Dear Shareholders,
The logistics industry plays a pivotal role in driving economic growth
by facilitating the movement of goods and services. In FY 2023-2024, the logistics sector
in India witnessed significant growth as the industry benefited from rising e-commerce
trends, increasing trade volumes, contract logistics, and the government's focus on
infrastructure development. As a leading player in the sector, Ritco Logistics continued
to capitalize on these opportunities, I present to you the 23rd Annual Report
of your company and I am pleased to present that your company, RITCO LOGISTICS LIMITED has
achieved robust growth year on year.
Ritco Logistics have achieved commendable financial results in FY
2023-2024. Total revenue for the year stood at INR 937 crore, representing a Y-o-Y growth
of 24%. This growth was primarily driven by increased demand for logistics services and
successful execution of strategic contracts. Operating profit increased to INR 44.8 crore,
with a healthy increase of 34% over operating Profits of last year, showcasing the
company's operational efficiency.
Further I would like to share some Operational Highlights:
1. Expansion of Network: Ritco has onboarded and started
rendering services to many strategic steel, coal, and cement clients in East and South.
This was the strategic decision of Ritco to enter in Southern part of India in Steel &
Coal sector considering the large volume being moved from South to Gujarat sector and East
to Gujarat. We expect the strong business growth to continue on the back of new client
additions, new geographic expansion, and providing higher value added services. With an
increased scale of business coupled with cost optimization initiatives & moderate
inflation outlook, we expect margins to expand in coming times. Given the strong economic
outlook of the country & our reputed service ability, we are confident to enhance
value for all our stakeholders.
2. Technological Advancements: We are excited about the future
as we continue to invest in state- of-the-art infrastructure and cutting-edge technology
to further enhance our capabilities. Our strategic focus on infrastructure-based logistics
solutions enables us to offer our clients even greater efficiency, reliability, and
scalability. By leveraging Trucksup's advanced technology and services, Ritco can
strengthen its position in the market and remain competitive in the evolving industry
landscape.
3. Focus on Sustainability: Ritco Logistics maintained its
commitment to sustainability by adopting environmentally friendly practices. The company
optimized transportation routes to reduce emissions, encouraged eco-friendly packaging,
and invested in fuel-efficient vehicles. Thus, by optimizing load assignments and reducing
empty miles, Ritco works towards lower carbon emissions and promote greener logistics
practices. This commitment to sustainability aligns with the growing demand for
environmentally responsible business solutions
4. Customer-Centric Approach: Ritco Logistics emphasized a
customer-centric approach, tailoring solutions to meet the specific needs of clients. The
company's dedication to customer satisfaction resulted in increased customer retention and
garnered positive feedback.
Despite the positive performance, Ritco Logistics faced several
challenges during FY 2023-2024:
1. High Fuel Prices: High fuel prices posed a significant
challenge to cost management. To mitigate this risk, the company employed fuel hedging
strategies and explored alternative fuel options to reduce dependency on conventional
sources.
2. Supply Chain Disruptions: Ritco Logistics implemented agile
supply chain management practices, collaborated with alternate suppliers, and leveraged
technology to mitigate disruptions and maintain operational continuity.
3. Regulatory Compliance: Adherence to changing regulatory norms
and compliance requirements added complexity to the business environment. The company
invested in robust compliance frameworks, conducted regular audits, and appointed
dedicated teams to ensure adherence to all applicable regulations.
4. Unpredictable Weather Patterns: Unpredictable weather
conditions, such as heavy rains and floods, disrupt transportation routes, leading to
delays.
Ritco Logistics is optimistic about the future and is strategically
positioned to capitalize on emerging opportunities. The company aims to focus on the
following key areas:
1. Technology Integration: Ritco's acquisition of Logro Sourcing
Private Limited, including its wholly-owned subsidiary Trucksup Solutions Private Limited,
signifies a strategic move in the transportation and logistics industry. Trucksup
Solutions is a company that offers an app-based online truck booking platform with a focus
on providing various services to vehicle owners who own 1-10 vehicles and contribute to
maximum on-road fleet in our country.
2. Diversification: Exploring new markets and verticals to
diversify revenue streams and reduce dependency on specific industries.
3. Eco-friendly Initiatives: Reinforcing commitment to
sustainability by implementing ecofriendly practices and leveraging green technologies.
4. Talent Development: Fostering a culture of learning and
development to equip employees with skills for the future and nurture leadership talent
within the organization.
FY 2023-2024 was a year of growth and resilience for Ritco Logistics
Limited. The company's robust financial performance, combined with strategic initiatives
and customer-centric approach, positions it for a promising future. With a clear focus on
technology, sustainability, and talent development, Ritco Logistics is well-prepared to
tackle challenges and leverage opportunities in the dynamic logistics industry.