H2 will be stronger driven by the festive peak and impact of margin improvement programs across all the businesses.
22 Oct 2024 | 3412 Views | By Autocar Professional Bureau
Mahindra Logistics Ltd. reported a consolidated net loss of Rs 10.7 crore during Q2 FY25 versus a net loss of Rs 15.9 crore in Q2 FY24. The integrated logistics and mobility solutions provider's revenues on the other hand, increased to Rs 1,521 crore in Q2FY25 as compared to Rs 1,365 crore ...
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Mahindra Logistics Ltd. reported a consolidated net loss of Rs 10.7 crore during Q2 FY25 versus a net loss of Rs 15.9 crore in Q2 FY24. The integrated logistics and mobility solutions provider's revenues on the other hand, increased to Rs 1,521 crore in Q2FY25 as compared to Rs 1,365 crore registering a 11.5% on year on year growth across businesses, during similar period last year.
Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics Ltd. said, “During the quarter, we saw strong revenue performance with year-on-year growth of 11.5%. 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."
He added that during the quarter, the company expanded its offerings for transportation and green logistics. They will continue 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, he further noted.
"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. 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,” he noted.
According to the company management , there was a continued focus on expanding capacity and making investments in the Eastern and North Eastern region during the Q2FY25 period with emphasis on warehouses, delivery stations and express logistics. The company expects these investments to be accretive to its growth across businesses in the later part of the year.