2024-01-29 13:34:00
Indian freight forwarding company Mahindra Logistics posted a loss for the fourth consecutive quarter, hurt by rising costs and a persistent decline in its express freight business amid stiff competition.
The logistics arm of technology conglomerate Mahindra Group posted a consolidated net loss after tax of 174.1 million rupees ($2.1 million) in the quarter ended December 31, compared with a profit of 13.9 million rupees one year ago.
During the quarter, the 6% increase in total expenditure to Rs 14.13 billion was higher than the 5% increase in revenue to Rs 13.97 billion.
“The third quarter of FY24 was marked by subdued demand. Continued growth in the engineering and FMCG segments was offset by slow growth in other markets,” Rampraveen said Swaminathan, CEO and Managing Director, in a statement.
The company’s profitability was affected by intensive competition from international and domestic players in the previous quarters.
Continued losses at express freight business Rivigo, acquired in 2022, also weighed on Mahindra Logistics’ profits.
Growth in volumes during the festive season was offset by a decline in volumes due to increased lockdowns in e-commerce and some auto OEMs, said M. Swaminathan, CEO, Mahindra Logistics.
Mahindra Logistics incurred a loss of Rs 99.4 crore in its core supply chain management segment during the reported quarter.
The company competes with the likes of Delhivery, which is yet to release its December quarter results, while its peers like Blue Dart Express reported a marginal increase in quarterly profit after four quarters of losses.
Shares of Mahindra Logistics closed 1% higher ahead of the results release. ($1 = 83.1050 Indian rupees) (Reporting by Manvi Pant and Hritam Mukherjee in Bengaluru; Editing by Eileen Soreng and Mrigank Dhaniwala)
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