NSE:JETFREIGHTSM | 58888: | IND:Warehousing/Supply Chain/Road Transport | ISIN code:INE982V01017 | SECT:Logistics
Dear Fellow Shareowners,
At the outset, I would like to thank all our esteemed shareholders for their overwhelming support and trust reposed in the company.
Your company has delivered a robust 30% growth in revenue as compared to previous year. Net Profit has also increased marginally @4% which if not for GST, would have done better. During the year, there were headwinds in terms of GST, trade and currency war. Further your Company has clocked a 12.58% growth in terms of tonnage as compared to previous year.
Indirect Tax reform in the form GST applicable from July, 2017 had an adverse impact on the income of the company. There were pressure on our company margins as the exporters were negotiating for better pricing due to additional GST levy @18%.
As I had mentioned in my last year’s speech that our company is planning to have global footprint and having worked in that direction, our company has almost achieved that by securing a trade license in Dubai Free Zone Area by establishing 100% subsidiary in Dubai. I am confident to make the subsidiary profitable in the next financial year so that it adds value to our overall Jet Freight business plans.
As committed to our business plan for Domestic Cargo we have achieved a turnover of Rs. 4.37CR in a period of 9 months of the F/Y 2017-2018 with a 1000 tonnes upliftment of domestic cargos. I am sure that with the kind of growth envisaged in the e-commerce business we should be considering establishing a new company for domestic cargo business as a Wholly Owned subsidiary so that it can get better viability and independent funding from the market.We have the necessary infrastructure in place to deliver the full potentials of domestic cargo business and returns should follow in the coming years.
In terms of technology upgradation, it has been our endeavour to add a flavour of technology in our business and for this, a digital platform would be developed under the name of “BOOKKARGO” for securing orders. This initiative would go a long way in smooth functioning of our business and add to profits by reducing manpower cost and minimise order procurement time.
I am very optimistic that all the above mentioned initiatives and business moves would lead us to the next level of growth and our dream of market capitalisation of 100 CR would be fulfilled in the next couple of years. Besides organic growth as outlined above, we are also looking out for inorganic growth to achieve our desired objective of decent market capitalisation.
As we prepare to lay a strong foundation for the future, we would need to plough back the profits and therefore your company is not in a position to declare any dividend this year.
We are looking forward to continue on our mission of generating sustainable value for our stakeholders and I would like to place on record my appreciation to the Government of India, Government of Maharashtra, Bankers to the Company, the Airlines, customers, my employees/consultants for their relentless and valuable support and look forward to receive the same in future also.
Richard F. Theknath
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