💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment of freight forwarding. Total revenue from operations grew 12.3% YoY to INR 436.64 Cr in FY25 compared to INR 387.79 Cr in FY24. This growth was achieved despite a 6.3% decline in air freight tonnage and a 38.5% decline in ocean freight TEUs, indicating higher yields per unit.

Profitability Margins

Gross Profit margin improved slightly to 9.36% in FY25 from 9.17% in FY24. Net Profit margin increased to 0.9% (INR 3.73 Cr) from 0.1% (INR 0.26 Cr) in the previous year, driven by cost optimization and higher operational efficiency.

EBITDA Margin

EBITDA margin stood at 3.49% in FY25, a significant improvement of 162 bps from 1.87% in FY24. EBITDA grew 86.6% YoY to INR 15.29 Cr, reflecting better control over operating expenses.

Capital Expenditure

The company has a long-outstanding 'Advance for Warehouse Project' (Note 7), though the specific INR value for planned future CapEx is not explicitly totaled. The audit highlighted concerns regarding the lack of physical progress on this project.

Credit Rating & Borrowing

Interest coverage ratio increased by 67.4% to 2.21 in FY25 from 1.32 in FY24, indicating a stronger ability to service debt. Total borrowings include non-current borrowings of INR 14.92 Cr and current borrowings of INR 48.28 Cr.

⚙️ Operational Drivers

Raw Materials

Freight space and carrier capacity (Air and Ocean) represent the primary 'raw material' cost, accounted for as Operational Expenses at INR 395.66 Cr, which is 90.6% of total revenue.

Key Suppliers

The company sources capacity from various airlines and shipping lines; specific company names are not listed, but the company maintains a 30-day payable cycle with most airlines.

Capacity Expansion

Current air freight volume is 23,157 Tons and ocean freight is 3,910 TEUs. The company is focusing on increasing revenue from the ocean freight segment to shorten the working capital cycle.

Raw Material Costs

Operational expenses (freight costs) increased 12.3% YoY to INR 395.66 Cr, moving in line with revenue growth. Procurement strategies focus on cost optimization and technology-driven processes.

Manufacturing Efficiency

Not applicable as a service provider; however, operational efficiency is reflected in the 86.6% growth in EBITDA despite lower volumes.

Logistics & Distribution

Operational expenses (distribution/freight costs) represent 90.6% of revenue.

📈 Strategic Growth

Expected Growth Rate

12.30%

Growth Strategy

Growth will be achieved through a focus on the ocean freight segment (which offers shorter credit periods), cost optimization initiatives, and technology-driven processes. The company is also intensifying recruitment in sales and supply chain operations to expand market reach.

Products & Services

Air freight forwarding (specializing in perishables like fruits and vegetables, and general cargo) and Ocean freight forwarding services.

Brand Portfolio

Jet Freight.

Market Expansion

The company is targeting an increase in ocean freight revenue to improve working capital efficiency and competitive advantage.

🌍 External Factors

Industry Trends

The industry is seeing volatile freight costs and a shift toward digital logistics. Jet Freight is positioning itself by integrating technology and focusing on high-value perishable cargo (73.7% of its air volume).

Competitive Landscape

The company competes in the freight forwarding industry, where it maintains a competitive advantage by offering business credit to customers despite shorter payable cycles to airlines.

Competitive Moat

The company's moat is built on its 'talent-savvy manpower' and specialized expertise in perishable logistics, which accounts for 17,072 tons of its 23,157-ton air freight business.

Macro Economic Sensitivity

Highly sensitive to global fuel prices and trade volumes. A spike in oil prices directly increases air freight costs, impacting the 90.6% operational expense base.

Geopolitical Risks

Regional conflicts and disruptions in shipping lanes (Red Sea) have led to re-routing and increased transit times, impacting service commitments and costs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act, 2013. The company is currently seeking shareholder approval for excess managerial remuneration under Section 197.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 41% (INR 2.58 Cr tax on INR 6.30 Cr PBT).

Legal Contingencies

The company has a pending income tax demand for AY 2018-19 which is currently stayed by the Assessing Officer. It also faces audit observations regarding excess managerial remuneration of INR 1.14 Cr (INR 1,13,71,520) paid to directors.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the recoverability of the 'Advance for Warehouse Project' due to lack of physical progress. Geopolitical instability remains a high-impact risk for transit costs.

Third Party Dependencies

High dependency on airlines and shipping lines for cargo space; the company must manage a 35-day gap between its payable cycle (30 days) and receivable cycle (65 days).

Technology Obsolescence Risk

The company is addressing technology risks by implementing new systems to mitigate process gaps and training employees in cybersecurity.

Credit & Counterparty Risk

The company faces credit risk from customers due to its 65-day debtor cycle; it is mitigating this by opting for customers with Invoice Discounting.