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Retail Individual Investors | Non-Institutional Investors | Qualified Institutional Buyers (QIB) |About CJ Darcl Logistics Limited
CJ Darcl Logistics Limited is a prominent player in the Indian logistics sector, exhibiting market leadership in the full truckload (FTL) category. The company offers a wide range of transportation modes, including road and FTL, rail and multimodal, warehousing and distribution (W&D), as well as integrated logistics solutions such as project logistics, third-party logistics (3PL), and freight forwarding. Additionally, the company offers other services like air cargo transportation and coastal shipping.
Operating across India, CJ Darcl Logistics has an extensive network of 5,249 locations via 187 branch offices as of March 31, 2023. With a track record spanning 36 years since its inception, this company provides distinctive logistics solutions underpinned by several key strengths: nationwide presence, integrated service offerings, market intelligence, technology-driven service enhancements, and a substantial network of business partners.
In Fiscal 2018, the company solidified its capabilities by establishing a shareholder arrangement with the corporate promoter, CJ Logistics Corporation, which is a prominent logistics company based in South Korea.
According to a NITI Aayog study, India's logistics expenses relative to its GDP are approximately 14%, while BRIC nations average 10-11%, and developed countries typically have costs at 8-9%. In the future, India's logistics costs as a percentage of GDP are expected to decrease.
This reduction will be driven by several initiatives, such as the implementation of GST, increased investments in road infrastructure, the development of inland waterways and coastal shipping, and the focus on dedicated freight corridors.
To capture this opportunity, the company uses an 'asset-right' model, owning some vehicles while collaborating with a network of 496,981 partners for the rest. The company has 8,20,333 partnered fleet units and owns 990 commercial vehicles, 3 containerised rakes (40 wagons each), and 1,358 containers. This setup enables them to quickly scale their operations to meet demand and seize large business opportunities.
CJ Darcl Logistics Limited IPO Details
CJ Darcl Logistics Limited IPO Dates
The exact dates are yet to be announced.
CJ Darcl Logistics Limited IPO's Price Band
The exact price range is yet to be announced.
CJ Darcl Logistics Limited IPO's Lot Size
The exact lot size are yet to be announced.
CJ Darcl Logistics Limited IPO's Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Repayments on borrowings: The company maintains financial arrangements with banks and financial institutions, which include term loans and working capital facilities. As of July 31, 2023, the company's consolidated debt is ₹8,038.24 million. Approximately ₹2,400.00 million from the Net Proceeds will be used to repay some of this debt.
- Funding capital expenditure: The company is committed to enhancing efficiency and customer experience and reducing carbon emissions and logistics costs. They are actively accounting for greenhouse gas emissions and plan to purchase commercial EVs with ₹100.00 million of Net Proceeds.
- General Corporate Purpose: CJ Darcl Logistics Limited plans to utilise the remaining Net Proceeds for general corporate purposes. This includes meeting business development expenses, bolstering marketing capabilities, covering employee and personnel-related expenses, rent, administration costs, insurance premiums, and other similar expenses while adhering to applicable legal requirements.
Peer Details
The company have several peers including,
- TCI Express Limited
- Mahindra Logistics Limited
- Container Corporation of India Limited
- Transport Corporation of India Limited
How To Check the Allotment Status of CJ Darcl Logistics Limited’s IPO?
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- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
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Contact Details of CJ Darcl Logistics Limited
Registered office: Darcl House, Plot No. 55P, Sector – 44, Institutional Area, Gurugram – 122003, Haryana, India
Contact Person: Apoorva Kumar (Company Secretary and Compliance Officer)
Phone: +91 90152 02121
E-mail: investors@cjdarcl.com
IPO Financials
| Particulars | Year ending on March 31, 2023 | Year ending on March 31, 2022 | Year ending on March 31, 2021 |
|---|---|---|---|
| Net Sales | 42,158.26 | 36,813.81 | 28,875.69 |
| Sales Growth (%) | 14.51% | 27.49% | - |
| EBITDA Margin (%) | 4.38% | 4.20% | 4.31% |
| Profit After Tax (PAT) | 677.03 | 613.68 | 317.47 |
| Total Borrowings | 6,122.61 | 5,335.64 | 4,174.38 |
| Cash & Cash Equivalents | 81.45 | 123.97 | 199.88 |
| Debt to Equity Ratio(x) | 1.06 | 1.05 | 0.93 |
| Return on Equity (%) | 12.47% | 12.82% | 7.35% |
| Return on Capital Employed (%) | 16.86% | 18.21% | 15.02% |
| Earning Per Share (EPS) in absolute (₹) | 29.87 | 27.08 | 14.01 |
Know before investing
Strengths
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This Indian logistics leader excels in FTL services for Fiscal 2023. They offer diverse logistics, with a vast national presence and 4,513 employees as of March 2023. They have secured ₹38,575.59 million in non-binding FTL transportation orders for Fiscal 2024, with 36 years of experience in efficient trade flow management and cost-effective route optimisation.
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The company operates an 'asset-right' model, owning few assets but partnering with a large network. They have 990 vehicles and collaborate with 820,333 partner fleets. In 2023, their owned fleet contributed 9.17% to revenue. This model allows for scalability and customised logistics solutions, adapting to market dynamics.
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The company plans to accelerate its growth in the multimodal business by capitalising on customer relationships and increasing revenues through various means. They will also benefit from government policies, focus on rail operations, and expand into industry clusters like metals, mining, and e-commerce.
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The company focuses on high-growth sectors like warehousing, 3PL, and air cargo solutions. They aim to expand organically and through acquisitions in warehousing and 3PL. The FTL market, larger than industrial warehousing, will drive volume, with support from other verticals. Their partnership with CJ Logistics Corporation enhances their global reach. The company also targets e-fulfilment and last-mile delivery, catering to the growing e-retail sector.
Risks
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The company relies significantly on its top 20 customers for revenue, with the top five contributing 38.47% in Fiscal 2023. Losing one or more of these customers or reduced business from them could negatively impact the company's performance, finances, and cash flow. Additionally, long-term agreements are absent with some customers.
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The company's performance is closely tied to the industries its customers are involved in, especially metals and minerals. Changes in these industries can lead to customer loss, reduced workload, or lower service prices.
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The company’s success relies on generating ample freight volumes and optimising revenue for desired profit margins. Failing to achieve these margins may harm the business, impacting financial health, operations, and cash flow.
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The company faces challenges passing on cost increases from third-party providers to customers or lowering prices for customers. It's also vulnerable to rising fuel prices. Its high fixed costs, particularly for lorry hire and ancillary transportation expenses, amounted to ₹37,795.60 million, ₹33,111.73 million, and ₹25,839.92 million in Fiscals 2023, 2022, and 2021, respectively, constituting 89.65%, 89.94%, and 89.49% of revenue during those years.
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The company faces the risk of customers terminating contracts without cause and potential financial penalties for failing to meet contract obligations. The core business involves spot transactions with various customers. The top 20 customers, contributing the most to revenue in Fiscal 2023, have contract durations ranging from one to three years.
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CJ Darcl Logistics Limited IPO FAQs
CJ Darcl Logistics Limited IPO is a fresh issue and offer for sale IPO. The exact dates and price range are yet to be announced.
The exact dates and price range are yet to be announced.
The IPO subscription window has not been announced yet.
Retail investors can apply for a minimum of one lot. However, the lot size has not been announced yet.
CJ Darcl Logistics Limited will be listed on NSE and BSE. The exact date is not announced yet.
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders
- Select the individual IPO that you had applied for and check the allotment status.
- As such, Angel One will notify you of your IPO allotment status via push notification and email.
Listing gains cannot be ascertained before the listing of the IPO on the stock exchange. The exact listing date is not announced yet.
Initially, the bank will only block the amount in your account. The money will not be debited until the stocks are allotted to you.
You must complete the payment process by logging in to your UPI handle and approving the payment mandate.
You can submit only one application using your PAN card.
