Logistics | Business Upturn

Prabhudas Lilladher expects a 33% rise in THIS logistics company’s stock price

Markets Desk — Tue, 16 Apr 2024 16:27:31 +0000

Brokerage firm Prabhudas Lilladher in its latest initiation report has initiated coverage on logistics player TCI express with a positive ratinng and a target price of Rs 1,430 against the current market price of Rs 1,069 on the NSE. This implies a 33% upside in the stock price of TCI express. The brokerage stated that the industry is poised for a huge growth led by rising GDP & online retail penetration, increasing complexity in supply chains and distribution model, improvement in road infrastructure, and greater adoption of technology.

“The logistics sector is mainly dominated by the movement of goods via roads (~71% of volumes and ~65-70% of transportation revenues). Overall, est. logistics gross spends (~US$435bn) form 13% of GDP, of which direct spend is 51% of the pie,” the brokerage said in a report.

B2B express is one of India’s fastest growing segment (~2x of real GDP growth) with organized-to-unorganized mix of 45:55, the note said. Adding that, improvement in road infrastructure plus other factors are driving conversion of FTL- Full Truck Load freight (biggest segment; cost sensitive) to B2B express volumes (time sensitive). TCI Express is building its capacities for the next decade and an uptick in volumes on expanded asset base (automation of existing assets) will likely maintain return ratios at attractive levels.

Walmart to offer AI-Powered route optimization tool to other businesses

Tushar Aggarwal — Thu, 14 Mar 2024 14:36:31 +0000

Walmart has been utilizing its Route Optimization tool, powered by artificial intelligence (AI), to plan more efficient routes for its delivery trucks for several years. Now, the retail giant has announced that it will be offering this tool to other businesses.

Anshu Bhardwaj, senior vice president and chief operating officer of Walmart Global Tech and Walmart Commerce Technologies, stated in a news release, We have invested significant time, resources, and operational know-how into building solutions like Route Optimization, but that can be a barrier for many businesses. By adopting our at-scale, AI-powered tech, businesses can eliminate the need and expense of developing their own technology, and instead focus on what they do best — serve their customers.

Route Optimization is designed to help businesses of all sizes use AI-driven software to find optimal driving routes, pack trailers efficiently, and reduce miles traveled. Walmart claims that it used the technology to eliminate 30 million unnecessary miles, thereby avoiding 94 million pounds of CO² emissions.

This initiative comes at a time when AI has become a focal point in Walmart’s competition with rival Amazon. Amazon has recently increased its investments in AI, with its $1 billion innovation fund supporting companies that combine artificial intelligence and robotics to enhance efficiency throughout its logistical network.

Walmart’s AI efforts have included improvements to its AI search functionality, as discussed by CEO Doug McMillon on a recent earnings call. McMillon highlighted the improvements in search and the use of generative AI to enhance a solution-oriented search experience for customers and members, noting that these enhancements occurred quickly.

Walmart is leveraging AI to enhance efficiency in its stores, particularly at its Sam’s Club subsidiary. Sam’s Club President and CEO Chris Nicholas revealed to analysts on the retailer’s earnings call last month that the warehouse club chain is using computer vision to streamline the process of checking self-service customers’ receipts at the exit, reducing labor costs.

Industrial & logistics space absorption in Kolkata grows by 32 pc Y-oY

United News of India (UNI) — Wed, 25 Oct 2023 09:35:47 +0000

Kolkata, Oct 25 : Industrial and logistics space absorption in this metropolis grew by 32 per cent Y-o-Y to 2.7 mn. sq. ft. in January-September ’23 compared to 2 mn. sq. ft. in January-September ’22, according to a published report of CBRE South Asia Private Limited., India’s leading real estate consulting firm.

The city also recorded a supply addition of 4.3 mn. sq. ft. during the Jan-Sep’23 period, the report “India Market Monitor Q3 2023’ announced on Wednesday.

The report highlighted the growth trends and dynamics across the real estate sector across India accounting for a 10 pc share in the overall leasing among top 8 cities in India. Third-party Logistics, Retail and Auto & ancillary companies dominated absorption in Jan-Sep’23.

During the Jul-Sep’23 quarter, total leasing in the city stood at 1 mn. sq. ft. and a supply addition of 1.1 mn. sq. ft. was also observed.

On a pan-India basis, the Industrial & Logistics (I&L) sector is likely to touch a 5-year high absorption mark and touch 36 – 38 mn. sq. ft. in 2023 across top 8 cities in India. Supply addition, too, is expected to outperform, touching 35 – 37 mn. sq. ft. by the year-end, driven by the completion of pent-up projects.

The leasing in the I&L sector grew by 13% Y-o-Y in the Jan-Sep’23 period. The total absorption across the top 8 Indian cities stood at 27.3 mn. sq. ft, compared to 24.2 mn. sq. ft. in Jan-Sep ’22. Mumbai, Chennai, and Delhi-NCR collectively accounted for a share of 56% in the leasing activity during the Jan-Sep’23 period.

During the Jan-Sep’23 period, Third-party Logistic (3PL) players dominated leasing with a 45 pc share, followed by Engineering & Manufacturing (E&M) companies (15pc), Auto & ancillary (7pc), FMCG (6pc) and Electronics & electricals (5pc). Supply addition was registered at 28 mn. sq. ft recording a 57 pc Y-o-Y increase on Jan-Sep ’23.

A combined contribution of 56pc has been recorded in supply additions during the Jan-Sep’23 period from Delhi-NCR, Chennai, and Kolkata collectively.

In Jul-Sep’23, among the cities, Chennai recorded the highest absorption with 2.1 mn. sq. ft., followed by Bangalore and Mumbai, recording 1.7 mn. sq. ft. and 1.3 mn. sq. ft., respectively. The combined leasing share of these three cities accounted for approximately 62 pc. During the Jul-Sep’23 quarter, 3PL players accounted for 50pc of the leasing activity, followed by Engineering & Manufacturing at 13 pc, and Electronics & Electrical companies at 8 pc.

As per the regional trends, domestic corporations took the lead in leasing activities with a 59 pc share, followed by EMEA corporations at 25 pc and APAC corporations at 12pc during the same period. The I&L sector also witnessed a 92 pc Y-o-Y increase and 12 pc Q-o-Q growth in warehouse completions in the July-Sep’23 quarter.

“We are witnessing a remarkable shift in the I&L sector. With the surge in quality supply additions, robust festive demand, and the completion of pent-up projects, we anticipate the overall absorption to touch a 5-year high, reaching an impressive 36-38 million square feet by the end of 2023. Moreover, the active participation of larger developers backed by institutional funds, contributing around 40% to the completed projects, underscores the sector’s growth potential.

In select micro-markets, the prospect of rising rents is bolstered by the premium commanded by new, investment-grade, technologically advanced, and strategically situated assets,” Company Chairman & CEO Anshuman Magazine said.

Pristine Logistics & Infraprojects established in Delhi file DRHP for IPO

Aryan Jakhar — Wed, 11 May 2022 13:57:10 +0000

Pristine Logistics & Infraprojects Limited, based in Delhi has filed its Draft Red Herring Prospectus (DRHP). With the markets regulator, the Securities and Exchange Board of India (SEBI), in order to acquire funds through an initial public offering (IPO).

According to the Draft Red Herring Prospectus (DRHP) filed on Tuesday. Moreover, the initial share-sale will include a fresh issuance of equity shares worth Rs 250 crore and an offer for sale of 20,066,269 equity shares by promoters and current shareholders.

The company may pursue a pre-IPO offering of up to Rs 50 crore in equity shares. The size of the new issue will be lowered if this placement is done.

Fresh issuance proceeds will be utilised to repay debt and for general company purposes.

Pristine Logistics & Infraprojects Limited move to IPO

The logistical infrastructure and services provided by Pristine are centred on rail transportation networks. It also provides integrated logistical infrastructure and services across the board, including non-container, container, rail, and road transportation.

It also assists in areas such as integrated logistics solutions. By providing services such as warehousing, storage. And cargo handling, rail transportation, road transportation. And third-party logistics (3PL) and identifying these services as the company’s major revenue sources.

The start of the Birgunj and Siliguri terminals, which resulted in a rise in handling and transportation services, raised Pristine Logistics’ revenue from operations by 18.68 percent from Rs 469.27 crore in Fiscal 2020 to Rs 556.93 crore in Fiscal 2021. For the nine months ending in December 2021, revenue was Rs 494.75 crore.

The book running lead managers are ICICI Securities Limited. Also, HSBC Securities and Capital Markets (India) Private Limited. And JM Financial Limited, while the registrar is Link Intime India Private Limited.

The equity shares will be listed on the BSE and NSE.

Ahead of Delhivery’s IPO, CCI approves FedEx’s minority stake buy in the company

Ayisha Farah — Tue, 23 Nov 2021 15:25:13 +0000

India’s competition watchdog Competition Commission of India (CCI) has authorised the purchase of a minority stake in logistics services provider Delhivery Ltd by FedEx Express, a unit of American transportation giant FedEx Corp.

Along with the agreement, FedEx has accepted funding $100 million in Delhivery, one of India’s unicorn startups ready to go public soon.

FedEx Express will start into a long-term commercial agreement with SoftBank-backed Delhivery. While FedEx Express will concentrate on global export and import services to and from India, Delhivery will, along with FedEx, sell FedEx Express global products and services in India and offer pick-up and delivery services beyond the country.

Moreover, FedEx will transport certain assets regarding its domestic business in India to Delhivery. Delhivery, established in 2011 as a hyperlocal logistics company, holds a significant market share in the business-to-consumer e-commerce logistics space, though its business-to-business service estimates for approximately 80% of its profits.

Delhivery’s logistics services are given to companies and persons who work across different business models and are present over the value chain (individuals, big brands, small and medium enterprises, e-commerce platforms etc.).

FedEx India offers end-to-end logistics solutions in India under the FedEx brand, including express parcel deliveries, total and less-than-truckload transportation services, and warehousing and supply chain management/third party logistics services. FedEx India provides to B2B, B2C and C2C (Retail) customers and offers a wide variety of shipping resolutions for all business needs.

FBI issues declassified document indicating logistical aid to 9/11 attackers

Sneha Sengupta — Sun, 12 Sep 2021 10:37:45 +0000

On the basis of the report published by the Indian Express, the Federal Bureau of Investigation has issued the latest declassified document related to the logistical aid offered to two Saudi hijackers before the disastrous incident of September 11, 2001, took place. Later on Saturday evening, on the commemoration of the 20th anniversary of the attack, the 16-page document was presented.

The reports were partially expurgated, however showed signs of communication between the hijackers and its Saudi associates but indicates no sign of the government of Riyadh being involved in this diabolical plot.

The families of the deceased had appealed to Joe Biden to pay tribute to the victims of the attack in its 20th anniversary. After attending the memorial event in the respective cities of New York, Pennsylvania and Northern Virginia, Biden released the declassified documents.

The affected chunk of people had sued the Saudi government with dollars seeking justice for their beloved.

The government of Saudi had denied all the allegations thrown at them regarding the involvement in the brutal attack. On Wednesday, a Saudi consulate in Washington averred that it supported the full declassification of all records to end the baseless allegations against the Kingdom once and for all. On Saturday, an official statement displayed on behalf of the 9/11 Families United organization read: the 16 pages released by the FBI put any doubts about Saudi complicity to rest.

SpiceJet reports consolidated net loss at Rs 731 crore in Q1 results

Shivya Kumar — Fri, 13 Aug 2021 14:40:08 +0000

On August 13, SpiceJet India’s one of the leading airlines was estimated to conjure a loss of Rs 731.12 crore for Q1FY22 against a loss of Rs 600.52 crore in the previous year, in this given period.

The total income earned by the company through its usual work gains was accumulated to be Rs 1,125 which was double Rs 521 crore in Q1FY21, for the given period.

The company was said to experience a significant loss due to the spread of the second wave of Covid-19 in the country. Which to a great extent diminished the travel within and outside the country during the ongoing period. While SpiceXpress the airline’s logistic sector earned a net earning of Rs 30 crore. The profit boosted up to 285 per cent which was calculated to come around Rs 473 crore more than what was earned last year, Rs 166 crore in the given slot.

The company further confirmed the highest domestic load of 69.5 %.. enabling the capacity to uplift to 229 per cent.

“Q1 was severely impacted by the second wave as passenger traffic almost disappeared. While no one can predict the future, with vaccination numbers picking up and demand for air travel increasing steadily, we hope the trend reverses soon,” said Ajay Singh, Chairman and Managing Director, SpiceJet.

“SpiceJet will recover lost ground quickly as we are continuously ramping up our operations adding new stations and flights and are much better placed than this time last year. Our logistics arm continued with its strong growth story reporting yet another profitable quarter,” Singh added.

He further notified that the company is working towards making amends and strengthening the logistics business.

The stock numbers came up to 0.63 per cent up at Rs 71.90 on BSE on August 13.

Lockdown hits Adani Ports, Q1 profits fall by 26%

News Desk — Tue, 11 Aug 2020 14:08:22 +0000

Adani Ports and Special Economic Zone (APSEZ) has seen a YoY (year-on-year) decline of 26.2% in consolidated profit for the first quarter of the financial year of ’21. According to its BSE filing, the company reported a consolidated profit of Rs 757.8 crore. Impacted by the lockdown, the consolidated revenue from operations also fell by 18% to Rs 2,292.7 crore.

“Due to all India lockdown imposed from last week of March, cargo throughput witnessed a decline of 27 percent, resulting in 18 percent decline in consolidated revenue. However, there has been a steady increase in cargo throughput across ports from July,” the company said in its BSE filing.

In the month of July, APSEZ saw a growth of 6% YoY & 31% month-on-month in cargo volumes. They handled around 18.30 million tonnes. “This trend gives us confidence that worst is behind us and going forward cargo volume in FY21 is expected to stabilise,” the management said.

Due to the shift from road to rail, and subsequent increase in services Adani Logistics was able to achieve

a revenue of Rs 200 crore, up 10% YoY.

At an operating level, earnings before interest, tax, depreciation, and amortisation (EBITDA) dropped 24.5% YoY to Rs 1,394.2 crore and margin declined 530 bps to 60.8%.

Chinese Imports suspended temporarily for shipping by DHL

Chittesh Dalmia — Wed, 01 Jul 2020 11:29:36 +0000

Chinese Imports suspended temporarily for shipping by DHL. DHL (Dalsey, Hillblom and Lynn), a German logistics company said on Wednesday. That it has temporarily suspended shipments from China to India. Because of the ongoing border tensions between the neighboring nations of China.

Following the footsteps of FedEx Corp. Another international logistics company who had recently also banned transfers of goods and cargo. From China to India.

DHL representative confirmed to Reuters that the recent delay in customs clearance of cargo into India caused the shipment company’s DHL Express India unit to temporarily suspend pickups from mainland China, Hong Kong and Macau.

Reuters reported last week. Goods that include products from US companies Apple, Cisco and Dell. Remain caught up in the border tensions. Since Indian ports are held up imports from China.

DHL Express India confirms to Global Times that it is temporarily suspending picking up import shipments from the Chinese mainland, Hong Kong and Macao due to recent delays in customs clearances of shipments into India. pic.twitter.com/ni3l4HpwWF

— Global Times (@globaltimesnews) June 26, 2020