1. SUBMITTED BY: SATTWIK GHOSH
ROLL NO:P15FC098
SECTION:PGDM(CORE FINANCE)
SESSION:2015-2017
2016
SECTOR: LOGISTICS
AEGIS LOGISTICS
4/24/2016
LOGISTICS SECTOR REPORT

2. 2
TABLE OF CONTENTS
SECTOR BACKGROUND...................................................................................................................................3
SEGMENT DIVISION.....................................................................................................................................4
SWOT ANALYSIS OF AEGIS LOGISTICS...........................................................................................................5
PORTER’S 5 FORCES MODEL FOR LOGISTICS INDUSTRY.....................................................................................6
BUSINESS VERTICAL MIX..........................................................................................................................7
MARKET SHARE OF E COMMERCE LOGISTICS INDUSTRIES..........................................................................7
PEER COMPARISON ........................................................................................................................................8
PRODUCTS & SERVICES OFFERED BY THE COMPANY: ....................................................................................9
LATEST NEWS/CORPORATE ANNOUNCEMENTS:...........................................................................................9
COMPARATIVE P/L STATEMENT.................................................................................................................10
DEBT EQUITY RATIO OF THE COMPANY & ITS IMPLICATION ........................................................................11
The Debt amount of the company was about Rs 6047.89 & Equity was about Rs 40431.95. So according to the
formula Debt Equity Ratio is 0.15 i.e. [Debt/Equity (Long Term)] ...............................................................11
RATIO ANALYSIS....................................................................................................................................11
INTERPRETATION:.................................................................................................................................12
 Current ratio of the company is about 1.15. But the ideal Ratio is 2:1. If the Ratio is Higher, This means
that the company is a leveraged company. It is also an indication of current assets to pay off current
liabilities...............................................................................................................................................12
WORKING CAPITAL ANALYSIS.......................................................................................................14

3. 3
SECTOR BACKGROUND
Indian logistics sector is estimated to have grown at a healthy 15% in the last five years. The
contribution of road transport to GDP is 4.5-5% & considering India’s GDP. Road Transportation
accounts for 70% of the contribution made by the transport sector to GDP. Apart from the transportation
sector other segments of the logistics sector have advanced over the last five decades. The logistics
sector acts as a backbone for some of the major key sectors like retail, automobile, pharmaceuticals etc
CHART REPRESENTATION:

4. 4
SEGMENT DIVISION
3.40%
3.10%
6.10%
3.40%
2.50%
11.70%
3.50%
31.60%
Sector wise income distribution
Software
Power
Iron & steel
Heavy engineering capital
goods
Cement
Banks
57%
43%
SEGMENT WISE MIX
SEGMENT DIVISION
GAS DIVISION
LIQUID DIVISION

5. 5
SWOTANALYSIS OF AEGIS LOGISTICS
STRENGTH:
 Robust Distribution network
 Superior performance & innovative ideas
 MTO business showed growth of 13%
 3rd Rank in the industry in India
 Scale of operation around 62 countries & over 4000 ports.
 WEAKNESS:
Strong Dependency on Weak infrastructure.
 Taxes policies in India
 Lack of adaption of new technology compared to other foreign countries.
OPPORTUNITIES:
 Diversified new product portfolio to enter
 Utilization of the fund for further production
THREATS:
 Emergence of competitors like Blue dart, DHT, TNT, UPS etc
 Excessive Govt rules & regulations
 Poor infrastructure facilities like roads, port, information technology etc
 Restriction on Import & Export procedure.

6. 6
PORTER’S 5 FORCES MODEL FOR LOGISTICS INDUSTRY
BARGAINING POWER OF SUPPLIERS: A few large users of industries & companies are able to
significantly squeeze the transporter which will have a negative impact on the industry.
Low cost of switching suppliers has a long term positive impact on the industry it is a difficult
qualitative factor to overcome so the company will have to spend a lot of time regarding this issue.
INTENSITY OF EXISTING RIVALRY:
 Large industries allow multiple firms and produces to prosper without having to steal market
share from each other. This has a positive impact on the company. It will also lead to an
increase in profits of the company.
 Very fewer firms are competition for the same customers & resources which is a positive point
for the transport & logistics sector. It is also an easily defendable qualitative factor.
THREAT OF SUBSTITUTES:
 The Industry is highly customer oriented with multiple vendor options which are also entering in
the market.
 A limited number of substitutes mean that customers cannot easily find other products or
services that fulfill their needs.
THREAT OF NEW COMPETITORS:
 When new competitors enter the market, they will have a higher cost of production, because they
have smaller economies of scale. Economies of scale positively affect transport & logistics.
 If strong brands are critical to compete, then new competitors will have to improve their brand
value in order to effectively compete.
 Customers are loyal to existing brands which is a qualitative factor to defend. It has a long term
negative impact on the company.
 High capital requirements mean a company must spend a lot of money in order to compete in the
market. High capital requirements positively affect transport & logistics.

7. 7
BUSINESS VERTICAL MIX
MARKET SHARE OF E COMMERCE LOGISTICS INDUSTRIES
75%
14%
11%
TERMINALLING
LPGSOURCING
LPGRETAILING AND
DISTRIBUTION
35%
34%
5%
2%
24%
Fed-ex
Blue Dart
Gati
DotZot
Others

8. 8
PEER COMPARISON

9. 9
COMPANYINTRODUCTION
Aegis Logistics Limited is India’s leading oil, gas, and chemical logistics company. It was founded by
Mr. Kapoorchand Chandaria. Aegis Logistics Ltd. was incorporated in 1956 and its shares have been
listed on the Bombay Stock Exchange since 1978. Its shares also trade on the National Stock Exchange.
The Managing Director of the company is Mr. Anish Chandaria. The company’s products are mainly
popular in Maharashtra & Gujarat. Aegis Logistics also imports, markets, and distributes bulk propane
and liquid petroleum gas to various industrial customers in steel, ceramics, glass, and pharmaceutical
sectors.
PRODUCTS & SERVICES OFFERED BY THE COMPANY:
The services provided by the company include sourcing of product, storage and port operations,
arranging road and pipeline movement, shipping, and integrated supply chain management. Aegis
Logistics also imports, markets, and distributes bulk propane and liquid petroleum gas to various
industrial customers in steel, ceramics, glass, and pharmaceutical sectors. Aegis Logistics Limited is
India’s leading oil, gas, and chemical logistics company.
LATEST NEWS/CORPORATE ANNOUNCEMENTS:
 Aegis Logistics Ltd has informed BSE that a meeting of the Board of Directors of the Company
will be held on March 10, 2016, to consider and declare 3rd Interim Dividend during the
Financial Year 2015-16.
 The company is also going to set up 25000 MT of LPG storage terminals at Haldia Port.
 The revenue declined to Rs. 861.80 millions for the quarter ended December 2015 as compared
to Rs. 865.70 million during the corresponding quarter last year.Net Profit of the company move
down -55.79% to Rs. 157.2 millions from Rs. 355.6 millions in the same quarter last year.
Operating profit Margin for the quarter ended December 2015 rosed to 25.28% as compared to
21.42% of corresponding quarter ended December 2014.

10. 10
COMPARATIVE P/LSTATEMENT
SOURCE: ACE ANALYSER(COMPANYP/LCONSOLIDATEDDATA)

11. 11
DEBT EQUITY RATIO OF THE COMPANY & ITS IMPLICATION
The Debt amount of the company was about Rs 6047.89 & Equity was about Rs 40431.95. So according
to the formula Debt Equity Ratio is 0.15 i.e. [Debt/Equity (Long Term)]
IMPLICATION: Since the debt equity ratio of the company is about 0.15, so we can say that It is a
debt free company. If Debt Equity ratio is higher, then it can be said that the company is taking more
risk i.e. outsiders are dominating the capital structure of the business. In good times, when the
business is doing well, debt fund increases the earnings of the business that is of the equity
shareholders.
RATIOANALYSIS
SOURCE: ACE ANALYSER

12. 12
INTERPRETATION:
 Current ratio of the company is about 1.15. But the ideal Ratio is 2:1. If the Ratio
is Higher, This means that the company is a leveraged company. It is also an
indication of current assets to pay off current liabilities.
 Quick Ratio of the company is 1. The ideal ratio is 1:1. It is an indication of
availability of quick assets to honor its immediate claims. Higher the Ratio better is
the coverage.
 Debt to Equity ratio: The ratio is useful for deciding upon the capital structure. The
standard Ratio is 2:1. The ratio of the company is about 0.35:1. This shows that the
debt percentage is 35% out of the equity which means it is a low risk company.
 Capital Gearing ratio & proprietary Ratio of the company is about 0.35:1. Capital
gearing ratio is contemporary to financial leverage. Proprietary Ratio indicates
proprietor’s stake in the company. The proprietary ratio is 0.75:1. This means the
internal capital position of the company is good i.e. the owners are dominating the
capital structure of the business.
 Return on assets of the company is about 0.04 & the return on equity is 0.058. It
measures the profitability of the equity funds in the business. This ratio also
reveals how profitability of the owners fund have been utilized by the fund.
 Interest coverage ratio is 0.08. This ratio indicates the adequacy of profit to cover
interest. Here the ratio is very low which shows that the security of the lender is
not well.

13. 13

14. 14
WORKING CAPITAL ANALYSIS
SOURCE: COMPANYANNUALREPORT
CALCULATION OF WORKING CAPITAL CYCLE:
TOTAL DEBTORS+ STOCK-CREDITORS)