Patel Integrated Logistics Ltd — Q4 FY26

Patel Integrated Logistics Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=rsQ2zRzF5Sw

0:01 1 second Ladies and gentlemen, good day and welcome to the Patel Integrated Logistic Q4 FY26 earning conference call hosted 0:10 10 seconds by Philip Capital. As a reminder, all participant lines will be the listen only mode and there will be an 0:17 17 seconds opportunity for you to ask question after the presentation concludes. 0:23 23 seconds Should you need assist during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference has been recorded. 0:35 35 seconds This conference call may contain forward-looking statements about the company which are based on beliefs, opinions, and expectation of the company. has on the date of this call. 0:49 49 seconds These statements are not guaranteed of future performance and involve risk and uncertainities that are difficult to 0:56 56 seconds predict. I now hand the conference over to Mr. Hershel Sha from Philip Capital. Thank you and over to you sir. 1:05 1 minute, 5 seconds Thank you. Good afternoon and a warm welcome to everyone. Thank you for being on the call in Logistics. We are happy 1:13 1 minute, 13 seconds to have the management people here today for the Q&A session with the investment community and is represented by Mr. 1:20 1 minute, 20 seconds Mahesla executive director and Mr. Ens company secretary. Before we start the start with the Q&A session we'll have 1:29 1 minute, 29 seconds the opening comments from the management. Now I will hand over the call to Mr. Nisha for the opening comments. Over to you sir. 1:37 1 minute, 37 seconds Thank you. 1:40 1 minute, 40 seconds Good afternoon there and very warm welcome to everyone for joining the earning call of Patel Integrated Labic Limited. 1:54 1 minute, 54 seconds We uh for the FY 202526 had been an important year for Patil 2:02 2 minutes, 2 seconds Integrated Logistics Limited marked by strong execution 2:08 2 minutes, 8 seconds significant improvement in positivity and continued strengthening of our core airfra logistic business. 2:18 2 minutes, 18 seconds The results number which I will explain you just in a few second clearly demonstrate that the initiative 2:27 2 minutes, 27 seconds undertaken over the last few years are now translating into tangible financial performance and Hanan shareholder value. 2:40 2 minutes, 40 seconds Now let me explain you the number for the quarter in the review. During the fourth quarter, the company delivered 2:49 2 minutes, 49 seconds robust operational and financial growth. 2:55 2 minutes, 55 seconds Total income from operation increase by 11.68%. 3:03 3 minutes, 3 seconds Year on year 2 rupees 96 cr 74 lakhs. 3:12 3 minutes, 12 seconds more important uh for us as we always share the profitable growth 3:21 3 minutes, 21 seconds profit before tax increase by nearly 99% to rupee 3 cr 70 lakhs 3:31 3 minutes, 31 seconds while profit after tax rose by over 50% 50% 3:40 3 minutes, 40 seconds to rupees to uh per 98 lakhs. 3:48 3 minutes, 48 seconds Accordingly, earnings per share for the quarter increase by approximately 3:55 3 minutes, 55 seconds 54% to rupees.4 uh uh rupees 43 pesa per share 4:05 4 minutes, 5 seconds 0.43 per share rupees 0.43 43%. 4:13 4 minutes, 13 seconds Now let me explain you the number for the full finance value year 202526. 4:24 4 minutes, 24 seconds You our company reported total income from operation of rupees 357 4:33 4 minutes, 33 seconds cr 25 lakhs. 357 cr 25 lakhs. 4:41 4 minutes, 41 seconds While we are very happy to inform you that profit 4:48 4 minutes, 48 seconds also before tax pro uh crossed the milestone of 10 k or 1,000 lakhs. 4:57 4 minutes, 57 seconds We have achieved the profit. In fact, our profit grew by uh over 34% year on 5:05 5 minutes, 5 seconds year to rupees 10 cr 30 lakhs. Profit before tax is 10 cr 30 lakhs. 5:16 5 minutes, 16 seconds Accordingly, profit after tax also increased by more than 26%. 5:23 5 minutes, 23 seconds Two rupees 9 cr 58 lakhs. 5:29 5 minutes, 29 seconds clearly reflecting operational moment momentum and our disciplined cost management. 5:43 5 minutes, 43 seconds Let me assure all the uh people who have joined the call that these numbers are 5:50 5 minutes, 50 seconds not incidental or or one or or one of 5:58 5 minutes, 58 seconds they are the result of focused execution strengthening of our air freight franchisee 6:06 6 minutes, 6 seconds technology laid operational efficiencies is disciplined in the capital allocation 6:15 6 minutes, 15 seconds and a consious shift toward higher margin business segment. 6:23 6 minutes, 23 seconds Our company has successfully 6:31 6 minutes, 31 seconds transformed itself into a more agile, efficient and profitabilitydriven balic 6:39 6 minutes, 39 seconds organization which will also uh getting uh proof by 6:48 6 minutes, 48 seconds our lo four P loading air division continue to deliver strong growth and profitability. 6:59 6 minutes, 59 seconds Accordingly, taggment profit segment airfra division profit increased to 11 7:05 7 minutes, 5 seconds cr 23 lakh in FY 202526 7:12 7 minutes, 12 seconds compared to uh rupees 8 cr3 lakh in the previous year. 7:20 7 minutes, 20 seconds clearly is show our uh our market uh position in 7:27 7 minutes, 27 seconds our area of operation and our execution capabilities. 7:36 7 minutes, 36 seconds As we know uh Patel Integrated Logistic Limited has one of the strongest airspace network in the country. 7:47 7 minutes, 47 seconds While we operate more than 100 airports across the pan India with the pan India network which we have which we have developed over a period of time. 8:00 8 minutes Accordingly we continue to have a significant and meaningful presence in cargo 8:07 8 minutes, 7 seconds transported through passenger aircraft services. 8:12 8 minutes, 12 seconds We serve diverse industry. We serve any indust any industry which we want to move the goods through the air 8:20 8 minutes, 20 seconds accordingly. Uh we uh we carry the uh car we carry document 8:27 8 minutes, 27 seconds we carry pharma we carry in auto part engineering goods we carry electronic goods we also carry the FMTG whatever 8:37 8 minutes, 37 seconds maybe the move to the can move through the air as we as we are seeing the numbers this 8:47 8 minutes, 47 seconds also show that the uh our P improvement in operational efficiency and financial discipline. 8:58 8 minutes, 58 seconds Accordingly, our finance cost reduced plenty to rupees 35 lakh only from 1 K 9:09 9 minutes, 9 seconds 18 lakh in the previous year reinforcing the strength of our balances and prudent financial management. 9:21 9 minutes, 21 seconds We are practically date free company. Uh although we have small amount of limits just for operational flexibility. 9:33 9 minutes, 33 seconds As can we know we have the also company uh balance sheet has a more than 20 cr 9:40 9 minutes, 40 seconds cat and cat equivalent in in hand. So company is a clearly a uh death-free 9:48 9 minutes, 48 seconds company. Uh we can call net death free company technically but practically we are uh we are we have a very healthy cat 9:57 9 minutes, 57 seconds position, liquidity position in the company. 10:03 10 minutes, 3 seconds considering the good financial position and all this uh numbers which I explained you just now we we are happy 10:10 10 minutes, 10 seconds to inform you the board has also recommended a final dividend of of rupees 0.40 40 or 40 pesa per equity share for 202526. 10:25 10 minutes, 25 seconds This is basically a 30% of our profit after tax 10:32 10 minutes, 32 seconds and reflecting our confidence in the company's financial strength and long-term growth pred uh predictory 10:40 10 minutes, 40 seconds long-term growth path. We are very confident and we want to reward the 10:47 10 minutes, 47 seconds shareholders. So 30% of the profit after tax has been declared as a dividend. 11:03 11 minutes, 3 seconds Going forward, we believe the company is strongly positioned to capitalize on the structural growth opportunities emerging 11:11 11 minutes, 11 seconds in India's logistic and air cargo sector. 11:15 11 minutes, 15 seconds We all know that now the number of airports are increasing. Uh just now the Mumbai airport got operational. Javar airport in Noa also getting operational. 11:28 11 minutes, 28 seconds So at and at the number of airport government had a target of increasing the number of airport from 140 to 220. 11:35 11 minutes, 35 seconds So for company like that had an immense opportunity passenger aircraft at the at the 11:43 11 minutes, 43 seconds airlines that other number of passenger aircraft more than I believe the uh it will be from 7 around 700 passenger 11:52 11 minutes, 52 seconds aircraft to 1,800 passenger aircraft will be there which will also give us the growth opportunity for our company and for the country as a whole as well. 12:06 12 minutes, 6 seconds As we know that there is increasing demand for movement of cargo which are very time sensitive which which which 12:15 12 minutes, 15 seconds which require the good to move in a time bound manner as we are conjunct are increasing in our country. We are growing country. 12:26 12 minutes, 26 seconds We the people are looking for the player which are a organized player which have a good integrated logistic solution with 12:36 12 minutes, 36 seconds a wide network and executing capabilities. 12:41 12 minutes, 41 seconds Uh hence organized player like us has a very good opportunity uh lying ahead. 12:50 12 minutes, 50 seconds Hence we are very confident while entering the next phase of growth. 12:57 12 minutes, 57 seconds As as the company we will always remain clear in in increasing our return on 13:04 13 minutes, 4 seconds capital employed, leveraging technology, leveraging uh artificial intelligence, 13:11 13 minutes, 11 seconds uh increasing the operational productivity and as a result creating the long-term value for all stakeholders. 13:24 13 minutes, 24 seconds Uh let me also give you the we have formed a uh one uh takidary 13:32 13 minutes, 32 seconds company in the last December quarter Rajput logistic limited. Uh the as we 13:39 13 minutes, 39 seconds are talking we are continue to getting impelment for logistic business in top corporate of India. Hence we are very 13:48 13 minutes, 48 seconds confident in next two three years from almost uh now now now now the company is grow in the national stage we will we 13:58 13 minutes, 58 seconds will be able to reach the turnover very meaningful turnover for that part company also. So that will be additional 14:06 14 minutes, 6 seconds vertical for the comp company uh in addition to the air cargo business. 14:12 14 minutes, 12 seconds As a result in in the there will be improvement in our overall uh return on 14:19 14 minutes, 19 seconds capital employed as well as our uh DSO or data sales outstanding because the 14:28 14 minutes, 28 seconds Rajput logistic limit will operate in area where there will be minimal outspending. 14:37 14 minutes, 37 seconds Uh so we are all are very uh excited about the uh achieving the milestone which we 14:46 14 minutes, 46 seconds which were uh of 10 cr uh profits as well as we are expecting that this is only the beginning and we will grow much faster than this. 14:56 14 minutes, 56 seconds Thank you. 15:02 15 minutes, 2 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on their touchstone telephone. 15:12 15 minutes, 12 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 15:22 15 minutes, 22 seconds Ladies and gentlemen, we'll wait for a moment while the question assemble. 15:41 15 minutes, 41 seconds A reminder to all participants that you may press star M1 to ask system. 16:07 16 minutes, 7 seconds The first question is from the line of Vikram Surya from Philip Capital. Please go ahead. 16:15 16 minutes, 15 seconds Yeah, good evening sir. Uh so how what kind of a revenue we can look at from Rajat logistics a three year five year 16:23 16 minutes, 23 seconds down the line what is our vision? uh look uh currently we are in the 400 cr 16:30 16 minutes, 30 seconds bracket correct so I can definitely say that will add another 25% on that 16:39 16 minutes, 39 seconds apart from the normal growth in the air logistic it will happen okay and what kind of margin we can 16:47 16 minutes, 47 seconds expect in that business yeah uh look uh that com that business will have a 16:54 16 minutes, 54 seconds will have a high return on capital employed because outstanding will be very minimal. So capital employed also 17:01 17 minutes, 1 second will be uh trending will be very fast and the return on capital employed will be higher than the margin definitely 17:09 17 minutes, 9 seconds that the expectation we have and um we are expecting a upward of uh of 20% in return on capital employed from that 17:18 17 minutes, 18 seconds business ro so there we'll basically do the booking for uh trade uh uh trucking trade 17:26 17 minutes, 26 seconds basically and we'll out through the to basically it from the market. 17:33 17 minutes, 33 seconds Yeah, we are act like company and we will continue to be act like company. So we will not own any truck but we will le 17:41 17 minutes, 41 seconds leverage our network which we have and the contact which we have and the brand which we are in uh we we have the 17:48 17 minutes, 48 seconds acquisition of brand and the top corporate are willing to give us the business and we want to be uh not taking 17:55 17 minutes, 55 seconds the any other business. we will taking a very few prosperous only and doing the business with them with an almost uh with a minimal risk. 18:06 18 minutes, 6 seconds And uh because of this ongoing war situation and the way we have seen the incident of crude price as well as the 18:13 18 minutes, 13 seconds ATF prices, how is the impact in short term in terms of uh uh capacity availability from the airlines as well 18:20 18 minutes, 20 seconds as the fear of ATF prices going up and impact in short term? 18:26 18 minutes, 26 seconds Yes, it is actually I can tell you unfortunately it's a favorable position for us because we are organized player 18:34 18 minutes, 34 seconds but at the same time rates are hardening as I'm talking to you from the March 15% 18:41 18 minutes, 41 seconds 15 international rate have increased to rates are hardening and definitely there is a 18:49 18 minutes, 49 seconds supply issues are there but since we have we are operating with more than PA airlines. Okay. Uh it's P airlines and 18:59 18 minutes, 59 seconds uh luckily in our case as I can see the uh just now the April month gone away the momentum of the growth is continuing 19:07 19 minutes, 7 seconds and we are uh it's unfortunate situation for the world but luckily uh uh we are keeping our momentum intact. 19:23 19 minutes, 23 seconds Okay. So but uh in say 27 can we see volume growth on a back of geopolitical situation or what kind of internal growth targets we have? 19:34 19 minutes, 34 seconds Yes correct. uh what will be right more rate will be increased more than the volume definitely because the rates are 19:43 19 minutes, 43 seconds getting hardened but at the same time volume also it is very difficult to tell right now but what can be the uh point 19:51 19 minutes, 51 seconds is that more and more goods are moving through the air also because of the all the uh penton and all this one so we are 20:00 20 minutes very much hopeful that we will be able to maintain the growth in the volume as 20:08 20 minutes, 8 seconds Okay, got it. And in terms of our uh we do have like a warehousing. So any plan to increase the warehousing capacity or 20:16 20 minutes, 16 seconds some of the time we also leave out the capacity which is a part of the income. So how is the this like a 20:24 20 minutes, 24 seconds steady state income generation opportunities we have plus comment on anything on warehousing side also? Yeah, 20:33 20 minutes, 33 seconds because what is happening as you can see in our what actually the ultimate that we are driven company and we are like I 20:40 20 minutes, 40 seconds were talking just now the company where the roof will be definitely more than the what we can earn from the 20:48 20 minutes, 48 seconds wearout business okay and the current business also uh without any owning the new asset we are earning the ROC more 20:56 20 minutes, 56 seconds than the what we can earn from the temporary yet whereout is a long-term business it will growth but currently 21:03 21 minutes, 3 seconds the what we are as a internally we are observing that our current operations are giving us more ro than if we venture 21:12 21 minutes, 12 seconds into the wear out operation so that is the thought is going on but never say never if any good opportunity 21:20 21 minutes, 20 seconds come and we find the lucrative rope coming up then because luckily the company don't have a challenge of 21:27 21 minutes, 27 seconds liquidity company has a healthy balance that is not the e2 for company. So we are open to that but right now 21:35 21 minutes, 35 seconds immediately we are not looking uh we have don't have any plan to enter into the asset business. 21:42 21 minutes, 42 seconds Got it. And uh earlier you also mentioned about like uh revenue leakage or increment in side with the mobile app 21:50 21 minutes, 50 seconds launch. So how is that response and success and incrementally how we can see the benefit out of it? 21:56 21 minutes, 56 seconds Yeah. Uh yes right. uh we have now as early as now the AI also coming up to uh 22:04 22 minutes, 4 seconds at we are talking about two days back also we have a internal AI meeting also and we want to leverage the this new 22:12 22 minutes, 12 seconds technology for controlling the any uh leakages which we have at the same time just to happy to inform you for the 22:20 22 minutes, 20 seconds trade receivable I think probably we are the one of them who have cons who have put the in system only in Our area of 22:28 22 minutes, 28 seconds business he if the outstanding improve outstanding go to certain more than certain date for a customer which we are 22:36 22 minutes, 36 seconds not comfortable then system only stop it and there no manual intervention at the same time we want to want to grow the 22:45 22 minutes, 45 seconds turnover and all this one so it is collective also it not we want to be totally the customdriven company and and 22:53 22 minutes, 53 seconds forget about the flexibility which human institututional knowledge which we have. 22:59 22 minutes, 59 seconds So we are trying to use the both the thing human knowledge which we have institututional knowledge which we have and the system knowledge which we are 23:08 23 minutes, 8 seconds giving us at the same time. Um great pill app we are uh trying to do 23:15 23 minutes, 15 seconds the more uh uh automation now so that the more and more automation can happen and the uh existing manpower can be used 23:25 23 minutes, 25 seconds more productively. We are we are a tentative company and uh we don't don't want anybody to lose the job at the same 23:32 23 minutes, 32 seconds time we want to use the productivity of the employee in a product in a more efficient way. So our overall productivity improve and ultimately the 23:41 23 minutes, 41 seconds profit is the byproduct of entire thing which we do. 23:49 23 minutes, 49 seconds Oh got it sir. And lastly on uh this monetization of non-core asset which has been there uh for a long time. So any 23:57 23 minutes, 57 seconds material development we are expecting from this. Yeah. Yeah. 24:04 24 minutes, 4 seconds Correct. Correct. Yeah. Uh as you know we have one property there which is we are actively pursuing for the 24:10 24 minutes, 10 seconds redevelopment at the same time that adjacent to our property there are two more properties are also there. So what 24:19 24 minutes, 19 seconds now the things are coming up if three of us together develop then the solution can be much more than that. So as early 24:28 24 minutes, 28 seconds as next week also we going to have a meeting for that only and rest we are actively pursuing that matter. At the 24:35 24 minutes, 35 seconds same time as we know it is one once in a lifetime opportunity in all this. So we want to extract the maximum value what is possible from that. 24:50 24 minutes, 50 seconds Uh but uh okay and what will be the structure of this development? Uh it can give broad 24:56 24 minutes, 56 seconds possibility will it be developed under uh existing listed player or will it be like a sold 25:05 25 minutes, 5 seconds out as a one time gain or it can it have recurring income? 25:14 25 minutes, 14 seconds Ultimately no we don't think is the one time like that we till now the thought is that everything will be in the listed 25:21 25 minutes, 21 seconds company only because that property owned by lifted company okay so what the and the structuring we are formulating but I 25:30 25 minutes, 30 seconds don't think we will go for one time like that uh because uh we have a appetite in also of the construction activity and all 25:39 25 minutes, 39 seconds this one so we want to be part of that activity and not the oneoff game we want to gain we we want to take the maximum 25:46 25 minutes, 46 seconds benefit out of it which may not be possible in if we do one of them. Yeah. 25:53 25 minutes, 53 seconds Uh got it sir. Uh that was quite helpful. Thank you very much. Yeah. 26:01 26 minutes, 1 second Thank you. A reminder to all participants that you may press star and want to ask question. 26:32 26 minutes, 32 seconds as there are no further question from the participants. I now hand the conference over to the management for closing comments. 26:40 26 minutes, 40 seconds Yeah, thank you. Uh as we know Patel integrated logistic limited is undervalued relative to it performance 26:49 26 minutes, 49 seconds with doubledigit revenue growth, liberal dividend payment and unmatched operational leverage. We are expecting 26:57 26 minutes, 57 seconds very soon the company is watch for a valuation rating. 27:04 27 minutes, 4 seconds This I this I'm pointing out because there are sometimes the shareholders have a point that uh our fair share 27:10 27 minutes, 10 seconds budget are very low and uh we we as a management person are aware of that one 27:18 27 minutes, 18 seconds and we we are very much committed to do whatever is possible to enhance the shareholder value. Hence we are building 27:26 27 minutes, 26 seconds the foundation for long-term leadership in Indian logistics. 27:31 27 minutes, 31 seconds Uh we we once again thank you all of you for attending this call and hope that 27:38 27 minutes, 38 seconds and uh hope the future will be more brighter than the what we are uh mentioning you today. Thank you all of you. 27:49 27 minutes, 49 seconds Thank you on behalf of Philip Capital. 27:52 27 minutes, 52 seconds That concludes this conference. Thank you for joining us. You may now disconnect your lines.