CJ Darcl Logistics Limited IPO

The company derives a significant portion of its revenue from operations from its top 10 customers. The company's top ten customers contributed to 42.96%, 46.41% and 45.93% of its revenue from operations during Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. Loss of one or more of these customers or a reduction in the amount of business the company obtain from them could have an adverse effect on the company's business, results of operations, financial condition and cash flows.

The company does not have long-term contracts with several of its customers. In order to retain some of the company's existing customers the company may also be required to offer terms to such customers which the company may place restraints on its resources.

The company is dependents on the performance of our customers operating in the metals and minerals and coal industries for its revenue from operations from the company's integrated multimodal transportation vertical, which comprised 55.61%, 55.27% and 54.65% of revenue from operations during Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. Fluctuations in the performance of such industries may result in a loss of such customers, leading to a decrease in the volume of work the company undertake or the price at which the company offers its services.

The company's success depends on its ability to generate sufficient freight volumes and optimise revenue to achieve desired profit margins and avoid losses. Any failures on its part to achieve desired operating or net profit margins could have an adverse impact on the company's business, results of operations, financial condition and cash flows.

The company may not be able to pass on any increase in costs levied by its business partners to the company's customers. Conversely, the company may not be able to pass on any decline in prices the company charges its customers to the company's business partners. The company is also exposed to risks related to an escalation in fuel prices.

The company's restated profit for the year margin was 1.80%, 1.80% and 1.61% during Fiscals 2025, 2024 and 2023. The company cannot assure that the company will be able to significantly increase its restated profit for the year margin in the future, which may have an adverse impact on the company's growth and consequently may adversely impact its business, results of operations, financial condition and cash flows.

The company's customer contracts can be terminated by its customers without cause on short notice and without compensation. Further,the company's business consists of spot business with several of its customers.The company cannot assure that its business with such customers will not be terminated abruptly or that they will be carried on in accordance with the terms favourable to the company, within the anticipated timeframe, or at all.

The company depends on its business partners and vendors/suppliers in certain aspects of the company's operations and unsatisfactory services provided by them or failures to maintain relationships with them could disrupt the company's operations. Further, the company has not entered into any long-term contracts with most of its suppliers for supply of the transport vehicles required by the company for steady functioning of its business operations.

The company's inability to manage its diversified operations and expand new businesses may have an adverse effect on the company's business, results of operations, financial condition and cash flows. Failures to improve diversification of its revenue streams exposes the company to risk of concentration of revenue from the integrated multimodal transportation vertical.

The increase in the age of its vehicles and an increase in the prices of vehicles may adversely affect the company's business and results of operations.