Mahindra Logistics Q3 results: Loss at Rs 9.03 cr, revenue jumps 14%

Mahindra Logistics reported a smaller quarterly loss on Monday, helped by steady demand in its third-party logistics business and narrower losses in its express commerce segment.

The logistics services provider reported a consolidated net loss - its eighth consecutive quarter - of Rs 9.03 crore ($1.05 million) for the three months ended December 31, compared with a loss of Rs 17.41 crore a year ago.

Revenue from operations in the third quarter rose 14 per cent to Rs 1,594 crore.

Key context

Mahindra Logistics has been battling stiff competition in India's $342 billion logistics market, and dealing with losses from the 2022 acquisition of express cargo firm Rivigo and higher spends - which grew 13 per cent on-year in the quarter.

 

The company said that third-party logistics business, its core contract, grew 14 per cent on-year on the back of automotive and consumer goods demand, while losses for the express business narrowed 26.5 per cent.

Analysts had expected the company to report strong growth in its core contract business, driven by demand during India's festival season, which coincided with the quarter.

The analysts said that while Rivigo would remain loss-making, these would narrow in the coming quarters as volumes pick up.