FSC - Future Supply

📊 NSE: FSC 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 22:12

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew by 2.5% in FY20 to INR 1,141.0 Cr, but declined sharply by 59.1% in FY21 to INR 466.41 Cr due to pandemic-related disruptions. Standalone revenue for FY20 was INR 1,140.6 Cr.

Geographic Revenue Split

Operations are primarily domestic within India, supported by 80 distribution centres covering 8.09 million sq. ft. of warehouse space across the country.

Profitability Margins

Consolidated Gross Margin improved from 27.9% in FY19 to 38.6% in FY20. However, the company reported a significant Net Loss of INR 184.83 Cr in FY21 compared to a loss of INR 5.7 Cr in FY20.

EBITDA Margin

Consolidated EBITDA Margin was 22.1% in FY20 (INR 252.6 Cr), showing a technical increase from 9.9% in FY19 (INR 121.1 Cr) primarily due to the adoption of IND AS 116 accounting standards.

Capital Expenditure

Capital expenditure on property, plant, and equipment was INR 129.37 Cr in FY20, which was drastically reduced to INR 7.39 Cr in FY21 as the company faced financial stress.

Credit Rating & Borrowing

Credit ratings are provided by CARE Ratings. Finance costs increased by 21.7% from INR 80.81 Cr in FY20 to INR 98.37 Cr in FY21, reflecting the high cost of servicing a disproportionate debt burden.

⚙️ Operational Drivers

Raw Materials

The primary operational cost is 'Cost of Logistics Services' (61.3% of FY20 revenue), which includes fuel, vehicle hire, and warehouse maintenance. Employee benefits accounted for 16.1% of FY21 revenue (INR 75.13 Cr).

Import Sources

Not disclosed in available documents; logistics services are sourced domestically across 80 Indian distribution centres.

Key Suppliers

Not disclosed in available documents; however, the company serves Future Group as an anchor customer for its supply chain requirements.

Capacity Expansion

Current capacity includes 8.09 million sq. ft. of warehousing space across 80 distribution centres. Planned expansion was to be funded by the INR 251.6 Cr raised from Nippon Express.

Raw Material Costs

Cost of logistics services was INR 700.1 Cr in FY20 (61.3% of revenue) and INR 278.16 Cr in FY21 (59.6% of revenue), reflecting a decrease in scale but consistent cost-to-revenue ratios.

Manufacturing Efficiency

Operational efficiency is targeted through the introduction of latest technologies and 'Kaizen' process improvements via the Nippon Express collaboration.

Logistics & Distribution

Logistics costs represented approximately 60% of revenue in FY21, highlighting the high-variable nature of the transport and distribution business model.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is pursued through a strategic partnership with Nippon Express, which acquired a 22% stake for INR 251.6 Cr. The strategy involves leveraging Nippon's global network to serve Indian customers and offering FSC's domestic services to Nippon's international clients in sectors like Pharma and Electronics.

Products & Services

Integrated end-to-end logistics solutions, warehousing, multi-modal transportation, and container freight station services.

Brand Portfolio

Future Supply Chain (FSC).

New Products/Services

Expansion into global logistics services for Indian customers through the Nippon Express alliance, expected to diversify revenue streams beyond the anchor client.

Market Expansion

Targeting four key new sectors: Fashion & FMCG, Pharmaceutical, Automotive, and Electronics through the Business Collaboration Agreement.

Strategic Alliances

Nippon Express (22% equity stake at INR 664 per share, a 22% premium).

🌍 External Factors

Industry Trends

The industry is shifting toward integrated, tech-enabled third-party logistics (3PL). FSC is positioning itself through technology adoption and international strategic partnerships to improve operational efficiencies.

Competitive Landscape

Competes with other large-scale 3PL providers and specialized logistics firms in the Indian market.

Competitive Moat

Moat consists of a large-scale pan-India warehouse network (8.09 million sq. ft.) and a strategic alliance with a global leader (Nippon Express). Sustainability is currently threatened by high debt and promoter-level financial stress.

Macro Economic Sensitivity

Highly sensitive to domestic consumption and industrial activity; FY21 revenue fell 59.1% due to pandemic-induced lockdowns.

Consumer Behavior

Shift toward organized retail and e-commerce increases demand for sophisticated warehousing and distribution services.

Geopolitical Risks

Trade barriers could impact the Nippon Express collaboration's goal of providing global logistics to Indian customers.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act, 2013, and transport/warehousing regulations. The company is undergoing debt restructuring for its listed NCDs under regulatory frameworks.

Taxation Policy Impact

The company reported zero income tax expense in FY20 and FY21 due to reported losses and available tax credits.

Legal Contingencies

The company has disclosed the impact of pending litigations on its financial position in its Consolidated Financial Statements; specific aggregate values were not provided in the summary text.

⚠️ Risk Analysis

Key Uncertainties

Material uncertainty exists regarding the company's ability to continue as a going concern due to significant financial stress and disproportionate debt relative to cash flows.