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Jet Freight Logistics Ltd.

BSE: 538390 Sector: Others
BSE 05:30 | 01 Jan Jet Freight Logistics Ltd
NSE 05:30 | 01 Jan Jet Freight Logistics Ltd

Jet Freight Logistics Ltd. (JETFREIGHT) - Chairman Speech

Company chairman speech

Dear Fellow Shareowners

It is once again a moment of great honour for me to communicate with myesteemed stakeholders on the journey so far in the last one year since I communicated withyou all. I hope this message finds you safe and in good health. The year gone by had itsown ups and downs but overall I can say with confidence that we have been able to weatherthe storm and I am sure with the kind of support from all my stakeholders we would beable to address all the future challenges also.

As they say crisis comes with an opportunity. It is a matter ofcapitalising on this opportunity and taking our company to the next level.

My narrative on the financials results of the company is fullyoptimistic in spite of a dip in the crucial numbers due Covid-19 impact being felt worldover by the last quarter of Financial Year 2019-2020. Gross margins have shrunk from 8.66%to 5.39% as compared to previous year. Low volumes accompanied with increase in thefreight rates have dented the margins. Further we have not been adequately incentivised bythe airlines due to low volumes which would have otherwise directly added to our margins.

The Airlines are barely flying owing to CoVID-19 Pandemic globally.Thus we had significant drops in the top-line freight from January. The airline capacitywill not improve drastically atleast till March 2021.

Having said that due to our negotiation strength with all majorairlines we should be able to address this issue in times to come. Volume generation wouldbe based on the demand for which we have already geared up in terms of recruitingadditional sales and marketing staff.

Serving customer with top most service experience and not to let go anybusiness we have embarked on a journey of backward integration in terms of charteringfreighters and providing additional capacity to our clients. I am confident that with thisinitiative we would be serving client to the maximum with zero regrets on account of nonavailability of space.

With the unlocking happening across India and increase in mobilitywithin the country the company would be able to capitalise on improving margins for ourExpress cargo business. Once the international movement starts happening a further boostwould be received in terms of volumes from international markets like US UAE and Europewhere we have a good foothold. With the kind of cargo we cater to i.e. perishable I donot see demand not going back to Pre-CoVID levels once the pandemic related restrictionsare lifted nationally and internationally.

It is also our endeavour to do business in these situation withselected clients with good repute and having a history of timely payment. In this processof doing business with selected KYC compliant clients only your company compromised onthe volumes rather then adding further receivables and elongating the working capitalcycle.

As prudence demands we have been trying to manage our finance costwhich did increase in the current year. However as a best business practise we haveadopted a model of doing business with selected KYC compliant clients only with an eye onthe management of our day's sales outstanding maximum upto 60 days.

All our efforts would be made in the direction of tapping the borrowingat concessional rates as offered by Government of India under its various schemes forMSME. As always our bankers have been a pillar of support in our business and would bethe case in future also.

With all the above initiatives and efforts in the direction of businessgrowth I am sure that your company would able to withstand all future challenges.

As they say when the going gets tough the tough gets going. With thekind of tsunami in the name of CoVID-19 has covered the entire world it would be thesurvival of the fitess in these situation. To withstand these tough economic situationswould not be easy for many businesses. Hence it would also be an opportunity forinvestors to identify the companies with strong fundamentals and I am confident that yourcompany would be one of them. No better parameter for any investors to onboard suchcompanies in their portfolio.

I close my speech by placing on records my sincere thanks to all mystakeholders i.e. government of India Banker customers vendors employees and all thepeople who have been a part of this journey. It is not possible to achieve any resultswithout the overwhelming support of all these stakeholders.

Once again I wish and pray to God almighty that we get rid of thispandemic and once again our country and this world becomes a better place to live with nomore people dying.

I sign off by leaving you all with the words from one of the famousalbums of the Legend Michael Jackson "Heal the world make this better place for youand me and for entire world"

Warm Regards

Richard F. Theknath

Managing Director