Shreeji Translogistics Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT</dhhead>

OVERVIEW

Shreeji Translogistics Limited ("the Company") is an integrated, multi-modal logistics service provider with over four decades of continuous operations in India. The Company’s business model spans Full-Truck-Load (FTL), Less-than-Truck-Load (LTL/parcel), bonded trucking, over-dimensional cargo (ODC), rake handling and transportation, import-export logistics, third-party logistics (3PL), and warehousing solutions. Through an operating model that blends owned capacity with an asset-light outsourced network, the Company is able to offer nationwide reach, flexible capacity and consistent service levels across industry verticals including e-commerce, FMCG, white goods, pharmaceuticals, textiles, metals and industrials. The Company operates through a hub-and-spoke network complemented by corridor-based line-haul routes and last-mile distribution capabilities. As on the reporting date, the Company operates a mixed fleet comprising approximately 233 owned vehicles and access to more than 4,500 market vehicles through long-standing vendor relationships, enabling the Company to calibrate capacity to demand while optimising capital efficiency

Service reliability is underpinned by technology adoption such as GPS-enabled tracking, geofencing, digital locking solutions, and a control-tower approach for exception management.

The financial year 2024-25 was characterised by an improving domestic demand environment, strong momentum in e-commerce and consumption-led categories, and the continued formalisation of the logistics industry. Against this backdrop, the Company focused on deepening customer relationships, scaling high-value services such as bonded trucking and rake handling, expanding presence in selected micro-markets, and improving fleet productivity through driver engagement and analytics-led route planning. The Company continued to consolidate process discipline through ISO

9001:2015 certified quality systems and also continued to retain its Indian Banks’ Association (IBA) approval and AEO-

LO (Authorized Economic Operator - Logistics) certification

- reinforcing its credentials as a compliant, reliable logistics partner.

During the year, the Company expanded its geographical presence by establishing operations in four new locations: Dankuni (Kolkata), Sampla (Haryana), Kharagpur (West Bengal) and Jaipur (Rajasthan). The Company bagged various prestigious awards during the year under consideration like "Premier Bonded Trucking Operator" Award at the India Cargo Awards 2024, "Best Customs Bonded Trucking Company" Award at CargoNxt Conference & Recognitions, "Clean Slate Medalist" from Amazon, "Trucking Partner of the Year" Award from Delhi Indira Gandhi International Airport / GMR and "Customs Bonded Truck Operator of the Year" Award at South East Air Cargo Conclave & Awards 2024.

Management’s priorities through FY25 centred on four themes: (i) growth in core road transportation; (ii) building a multimodal franchise by integrating rail, road and warehousing; (iii) sustained investment in people, particularly drivers and frontline supervisors; and (iv) prudent risk management across safety, compliance and cybersecurity.

 

INDUSTRY STRUCTURE, DEVELOPMENT AND OPPORTUNITIES

Transportation and Logistics Landscape in India

The transport industry is a critical sector underpinning global trade, economic development, and social mobility. The evolving industry has tutored seven key Developments and Trends namely Digital Transformation, Sustainability and Green Transport, Infrastructure Investment, Policy and Regulation, E-commerce and Logistics, Autonomous and Connected Vehicles and Geopolitical Shifts.

The strategic investments and regulatory alignment have ensured efficiency, safety, and environmental responsibility in future transport networks making the Indian logistics sector one of the largest in the world and critical for the country’s economic growth.

The logistics sector in India can be divided into the following segments:

1. Transportation- Roadways, Railways, Airways, Waterways

2. Warehousing- Cold Storage, Container Freight Stations, Inland Container Depots, etc.

3. Value Added/ Other Services- Freight Forwarding, Custom Clearing, Logistics Packaging, etc.

India’s logistics sector is undergoing structural transformation on the back of policy reforms, infrastructure build-out and rapid digitisation. The sector, estimated at approximately USD 250–270 billion, supports manufacturing, trade and modern retail and employs over 20 million people. Multiple Government initiatives are aimed at reducing logistics costs, improving speed and reliability, and catalysing multimodal transport, thereby improving India’s competitiveness in global value chains. The National Logistics Policy (2022) and PM Gati Shakti (National Master Plan for Multi-modal Connectivity) together provide a unified framework to integrate planning across roads, railways, ports, airports and inland waterways, while targeted investments under Bharatmala, Sagarmala and the Dedicated Freight Corridors are designed to unlock network-wide efficiencies.

On the outcomes side, India’s rank in the World Bank’s Logistics Performance Index improved to 38 in the 2023 assessment, reflecting progress across infrastructure, customs, international shipments, logistics competence, tracking and tracing, and timeliness. While continued improvement is required to converge with global best-in-class benchmarks, the direction of travel is supportive for organised logistics providers that can translate policy tailwinds into customer value propositions. Demand drivers remain broad-based. Manufacturing diversification under the Production-Linked Incentive (PLI) schemes, growth in e-commerce and omni-channel retail, rising consumption in Tier-II/ III cities, and the formalisation of supply chains post-GST are structurally lifting logistics intensity. Sector-specific shifts - such as higher compliance in pharma and chemicals, modern trade in food and FMCG, and network consolidation in durables - are increasing the need for reliable, time-definite, visibility-enabled transport partners.

In parallel, customers are seeking integrated solutions that bundle transportation with value-added services: in-plant logistics, kitting, packaging, returns management, and bonded warehousing for international flows.

Technology is reshaping operating models. Digital freight platforms are expanding access to capacity and enabling dynamic pricing; IoT sensors and telematics enhance real-time visibility; analytics and machine learning support demand forecasting, route optimisation and predictive maintenance; and blockchain is beginning to find use-cases in document security and trade finance. Warehousing is modernising with

Grade-A facilities, racking systems, barcode/RFID automation and warehouse management systems (WMS) that integrate with customer ERPs. These trends disproportionately benefit organised players capable of making sustained investments and standardising processes across a national footprint. Opportunities for the Company align closely with these macro trends. First, bonded trucking remains a niche, compliance-heavy service where the Company has already established recognition, enabling the Company to deepen relationships with freight forwarders, airlines, integrators and customs ecosystems. Second, rail-road multimodal offerings open a path to cost-efficient long-haul for commodities such as steel, cement and metals, with road providing first/last mile. Third, the

Company’s LTL/parcel capabilities can be scaled in corridors with dense SME clusters, where network design and service discipline are differentiators. Fourth, the growing cold-chain and temperature-controlled logistics opportunity (especially pharma and food categories) presents an adjacency for staged entry via partnerships, asset-light pilots and customer-led programs.

 

SEGMENT-WISE PERFORMANCE

Full Truck Load Transport service is the Company’s core business and in this space, the Company has been a trusted name for Time-Bound Deliveries. Clients can rent or lease out the entire vehicle to transport goods across India as per their requirements. The fleet size ranges from 5 ft to 70 ft. The

Company ensures that clients receive the best, most cost-effective service options. Company is operating in over 650 routes across India.

Company’s Parcel & Part Load or the Less than Truck Load (LTL) Transport option helps medium and small businesses and individuals to use the services. Through this service,

Company provides Door-to-Door Delivery of Parcels. Company’s parcel and part load service works as per the "Hub & Spoke" arrangement where the entire load is transported to the central warehouse (HUB) and then further distributed to specific locations which enables faster freight movement.

Bonded Trucking Service, which was a new concept introduced in India in the year 2000, was initially started by the Company in the year 2002 and now the Company’s Bonded Trucking Division has grown to another level. The Company has been providing Custom Bonded Trucking services for over two decades and its services have been greatly appreciated by the Airline Industry. During the year under review, the Company was honoured with various prestigious awards like "Premier Bonded Trucking Operator" Award at the India Cargo Awards 2024, "Best Customs Bonded Trucking Company" Award at CargoNxt Conference & Recognitions, "Clean Slate Medalist" from Amazon, "Trucking Partner of the Year" Award from Delhi Indira Gandhi International Airport / GMR and "Customs Bonded Truck Operator of the Year" Award at South East Air Cargo Conclave & Awards 2024.

The Company is into the Over Dimensional Cargo (ODC) Services. ODC is a cargo that extends beyond the normal loading deck of a cargo in order to deliver oversized goods and it is a specialized service having good yields.

The Company is also into Railway Rake Handling &

Transportation. In this segment, the Company does off loading of steel materials from rail wagon through cranes and seamlessly transitioning them onto trailers for last mile delivery for our valued clients on PAN India Basis which is a critical link in steel supply chain. Through this new business, the Company aims at achieving Cost

Modal Transportation by smoothly combining Rail and Road networks.

The Company provides 3PL and Warehousing services in and around Mumbai, Bangalore & Chennai. These services can be provided at other locations based on client requirement and project feasibility.

The Company also provides vehicles to connect the ‘Linehaul’ Ocean and Rail segments of Containerized Freight Movement. The Company has services for both types of container loads catering to Import and Export segments. These are specialized trucks running between ocean ports, rail terminals, ICD’s & CFS. Containers are normally 20 feet and 40 feet in length.

This is majorly serviced by hired fleets.

The Company owns and operates a strong fleet of commercial vehicles consisting of around 233 owned trucks and more than

4500 outsourced trucks. The Company operates different types of trucks on the basis of design and size along with varying capacities. Our Container Trucks are used for transportation of parcels, white goods, FMCG, etc. while our Platform Trucks are mainly used for import export containers and also for transportation of heavy duty goods like automotive parts and machineries. With more than 4 decades of experience in freight management, logistics solutions & warehousing services, the Company has made a stalwart progress along the highways of India. The following diagrams depict the breakup of revenue, percentage-wise for the years ended 31^st March, 2025 and 31^st

March, 2024 on the basis of different types of

 

RISKS, CONCERNS, THREATS AND STRENGHTS

Notwithstanding favourable industry dynamics, logistics remains exposed to multiple risks. The Company’s risk management framework is designed to identify, evaluate and mitigate these exposures while enabling growth. The principal risk areas and responses are summarised below.

 

Fuel and input cost volatility: Fuel constitutes a significant share of operating costs in road transportation. Volatility in fuel prices can compress margins where contractual pass-throughs are limited or lagged. the Company mitigates this through calibrated freight rate revisions, fuel-efficiency drivers, route optimisation to reduce empty miles, preventive maintenance to improve mileage, and selective adoption of alternative fuels/ electrification in appropriate time.

 

Network and infrastructure risk: While the public investment cycle is supportive, regional congestion, axle-load restrictions, seasonal disruptions and last-mile constraints can affect service reliability. The Company’s hub-and-spoke design, multi-corridor routing options, buffer planning during peak seasons, and proactive coordination with customers on delivery windows collectively reduce disruption impact.

 

Regulatory and compliance risk: Evolving requirements around customs, bonded movements, dangerous goods handling, driver work-hours, and environmental norms necessitate disciplined processes and training. The Company’s continued AEO-LO status, ISO-certified quality systems and periodic internal audits ensure adherence. Compliance checklists are embedded into operations, while refresher trainings and mock-drills reinforce awareness.

 

Human capital and driver availability: The industry faces a structural shortage of trained commercial drivers, leading to idle capacity and service constraints. The Company addresses this through continuous recruitment, a performance-linked incentive scheme ("Paiya Ghumao Paisa Kamao"), defined career pathways for drivers, and training on safety, fuel-efficient driving and customer etiquette. These measures have improved retention and fleet utilisation while elevating safety culture.

 

Security, safety and loss prevention: Theft, pilferage and in-transit tampering are risks in certain lanes and product categories. The Company deploys containerised vehicles wherever appropriate, digital locks with OTP-based access, geo-fenced halt approvals, selective two-driver protocols on sensitive lanes, and insurance coverage consistent with contractual obligations.

 

Cybersecurity and data privacy: Increased digitisation heightens exposure to cyber risks. The Company is strengthening endpoint protection, access controls and backup architectures, together with employee awareness programmes. Vendor systems that interface with the Company are evaluated for minimum security hygiene, and business continuity plans are periodically reviewed.

 

Competition and customer concentration: Entry of global and large domestic players can intensify price-based competition, while concentration in a few large accounts may amplify revenue volatility. The Company’s response is to differentiate on reliability and compliance in bonded and multimodal niches, broaden sectoral exposure, embed account-based management with service-level dashboards, and pursue disciplined pricing anchored in delivered value.

 

Strengths: The Company’s competitive advantages include parcel, (i) a diversified bonded trucking, ODC and multimodal handling; (ii) a scalable fleet model blending owned and market capacity; (iii) certifications and approvals (ISO 9001:2015, IBA, AEO-LO) that signal process discipline; (iv) technology-enabled visibility and control; and (v) a people-centric culture with robust driver engagement. Collectively, these position the Company to compound share in chosen micro-markets while preserving risk-adjusted returns.

 

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an adequate internal audit and control system commensurate with its size and nature of business to ensure operational efficiency, accuracy and promptness in financial reporting and compliance of various laws and regulations. The Audit Committee of the Board of Directors reviews the Internal Audit Report and the adequacy and effectiveness of internal controls periodically.

 

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Analysis of Profit and Loss Statement and Balance Sheet including the key ratios based on consolidated results is mentioned as follows:

The consolidated performance of the Company for the financial year ended 31^st March, 2025 is as follows:

The Consolidated Revenue from Operations of the Company was Rs. 23103.99 Lac during the year under consideration as compared to Rs. 25378.63 Lac. The Consolidated Service Turnover was Rs. 20890.69 Lac during the year under consideration as compared to Consolidated Service Turnover was Rs. 19573.02 Lac achieved during the previous year, which represented an increase of 6.73%.

The depreciation and amortisation expense was Rs. 489.03 Lac as against Rs. 443.83 Lac during the previous year. The finance cost was Rs. 435.00 Lac as against Rs. 490.82 Lac during the previous year.

The consolidated net profit after tax for the year is Rs. 198.99 Lac whereas the consolidated net profit after tax was Rs.

1637.23 Lac for the previous year.

 

KEY FINANCIAL RATIOS

Ratio	2024-25	2023-24	% Change	Explanation for Significant Change (i.e. change of 25% or more)
Interest Coverage Ratio	1.72	5.56	-68.97	There is significant decrease in Profit during the year ended 31st March, 2025 as compared to preceeding year and due to which there is variance more than 25% in Interest Coverage Ratio.
Return on Net Worth	3.41	32.64	-89.56	There is significant decrease in Profit during the year ended 31st March, 2025 as compared to preceeding year and due to which there is variance more than 25% in Return on Net Worth.
Debtors Turnover	0.28	0.24	14.12
Current Ratio	1.96	2.00	-1.87
Debt Equity Ratio	0.72	0.82	-12.63
Operating Profit Margin (%)	3.05	10.42	-70.74	There is significant decrease in Profit during the year ended 31st March, 2025 as compared to preceeding year and due to which there is variance more than 25% in Operating Profit Margin.
Net Profit Margin (%)	1.28	8.54	-85.01	There is significant decrease in Profit during the year ended 31st March, 2025 as compared to preceeding year and due to which there is variance more than 25% in Net Profit Margin.

 

Note Profit before/ after tax ratios are considered after exceptional items.

Inventory Turnover Ratio is not applicable to the Company, as the Company is primarily engaged in the business of

Transportation Service. There are no significant changes

(i.e. change of 25% or more as compared to the immediately previous financial year) in other key financial ratios like

Debtors Turnover Ratio, Current Ratio and Debt Equity Ratio, therefore, explanation for the same have not been given.

 

HUMAN RESOURCE DEVELOPMENT

People are central to the Company’s operating philosophy. As at 31^st March, 2025, the Company had a workforce of approximately 320 employees across corporate, regional and branch locations, supported by contractual manpower for loading/ unloading and yard operations. A decentralised leadership structure empowers regional managers with clear KPIs around service levels, safety, productivity and cost, while shared services (planning, finance, HR and IT) drive standardisation and scale benefits.

Driver engagement remains a priority. The Compay’s "Paiya Ghumao Paisa Kamao" programme links earnings to kilometres driven and on-time performance, reinforcing productivity and service reliability. Periodic safety workshops cover defensive driving, vehicle health checks, hazardous goods handling, and emergency response. Fuel-efficient driving modules, aided by telematics insights, have helped reduce idling and over-speeding incidents. In addition, the Company facilitates insurance and welfare benefits and recognises high performers through awards, fostering pride and retention.

Capability building for staff includes structured induction, role-based training (operations, sales, customer service, control tower), and cross-functional projects to inculcate problem-solving and data literacy. Managers are trained on contract management, cost analytics and continuous improvement to institutionalise a performance culture. HR continues to strengthen the talent pipeline through internal mobility, targeted external hiring for digital and analytics roles, and mentoring by senior leadership.

Industrial relations remained cordial throughout the year, with no work stoppages. The Company continues to ensure fair and transparent processes in performance appraisal, grievance redressal and disciplinary actions. Diversity and inclusion are areas of ongoing focus, particularly in support and customer service roles, as the Company expands into new geographies.

 

FUTURE BUSINESS OUTLOOK

The medium-term outlook for logistics in India is constructive. Policy thrust on infrastructure, formalisation of the economy, and digital adoption are expected to sustainably lower logistics frictions and improve the reliability of domestic supply chains. Within this context, the Company’s strategy is to concentrate resources where the Company holds or can attain defensible advantages, while methodically building capabilities required for the next phase of growth.

 

Profitable core growth: The Company will continue to strengthen its core road transportation franchise across select corridors and customer segments where density, service discipline and network effects generate attractive unit economics. The Company plans to deepen share in time-definite LTL/ parcel lanes that connect consumption clusters and industry hubs, and to cross-sell value-added services such as packaging, returns logistics and in-plant movements to existing customers.

 

Multimodal expansion: Rail-road combinations are compelling for long-haul and bulk categories. The Company intends to scale its rake handling and associated first/ last-mile services, supported by digital scheduling, yard automation and standard operating procedures that minimise dwell times. As Dedicated Freight Corridors expand and more Multi-Modal Logistics Parks (MMLPs) become operational, the Company will participate selectively through partnerships and customer-led pilots, with a focus on asset turns and risk-adjusted returns.

 

Technology and data: The Company will extend the use of telematics and IoT for real-time visibility, deploy advanced analytics for lane-level profitability and dynamic routing, and explore blockchain-enabled document workflows for bonded movements to reduce manual touchpoints and enhance security. Over time, the Company aims to unify customer interfaces via a single digital platform that provides quotation, booking, tracking, exception alerts, electronic proof-of-delivery and performance dashboards.

 

Sustainability: While the transition to low-emission transport in heavy road freight will be gradual, the Company is laying foundations through driver training, route planning that cuts empty runs, preventive maintenance, and pilot deployments of cleaner technologies where feasible (e.g., CNG/ LNG or electric vehicles for short-haul/ urban use-cases). Green warehousing practices - LED lighting, solar rooftops where practical, and waste segregation - will be pursued pragmatically. These initiatives align with national climate commitments and increasing customer expectations.

 

Selective diversification : Based on customer demand signals and risk appetite, the Company will evaluate adjacency plays in temperature-controlled logistics (through partnerships/ leased assets), and contract logistics where long-term volume visibility supports returns. The Company will also remain open to disciplined M&A or joint ventures that accelerate capability build-out without diluting financial prudence.

 

Financial discipline and risk management: Growth will be pursued with an emphasis on free cash flow, working capital turns and return on capital employed. Contract structures will balance service commitments with dynamic cost pass-throughs. Cybersecurity, safety and compliance will remain non-negotiable guardrails.

In summary, the Company enters FY26 with a focused plan to consolidate leadership in chosen niches, broaden its multimodal capabilities and elevate customer experience through technology - while maintaining a prudent stance on capital allocation and risk.

 

CAUTIONARY STATEMENT

Statements in the Management Discussion & Analysis describing the Company’s objectives, projections, estimates and expectations may constitute "forward looking statements’’ within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.