Dear valued stakeholders,
On behalf of the Board of Directors, I am pleased to present the Annual
Report and Consolidated Financial Statements of Total Transport Systems Limited for the
financial year ended 31 March 2023 (FY2023). As many of you are aware, the logistics
industry has experienced significant growth in recent years, and I am proud to report that
your Company has been at the forefront of this growth.
Last year was a year of recovery and growth for the Indian logistics
industry, with tangible signs of revival and resilience demonstrated in the development of
demand and supply across the country. The recovery was driven mainly by demands from
endusers for national and international customers.
The contribution of logistics in India's GDP is about 14.4% of the
GDP and is expanding at a rapid pace. The logistics market in India is expected to grow at
Compound Annual Growth Rate (CAGR) of 15.5% by 2024. Moreover, the logistics sector in
India employs over 22 million people and is further expected to create employment to
another 1.2 million by 2025.
The logistics industry has welcomed the government's proposal to
increase the capital investment outlay by 33% to Rs 10 lakh crore in the union budget
202324, claiming that the emphasis on building infrastructure will strengthen India's
position in the global supply chain.
The modernization of the logistics sector, increased adoption of
multimodal transportation, and increased supply chain efficiency will result from funding
being allocated for crucial transportation infrastructure projects. The effort to improve
India's 5G ecosystem would hasten the digital transformation of the transportation
management sector. We are excited to contribute to India's ranking among the top 25
nations in the Logistics Performance Index by 2030.
In FY23, we reported a 1.21% YoY growth in revenue, at Rs. 590.27 cr.
We reported EBITDA and Net Profit for FY23 of Rs. 14.62 cr and Rs. 4.65 cr, respectively.
The decrease in EBITDA is mainly due to lower revenue and higher employee expense on
account of onetime bonus. Revenue was flattish mainly due to decrease in freight rate of
more than 80%.
Your Company has made several strategic investments in infrastructure
and technology, which will enable us to provide our customers with faster and more
efficient service. We have also expanded our reach into new markets, both domestically and
internationally, and have established ourselves as a trusted partner for businesses of all
sizes.
We continue to focus on Abhilaya our last mile delivery service
as the COVID19 pandemic has accelerated the growth of the last , mile delivery segment as
more consumers have turned to online shopping. This has led to an increase in demand for
sameday and nextday delivery options. To meet this demand, our company has been investing
heavily in technology and infrastructure to improve the delivery times and increase the
capacity. The target set for Abhilaya is to cross approx. Rs. 300 crores of revenue till
2026 having growth plan of more than 40%50% per annum. Overall, the last mile delivery
segment is expected to continue experiencing strong growth in the coming years as
ecommerce continues to expand and consumers increasingly expect faster and more convenient
delivery options.
We target to reach a number close to 50 lakh shipments per month in
next fivesix months, a jump of almost 7080%. Reason being, the Flipkart has drawn a huge
growth plan and they are now planning to reach at least 15,000 pin codes by the end of
this year. I feel delighted to bring to your notice that your Company has started making
strategic plans to reach a benchmark of 5 Lakh shipments per day till FY2526.
Our strategy is to focus on establishing large customer base and strong
relation with marquee clients helps to increase company's creditability and
visibility in the market. We also did strategic acquisition of R. N. Freight Forwarders
Pvt Ltd to facilitate easy and smooth custom clearance for our existing clients. Along
with this we are also focusing on maintaining and building new relationship custom brokers
and agents to provide end to end services effectively. We started a new Project Cargo
Division, to be able to offer a more comprehensive suite of services to customers and
eventually become a onestopshop for all logistics requirements. As the market trend,
increasing adoption of automation and artificial intelligence, the logistics sector is
expected to become more efficient, costeffective, and customerfocused. Lastmile delivery
is a key area of focus for the Company, as far as increasing emphasis on sustainability to
reduce environmental footprint and operate more efficiently, we invested in 50 EV scooters
for the ease of delivery leads to timely delivery of orders, all of this in turn
generating higher and better operational mix.
I would like to express my sincere gratitude to our stakeholders for
their continued support and trust in our company. We are committed to delivering value to
our stakeholders, fulfilling our social and environmental responsibilities, and
maintaining our leadership in the logistics industry.
Sincerely,
Leena Prashant Salvi
Non Executive Director & Chairperson
DIN: 07784529
Address: 7th Floor TSquare Opp. Chandivali Petrol Pump, :
Sakinaka Andheri (East) Mumbai 400072
Date: August 10, 2023
Place: Mumbai