New Delhi: In the June 2024 quarter, Mahindra Logistics Ltd (MLL) reported a 55 per cent decline in standalone profit to Rs 10.15 crore, attributed to increased startup costs, manpower expenses, and warehouse leasing costs.
According to a regulatory filing, the logistics branch of the Mahindra Group recorded a standalone PAT (profit after tax) of Rs 22.90 crore in the initial quarter of FY24. During the quarter being assessed, the income increased by 10 percent to Rs 1,156.66 crore from Rs 1,050.92 crore in the previous year.
The company stated that contract logistics had a 9 pc revenue growth compared to the previous year in Q1 FY25, whereas the freight forwarding business had a 12 pc increase from the previous quarter, due to an increase in demand for inbound ocean cargo.
The company reported a 2 pc increase in revenue for its express business compared to the previous year, and a 16 pc decrease in PAT losses due to ongoing cost optimization efforts. MLL mentioned that both mobility and last-mile delivery have been steadily improving. They also stated that the warehouse space being managed in the third-party logistics (3PL) industry is now exceeding 20 million square feet.
In spite of the weak demand, the last quarter experienced strong order placements in 3PL and cross border operations. Rampraveen Swaminathan, the Managing Director and CEO of Mahindra Logistics Ltd, mentioned that the cross-border business experienced positive momentum due to an increase in the need for incoming sea freight.
He stated that the mobility, last mile delivery, and auto outbound logistics business 2x2 showed ongoing progress and achieved a strong performance. Extended startup costs, along with increased manpower and warehousing lease expenses, influenced earnings. The Express division experienced decreased volumes, but this was balanced out by our efforts to optimize costs.
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