Dear Shareholders,
I am pleased to present the 13th Annual Report for Lancer Container Lines Ltd. (LCL)
for the Financial Year 2024. Your unwavering trust and support have been instrumental in
our journey, and I am delighted to share our progress and accomplishments with you. The
past year has been marked by significant milestones and remarkable progress, despite
global economic challenges and unprecedented market volatility. Our commitment to
excellence and strategic execution has enabled us to achieve substantial milestones, and
we continue to build on this momentum as we move forward. It is both a delight and a
privilege to address you and provide an update on our company's performance highlights and
accomplishments during the Financial Year 2024.
Financial performance
Our financial performance for the year has been robust.
Revenue from operations reached Rs. 633.41 crore. The EBITDA margin showed a
significant increase, reaching 13.91%, with an EBITDA of Rs. 88.10 crore.
This improvement, up by 320 bps, was driven by enhanced operational efficiencies,
the expansion of our TEU fleet, and the extension of our service offerings into new
geographic regions. Our EBITDA and net profit margins have seen impressive gains,
reflecting our relentless focus on cost optimization and operational efficiency. Despite
the number of shipments standing 84,962, slightly lower than last year due to
increased lead times from the Red Sea crisis, our PAT remained strong at Rs. 58.37
crore, with PAT margins increasing by 280 bps to 9.21%. The financial
health of our company remains solid, with a strong balance sheet and healthy cash flows,
enabling us to invest in future growth opportunities.
Strategic Initiatives
This year, we have undertaken several strategic initiatives to strengthen our market
position and enhance our operational capabilities:
1. Aligned with our growth strategy, we are set to pursue an ambitious expansion plan,
aiming to raise our TEU capacity to 45,000 by FY26. Our successful expansion of the
container fleet and optimization of service routes have led to a TEU volume of 19,699
units, marking a 37% increase over the previous fiscal year. This expansion not
only bolsters our current operations but also positions us for future growth.
2. Our strategic roadmap includes substantial investments in fleet augmentation,
infrastructure enhancement, and technological upgrades, positioning us to leverage
anticipated growth in global trade and maritime logistics.
3. Our strategic positioning in Dubai remains a cornerstone of our operational
strategy. Its world-class infrastructure and status as a leading maritime hub offer
unparalleled advantages for our shipping and logistics operations. This prime location
enables us to access key global shipping routes, facilitating seamless connectivity with
major markets in Asia, Europe, and Africa, thereby enhancing our service offerings,
reducing transit times, and improving overall customer satisfaction
Market Expansion
We continue to expand our footprint in international markets, driven by our
customer-centric approach that fosters strong, long-lasting relationships. This year, we
successfully entered new markets and enhanced our network to stay close to our clients and
responsive to their needs. Notably, we ventured into the Mediterranean area, focusing on
unlocking business prospects across Africa, particularly in the Nigerian region.
This expansion underscores our commitment to tapping into emerging opportunities and
establishing fruitful partnerships.
In addition, we strategically acquired a 60% stake in Transco Logistix Worldwide
Private Limited, enhancing our freight forwarding business and bolstering our competitive
edge.
This acquisition, expected to be completed by Q1 FY25 pending regulatory approvals,
signifies our dedication to expanding operations and improving our market position.
People and Community
Our employees are our greatest asset, and their dedication and hard work have been
instrumental in our success. We have fostered a culture of inclusivity, continuous
learning, and development, ensuring that our workforce remains motivated and equipped with
the skills needed to drive our company forward. Additionally, we are committed to giving
back to the communities we operate in, through various CSR initiatives that focus on
education, healthcare, and environmental sustainability.
Industry Dynamics
As per industry reports, the Indian logistics market is poised for significant growth,
estimated to reach US$ 317.26 billion in 2024 and projected to expand to US$ 484.43
billion by 2029, growing at a CAGR of 8.8%. This growth trajectory underscores the
increasing importance of logistics in India's economic landscape.
As part of the Bharatmala Pariyojana, a network of 35 Multimodal Logistics Parks
(MMLPs) is planned with a total investment of about Rs. 46,000 crore (US$ 5.5 billion).
These MMLPs, once operational, will handle approximately 700 million metric tonnes of
cargo. Of these, 15 prioritized locations will see development with an investment of about
Rs. 22,000 crore (US$ 2.6 billion).
India's ambition to enhance its logistics performance is evident in its goal to raise
its ranking in the Logistics Performance Index to 25 and reduce logistics costs from 14%
to 8% of GDP by 2028, aiming for a 40% reduction. This strategic focus on improving
logistics efficiency is expected to significantly enhance trade competitiveness and
streamline operations across the country.
Future Outlook
As we look ahead, we remain optimistic about the future. We are confident that our
strategic initiatives, strong financial foundation, and unwavering commitment to
excellence will enable us to navigate the challenges and seize the opportunities that lie
ahead. We are determined to continue delivering sustainable growth and creating value for
our shareholders, customers, employees, and communities.
In closing, I would like to express my sincere gratitude to our shareholders for their
trust and support, to our employees for their dedication and hard work, and to our
customers and partners for their continued loyalty. Together, we will continue to build a
resilient, innovative, and sustainable
Lancer Container Lines Ltd.
Regards,
Abdul Khalik Chataiwala
Chairman & Managing Director