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Image Source : PTI Representational picture of market
The Modi government’s push to develop logistics infrastructure is serving as a strong foundation for the world’s fastest-growing economy. The logistics sector’s role in driving the economy is significant, contributing an estimated 13-14 per cent to India’s GDP. As the logistics sector’s contribution rises further, logistics solution provider Shreeji Translogistics has reported stellar earnings in the first quarter.
Its consolidated net profit for the quarter ended June 30 stood at Rs 40.93 million, up more than 50 per cent YoY. The net profit in the year-ago period was Rs 26.44 million. The profit margin expanded by 121 basis points to 6.89 per cent year-on-year.
On the revenue front, the revenue from operations increased 27 per cent to Rs 593.98 million on a yearly basis. The rise in revenue was primarily led by an increased customer base, expansion to new regions, and the addition of new service lines.
The robust demand for efficient logistics solutions due to the thriving economy and the government’s commitment to developing superior logistics infrastructure has opened new avenues for growth.
The emphasis on supporting the growing needs of the manufacturing sector and reducing logistics costs from 13 per cent to 8 per cent of GDP has created numerous opportunities for industry players.
Based in Mumbai, Shreeji Translogistics is a surface logistics and parcel delivery service provider. According to exchange details, its shares have had a solid run in the last two years, rising more than 700 per cent.
The continued development policy initiatives by the government, like the National Logistics Policy and Gati Shakti, among others, have enhanced the pace of infrastructure development in the country. India recently climbed six places on the World Bank’s Logistic Performance Index (LPI) 2023.
Logistics has become the centerpiece of India’s policymaking in its journey toward becoming a developed country and a manufacturing hub.
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