Latest News | Mahindra Logistics Q2 Profit Falls 54 Pc to Rs 8.5 Cr

Mumbai, Oct 21 (PTI) Mahindra Logistics Ltd on Monday reported 54 per cent decline in standalone Profit After Tax (PAT) at Rs 8.5 crore for September quarter FY25.

The company had posted a PAT of Rs 18.6 crore in the second quarter of FY24, a statement said.

Also Read | What Is Digital Gold? How To Buy It Online in India? All About Investing in Digital Gold Ahead of Diwali and Dhanteras 2024.

Revenue during the quarter under review, however, increased 9 per cent to Rs 1,236 crore from Rs 1,136 crore in July-September FY24.

Overall revenues during Q2 FY25 demonstrated a strong growth of 11.5 per cent on year-on-year basis.

Also Read | Diwali Muhurat Trading 2024 Date, Time: When Is Muhurat Trading on NSE and BSE? What Is the Significance of Special Trading Session of Deepawali? Know Everything Here.

The company said it continues the focus on expanding capacity and making investments in the eastern and Northeastern region and also on warehouses, delivery stations and express logistics.

It expects these investments to be accretive to the growth across businesses in the later part of the year.

"During the quarter, we saw strong revenue performance with year-on-year growth of 11.5 per cent. Our 3PL contract logistics, cross border and last mile delivery segments registered strong growth driven by account additions, new offerings and a stable cross border pricing environment," said Rampraveen Swaminathan, Managing Director and CEO at Mahindra Logistics Ltd.

During the quarter, the company expanded offerings for transportation and green logistics and continues to expand the overall network, with new infrastructure expansions in the east to support warehousing, last mile and express segments, which should help drive future growth.

"With the upcoming peak in Q3, we have expanded capacity and resources in contract logistics and last mile delivery, having a seasonal impact on operating earnings in the quarter," he said.

"A soft demand environment and operating conditions impacted the express business. We believe H2 will be stronger driven by the festive peak and impact of margin improvement programs across all the businesses," Swaminathan said.

Revenues for freight forwarding business grew 65 per cent on YoY basis on the back of improved pricing in ocean freight, Mahindra Logistics said.

It also said the ongoing geopolitical conflicts continue to impact the cross-border market and remain a key monitorable.

Losses for the express business were reduced by 32 per cent on YoY basis, driven by continuous cost optimization.

Growth in volumes continues to be a key priority for the business as it progresses towards an EBITDA breakeven, it said and added that the third party logistics business is proactively geared up to build capacity to meet the increased demand during the festive peak in Q3 FY25.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)