Snowman Logistics shares fall 3% on weak Q2 show; profit tanks 79% YoY

Snowman Logistics share price: Cold chain logistics company Snowman Logistics shares dropped up to 3.05 per cent to hit an intraday low of Rs 67.21 per share on Monday, November 11, 2024.

 

The fall in the Snowman Logistics' share price came after the company announced a weak set of September quarter of financial year 2025 (Q2FY25).

 

Snowman Logistics’ profit nosedived 79.1 per cent year-on-year (Y-o-Y) to 0.6 crore in the September quarter of financial year 2025 (Q2FY25), from Rs 2.9 crore in the September quarter of financial year 2024 (Q2FY24).

 

The company’s revenue, however, surged 15.7 per cent year-on-year to Rs 143.4 crore in Q2FY25, from Rs 124 crore in the same quarter previous fiscal year. 

 

At the operating level, earnings before interest, tax, depreciation and amortisation (Ebitda), slipped 8.2 per cent annually to Rs 22 crore as against Rs 24 crore in the same quarter a year ago. Consequently, Ebitda margin squeezed 400 basis points (bps) to 15.3 per cent in Q2FY25, from 19.3 per cent in Q2FY24. 

 

Prem Kishan Dass Gupta, chairman, Snowman Logistics Limited said, “We had a robust Q2 quarter, with double digit revenue growth fueled by strong momentum in our 5PL business.”

 

He added, “We are pleased to announce the inauguration of our Lucknow warehouse, and our expansion plans continue with more facilities in the pipeline with the goal of expanding our regional footprint and service capabilities. We have a strong demand forecast from the customers, and with ongoing focus on cost optimisation, Snowman is set to enhance profitability across our operations.” 

 

Founded in 1993 as Snowman Frozen Foods Limited, Snowman Logistics is the market leader in integrated temperature-controlled logistics and distribution services, catering to the varied cold chain logistical requirements of its clients, on a pan-India basis. W

 

With 45 strategically located warehouses, having a total pallet capacity of 1,43,285 across 20 cities. Snowman caters to its comprehensive network of reputed clients, which source and consume temperature-sensitive products in bulk amounts. Snowman caters to various services like dairy products including butter and cheese, canned food items, poultry and meat, seafood, healthcare, and pharmaceutical products.

 

Furthermore, they offer door-to-door delivery, custom milk runs, and part cargo consolidation to meet diverse customer requirements. Through a consignment agency model, the company supports retail distribution, and its value-added services cover kitting, labelling, sorting, repacking, and even fruit and vegetable processing. 

 

The market capitalisation of Snowman Logistics is Rs 1,124.84 crore, according to BSE. The company falls under the BSE SmallCap category. 

 

At 1:40 PM, Snowman Logistics shares were trading 3.04 per cent lower at Rs 67.22 per share. In comparison, BSE Sensex was trading 0.26 per cent higher at 79,691.51 levels.