Kaushalya Logistics Ltd Management Discussions

LOGISTICS MARKET OVERVIEW

The India logistics market generated a revenue of USD 228.4 billion in 2024 and is expected to reach USD 357.3 billion by 2030.

The India market is expected to grow at a CAGR of 7.7% from 2025 to 2030.

Ecommerce and Trading were the largest revenue generating service in 2024 and will continue to do so in coming years.

Profitability of Warehousing and Distribution Services continues to be lucrative and will continue registering growth. LOGISTICS TRENDS

Supply chain industry continues to see significant investment in digitization and are expected to drive efficiencies in supply chain, throughput and data accuracy.

E-COMMERCE OVERVIEW

India has experienced boom in internet and smartphone penetration for few years. This has helped Indias digitization, and the sector is expected is to reach US$ 1 trillion by 2030. This rapid rise in internet users and smartphone penetration coupled with rising incomes has assisted the growth of Indias e-commerce sector. Indias e-commerce sector has transformed the way business is done in India and has opened various segments of commerce ranging from business- to-business (B2B), direct-to-consumer (D2C), consumer-to-consumer (C2C) and consumer-to-business (C2B). Major segments such as D2C and B2B have experienced immense growth in recent years.

COMPANY OVERVIEW

Kaushalya Logistics Limited operates in 113 locations across multiple states, serving Dalmia Cement Bharat Limited and added Adani Group- ACC Cement Ltd & Ambuja Cement Ltd, JK Cement Ltd and Shree Cement Ltd.

As a diamond-categorized Seller on a major E-commerce platform, it has a strong national presence in 19 states, having Corporate Office in New Delhi. Besides logistics and Ecommerce Services, We have diversified into commercial Real estate, owning and renting commercial Shops.

The Company also offers Full Truck Load (FTL) Services as integrated logistics solutions, which involve the transportation of goods, ensuring dedicated and efficient delivery.

Positioned as an integrated provider of Logistics and Clearing and Forwarding (CFA) services, Company also started Clearing Consignment and Forwarding Agent (CCFA) services during the financial year to manage the logistics needs of cement manufacturers.

The Company is continuously expanding into other logistics sub-segments and additional verticals, driven by a strategic vision for sustained growth.

Our Revenues stood at ? 1,24,631.36 with EBITDA reaching ? 2525.80 Lakhs and Net profit at ? 1,184.67 lakhs. We improved our margins in E-Commerce by focusing on niche Products though there are reduction in Revenues. Our Logistics business continues to show growth in Revenues.

OUTLOOK

The Company will focus to achieve goal of establishing a robust, pan-India presence in supply chain with a target of reaching over 200 locations by the end of FY 2026.

RISK AND CONCERNS

Operational Risks continue to be in equipment failure, human error, labor shortages, poor infrastructure, regulatory changes, damage or loss of cargo. Financial challenges like rising costs, external factors like geopolitical instability, natural disasters, trade disruptions and technology continue to be disruptors.

Risks in the e-commerce industry continues to be such as security risks, fraud risks, operational risks, legal and compliance risks and reputational risks.

FACTORS AFFECTING OUR OPERATIONS

• Working Capital

• Competition

• Labor intensiveness

• Internal Controls and

• Lack of technology

ACKNOWLEDGEMENT

Your Directors take this opportunity to express their deep sense of gratitude to the vendors, business associates, employees, investors and banks for their continued support and co-operation during the year under review.