over by Business Takeover Agreement. Subsequently, our Company was converted into a Public Limited Company and the name of the Company was consequently changed to ‘Gconnect Logitech and Supply Chain Limited and a fresh Certificate of Incorporation dated September 18, 2023 issued by Registrar of Companies, Ahmedabad.

Our Company is engaged in the business of providing surface logistics services viz. goods transport services. Our Company offers its services to other logistic companies, including surface logistic companies and to direct customers. The range of services offered by our Company includes bulk load, Full Truck Load (FTL) service and dedicated load. Under bulk load, our Company offers bulk transportation service to large sized Companies through their transport contractors, Full Truck Load (FTL) service to retailers and traders, wherein our Company provides point to point services to the customers in which the goods are loaded from the premises of the customer and are delivered to the delivery point as specified by them (i.e. factory/warehouse). Our Company also provide dedicated load service, which includes multiple pick-ups and drops. Our Company mainly serves transport contractors and industrial customers, who have requirement to transport bulk quantities of their goods from one place to another within India.

Discussion on Financial Performance:

Particulars	2025-26	2024-25
Total Income	409.76	470.36
Total Expenses	378.07	432.34
Profit before tax and exceptional items	31.69	38.02
Exceptional income	--	--
Profit after exceptional items before tax	31.69	38.02
Taxes(benefit)	9.91	10.12
Profit after tax	21.78	27.90
Other Comprehensive Income / (Loss)	--	--
Net Profit	21.78	27.90
Earnings per share (Basic)	0.59	0.75

During the year under review, the Company recorded total income of Rs 409.76 lakh, as compared to Rs 470.36 lakh in the previous year. Total expenses stood at Rs 378.07 lakh as against Rs 432.34 lakh in the previous year. The Profit Before Tax and exceptional items was Rs 31.69 lakh, compared to Rs 38.02 lakh in the previous year. After considering taxes of Rs 9.91 lakh, the Company reported a Profit After Tax of Rs 21.78 lakh for the Current Year, as against Rs 27.90 lakh in the Previous Year. During the year, there was no exceptional item or other comprehensive income/loss.

Segment Wise or Product Wise Performance:

The Company is primarily engaged in the business of surface logistics and transportation services. The Company provides goods transportation services to logistics companies, transport contractors, industrial customers, retailers and traders. Its key service offerings include Bulk Load, Full Truck Load (FTL) and Dedicated Load services.

The Company does not have separate reportable business segments. Its operations are predominantly focused on logistics and transportation services, with revenue generated through its various transportation service offerings.

Business Outlook:

The outlook for the Companys business remains positive, supported by the continued growth of Indias logistics and transportation sector. Government initiatives relating to infrastructure development, dedicated freight corridors, road and rail connectivity, logistics parks and digitalisation are expected to improve the efficiency of the logistics ecosystem.

The Company intends to leverage the increasing demand for transportation and logistics services arising from industrial growth, e-commerce, retail and the expansion of direct-to-consumer businesses. The Company also sees opportunities to strengthen its service offerings by providing value-added logistics services and adopting technology-enabled solutions for better operational efficiency and customer service.

Growth Outlook:

The Company expects to focus on sustainable growth by expanding its customer base, strengthening relationships with transport contractors and industrial customers, and increasing the utilisation of its existing logistics capabilities. The growing demand for efficient transportation services, supported by the expansion of e-commerce, D2C businesses and Indias manufacturing and industrial ecosystem, provides opportunities for further business growth.

Our SCOT Analysis

Strengths:

- Established presence in the surface logistics and transportation business, offering Bulk Load, Full Truck Load (FTL) and Dedicated Load services.

- Diversified customer base comprising logistics companies, transport contractors, industrial customers, retailers and traders.

- Focus on point-to-point transportation and dedicated logistics requirements provides flexibility in catering to customer-specific requirements.

- Focus on operational efficiency, technology adoption and compliance-supported internal control processes.

Challenges

- The logistics industry is highly competitive, with new-age technology-driven logistics companies entering the market and increasing competitive pressure.

- The Company needs to continuously adopt new technologies and digital systems to improve productivity and remain competitive.

- Transportation and logistics operations may be affected by changes in fuel costs, operating costs, availability of transportation capacity and other external factors.

- Increasing customer expectations for faster delivery, tracking, reverse logistics and value-added services require continuous improvement in service capabilities.

- The logistics industry is highly competitive, with new-age technology-driven logistics companies entering the market and increasing competitive pressure.

Opportunities

- Continued growth of Indias logistics, transportation, e-commerce and D2C sectors presents significant opportunities for expansion.

- Government initiatives such as dedicated freight corridors, improved road and rail connectivity, logistics parks and the National Logistics Policy are expected to support the growth of the logistics sector.

- Increasing manufacturing activity and the shift of global manufacturing towards India are expected to create additional demand for logistics and transportation services.

- The Company can expand into value-added services such as packaging, labelling and reverse logistics to broaden its service offerings.

- Adoption of technologies such as GPS/GIS tracking, data analytics, AI and other digital solutions can improve operational efficiency and customer experience.

Threats

- Intense competition from established logistics companies as well as emerging technology-driven logistics startups.

- Fluctuations in economic conditions, demand and supply, transportation costs and other operating expenses may impact profitability.

- Rapid technological developments may require continuous investment and adaptation.

- Changes in government policies, taxation, regulatory requirements and infrastructure conditions may affect the Companys operations.

- Increasing competition and pressure on yields within the logistics industry may impact margins and customer retention.

Risk and Concerns:

The Company operates in a dynamic and competitive logistics industry and faces certain risks and concerns which may affect its operations and performance. The key concerns identified in the MDA are:

- Increasing Competition: New-age technology logistics startups are entering the market and introducing competing products and services. Several new businesses are entering the B2B market, particularly driven by manufacturing.

- Technology Adoption: The logistics industry is required to quickly adopt the latest technologies, including GPC/GIS tracking of consignments, in order to improve efficiency and meet the changing requirements of customers.

- Need for Value-Added Services: Logistics companies are expected to expand their product basket to include value-added services such as packaging, labelling and reverse logistics. The ability to develop and provide such services is an important consideration for future growth.

- Changing Customer Requirements: The MDA highlights the need for logistics companies to cater to corporates seeking to outsource their logistics requirements and to provide services in line with evolving customer expectations.

- Competitive Pressure on Yields: The logistics industry has witnessed intensifying competitive trends, with yields also being challenged. This remains an important concern for logistics service providers.

- Economic and Industry Conditions: The Companys operations may be influenced by domestic and global demand and supply conditions, sales volumes and selling prices, input availability and cost, tax laws, economic developments, litigation and industrial relations.

- Dependence on Government Initiatives and Infrastructure: The development of the logistics sector is linked with government initiatives relating to infrastructure, connectivity, logistics parks, warehousing and digitalisation. Continued development and effective implementation of these initiatives are important for the growth of the sector.

Internal Control Systems and their Adequacy:

The Company conducts its business with integrity and high standards of ethical behaviour and in compliance with the applicable laws and regulations governing its business.

The Company has an established framework of internal controls supported by standard operating procedures, policies and guidelines, including self-assessment exercises. The Company periodically evaluates the adequacy of its internal controls and ensures that its operating and business units adhere to the prescribed internal processes and procedures as well as regulatory and legal requirements.

The Company believes that its internal control framework provides an appropriate basis for conducting its operations and monitoring compliance with applicable requirements.

Analysis of Financial Conditions and Results of Operations:

The Financial Statements have been prepared in accordance with the requirements of the Act, Indian Generally Accepted Principles (Indian GAAP) and the Accounting Standards as prescribed by the Institute of Chartered Accountants of India.

The Management believes that it has been objective and prudent in making estimates and judgments relating to the Financial Statements and confirms that these Financial Statements are a true and fair representation of the Companys Operations for the period under review.

Development On Human Resource:

At Gconnect Logitech and Supply Chain Limited our human resource is critical to our success and carrying forward our Mission.

With their sustained, determined and able work efforts we were able to cruise smoothly through the hard time of the economic volatility and rapidly changing market conditions.

The requirement of the markets given the economic scenario has made this even more challenging.

Attracting newer talent with the drive, training and upgrading existing skill sets and getting all to move in a unified direction will definitely be task in the Company.

By creating conducive environment for career growth, Company is trying to achieve the maximum utilization of employees skills in the most possible way.

There is need and the company is focused on retaining and bringing in talent keeping in mind the ambitious plans despite the market and industry scenario.

Industrial Relations:

Industrial Relations throughout the year continued to remain very cordial and satisfactory.

Cautionary Statement:

Statements in the Management Discussion and Analysis Report containing the objectives, expectations or predictions of the company may be forward-looking within the meaning of securities laws and regulations. Actual results may differ materially from those expressed in the statement. The operations of the Company could be influenced by various factors such as domestic and global demand and supply conditions affecting sales volumes and selling prices of finished goods, input availability and cost, tax laws, economic developments within the country and other factors such as litigation and industrial relations.

Internal Control System:

The Company conducts its business with integrity and high standards of ethical behaviour and in compliance with the laws and regulations governing its business.

The Company has an established framework of internal controls supported by standard operating procedures, policies and guidelines, including self-assessment exercises. The Company evaluates the adequacy of its internal controls from time to time and ensures that its operating and business units adhere to internal processes and procedures as well as regulatory and legal requirements.

Material Developments in Human Resources / Industrial Relations Front Including Number of People Employed:

The Company recognizes the importance and contribution of its human resources to its growth and development and values the talent, integrity and dedication of its employees. The Company focuses on developing leadership talent from within and conducts various programmes for employee development. Employee motivation is considered important for the success of the organisation, and the Company undertakes various social programmes and initiatives to motivate its employees.

Forward – Looking Statements:

This Report contains forward –Looking Statements. Any statement that address expectations or projections about the future, including but not limited to statements about the Companys strategy and growth, product development, market position, expenditures and financial results, are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future growth.

FINANCIAL RATIOS :

Ratio	Basis of Ratio	Ratio Current Year	Ratio Previous Year	Variance %	Reason for major variance
Current Ratio	Current Asset/ Current Liabilities	28.01: 1	5.97:1	369.18%	Surge in liquidity: Current liabilities decreased drastically from 93.93 to 23.02 due to the complete repayment of short-term borrowings.
Debt Equity Ratio	Total Debt/ Shareholders Equity	0.00: 1	0.08	- 100 %	Debt-free status: Short-term debt of 73.98 was fully settled, leaving zero debt on the balance sheet.
Debt Service Coverage Ratio	Earnings available for debt service / Debt Service	0.89: 1	13.95	-93.62%	Heavy repayment obligation: A lump-sum short-term debt repayment of 73.99 happened during the year, inflating the total debt service requirements.
Return on Equity Ratio	Net Profit after Tax/ Average Shareholders Equity	2.28 %	3.01%	-24.25%	Profit contraction: Net comprehensive income fell by 21.94% (from 27.90 to 21.78) while the equity base expanded.
Inventory turnover Ratio	Cost of Goods Sold/ Average Inventories	12.00	12.68	- 5.36 %	Stable operations: Inventory consumption pattern and total cost of services fell proportionately.
Net Profit Ratio	Net Profit/ Net Sales	5.39%	5.97%	-9.72%	Marginal pressure: Operational net revenue dipped faster than cost adjustments, slightly compressing the net margins.
Debtor Turnover Ratio	Net credit sales / Average Debtors	1.26	1.77	-28. 81 %	Slower recovery cycles: Trade receivables surged from 264.38 to 321.43 despite a parallel reduction in credit sales.
Interest coverage Ratio	EBIT / Interest Expense	13.19	6.74	95.70%	Reduced financial load: Total finance charges declined by 60.73% (from 6.62 down to 2.60) as borrowings were paid off.

 

For and on Behalf of The Board of Directors

Gconnect Logitech and Supply Chain Limited

SD/-

Jigar Vinodhbhai Sheth

Managing Director

DIN: 09679044

SD/-

Rajiv Chandulal Darji

Director

DIN: 02088219

Place: Bhavnagar

Date: 03.10.2026