Financial Performance Q1 FY27

Revenue and Profitability

  • Revenue from operations stood at ₹120 crores in Q1 FY27 compared to ₹101.38 crores in Q1 FY26, representing 18.4% year-on-year growth.
  • EBITDA reached ₹11.21 crores compared to ₹6.68 crores in the same quarter last year, a 68% increase year-on-year.
  • EBITDA margin improved to 9.34% from 6.59%, representing a 275 basis points improvement.
  • Profit Before Tax (PBT) was ₹2.73 crores compared to a loss of ₹3.3 crores in Q1 FY26.
  • Profit After Tax (PAT) was ₹2.06 crores compared to ₹2.98 crores in the corresponding quarter last year.

Segment Performance Breakdown

The company operates through five business segments with the following revenue contributions for Q1 FY27:

  • Air & Sea Import Forwarding: ₹40 crores
  • Sea Export: ₹33.39 crores
  • Air Export: ₹22 crores
  • Warehousing: ₹18 crores
  • Air & Sea Import Clearance: ₹7.42 crores

All segments showed improvement compared to the previous year.

Business Strategy and Outlook

Company Overview

Flomic has a 38-year operating legacy since 1988 and has evolved from a regional logistics company to an integrated logistics platform offering:

  • Freight forwarding
  • Custom broking (through own CHA company)
  • Warehousing
  • Supply chain services
  • Project cargo
  • Exhibition logistics
  • Specialized services

Growth Strategy

Management outlined focus areas for the next 3-5 years:

  • Profitable growth rather than just top-line expansion
  • Warehousing and supply chain expansion (currently 15% of business, targeting 17-18% by year-end, 20% eventually)
  • Project cargo and specialized logistics development
  • Increasing wallet share from existing customers through cross-selling
  • Technology adoption to improve efficiency and scalability
  • Better working capital discipline

Technology Initiatives

The company implemented an AI-based application starting 1st July to automate processes including:

  • Quotation module to billing integration
  • Reduction of manual paperwork (42,000 shipments handled last year)
  • Real-time updates from shipping lines to customers
  • Expected cost reduction through automation

Customer Base

  • Diversified customer base with no single customer dependency
  • More than 50% of business comes from customers who are three years old
  • Focus on middle-sized customers rather than large enterprises for better margins
  • Current active customer base: 5,000+

Operational Metrics

Working Capital Management

  • Days Sales Outstanding (DSO) improved from 72 days to 56-57 days
  • Target collection cycle: 30-60 days framework

Warehousing Business

  • Gross margin: 15-20%
  • Higher reported margin due to Ind AS 116 accounting treatment for leased assets

Project Cargo Division

  • Focus on oversized dimensional cargo requiring special equipment and handling
  • Target sectors: oil and gas, aerospace, energy, renewable energy
  • Higher margins than routine freight forwarding but with higher execution risk
  • Export markets: primarily African continent
  • Import sources: Germany and China

Management Commentary

Growth Drivers

  • Volume growth: 6-7% year-on-year in Q1 FY27
  • Freight rate increases contributed to remaining revenue growth
  • Ocean exports currently showing better incremental profitability due to rising freight rates
  • Air freight benefiting from cargo diversion from ocean due to geopolitical situation

Market Outlook

  • Positive outlook for India's logistics sector due to manufacturing infrastructure and export ecosystem expansion
  • Target industries: pharma (including cold chain), engineering goods, oil and gas, aerospace (AOG - Aircraft On Ground cargo), solar
  • Geopolitical situation expected to impact freight rates for another 2-3 quarters

Branch Network Optimization

  • Company closed loss-making locations as part of cost rationalization
  • Focus on profitable branches rather than expansion for numbers
  • Well-distributed network across key Indian logistics hubs

Management Participants

  • Mr. Lancy Barboza – Chief Executive Officer and Managing Director
  • Mr. Alan Barboza – Executive Director and Assistant General Manager (Sales)
  • Mr. Abhinandan Gupta – Chief Financial Officer