| Experienced management and long track record of operations
YCH is a part of the Singapore-based ‘YCH Group’, engaged in supply chain management. Established in 2002 as a subsidiary of YCH Group Pte Ltd (Singapore) [YCH Singapore], YCH Logistics India Private Limited is engaged in providing comprehensive supply chain solutions, including warehousing, transportation, and other value-added services. Headquartered in Chennai, Tamil Nadu, we operate across India through strategically located warehouses in major cities. YCH Singapore, established in 1955, is the flagship and holding company of the YCH Group and provides comprehensive supply chain and logistics solutions to global clients across hi-tech/electronics, chemicals, healthcare, and consumer goods industries. Leveraging the extensive network of group companies across the Asia-Pacific region—including Singapore, Malaysia, Thailand, Indonesia, China, Taiwan, Hong Kong, the Philippines, Australia, India, Vietnam, and Korea—YCH is able to offer services across the value chain and provide a reliable international logistics network, with group entities acting as correspondent agents in destination countries. Further, YCH Singapore supports the Indian operations through management oversight, IT services, and access to advanced warehousing and automation technologies, enhancing operational efficiency and service quality.
Steady scale of operations
The company’s revenue increased to Rs. 179.06 crore in FY2025 from Rs. 159.56 crore in FY2024, driven primarily by higher warehouse storage revenue and transport charges. The company has a diversified business profile as reflected from its three business divisions, namely Warehouse storage revenue, Transport charges and Destination handling charges with 54.50%, 37.54% and 5.10% contribution to revenue respectively. The growth was supported by increased business from key clients such as Dell and Lenovo, resulting in concurrent growth in both warehousing and transportation income. However, the company’s profitability moderated during the year, with the operating profit margin declining to 23.80% in FY2025 from 25.51% in FY2024. This moderation was primarily due to an increase in manpower costs and selective margin rationalisation undertaken to onboard new customers, wherein the company offered competitive pricing on certain services. The net profitability margin stood at to 13.68 percent in FY2025, compared to 14.66 percent in FY2024. NCA remains adequate at Rs.34.54 cr. in FY2025 as compared to Rs.33.71cr. in FY2024. Acuité believes that the profitability margin will remain at similar but healthy levels over the medium term.
Healthy financial risk profile
The company’s financial risk profile is marked by healthy net worth, comfortable gearing and strong debt protection metrics. The tangible net worth of the company stood at Rs.125.07 Cr. as on March 31, 2025, as compared to Rs. 120.37 Cr. as on March 31, 2024, due to accretion to reserves. The gearing of the company stood modest at 0.16 times as on 31 March 31, 2025. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 0.40 times as on March 31, 2025 as compared to 0.44 times as on March 31, 2024. The debt protection metrices of the company remain comfortable marked by Interest coverage ratio (ICR) of 20.63 times and debt service coverage ratio (DSCR) of 5.72 times for FY2025. The net cash accruals to total debt (NCA/TD) stood healthy at 1.71 times in FY2025. Acuité believes that the financial risk profile of the company will remain healthy over the near to medium term, supported by low leverage, strong debt protection metrics and adequate liquidity.
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| Working capital intensive nature of operation
The working capital management of the company is intensive marked by Gross Current Assets (GCA) of 184 days for FY2025 as compared to 182 days for FY2024. The company’s GCA days remain elevated primarily due to higher debtor days and the presence of other current assets, which largely comprise loans and advances of Rs. 18 crore extended to its sister concern, Y3 Technologies, carrying an interest rate of 9.5%. The debtor days stood at 99 days in FY2025. Days payable outstanding stood at 86 days in FY2025 against 137 days in FY2024. Acuité believes that the working capital operations of the company will remain at same level, will remain a key monitorable.
Exposure of revenue growth and margins to macro-economic and regulatory factors
YCH’s revenue growth and profitability remain susceptible to broader macro-economic conditions, competitive intensity and limited pricing flexibility inherent in the logistics sector. The company’s performance is also exposed to changes in government policies related to export-import trade, as fluctuations in Exim volumes have a direct bearing on overall revenues. While the long-term outlook for containerised cargo remains favourable, near-term growth could be impacted by cyclical slowdowns in trade activity. Further, occupancy levels across both existing and upcoming warehouse facilities will remain a key monitorable, given the company’s ongoing and planned capacity additions.
Customer Concentration Risk
The company is exposed to customer concentration risk, with a significant portion of its revenues and receivables derived from a limited number of large customers. Major clients such as Dell International Services India Private Limited and Lenovo India Private Limited together account for around 70% of the company’s revenues and outstanding receivables, resulting in elevated dependence on these customers. Although the company benefits from medium-term contractual arrangements of approximately 2–3 years with its key clients, any adverse developments such as non-renewal of contracts, pricing pressure, or reduction in business volumes could materially impact its business and financial profile.The company’s established operating model and integrated network within the VMI framework support stable, long-term customer relationships, which offer some mitigation to the associated concentration risks.
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