Mahindra Logistics Ltd reported 73 per cent growth year-on-year in standalone Profit After Tax at Rupees 19 crore in the second quarter of FY24.
Mahindra Logistics Ltd said in a statement that the company had posted a standalone PAT (Profit After Tax) of Rs 11 crore in the second quarter of FY23.
The company said that focus on margin improvement resulted in earnings growth.
Rampraveen Swaminathan, Managing Director and CEO at Mahindra Logistics Ltd said “Overall new order intake remained robust across our business segments and we continued to consolidate our business operations in Q2, FY2024. Our organic growth in third party logistics remained positive driven by our end market diversification programs, despite headwinds in the Ecommerce segment.”
The company said that third-party logistic supply chain services growing 4 per cent year-on-year because of automotive and engineering, consumer, and durables.
The volume from E-commerce was low during this quarter. But, it is going to be high in the third quarter because of the festive season.
The mobility of the business will see an uptick because of the growth in existing customers and the acquisition of new clients.
Mahindra Logistics Ltd said, “Our focus is to provide reliable tech-enabled freight forwarding services and deliver tailor-made solutions to customers to enhance their supply chain efficiency.”
The company is focused on expanding network coverage and service levels however, lower volumes and higher transport costs affected the improvement plan of this quarter.
Volumes in the express business of the company increased by 4 per cent this quarter.
I am hoping that they will have a healthy 3rd quarter because of the festive season and the increased customer spending on e-commerce.
Currently, Mahindra Logistics Ltd. closed at 368.95 in yesterday’s session, down 3.21 per cent from the previous close.