Rapid Fleet Management Services Ltd Management Discussions

This Management Discussion and Analysis Report presents a detailed overview of the operational and financial performance of the Company for the financial year 2024-25, along with the industry outlook, opportunities, risks, and internal controls, in accordance with the provisions of the Companies Act, 2013 and Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

1. Mission and Business Overview Mission:

The Companys mission is to deliver logistics and fleet management services that are efficient, predictable, and transparent. By lowering the effective landed cost of products, the Company enhances its customers market competitiveness.

Through a collaborative logistics network, firms pool resources-such as warehouse space, vehicles, manpower, and administrative support-thereby optimizing utilization and reducing costs. This shared-services model ensures mutual benefit to all stakeholders.

BusinessProfile:

Since its inception, Rapid Fleet Management Services Limited has maintained a pioneering stance in the logistics and fleet management industry. The Company specializes in providing meticulously tailored solutions that address diverse business needs across multiple sectors, including:

• Fast-Moving Consumer Goods (FMCG)

• Tyres and Automotive Components

• Electronics and Consumer Durables

• Power and Infrastructure

• Energy and Oil & Gas

The Companys operational framework is strengthened by cutting-edge information technologies such as GPS-enabled fleet monitoring, real-time tracking, and route optimization, combined with the expertise of its professional workforce. This synergy ensures timely, reliable, and cost-effective services.

Recognized for its accessibility, dependability, and punctuality, Rapid has built a strong reputation as a trusted logistics partner, consistently delivering customer satisfaction.

2. Industry Structure and Developments Economic Overview:

The Indian economy demonstrated resilience during FY 2024-25, despite global uncertainties, inflationary pressures, and fluctuations in crude oil prices. With GDP growth projected at around 6.8% for FY25, India remained among the fastest- growing economies globally. Increased infrastructure spending, digital initiatives, and government reforms continued to provide momentum to the logistics and transportation sector.

Industry Overview:

The logistics sector in India is undergoing rapid transformation, driven by manufacturing expansion, the rise of e-commerce, and demand for efficient supply chain solutions. The National Logistics Policy, Gati Shakti Master Plan, and governments goal to reduce logistics costs to single digits of GDP are expected to boost industry growth.

Rapid Fleet Management Services Limited, with its diversified expertise and technology-driven approach, is well-positioned to capitalize on these trends.

3. Opportunities and Threats Opportunities:

• Increasing demand for organized logistics and fleet management solutions.

• Policy support under National Logistics Policy and Gati Shakti Master Plan.

• Growth of e-commerce and retail driving last-mile delivery requirements.

• Technology adoption (IoT, GPS, AI) to improve service efficiency.

• Opportunities for partnerships with corporates for end-to-end logistics solutions.

Threats:

• Intense competition from organized and unorganized logistics players.

• Volatility in fuel prices affecting margins.

• Infrastructure bottlenecks in certain regions leading to delays.

• Higher regulatory and compliance requirements in transport operations.

• Economic slowdowns affecting shipment volumes.

4. Segment-wise or Product-wise Performance

The Company operates in a single segment-logistics and fleet management services, including transportation, warehousing, and supply chain solutions. Revenue from operations increased from Rs11,558.61 Lakhs in FY 2023-24 to Rs17,243.98 Lakhs in FY 2024-25, representing a remarkable growth of over 49.18%. This growth was driven by new large-scale contracts, expansion of warehousing services, and significant improvement in fleet utilization.

5. Outlook

The outlook for the logistics sector remains strong, supported by government infrastructure investments, manufacturing growth, and the continued rise of digital commerce.

The Company plans to:

• Expand its fleet and warehousing capacity.

• Strengthen digital tracking systems and route optimization tools.

• Explore asset-light models through partnerships.

• Scale operations into Tier-II and Tier-III cities.

• Build long-term client relationships through reliable, cost-effective services.

6. Risks and Concerns

Key risks faced by the Company include:

• Operational Risks: Delays from congestion, breakdowns, or infrastructure challenges.

• Financial Risks: Rising fuel costs and dependency on customer credit cycles.

• Market Risks: Pricing pressure due to unorganized competition.

• Regulatory Risks: Compliance with safety, labor, and environmental norms.

• Technology Risks: Continuous need for system upgrades.

The Company reviews risks regularly and takes proactive measures to mitigate them.

7. Internal Control Systems and their Adequacy

The Company has a well-established internal control system that ensures:

• Reliability of financial reporting and operational information.

• Safeguarding of assets.

• Compliance with statutory and regulatory requirements.

The Audit Committee and Board periodically review the adequacy and effectiveness of these controls. Independent audits provide further assurance and recommendations.

8. Discussion on Financial Performance with respect to Operational Performance

During FY 2024-25, revenue from operations grew by over 49.18%, from Rs11,558.61 Lakhs in FY 2023-24 to Rs17,243.98 Lakhs in FY 2024-25.

The Company reported improved financial performance, reflecting strong operational expansion, execution of major contracts, and enhanced efficiency across logistics operations. Profitability improved as scale benefits began to accrue, despite challenges posed by fluctuating fuel costs and infrastructure constraints.

9. Material Developments in Human Resources / Industrial Relations Front, including number of people employed

The Company regards its human capital as a vital asset. As of 31st March 2025, the Company employed 65 people across fleet operations, logistics, technology, sales, and administration.

Key initiatives during FY 2024-25 included:

• Recruitment of skilled drivers and logistics professionals.

• Safety and skill development training programs.

• Implementation of performance-linked incentive schemes.

• Employee engagement and retention initiatives.

Industrial relations remained cordial throughout the year.

10. Details of Significant Changes in Key Financial Ratios

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor, including:

Kev Financial Ratios
Particulars	Unit of Measurement	Mar 31, 2025	Mar 31, 2024	Variation in %	Reasons
Current Ratio	In multiple	3.15	1.15	173.02%	The ratio has changed due to an increase in current assets during the year ended 31st March, 2025.
Debt-Equity Ratio	In multiple	0.36	0.74	-51.43%	The Ratio has change due to increase in Equity fund during the year ended 31.03.2025
Debt Service Coverage Ratio	In multiple	1.53	2.12	-27.66%	The Debt Service Coverage Ratio has decreased due to an increase in debt funds during the year ended 31st March, 2025.
Return on Equity Ratio	In %	23.03%	50.09%	-54.03%	The Return on Equity ratio has decreased due to an increase in average equity funds during the year ended 31st March, 2025
Trade receivables Turnover Ratio	In Days	65.8	87.89	-25.13%	The ratio has changed due to a decrease in average trade receivables during the year ended 31st March,
Trade payables Turnover Ratio	In Days	57.61	134.64	-57.22%	2025 The ratio has changed due to a decrease in average trade payables during the year ended 31st March,
Working Capital Turnover Ratio	In times	3.74	(70.74)	-105.29%	2025 The ratio has changed due to an increase in working capital during the year ended 31st March, 2025
Net Profit Ratio	In %	5.96%	6.98%	-14.64%	N.A
Return on Capital Employed	In %	19.77%	43.11%	-54.15%	The Return on Capital Employed has decreased due to an increase in Capital Employed during the year ended 31st March, 2025
Return on Investment (Assets)	In %	55.49%	0%	55.49%	The Return on Investment has increased primarily due to capital gains realized on investments during the year ended 31st March, 2025.

 

	For and behalf of the Board
	Rapid Fleet Management Services Limited
	Sd/-
	Mrs. Shruti Poddar
	Director
	DIN:07899028
	Mr. Anand Poddar
PLACE: CHENNAI	Managing Director
DATE: SEPTEMBER 4, 2025	DIN: 00697859