Flomic Global Logistics Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry Structure and Development:

Flomic Global Logistics Limited was incorporated on 30th April, 1981 in the state of Maharashtra. Main Object Clause of the company is "To carry on the business of International Freight Forwarding, integrated Logistics, Custom house agency services, IATA Cargo Agency CFS container Freight Station, Warehousing, Transportation by Road, Rail, Air, Sea & Sea/Air, Break bulk, project cargo consolidation by Air & Sea, Import Export management consultancy services, Multimodal Transport System, Air Cargo, Sea Cargo, Air, Charters, Ship Charters, Sea Freight, Group age, Air Import Consolidators, Slot Charters booking and to own, purchase, charter, hire, repair assemble, alter, sell, exchange, let operate ships, boats and vessels, aircraft and other transports and conveyance of every description and to employ the same in the carriage or conveyance by land, sea, air or by a combination of any or all of them of passengers, merchandise, live-stork or any other produce in or between any places or ports in any part of the world and to establish, maintain and work, lines of ships, air services and lines of aerial communication and other transports and conveyances, supply chain solutions, exhibition and event logistic, third party logistics 3PL and fourth party logistics."

Discussion on Financial Performance:

Particulars	2024-25	2023-24
Total Income	50329.94	33369.03
Financial Costs	1406.95	858.38
Depreciation and Amortization	2799.34	2098.50
Profit before tax and exceptional items	474.64	309.81
Exceptional income	-	-
Profit after exceptional items before tax	474.64	309.81
Taxes(benefit)	105.09	91.26
Profit after tax	369.55	218.55
Other Comprehensive Income/(Loss)	(17.60)	(47.98)
Net Profit	351.95	170.57
Earnings per share (Basic)	2.03	1.20

During the financial year under review the revenue from operations has increased from INR. 33215.92 Lakhs to INR. 50014.56 Lakhs.

During the year, the main revenue was from Sale of Services.

The revenue for FY 2025 was Rs. 50329.94 Lakhs, greater by 50.82% percent over the previous years revenue of Rs.33369.92 Lakhs. The profit after tax (PAT) attributable to shareholders and non-controlling interests for FY 2025 and FY 2024 was Rs. 369.55 Lakhs and Rs.218.55 Lakhs, respectively.

Segment Wise or Product Wise Performance:

Particulars	Sales	Purchase	Profit
Air Export - Income	86,24,82,252	72,00,34,258	14,24,47,994
Air & Sea Import CCL - Income	26,39,71,113	20,94,94,739	5,44,76,374
Air & Sea Import FWD - Income	1,32,23,62,372	1,05,05,47,240	27,18,15,132
Sea Export - Income	1,87,57,71,820	1,60,26,67,225	27,31,04,595
Warehousing Incomes	67,68,68,556	38,33,36,118	29,35,32,437
Total Direct Income	5,00,14,56,113	3,96,60,79,581	1,03,53,76,532

Business Outlook:

Flomic Global Logistics Limited operations include international freight forwarding, integrated logistics, custom house agency services, warehousing, and transportation by various modes (road, rail, air, sea). Company handle break bulk and project cargo, provide import/export consultancy, and manage multimodal transport systems. Additionally, Company offer supply chain solutions, exhibition and event logistics, and third and fourth party logistics (3PL and 4PL). The company also deals in chartering and operating ships and aircraft.

Growth Outlook:

We are expecting an increase in top line in 25-26 due to increase in export freight rates from India. The congestion at ports and shortage of containers for Ocean export containers is a challenge but we are confident that we will be able to increase our Top line by 10% to 20% and bottom line by 10%. We are actively looking to increase our volumes in Break Bulk and project Shipments by adding senior staff in Sale and Operations.

Our SCOT Analysis

Strengths:

1. Direct Sales to Exporters and Importers:

We have a large sales force who directly sells to Exporters, Importers and overseas agents. We add around 75 new customers every month.

We do not undertake sub-agent business which give better revenue but lower net margins.

2. Established Over Seas Agents Network:

We are having long standing relationships logistics partners globally, allowing for competitive pricing and efficient service. We are members of WCA, JCTrans and Prolog Network.

3. Expertise and Experience:

We have Knowledgeable & well experience staff with expertise in international trade regulations, customs processes, and logistics management.

4. Technology Adoption:

We use cloud based ERP System for our operations and also use tracking systems, enhancing operational efficiency and customer service.

5. Comprehensive Services & Office Network:

We Offer a wide range of services including air freight, sea freight, customs brokerage, and warehousing, thus providing all services under one roof. We are present in all major Indian Gateway ports so we can cater to customers needing import export service from multiple Indian ports.

6. Customer Relationships:

Our major strength is the Strong customer loyalty and relationships built on reliability and trust.

Challenges:

1. Dependence on Economic Conditions:

Vulnerable to economic downturns that can reduce trade volumes and shipping demand.

2. Limited Market Presence:

Possible limitations in geographical coverage or services compared to larger multinational companies and local competitors.

3. Issues with Scalability:

Difficulty in scaling operations quickly in response to sudden increases in demand.

4. Inflexibility:

Difficulty in adapting to rapidly changing regulations or market conditions compared to more agile competitors.

Opportunities:

1. E-commerce Growth:

Increasing demand for freight forwarding services driven by the rise in online shopping and cross border e-commerce.

2. Emerging Markets:

Expansion opportunities in emerging markets where trade is increasing and logistics infrastructure is developing.

3. Strategic Partnerships:

Potential to form alliances with other logistics providers, or local businesses to broaden service offerings. Threats:

1. Intense Competition:

Growing competition from both traditional freight forwarders and new entrants, including tech-driven logistics startups.

2. Regulatory Changes:

Increasingly complex international trade regulations and customs requirements that can impact operations.

3. Economic Volatility:

Global economic fluctuations or political instability affecting shipping routes and demand, tariff imposed by USA on Indian exports etc.

4. Supply Chain Disruptions:

Vulnerability to disruptions from natural disasters, pandemics, or international conflicts that can affect logistics networks.

Risk and Concerns:

Risk is a potential event or non-event, the occurrence or non-occurrence of which can adversely affect the objectives of the Company. Impact of risks could either be monetary that is impact on business profits due to increase in costs, decreasing revenue amongst others or non-monetary which is delay in securing regulatory approvals, reputational damage etc. The Company is susceptible to risks arising out of our business strategy, succession planning and decision on innovation or product portfolio. If there is any significant unfavorable shift in industry trend or pattern of demand, our returns on investments might get affected. We have risks associated with clients and prospective clients dispositions.

We operate in regulated, semi regulated countries with their own specific complex operating environments. In addition, this business landscape is dynamic and constantly evolving. This brings to the fore a multitude of risks which are closely monitored, mapped, and mitigated. By effectively identifying, assessing, and mitigating risks we strive to enhance our resilience, drive sustainable growth, and maximise value creation. At FLOMIC, Risk Management is a key strategic focus for the Members of Board. All key functions of the Company are independently responsible to monitor risks associated with in their respective areas of operations such as production, supply chain, marketing, finance, accounting, treasury, legal, human resource and others areas like health, safety and environment.

Internal Control Systems and their Adequacy:

An Audit Committee of the Board of Directors of the Company has been constituted as per provisions of Section 177 of the Companies Act, 2013 and corporate governance requirements specified by Listing Agreements with the Stock Exchanges. The Internal Audit Function is looked after internally by the finance and accounts department, and reviewed by the Audit Committee and the management at the regular intervals.

The Internal Auditors Reports dealing with Internal Control Systems are considered by the Audit Committee and appropriate actions are taken, whichever necessary.

Analysis of Financial Conditions and Results of Operations:

The Financial Statements have been prepared in accordance with the requirements of the Act, Indian Generally Accepted Principles (Indian GAAP) and the Accounting Standards as prescribed by the Institute of Chartered Accountants of India.

The Management believes that it has been objective and prudent in making estimates and judgments relating to the Financial Statements and confirms that these Financial Statements are a true and fair representation of the Companys Operations for the period under review.

Development On Human Resource:

At Flomic Global Logistics Ltd our human resource is critical to our success and carrying forward our Mission.

With their sustained, determined and able work efforts we were able to cruise smoothly through the hard time of the economic volatility and rapidly changing market conditions.

The requirement of the markets given the economic scenario has made this even more challenging.

Attracting newer talent with the drive, training and upgrading existing skill sets and getting all to move in a unified direction will definitely be task in the Company.

By creating conducive environment for career growth, Company is trying to achieve the maximum utilization of employees skills in the most possible way.

There is need and the company is focused on retaining and bringing in talent keeping in mind the ambitious plans despite the market and industry scenario.

The Company also believes in recognizing and rewarding employees to boost their morale and enable to achieve their maximum potential. The need to have a change in the management style of the Company is one of the key focus areas this year.

Industrial Relations:

Industrial Relations throughout the year continued to remain very cordial and satisfactory.

Cautionary Statement:

Statements in this Management Discussion and Analysis describing the companys objectives, projections, estimates and expectations may be "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those either expressed or implied. Important factors that could make difference to the Companys operations include change in government regulations, tax regimes, and economic developments within and outside India.

Internal Control System:

The management is ensuring an effective internal control system to safeguard the assets of the company. Efforts for continued improvement of internal control system are being consistently made in this regard.

Material Developments in Human Resources/Industrial Relations Front Including Number of People Employed:

Your company believes in a work environment that is congenial to on job learning and encourages team work. It has, therefore, continued to focus on developing the competence of its staff and employees.

Cordial and harmonious relation with employees continued to prevail throughout the year under review.

Forward - Looking Statements:

This Report contains forward -Looking Statements. Any, statement that address expectations or projections about the future, including but not limited to statements about the Companys strategy and growth, product development, market position, expenditures and financial results, are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future growth.

FINANCIAL RATIOS:

Ratio	Basis of Ratio	Ratio Current Year	Ratio Previous Year	Variance %	Reason for major variance
Current Ratio	Current Asset/ Current Liabilities	1.08	1.05	2.97%	-
Debt Equity Ratio	Total Debt/Shareholders Equity	2.43	2.61	-7.20%	-
Debt Service Coverage Ratio	Earnings available for debt service/Debt Service	0.16	0.17	-6.15%	-
Return on Equity Ratio	Net Profit after Tax/ Average Shareholders Equity	8.19%	5.14%	59.30%	Increase in profit and increase in average shareholders equity resulted in increase in Return on Equity.
Inventory turnover Ratio	Cost of Goods Sold/ Average Inventories	NA	NA	NA	-
Net Profit Ratio	Net Profit/ Net Sales	0.74%	0.66%	12.30%	-
Trade Receivables Turnover Ratio	Revenue from Operations/Avg. Trade Receivables	6.73	5.33	26.27%	Increase in revenue and increase in average trade receivable resulted in increase in Trade Receivable Turnover Ratio.
Trade Payable Turnover Ratio	Total Purchases/Average Trade Payables	13.85	10.41	33.03%	Increase in operating expenses and increase in average trade payable resulted in increase in Trade Payable Turnover Ratio.
Net Capital Turnover Ratio	Revenue from Operations/Working Capital*	13.01	12.16	6.98%
Return on Capital Employed	EBIT/Capital Employed	12.01%	7.61%	57.86%	Increase in Profit resulted in increase in Net Profit Ratio

(*) Working capital shall be calculated as current asset minus current liabilities (excluding current maturities of long term debt, lease liabilities and interest accrued on borrowings)

For And on Behalf of The Board of Directors
Flomic Global Logistics Limited
SD/-	SD/-
Lancy Barboza	Satyaprakash Pathak
Managing Director	Wholetime Director
DIN: 01444911	DIN: 00884844
Place: Mumbai
Date: 22nd August, 2025.