Logistics provider TCIL net profit plunge 67% to Rs 10 crore for Q1

Supply chain and logistics solutions provider TCIL on Wednesday posted 67 per cent plunge in its profit after tax at Rs 9.8 crore for the quarter ended June as compared to Rs 29.7 crore in Q1 FY20.

Supply chain and logistics solutions provider Transport Corporation of India Ltd (TCIL) on Wednesday posted 67 per cent plunge in its profit after tax at Rs 9.8 crore for the quarter ended June as compared to Rs 29.7 crore in Q1 FY20.

Total revenues dipped by 46 per cent to Rs 337 crore in Q1 FY21 due to Covid-19 national lockdown from Rs 620 crore in the corresponing period of previous fiscal.

"With economy more or less at a standstill baring essentials and few associated industries, it has been a very challenging quarter," said Managing Director Vineet Agarwal. "Our customers are slowly reviving their operations and adjusting to the new normal."

He said the company remained active during the quarter delivering essentials like foodgrains, farm equipment, pharmaceuticals, polymers for PPEs, sanitisers and chemicals through its multi-modal operations of using road, rail and coastal shipping networks.

Agarwal said the demand for contactless logistics services and the necessity to maintain physical distance remains the need of the hour. The demand in this year will be mostly fueled by e-commerce, consumption industries and automobile sectors.

"There will also be ongoing movement in agriculture, food processing, pharmaceuticals and the chemicals sector," he said.