Bright prospects for Future Supply Chain Solutions

While revenue growth should reflect past trends (17% growth over FY15-17), margins, which are in the 13-16 per cent range, should benefit as operating leverage driven by volume growth kicks in

Growth prospects for Future Supply Chain Solutions (FSCS), a third-party logistics service provider, appear strong. This is due to the increasing trend of businesses to outsource their supply chain activities and the implementation of the goods and services tax (GST). While the overall third-party logistics growth, going ahead, is expected to be similar to the 12 per cent seen during FY12-FY17, growth for FSCS should be more than this. This is because a bulk of its business contract logistics, which involves warehousing, distribution and other value-added services, is expected to grow at an estimated 17 per cent. Contract logistics accounts