Paradeep Parivahan Ltd Management Discussions

The logistics industry plays a vital role in the dynamic economic landscape of India by enabling the efficient movement of goods and services throughout the countrys large territory. As India strives to realise its ambitious economic goals, efficient management of its logistics sector emerges as a pressing imperative. Given its pivotal role in supporting various industries, from manufacturing to agriculture and e-commerce, the logistics sector faces a myriad of challenges, and offers a number of opportunities. The Indian logistics sector is one of the largest in the world and presents a huge addressable opportunity.

The sector is critical for the countrys economic growth as it connects various elements of the economy and consists of transportation, warehousing and other supply chain solutions ranging from suppliers to end customers.

INDUSTRY OVERVIEW & TRENDS GLOBAL ECONOMY

The global economy remained resilient in FY 2024 25 despite disruptions from geopolitical conflicts, the Red Sea crisis, and tariff impositions. Global growth was steady at 2.7%, while India grew at 6.7% (World Bank). Inflation moderated globally, easing from 6.8% in 2023 to 5.9% in 2024, and is projected to decline further to 4.5% in 2025 (IMF). While advanced economies are stabilising, emerging markets continue to face higher inflation and weaker investment flows.

Geopolitical tensions, supply chain disruptions, and climate risks continue to challenge global trade. However, these shifts present opportunities for emerging economies like India to expand their global trade share.

OVERVIEW OF THE INDIAN ECONOMY

India continues to be the fastest-growing major economy, with GDP growth of 6.2% 6.5% projected for FY 2024 25 and FY 2025 26 (IMF). Growth is supported by strong domestic demand, government-led infrastructure investment, and recovery in agriculture. Inflation eased significantly, with CPI averaging 4.6% in FY 2024 25, down from 5.4% in FY 2023 24. WPI also declined, reflecting softer fuel and food prices. The RBI cut the repo rate to 6% in early 2025, supporting liquidity and consumption.

High-frequency indicators such as GST collections ( 22.09 lakh crore, up 9.4%) confirm robust economic activity. Large-scale expansion of highways and railways further strengthened connectivity and employment generation. Overall, India remains a key growth engine of the global economy, with continued focus required on reforms in skilling, MSME promotion, and energy security to sustain long-term momentum.

OVERVIEW OF THE INDIAN INDUSTRY

Indian Logistics Sector

The Indian logistics industry reached USD 228.4 billion in 2024 and is projected to touch USD 357.3 billion by 2030, at a CAGR of 7.7% (2025 30). Transportation remains the largest revenue segment, while warehousing and distribution are growing the fastest. This growth is supported by major government initiatives such as the National Logistics Policy, PM Gati Shakti, Logistics Efficiency Enhancement Programme (LEEP), Dedicated Freight Corridors, Sagarmala, and Bharatmala, aimed at reducing logistics costs and improving multimodal connectivity. Despite road transport handling nearly 70% of goods, policy reforms are steadily driving efficiency and lowering costs.

Indias Infrastructure Sector

Infrastructure continues to be a cornerstone of Indias growth strategy. The Union Budget FY 2025 26 allocated 11.2 lakh crore for capital expenditure, with a strong focus on highways, railways, and urban development. Key initiatives include accelerated highway construction, private sector participation, and urban programmes like the Jal Jeevan Mission, Urban Challenge Fund, and the revised UDAN scheme. These investments are expected to enhance connectivity, boost employment, and strengthen the logistics ecosystem.

Indias EXIM Trade

Indias merchandise exports stood at USD 437.1 billion, while imports reached USD 677.2 billion in

FY 2024 25. Export growth was subdued due to lower petroleum realisation, though non-POL exports are expected to drive growth in FY 2025 26. Imports rose by over 6%, led by crude oil and electronic goods, while gold imports are projected to soften. Indias key exports include engineering goods, petroleum products, gems and jewellery, and pharmaceuticals; imports are dominated by crude oil, electronics, gold, and machinery. As per WTO, Indias share in global merchandise trade stands at 2.2% in exports and 3.4% in imports.

Indian Ports Sector

Ports remain vital to trade, handling about 95% of Indias trade volume and 70% by value. In FY 2024

25, Indian ports collectively managed 1,593 MMT of cargo, up 4% year-on-year. Major ports handled 854 MMT (+4.4%), while non-major ports managed 739 MMT (+2.6%). Supported by the Sagarmala Programme, mechanisation, and the landlord port model under PPP, efficiency and capacity are improving. The sector benefits from 100% FDI under the automatic route and tax incentives, with six new mega ports planned under the National Perspective Plan.

COMPANY OVERVIEW

Paradeep Parivahan Limited ("the Company") is a leading integrated logistics service provider with a strong presence across Eastern India. We specialise in the transportation of bulk cargo, liquid cargo, project cargo and stevedoring across major ports and industrial hubs. Further, we also offer services related to private freight terminal (PFT) and container train operations (CTO), multimodal transportation, bonded and general warehousing, mining logistics, In-plant cargo movement, heavy equipment and earthmoving (HEMM), crushing, fabrication, as well as ready-mix concrete supply.

Our hub-and-spoke logistics model is supported by strategically located infrastructure, advanced technology platforms, and a large fleet of handling and transport equipment. This enables efficient, scalable, and customised logistics solutions for clients across industries. We operate at key ports including Paradeep, Gopalpur, Visakhapatnam, and Haldia, and at critical rail-linked facilities such as Dhanmandal and Manguli, ensuring seamless connectivity between industrial and port hubs.

Over the years, we have built enduring partnerships with a diverse set of clients from both public and private sectors. We are proudly associated with the Indian Farmers Fertiliser Cooperative Limited (IFFCO), JSW Group in various capacities, servicing different verticals including JSW Cement, JSW Steel, and Shiva Cement. Our long-standing relationship with, spanning over two decades, stands as a testimony to our service reliability and operational excellence. We are also closely associated with Indian Oil Corporation Limited (IOCL) at the Paradeep Refinery, along with other key industry players such as Ultratech Cement Limited, Gopalpur Port Ltd., PICT, JM Baxi, Mahanadi Coalfields Limited (MCL), Western Coalfields Limited (WCL), Mesco Group, and Bothra Shipping Services Pvt. Ltd. In the area of stevedoring and cargo handling, we continue to collaborate with established service providers like Repley & Co. .

Our national logistics network is anchored by Paradeep Port, multiple warehousing facilities, and eight owned container rakes, significantly enhancing our rail-based capabilities. Today, we serve a diverse customer base spanning manufacturing, cement, steel, automotive, petrochemicals, fertilizers, agri-commodities, consumer goods, and other core sectors.

With deep domain expertise, a committed workforce, and a strong asset base, Paradeep Parivahan

Limited remains dedicated to delivering excellence in logistics and contributing to Indias evolving supply chain and infrastructure ecosystem.

BUSINESS STREAMS

Paradeep Parivahan Limited operates through diversified and interlinked business streams, structured to provide integrated end-to-end logistics solutions across key industrial sectors. Each stream complements the others, ensuring operational synergy, service continuity, and maximum stakeholder value.

Port Logistics and Cargo Handling:

We provide stevedoring, intra-port transportation, cargo handling, and vessel support services at major ports including Paradeep, Gopalpur, Visakhapatnam, and Haldia, ensuring efficient vessel turnaround, safe cargo discharge, and smooth coordination with port authorities and customs.

Inland Logistics and Transportation:

Our services include transportation of bulk materials and containers from mines to ports, in-plant material movement, and last-mile distribution. A dedicated fleet of dumpers, trailers, and covered trucks ensures seamless cargo movement between industrial hubs, rail sidings, and port terminals.

Rail Logistics and Private Freight Terminals:

With eight owned container rakes and access to key sidings such as Dhanmandal and Manguli, we provide rail-linked logistics solutions. Our Private Freight Terminal (PFT) operations enable efficient handling, aggregation, and dispatch of goods, reducing transit costs and carbon footprint.

Industrial Support Services:

This includes HEMM operations, raw material crushing, infrastructure fabrication, ready-mix concrete supply, and site development activities, supporting mining, cement, and heavy industrial clients in on-ground project execution and material processing.

Project Cargo and Specialized Handling:

We handle project cargo, hazardous materials, over-dimensional cargo (ODC), and high-value shipments, providing route planning, cargo securing, escort services, and complete end-to-end execution for industries with unique logistical requirements.

Through these interconnected business streams, Paradeep Parivahan Limited delivers a comprehensive suite of logistics services that support both the operational and strategic goals of our clients. This integrated approach strengthens our market position and reinforces our commitment to excellence and reliability in the logistics ecosystem.

OUTLOOK

Indias GDP growth in FY 2025-26 is expected around 6.5%, influenced by global trade tensions, inflation, cautious private and foreign investments, and tight monetary policy. Continued government investments in infrastructure, agriculture, skill development, employment, and R&D are expected to support economic growth.

PARADEEP PARIVAHAN LIMITED (CIN No. L63090OR2000PLC006379)

The Company plans to expand into new logistics corridors, strengthen port connectivity, and increase route utilization by targeted operational efficiencies.

Technology adoption will be a key focus - GPS tracking, route optimization, and digital platforms for clients. Sustainability remains a priority, with initiatives in fuel efficiency, alternative-fuel pilot projects, and driver safety programmes.

Given strong macroeconomic fundamentals and sectoral demand drivers, Paradeep Parivahan Limited is well positioned to maintain growth momentum and deliver value to shareholders.

OPPORTUNITIES

Paradeep Parivahan Limited is well-positioned to leverage growth in the logistics and infrastructure sector:

Expansion of multimodal logistics through PM Gati Shakti, Sagarmala, Bharatmala, and Dedicated Freight Corridors (DFC).

Growing port infrastructure, especially on the east coast, supporting stevedoring, cargo handling, and dredging activities.

Increased bulk commodity movement (steel, cement, aluminium, fertilisers) driving in-plant logistics, cargo transportation, and rail operations.

Rising demand for outsourced logistics and warehousing by large manufacturers.

Adoption of digital tools, automation, and predictive analytics to enhance efficiency, transparency, and client engagement.

THREATS

The Company faces certain external challenges that may impact performance:

Geopolitical tensions, trade disruptions, and global shipping volatility.

Dependence on infrastructure and industrial sectors, making the business sensitive to commodity and capital goods cycles.

Competition from large integrated logistics providers and new tech-backed entrants.

Port congestion, customs delays, and regulatory compliances.

Expansion by competitors and new terminal developments. RISKS AND CONCERNS

Key risks include:

Operational Risk: Delays due to weather, strikes, equipment failure, or port congestion.

Regulatory Risk: Changes in port policies, environmental clearances, or transport norms.

Cost Volatility: Fluctuations in Fuel price escalation and freight tariffs impacting profitability.

Manpower Dependence: Availability and industrial relations for labour-intensive operations.

Technology Risk: Failure to adopt emerging logistics technologies may reduce competitiveness.

RISK MITIGATION

The Company proactively manages risks through:

Backup equipment, real-time tracking, and efficient scheduling to minimize operational disruptions.

Dedicated compliance team monitoring regulatory changes and engaging with authorities.

Diversified client base across steel, cement, fertilisers, chemicals, and aluminium for revenue stability.

Cost management through bulk procurement, long-term contracts, and pass-through clauses.

PARADEEP PARIVAHAN LIMITED (CIN No. L63090OR2000PLC006379)

Continuous investment in automation, GPS tracking, and ERP systems. As Investment being made in advanced German telematics technology, which will enable remote monitoring of our fleet and add multiple efficiencies in fleet management.

Workforce planning, training, and industrial harmony initiatives.

Customer-centric, innovative, and competitive service offerings to differentiate from competitors.

Strategic monitoring of global trade disruptions and diversification of services beyond ocean freight.

Focus on timely project completion and operational efficiency to maintain cost competitiveness and profitability.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company maintains robust internal controls, ensuring regulatory compliance and operational efficiency. Key features include:

Documented policies, procedures, and delegation of powers across financial and operational functions.

Integrated IT systems for real-time accounting, consolidation, and management reporting.

Regular internal audits by independent firms alongside the Companys internal audit team.

Periodic external audits verifying effectiveness of internal controls, with oversight by the Audit Committee.

Proactive compliance with emerging regulations and promotion of ethical practices.

Internal and statutory auditors confirmed the effectiveness of internal financial controls for FY 2024-25.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The net revenue from operations saw a significant increase of Rs. 12,454.7 Lakhs rising from Rs. 21,126.95 Lakhs to Rs. 33,581.65 Lakhs

This growth underscores the companys robust performance over the past year. Earnings before interest, depreciation, tax, and amortization (EBITDA) also registered a significant increase, rising to Rs. 4327.79 lakhs from Rs. 3464.88 lakhs in the previous year. This improvement in EBITDA reflects strengthened operational efficiency and enhanced profitability.

Profit before tax climbed to Rs.2,963.79 lakhs, compared to Rs. 2,086.74 lakhs in the previous year, demonstrating the companys ability to manage costs and improve margins.

Profit after tax saw a remarkable jump to Rs.2,417.10 lakhs from Rs.1,461.04 lakhs, highlighting the overall financial health and growth of the company.

KEY FINANCIAL RATIOS ANALYSIS:

Details of significant financial ratios along with explanation thereof are as under:

Particulars	2024-25	2023-24	Change in Excess of 25%
Current Ratio	2.37	1.78	Increase mainly due to increase in trade receivable and Bank balance
Debt Equity Ratio	0.59	0.76	NA
Debt Service Coverage Ratio	2.08	1.68	NA
(DSCR)
Debtors Turnover Ratio	4.87	4.68	NA
Net Profit Margin (%)	7.20	6.92	NA
Return on Equity (ROE) (%)	25.45	30.38	NA
Payables Turnover Ratio	19.88	9.63	Increase primarily due to increase in cost of purchase
Return on Capital Employed (%)	17.65	25.81	Decreased due to issue of share Capital in late March of the year which remain unutilized till the year end.
Net Capital Turnover Ratio	4.06	7.61	Decreased due to issue of share Capital in late March of the year which remain unutilized till the year end.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED

Your Company endeavours to provide a conducive workplace with best standards and believes that employees are the most important assets. To ensure that an effective and the right resource is acquired, your company continuously strengthens and updates its hiring mechanism. Being a Service Provider of essential services employees are the key assets. The Company has adopted people practices that enable it to attract and retain talent in an increasingly competitive market; and to foster a work culture that is always committed to providing the best opportunities to employees to realise their potential.

As on March 31, 2025, the Company had a workforce of 1190 number of people on rolls.

For and on behalf of the Board of Directors

PARADEEP PARIVAHAN LIMITED

	S/d
	Khalid Khan
	Managing Director
	DIN: 06432054
Place: Bhubaneswar
Dated: 20.08.2025