(Pursuant to Regulation 34 read with the Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)
The management of the Company is pleased to present its report on the business environment and industry scenario, industry risks, opportunities and the Companys financial & operational performance during the financial year 2024-25.
After COVID 19 pandemic, the world is currently experiencing a high number of armed conflicts, with significant areas of instability and violence in the Middle East, Africa, and parts of Asia. The Israel-Hamas conflict and the Russia-Ukraine conflict, particularly since the full-scale invasion in February 2022, is a major European conflict with substantial casualties.
Year 2024 was a year of elections with more than half of the global population voting in major elections across countries. Three big democracies went in for elections: India, America and Indonesia. India returned the incumbent to office for a third term. The world has had an early inkling of policy changes that will affect the global movement of goods and labour. Europe faces both political and economic uncertainties. Several stock markets worldwide are at elevated levels and do not appear unduly concerned about economic growth and earnings uncertainties. Tariff announcements by the United States and countermeasures by other countries triggered a bout of policy uncertainty starting in February 2025.
1. ECONOMIC OVERVIEW
Global Economic Overview
Global growth is projected at 3.3 percent both in 2025 and 2026 and is expected to remain stable, below the historical (2000 19) average of 3.7 percent. The forecast for 2025 is broadly unchanged from that in the October 2024 World Economic Outlook (WEO), primarily on account of an upward revision in the United States offsetting downward revisions in other major economies. Global headline inflation is expected to decline to 4.2 percent in 2025 and to 3.5 percent in 2026, converging back to target earlier in advanced economies than in emerging market and developing economies.
In emerging market and developing economies, growth performance in 2025 and 2026 is expected to broadly match that in 2024. With respect to the projection in October, growth in 2025 for China is marginally revised upward by 0.1 percentage point to 4.6 percent developing economies. In India, growth is projected to be solid at 6.5 percent in 2025 and 2026, as projected in October and in line with potential. In the Middle East and Central Asia, growth is projected to pick up, but less than expected in October. This mainly reflects a 1.3 percentage point downward revision to 2025 growth in Saudi Arabia, mostly driven by the extension of OPEC+ production cuts. In Latin America and the Caribbean, overall growth is projected to accelerate slightly in 2025 to 2.5 percent, despite an expected slowdown in the largest economies of the region. Growth in sub-Saharan Africa is expected to pick up in 2025, while it is forecast to slow down in emerging and developing Europe.
IMF: World Economic Outlook Growth Projections:
Global Growth | Estimate | Projections | ||
2024 | 2025 | 2026 | ||
World Outlook | 3.2 | 3.3 | 3.3 | |
1. Advanced Economies (AE) | 1.7 | 1.9 | 1.8 | |
United States | 2.8 | 2.7 | 2.1 | |
EU Area | 0.8 | 1.0 | 1.4 | |
United Kingdom | 0.9 | 1.6 | 1.5 | |
Japan | -0.2 | 1.1 | 0.8 | |
2. Emerging Market and Developing Economies | 4.2 | 4.2 | 4.3 | |
India | 6.5 | 6.5 | 6.5 | |
China | 4.8 | 4.6 | 4.5 | |
Brazil | 3.7 | 2.2 | 2.2 | |
Sub-Saharan Africa | 3.8 | 4.2 | 4.2 | |
Middle East and Central Asia | 2.4 | 3.6 | 3.9 |
The Global Trade Outlook and Statistics April 2025 Report stated that the outlook for global trade has deteriorated sharply due to a surge in tariffs and trade policy uncertainty. Based on measures in place as of 14 April, including the suspension of "reciprocal tariffs" by the United States, the volume of world merchandise trade is now expected to decline by 0.2% in 2025 before posting a modest recovery of 2.5% in 2026.
At the start of the year, World Trade Organisation (WTO) economists expected to see continued expansion of world trade in 2025 and 2026, with merchandise trade volume growth picking up gradually over time in line with GDP, and commercial services trade volume growing even faster. A profusion of new tariff measures announced and implemented since January prompted WTO economists to re-examine the trade landscape, resulting in a significant downgrade to the outlook for merchandise trade, and a smaller reduction in the outlook for services trade.
The overall global outlook remains steady, growth varies across different regions. Geopolitical risks remain elevated due to ongoing conflicts, which pose significant risks to the global economic outlook.
Indian Economic Overview
Indias economy is a dynamic, developing, mixed economy, currently experiencing the fastest growth among major economies. Its the worlds sixth-largest by nominal GDP and third-largest by purchasing power parity. Strong domestic growth drivers, sound macroeconomic fundamentals, political stability and prudent policies are contributing to this growth, which is expected to continue in the coming years.
India remains a bright spot in the global economy, with GDP growth estimated at 6.5 percent in FY2024 and projected 6.5 percent for FY 2025 and FY 2026 driven by strong domestic consumption, infrastructure investments, and policy reforms. As per the first advance estimates released by the National Statistical Office, Ministry of Statistics & Programme Implementation (MoSPI), the real gross domestic product (GDP) growth for FY25 is estimated to be 6.4 per cent. From the angle of aggregate demand in the economy, private final consumption expenditure at constant prices is estimated to grow by 7.3 per cent, driven by a rebound in rural demand. PFCE as a share of GDP (at current prices) is estimated to increase from 60.3 per cent in FY24 to 61.8 per cent in FY25. This share is the highest since FY03. Gross fixed capital formation (GFCF) (at constant prices) is estimated to grow by 6.4 per cent.
Indias retail inflation eased in FY25 due to timely interventions by the government and the Reserve Bank of India. Core inflation reached its lowest point in a decade, while food inflation was affected by supply chain disruptions and adverse weather conditions. Estimates suggest that Indias retail price inflation will align progressively with the target. Global commodity prices are expected to decline, potentially easing core and food inflation. Long-term price stability could be achieved by robust data systems for monitoring prices, developing climate-resilient crops, reducing crop damage and post-harvest losses.
Keeping in mind the upsides and downsides to growth, the Economic Survey expects the real GDP growth in FY26 to be between 6.3 percent and 6.8 percent.
Sources; Indian Economic Survey Report 2024-25, Global Trade and Outlook Statistics (April 2025), IMF world Economic outlook update (January, 2025) and Global Financial Stability Report (April, 2025).
2. LOGISTICS INDUSTRY OVERVIEW
In todays world, economic climate changes more quickly, and countries realise that globalisation has made the world small and more competitive. Also, customers seek products and services that can respond to their specific needs, and firms make effort to create competitive advantages to keep their profit and market share. All of the above trends lead firms and countries to focus on efficient logistics system.
Logistics is the process of planning, organizing, and managing the flow of goods and services from the point of origin to the point of consumption. It includes activities such as transportation, warehousing, inventory management and packaging. The logistics Performance of a country is a measure of how well it performs these activities. (Pohit et al., 2019).
GLOBAL
Globally logistics is the lifeline of international commerce, connecting producers and consumers across continents. As the world continues to evolve, so too must logistics systems becoming smarter, greener, and more resilient. By embracing innovation and collaboration, the logistics industry can overcome its challenges and continue to drive global prosperity.
The global logistics market size was estimated at USD 9.98 trillion in 2024 and is predicted to increase from USD 11.23 trillion in 2025 to approximately USD 23.14 trillion by 2034, expanding at a CAGR of 8.36% from 2025 to 2034. Asia Pacific dominated the global market with the largest market share of 44.59% in 2024. The Asia Pacific logistics market size was valued at USD 4.45 trillion in 2024 and is expected to reach around USD 11.43 trillion by 2034 with a CAGR of 9.37% from 2025 to 2034. By end user, industrial and manufacturing segment generated the major market share of 31.78% in 2024 (Sources; https://www.precedenceresearch.com/logistics-market)
Logistics Market Share, by Region, 2024
Region | Market Share (%) |
North America | 24.25 |
Europe | 21.73 |
Asia Pacific | 44.59 |
Latin America | 5.51 |
Middle East and Africa | 3.91 |
(Sources; https://www.precedenceresearch.com/logistics-market)
Transport is fundamental to supporting economic growth, creating jobs and connecting people to essential services such as healthcare or education. But in many developing countries, the benefits are not being realized. One billion people still live more than 2km away from an all-weather road, where lack of access is inextricably linked to poverty. Road crashes claim over 1.19 million lives every year, 93% of them in developing countries. When it comes to transport, developing countries face a dual challenge: balancing an increasing demand for transport services with fiscal and environmental concerns.
(Sources : https://www.worldbank.org/en/topic/transport/overview, update April 09, 2025)
LOGISTICS IN INDIA
An efficient logistics sector is pivotal for India to become a globally preferred business destination. It reduces manufacturing costs, makes businesses more competitive, and links them with global value chains, boosting the Make in India initiative. The sector is also one of Indias largest employers, employing over 22 million people. In 2023, India ranked 38 out of the 139 nations in the World Banks Logistics Performance Index (LPI), up six places from the previous rankings in 2018. India has now set the ambitious goal of ranking among the worlds top 25 nations by 2030, bringing logistics costs down to the equivalent of less than 10% of GDP.
Decisive actions have been taken to develop a logistics backbone for the country. The national highways have expanded at an unprecedented rate, connecting ports to hubs of economic activity. The railways too have taken a quantum leap by building electrified freight-only corridors that link manufacturing centres to ports on the eastern and western coasts. Long-defunct inland waterways are being rejuvenated. Many routes including National Waterway 1 have been strengthened, and efforts are on to move cargo through new river-to-sea connections.
The Pradhan Mantri Gati Shakti National Master Plan and the National Logistics Policy are key initiatives. The PM Gati Shakti initiative is breaking down the siloed approach to the planning and execution of multimodal infrastructure projects by integrating data from 16 ministries and departments onto a single Geographic Information System-based platform.
Port and customs services have also seen significant improvements. Cargo is now cleared much faster and containerised cargo can be tracked digitally. Today, it takes about a day for a ship to turn around at the Nhava Sheva (JN) Port in Navi Mumbai. This is almost at par with Singapore, a world leader in logistics, which takes just 0.75 days. Gujarat has been ranked the top performer among coastal states in India, and West Bengal is taking advantage of its strategic location by placing a new thrust on logistics infrastructure and services.
Even so, new technologies such as big data and artificial intelligence can be put to greater use to fulfil the vision of a nationally integrated, cost-effective, reliable, and digitally enabled logistics ecosystem.
First, the PM Gati Shakti platform can be overlaid with information on trade flows across the country. This will enable planners to mine the plethora of data available from the Goods and Services Tax Network and E-Way bills to see where infrastructure needs to be improved.
Second, the multimodal logistics parks planned with connectivity to railway corridors can serve as warehouses and data centres, attracting private sector service providers and investors, while giving manufacturers last-mile connectivity.
Third, the countrys youth will need to be equipped with the skills needed by this dynamic industry. Women too can benefit from new jobs, especially in softer skills such as packaging, sorting, and warehouse management. The Logistics Sector Skill Council is training workers in newer technologies to help them become full-fledged logistics professionals.
The World Bank has been supporting India through a variety of rail, road, and inland waterway projects. It is also helping the country increase digitisation and improves trade services, among other measures, and supporting the development of skills for this rapidly evolving industry.
Indias push to improve its logistics performance will not only improve its trade competitiveness, but will also increase jobs, and enable the country to emerge as a logistics hub for the region and beyond.
(Sources Auguste Tano Kouam? is the World Banks Country Director for India. This Opinion piece first appeared in The Financial Express on July 17, 2024.)
As per the World Banks Logistics Performance Index (LPI), 2023 India moved up to 22nd Rank in the Global Ranking in
International Shipments category and the Overall 38th Rank in Logistics Performance Index score. Indian Ports have registered quantum improvement in "Turn Around Time". Global comparison of Indian Ports on "Turn Around Time" parameter, as published in World Banks Logistics Performance Index (LPI) Report-2023, acknowledges Indian Ports "Turn Around Time" as 0.9 days which is better than USA (1.5 days), Australia (1.7 days) and many other countries. (Posted On: 11 FEB 2025 by PIB Delhi)
The present capabilities that exist in the Indian logistics industry are as follows (Sources https://en.wikipedia.org/);
- India has a total road network is over 66.17 million kilometers long.
- India has a total rail network spans 68,584 route kilometers. This makes it the fourth largest railway network in the world.
- India has a total of 12 major ports and over 200 non-major ports.
- India has a total of 487 airports and airstrips. This includes both domestic and international airports, as well as customs airports and civil enclaves at defense airfields.
The World Bank has been supporting Indias flagship Prime Ministers Rural Roads Program (PMGSY) since its inception more than two decades ago. Considered to be the worlds largest rural roads program, PMGSY aims to expand all-weather road access to some 178,000 villages that were previously unconnected. The World Bank has committed a total of $1.67 billion to the program, directly contributing to the construction or rehabilitation of 48,000 km of all-weather roads connecting 19,000 villages across nine Indian states. The Bank has also provided technical assistance to the entire PMGSY program and helped transform the way Indian rural roads projects are mapped, designed, executed, monitored, and managed. (Sources : https://www.worldbank.org/en/topic/transport/overview, update April 21, 2025)
OPPORTUNITIES, CHALLENGES AND EMERGING TRENDS IN LOGISTIC SECTOR
The opportunities, Challenges and emerging trends including Government measures in logistic Sector are tabled below;
OPPORTUNITIES IN LOGISTIC SECTOR TECHNOLOGICAL INNOVATION | CHALLENGES IN LOGISTIC SECTOR TRANSPORTATION COST | EMERGING TRENDS & GOVERNMENT MEASURES IN LOGISTIC SECTOR DEDICATED FREIGHT CORRIDORS |
The integration of advanced solutions is revolutionizing logistics operations, enhancing efficiency, and unlocking new opportunities. Key technologies shaping the future of logistics including Artificial intelligence (AI), Machine Learning, Robotics and Automation. | One of the biggest heads in any logistics company is transportation cost and unstable fuel prices and maintenance can increase it further. For saving transportation cost, alternatives need to be adopted like combining shipments, installing routing software and reducing carriers. Many businesses today switch between partial-truckload, less-than truckload, and full truck load shipments (FTL vs PTL vs LTL) to manage costs based on cargo. | To facilitate the seamless transportation of goods and commodities across India, high-speed, large- capacity railway corridors known as dedicated freight corridors have been established. These corridors integrate state-of-the-art technology and improved infrastructure, promising enhanced efficiency and effectiveness in the logistics operations. |
ROBOTICS AND DRONE TECHNOLOGY | TECHNOLOGY ADAPTION | MULTIMODAL LOGISTICS PARKS |
The utilization of robotics and drone technology in logistics is increasing rapidly. The global logistics robots market, valued at US$7.11 billion in 2022, is predicted to reach US$21.01 billion by 2029, driven by a growing need for complex supply chain operations, e-commerce fulfillment services, and adoption of warehouse management software solutions. Drones have become essential in the industry, providing solutions for various needs, such as surveillance, access to remote locations, urgent deliveries, grade A warehousing, and reverse logistics. Large e-commerce companies are experimenting with autonomous systems and robotics. | It is a must to adopt technology in logistics, and inability to implement tools like shipment tracking systems, automation systems, data analytics, etc. often prove to be a deterrent for logistics companies. REGULATIONS Logistics rules and regulations in India that are enforced by national, regional and local authorities keeps changing at times and needs constant monitoring. If not handled in a timely manner, these impact logistics and delivery timelines, and efficiency is compromised. | The development of multimodal logistics parks is a strategic step towards providing comprehensive freight-handling facilities. Spread across at least 100 acres, these parks offer access to various modes of transportation, including road, rail, and air. They also provide advanced storage solutions like mechanized warehouses and cold storage facilities, along with essential services like customs clearance and quarantine zones. By reducing freight costs, warehouse expenses, and vehicle congestion, these parks aim to optimize logistics operations and enhance overall supply chain efficiency. |
WAREHOUSING | HANDLING CUSTOMER EXPERIENCE | PARIVAHAN PORTAL |
The warehousing industry is set to grow to US$27.35 billion by 2026 due to increased demand for storage and faster delivery times in tier 1 and tier 2 cities. To support this growth, the government is establishing multimodal logistic parks and other initiatives that connect urban transport to railways, attracting investments from institutional funds and developers. | The logistics industry is highly competitive, and customers are spoilt for choices. Logistics companies are expected to deliver the best to create customer delight and thereby generate repeat business. Providing assistance at every touchpoint can be challenging for providers and affect customer experience. | To standardize processes and promote seamless information sharing across different locations, the government has introduced the Parivahan portal. This digital platform encompasses SARATHI for driving license processes and VAHAN for vehicle registrations. |
DETERIORATING CONDITIONS OF ROADS IN THE INTERIORS OF THE COUNTRY While India has made significant progress in developing its road infrastructure, there are still areas, particularly in the interiors of the country, where road conditions are poor. This poses challenges for logistics operations. | Both functionalities are consolidated within a single user-friendly mobile application, mParivahan. This initiative streamlines administrative procedures and provides easy access to information related to registration cards and drivers licenses, facilitating smoother logistics operations. | |
GREEN LOGISTICS TECHNOLOGY | MANPOWER MANAGEMENT | INTRODUCTION OF THE E-WAY BILL |
The implementation of green logistics technology, which includes climate measurement tools, real-time data-gathering tools, electric vehicles, green cold chain solutions, electric cargo delivery drones, and logistics resource management platforms, can have numerous benefits like reducing waste, simplifying processes, improving a companys competitiveness, and being environmentally friendly. Several companies, such as Spencer, Bigbasket, Amazon, Licious, Myntra, and Flipkart, have partnered with Zypp Electric for their last-mile delivery through e- vehicles and e-vehicle fleet management. | Manpower plays a significant role in logistics and communicating with drivers and staff who mostly are on the road gets difficult. The logistics sector needs skilled manpower and shortage of drivers is a never- ending challenge. Moreover, there is a lack of training institutions too. INADEQUATE SAFETY MEASURES Inadequate Safety measures owing to high-cost pressures remain a concern. | The implementation of the e-way bill system mandates the use of electronic documentation for truckloads. This digital documentation eliminates the need for physical paperwork and state boundary check posts, simplifying inter-state vehicle movement. By reducing turnaround time and bureaucratic hurdles, the e-way bill initiative enhances logistics efficiency and expedites overall supply chain movement. |
A BIRDfS EYE-VIEW OF STRATEGIC POLICY INITIATIVES BY THE GOVERNMENT OF INDIA
According to the National Logistics Policy, 22 million people in India are employed in the logistics sector. The logistics industry shall create an additional 1.2 Million jobs by 2025. A sector this large and so crucial to support Indias plan to join the ranks of developed nations by 2047, necessitates a framework of coordinated Government initiatives so as to reduce wastage and attain goals in a timely and sustainable manner. The following section presents the gist of some of the leading initiatives implemented by the Government of India for the same.
PM Gati Shakti and National Master Plan (NMP)
Launched in October 2021, PM Gati Shakti National Master Plan (NMP) addresses the need for integrated infrastructure developmentand network planning for multimodal connectivity across various economic zones in the nation. This plan identifies seven enginesfor economic growth and aims to promote sustainable development through logistics synergy, faster implementation, adoption ofinnovative technology and financing.
National Logistics Policy (NLP) and Comprehensive Logistics Action Plan (CLAP)
Launched in September 2022, NLP targets toreduce the cost of logistics in India; improveIndias ranking in the Logistics
PerformanceIndex ranking and; create a supportiveecosystem for an efficient logistics industry.To achieve these targets, the ComprehensiveLogistics Action Plan (CLAP) was launched as apart of the NLP covering eight action areas viz.
Production Linked Incentive (PLI) Schemes
In its pursuit of becoming a US$ 5 Tn economy, India the fifth largest economy in the world is raring to ignite the engines of its export manufacturing prowess to the fullest.
Bharatmala
The Bharatmala Pariyojana is a broad-based initiative by the Government of India to develop about 26,000 KM length of Economic Corridors, along with Golden Quadrilateral (GQ) and North-South and East-West (NS-EW) Corridors to carry a majority of the Freight Traffic on roads.
Dedicated Railways Freight Corridors
The establishment of Dedicated Freight Corridors (DFCs) aims to lower logistics costs, develop new industrial hubs and connect terminals under the Gati Shakti plan seamlessly.
Sagarmala
This is the flagship program of the Ministry of Ports, Shippingand Waterways to heighten the use of waterways in multimodaltransport and create career opportunities in ports and themaritime sector.
e-SANCHIT
To enhance the ease of doing business in India, the Departmen of Revenue has launched an e-SANCHIT web portal as a part of its initiative called the Single Window Interface for Facilitating Trade (SWIFT) that seeks to reduce the dependencies on government officials and expedite the process.
Amritkaal Maritime Vision 2047
Amritkaal Maritime Vision 2047 is an action plan to transform the maritime sector of India or develop a Blue Economy with an elaborate investment of 80,000 Lakhs Cr.
3. COMPANYfS OPERATION AND FUTURE OUTLOOK
North Eastern Carrying Corporation Ltd (NECC) was established in 1968 by Late Sh. Jaswant Rai Jain as a part load service between Delhi and most remote parts in the East and North East region of India. It soon became a renowned name amongst the traders for safety of goods and prompt services. The company has always put forth the interests of its clients and till date we have been trying to follow the same principles. The companys wings were further expanded after the joining of Sh. Sunil Kumar Jain in 1980 who took Companys presence to PAN India while starting new verticals and expanding the horizon of services offered to the vast set of clients.
NECC has always been a preferred logistics partner for most of reputed organizations throughout India. Over last decades the Company transformed from a mere PTL player to a full-fledged logistics company, while gaining not just customers but also the reputation of being one of the most reliable transportation company and giving turnkey solutions for all logistics needs. Today, NECC family comprises of hundreds of employees and associated vendors offering their services throughout India, Nepal & Bhutan.
The Company had got listed its Equity Shares with Bombay Stock Exchange in the year 2012 and with the National Stock Exchange in the year 2016.
NECC Vision | NECC Mission |
"To provide seamless transit of materials across national and international borders using multi-model solutions for speedier movement at lowest cost". | "We aim to be a leading & preferred distribution solution provider organization, providing tailor made solutions PAN India under one banner". |
NECC SERVICES
Currently NECC offers services like Part Truck Load (PTL), Full Truck Load (FTL), Bulk Movements, ODC movements, Warehousing
1. Part Truck Load (PTL)
Movement of goods/small parcels (<50kgs) from all over India to the eastern and north eastern part of the country. This is the flagship business of the company and we are proud to be the top player in the entire region in terms of network density and serviceability. We have more than 4 lakh customers in this division along with 230 offices spread across India/Nepal/Bhutan. .
2. Full Truck Load (FTL)
We provide this service to all major corporate where we can place the truck from anywhere to anywhere depending on the clients needs.
3. Bulk movements
In this division, we offer services like mining logistics, chrome/iron/magnese ore transportation from mines to processing hubs to plants and then to final customers. We are proud to be able to give end to end solution to our clients having negligible competition.
4. ODC movements
Over Dimensional Consignments require special expertise and safety measures to be transported over long distance,
NECCs team of experts do this all over India on turnkey basis.
5. Warehousing
We have more than 1.5 million sq. ft. of warehousing space all over India. (mix of lease and owned) and providing our clients with complete solution of primary movements, storage and then to end customers on just in time basis. This is the fastest growing division for the company at the moment and we have been investing in building assets to grow our strength in this business.
NECCfs MAJOR CLIENTS
During the FY 2024-25, the Company has following major clients;
NECCfS FUTURE OUTLOOK
The Company plan to develop and strengthen manpower base which is a key factor for long term growth. Also, as a logistics service provider the Company feel that the reach and network is an important factor that would enable to cater to more clients and give better serviceability to existing ones in the PTL division. Thus, the Company in the process of opening new branch offices in remote parts of India that would help the Company in the next phase of growth. The Company also cautious about investments in these new locations and take the franchise route where necessary to mitigate the risks and grow on a more sustainable basis.
The Company also very bullish on its projects and ODC/Bulk business division which caters to marquee clients like TATA Steel Ltd., GAIL (India) Ltd., Uno Minda Ltd. and likes. This is a promising division with the potential to give major boost to top line and is also the one with comparatively limited competition due high entry barriers. The company is committed to its core line of business and working extensively to improve infrastructure by continuously investing in advanced material handling equipments & the training of manpower for better safety standards and enhanced working capabilities though dedicated training programs in order to get more business in this division going ahead.
The Company come across a more lucrative business proposal and acquired 10.81% stake in SG Logistic Management Private Limited (SGMPL). SGMPL is the Indias largest Heavy Commercial Electric Vehicle (EV) operation company for the purpose of carrying out transportation activities through the use of electric vehicles. This investment is in line with Companys long term strategy to make transportation more sustainable and greener for the environment where we operate in. In terms of business proposition, it would be very lucrative, as the cost of electricity is very minimum in comparison to that of diesel. Given the huge cost for acquiring the assets needed to start the EV trucking at large scale, the Company strategically collaborated with SGMPL wherein the advantage of gaining substantial business.
NECCfs ENVIRONMENT- COLLABORATING FOR A GREENER PLANET
As a logistics services provider, we recognize our responsibility to contribute to environmental preservation and conservation. To this end, we actively engage in promoting green logistics, raising awareness through ESG campaigns, and integratingsustainable practices into our daily operations.
Our commitment to sustainability is reflected in various initiatives, including the adoption of Green trucks, energy conservation measures, optimized warehouse management and comprehensive water and waste management strategies. Investment in SG Logistic Management Private Limited is great initiative in environment saver by the Company.
4. COMPANYfS FINANCIAL PERFORMANCE
FINANCIAL HIGHLIGHTS
The total revenue booked by the Company during FY 2024-25 marginally decreased by 2.17% from 336.72 Crores to Rs. 329.43 Crores. The management of the company is in continually efforts to increase its revenue and reducing its costs. The management of the Company has been able to reduce its administrative, finance and operating cost during the FY2025 and total expenses at Rs. 316.39 Crores decrease by 3.11 % in compare to previous years.
Profit before exceptional items and taxes at Rs.13.03 Crores is higher than the previous year by 28.21% and Profit after tax at Rs. 10.25 Crores is higher than the previous year by 28.28% driven by lower of administrative, finance and operating cost.
Hence, the net profit margin has increase from 2.34% in FY 2024 to 3.08% in FY 2025 and Earnings per share has recorded at Rs. 1.03 for the year as compared to Rs. 0.84 in the previous year.
Performance snapshot
Particulars | FY 2025 | FY 2024 | Change in % |
Total Revenue | 32,943.54 | 33,672.64 | (2.17) |
Total Expenses | 31,639.89 | 32,655.81 | 3.11 |
Profit before Taxes | 1,303.65 | 1,016.83 | 28.21 |
Profit after Tax | 1,025.25 | 802.20 | 27.80 |
Total Compressive Income | 1,014.75 | 791.02 | 28.28 |
Net Profit Margin % | 3.08% | 2.34% | 74bps |
EPS | 1.03 | 0.84 | 19bps |
OPERATION AND SEGMENT HIGHLIGHTS | |||
Particulars | FY 2025 | FY 2024 | Change in % |
Freight | 31,580.56 | 32,331.65 | (2.32) |
Loading and Unloading | 1,290.95 | 1,178.43 | 9.55 |
Warehousing | 0.96 | 1.44 | (33.33) |
KEY FINANCIAL RATIO AND SIGNIFICANT CHANGES
Sl. No. Key Financial Ratios | FY 2025 | FY 2024 | % Variance | Significant Changes, if any |
1 Current Ratio (in times) | 2.70 | 2.67 | 1.25 | There is no significant variation in the ratio as compared to preceding year. |
2 Debt-to-Equity Ratio (in times) | 0.48 | 0.53 | (9.42) | There is no significant variation in the ratio as compared to preceding year. |
3 Debt Service Coverage Ratio (in times) | 3.18 | 0.90 | 253.33 | Ratio has changed during the year |
4 Return on Equity Ratio (in %) | 0.05 | 0.04 | 13.58 | There is no significant variation in the ratio as compared to preceding year. |
5 Receivables turnover (in times) | 2.69 | 2.85 | (5.66) | There is no significant variation in the ratio as compared to preceding year. |
6 Trade Payable Turnover Ratio (in times) | 61.83 | 93.73 | (34.04) | Ratio has changed because of increase in trade payable |
7 Net Capital Turnover Ratio (in times) | 0.42 | 0.57 | (25.72) | Ratio has changed due to increase in current assets |
8 Net Profit Margin Ratio (in times) | 3.09 | 2.36 | 30.78 | Ratio has improved as compared to preceding year |
9 Return on Capital Employed (in %) | 0.09 | 0.09 | (4.13) | There is no significant variation in the ratio as compared to preceding year. |
10 Return on Investment (in %) | 1.54 | 1.74 | (11.61) | There is no significant variation in the ratio as compared to preceding year. |
5. HUMAN RESOURCE/INDUSTRIAL RELATIONS
The Company truly believes that NECCs biggest strength is its people and is the single most important factor to ensure sustainable business growth and become Future Ready. This is why a relentless focus on strengthening talent management and employee engagement processes. As on March 31, 2025, the Companys total manpower stood at 554 employees including executive directors.
For effective and meaningful Human Resource management at NECC, concentrate on all aspects of the employee lifecycle to provide a holistic experience to the employees. During their tenure with NECC, employees are motivated through various skill development interventions, including job rotations, customized training programme and engagement and volunteering programs. The Company also strived to be more open, transparent and objective in the people processes. The Company encourages debate and open dialogue on various processes directly impacting employees which helps to develop and improvise people strategy for future.
The Industrial Relations of the Company too, continued to be on a cordial note. There was no loss of man-days on account of industrial unrest. Further, there are regular interactions between the management and the employees, thereby fostering anatmosphere of trust and cooperation.
6. INTERNAL CONTROLS AND POLICIES
Our internal financial control framework is commensurate with the size and operations of the business and is in line with the requirements of the regulations as prescribed in the Companies Act, 2013 and in the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. We have laid down adequate procedures and policies to guide the operations of our business effective and robust internal control systems to prevent itself from frauds, mismanagement, risks and errors and it is also ensure compliance with laws and regulations.
Internal Audit at the Company is an independent and objective activity designed to provide assurance to senior management and add value by identifying opportunities to deliver business benefits and improvements to internal controls. It helps us accomplish our objectives by bringing a systematic and disciplined approach to evaluating and improving the effectiveness of processes, controls, and governance.
The Audit Committee of the Board of Directors, Statutory Auditors and the Business Heads are periodically apprised of the internal audit findings and corrective actions taken. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee. The Branch head/managers are responsible for ensuring compliance with the policies and procedures laid down by the Company.
Companys internal audit function carries out a focused and risk-based annual internal audit plan approved by the Audit Committee. Companys internal control systems are periodically tested by the Management, Statutory Auditors and Internal Auditors, the internal control systems are frequently reviewed and updated in order to keep them relevant and effective.
7. RISK MANAGEMENT AND CONCERNS
The Company believes that managing risks helps in maximizing returns. The Companys approach to addressing business risks is comprehensive and includes periodic review of such risks and a framework for mitigating controls and reporting mechanism of such risks. The risk management framework is reviewed periodically by the Board and the Audit Committee.
The Company developed a dynamic risk management framework, which is both resilient to economic downturns and industry cycles and responsive to the evolving expectations of customers, community members and other stakeholders.
As a diversified enterprise, the Company continues to focus on a system-based approach to business risk management. A strong and independent Internal Audit function at the corporate level carries out risk focused audits across all businesses, enabling identification of areas where risk management processes may need to be strengthened.
The Company has following certain risks and their respective mitigation measure:
Risks | Risk Mitigation |
Competition Risk | |
This risk arises from more players wanting a share in the same pie. Like in most other industries, opportunity brings with itself competition. We face different levels of competition in each segment, from domestic as well as multinational players. However, NECC has established strong brand goodwill in the market and a strong foothold in the entire logistics value spectrum. | To mitigate completion risk, the Company continues approaching to new clients. Provide proper feedback to existing clients and solved their issues. With better market placements, open new branch offices across the country. |
Regulatory Risk | |
If we are unable to obtain required approvals and licenses in a timely manner, our business and operations may be adversely affected. However, the Government has come up with a number of initiatives to boost the logistics sector and has planned massive investments in the infrastructure sector. As all industry predictions suggest that this will be the trend in the future as well and given our own experience in obtaining such permissions, we do not expect this risk to affect us materially in the coming years. | The company followed zero tolerance to non-compliances of any nature. Having a strong internal controls and frequent update of the same as per prevalent laws and regulations, proper responsibility was dedicated to management, head of department and branch managers to compliance with all the regulatory requirements and assesses the regulatory requirements on timely basis. |
Financial Risk | |
The Companys business operations require continuous cash flow with low-cost and at time quicker capital infusion in order to deliver transportation services battery. Any lack of adequate funds may lead to loss of business, loss of reputation and work orders. | In order to mitigate the financial risk, company in place a proper credit policy, assess the proper financial requirements on short, medium and long term basis and plan accordingly. Consistently putting in efforts to reduce the cost of capital by choosing long-term debt / capital over shot-term financing. |
Liability Risk
This risk refers to our liability arising from any damage to cargo, The Company attempts to mitigate this risk through contractual equipment, life and third parties which may adversely affect our obligations and insurance policies. business.
8. FORWARD LOOKING STATEMENT
Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates, and others may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, whether expressed or implied. Several factors could make a significant difference to our operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, any epidemic or pandemic and natural calamities over which we do not have any direct/indirect control.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.