Mahindra Logistics shares drop as net profit crashes 97% YoY
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Mahindra Logistics dropped two percent in the morning trade on April 25, a day after the company reported a 97 percent year-on-year drop in consolidated net profit at Rs 0.2 crore in the March quarter.
The company’s operating margin came in at 5.01 percent against 4.73 percent in the year-ago quarter. Mahindra Logistics’ revenue rose 17 percent YoY to Rs 1,272.51 crore in the March quarter of the financial year 2022-23, the company said on April 24.
According to Motilal Oswal Financial Services, diversified revenue portfolio across segments offset the muted growth in e-commerce for the quarter.
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“Despite slowdown in some end markets, our core 3PL business demonstrated positive traction on order intake and margin expansion, driven by our diversified market segments.
“Our freight forwarding business was impacted by freight price corrections but demonstrated volume growth across all offerings,” said Rampraveen Swaminathan, Managing Director and CEO, Mahindra Logistics.
Swaminathan said he remained optimistic about demand uptick in coming quarters and the company would continue to focus on consolidating and leveraging the portfolio.
Mahindra Logistics is an integrated third-party logistics service provider, specialising in supply chain management and enterprise mobility.
At 9.21 am, the stock was trading 1.6 percent lower at Rs 368.75 on the BSE.
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