Mahindra Logistics' profit after tax declines 72% to Rs 5 cr in Dec quarter

Mahindra Logistics Ltd (MLL) reported a sharp 72 per cent year-on-year decline in profit after tax (PAT) to Rs 5 crore for the December 2021 quarter.

The company had posted a PAT of Rs 18 crore in the same quarter a year ago, MLL said in a statement.

The revenue, however, grew seven per cent to Rs 1,118 crore during October-December 2021 as compared with Rs 1,047 crore in the year-ago period, it said.

Revenue from warehousing services and solutions in the quarter grew 35 per cent in the same period last year underlining the focus on the solutions-led approach to customer's requirements, MLL said.

The company added that growth in the supply chain segment during the quarter stood at six per cent y-o-y, contributed by increased business volumes across all key end markets except auto.

Mahindra Logistics Managing Director and CEO Rampraveen Swaminathan said, "The quarter gone by was a challenging one. Demand from the auto sector continued to be impacted due to semi-conductor supplies and the festive season also saw moderate growth."

Swaminathan added that the company continued to deliver strong revenue performance, especially across consumer, pharma and international freight forwarding.

Ebitda (earnings before income, taxes, depreciation and amortisation) also squeezed nine per cent to Rs 50 crore during Q3FY22 as compared to Rs 55 crore in the December 2020 quarter, the company said.

"Our margins saw pressure due to seasonal manpower costs, lower than expected demand and start-up costs for new projects.

"The focus continues to be on optimizing operating costs. We remain focused on delivering technology-driven, integrated solutions for enterprise customers," added Swaminathan.

The company said its electric last-mile delivery solution 'EDel' completed a year and has covered four-million km during this period, driving the sustainability agenda for MLL and its customers equally.

"We continue to see a strong demand environment with an opportunity for continuing electric fleet deployment," the company said.

It added that its enterprise mobility segment delivered 16 per cent y-o-y growth despite the continuing softness in volumes due to the extended work from home situation.