Lancer Containers Lines Ltd Management Discussions.
Industry and Business Overview
Logistics sector plays an important role in Trade & the linkages to economic growth is well known. One of the elements in the strategy of the Government of India to drive economic growth is to have infrastructure driven growth. The road construction activity picked up to building 22 kms of road every day in FY16-17. The government of India is focusing on increasing the contribution of inland waterways and coastal shipping to modal transportation from the current 6% to at least 10-12%. The year has also seen the establishment of funding and oversight mechanism for the Sagarmala port-led development program and also plans for 12 more port projects. All of this infrastructural push coupled with the campaigns like Make in India makes the logistics sector an important sector in the economy. Lancer Container Lines is engaged in providing logistic services such as NVOCC, Freight Forwarding, Container Trading and Leasing and Container yard. We provide these services and product on worldwide basis and aim to emerge as a global logistic service provider. We believe in giving our customers "Total Logistics solutions without Limits".
Key Demand drivers in Logistics Sector:
Growth in Manufacturing Sector Our reading of the Competitive landscape:
The Logistics industry remains highly competitive and continues to be fragmented with lots of unorganized and organized players leading to pricing led differentiation from existing and new entrants. Global economic trends are beginning to look positive, but a full-fledged growth phase is still some time away. Given the linkages your company has with International trade; this global economic recovery factor plays an important role in future growth.
In the light of this landscape, the push by the government of India in Make in India and focus on improving International trade (both Exports and Imports) and increasing development of Infrastructure would be a positive for our business. From our company stand point we are focused on having a network (Branch and Agents) which can take advantage of the opportunities available. We have also focused on enhancing our fleet of containers should they be available at competitive price points.
Build relationships through flexibility to meet the customers changing needs. We constantly make an effort to add more value to our products and services, thereby providing ultimate customer satisfaction. Attract and retain efficient professional, which forms part of our core strength.
Internal Control Systems and their Adequacy:
Your company has adequate internal control systems and code of conduct, which is supplemented by regular management review, well documented policies and guidelines to ensure reliability of financial and all other records and to prepare financial statement and other data. The company has independent audit systems in place to monitor important functions and the audit committee of the board reviews the findings.
Financial Performance and Analysis:
|Particulars||Year ended 31.03.2016||Year ended 31.03.2017|
|Sales and Other Income||4314.3||7776.7|
|Net Profit for the year||55.0||167.7|
** For detailed explanation, please refer Directors Report.
This report contains forward-looking statements based on certain assumptions and expectations of future events. Actual performance, results or achievements may differ from those expressed or implied in any such forward looking statements. The company undertakes no obligations to publicly revise any forward looking statement to reflect future/likely events or circumstances.