Snowman Logistics slides after reverse turnaround in Q2

Snowman Logistics lost 1.86% to Rs 57.90 at 10:32 IST on BSE after the company reported net loss of Rs 8.32 crore in Q2 September 2016 compared with net profit of Rs 2.87 crore in Q2 September 2015.

The result was announced after market hours yesterday, 9 November 2016.

Meanwhile, the S&P BSE Sensex was up 382.88 points or 1.4% at 27,635.41.

On BSE, so far 1.44 lakh shares were traded in the counter as against average daily volume of 2.61 lakh shares in the past two weeks. The stock hit a high of Rs 58.95 and a low of Rs 57 so far during the day. The stock had hit a record low of Rs 46.20 on 29 February 2016. The stock had hit a 52-week high of Rs 97.50 on 27 November 2015. The stock had underperformed the market over the past one month till 9 November 2016, sliding 7.6% compared with 2.88% fall in the Sensex. The scrip had also underperformed the market in past one quarter, declining 18.62% as against Sensex's 2.96% fall.

The small-cap company has equity capital of Rs 167.09 crore. Face value per share is Rs 10.

Snowman Logistics' net sales declined 15.06% to Rs 47.40 crore in Q2 September 2016 over Q2 September 2015.

A significant reason for the losses reported during Q2 September 2016 was that the company decided to make a one time provision of Rs 8.79 crore towards asset refurbishment both on old transport fleet and some old warehouses, as well as customer claims due to stock losses and damages at some of its warehouses. Snowman Logistics said it has taken appropriate corrective action, in terms of improvements in the systems and process to prevent any recurrence of such incidents.

Snowman Logistics is an integrated temperature controlled logistics services provider with an ability to service customers on a pan India basis.

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