Mahinda Logistics Limited recorded a consolidated net loss after tax of Rs 82 lakh for the quarter that ended in March 2023. Mahindra Group’s logistics division prepared for a challenging quarter by raising operating costs in a low-demand market. The company’s Rs 7.4 cr profit from a year ago is a dramatic contrast to the Q4 figures. According to analysts, third-party logistics companies like Mahindra Logistics Ltd. are having trouble keeping up with demand because of decreased activity in the e-commerce and consumer durable categories.
Mahindra Logistics Ltd is having trouble keeping up with demand due to decreased activity in the e-commerce
To reach Rs 12.81 billion, the firm’s total expenses reached 18%, primarily as a result of a 15.7% increase in operational costs. Over 90% of the company’s revenue comes from the supply chain management segment, which saw a dramatic fall with a loss of Rs 37 million as opposed to a profit of Rs 639.7 mn in the previous fiscal year.
Mahindra Logistics’ corporate mobility services unit experienced a loss of Rs. 9.3 million after making a profit of Rs. 10.4 million the year previously The company had projected that the demand fall would last through December 2023 and had made mention of it in their investor presentation in February. The firm’s operating revenue increased by 16.9% to Rs 12.73 billion in spite of the difficult market conditions.
The company had projected that the demand fall would last through December 2023
An integrated logistics & mobility solutions provider with a substantial national footprint is Mahindra Logistics Ltd. Supply chain solutions (SCS) are handled by the company for a variety of industry verticals, including engineering, automotive, consumer goods, telecom, commodities, and e-commerce. The company also provides integrated employee transportation solutions to businesses in the ITeS, IT, manufacturing, financial services, banking & insurance, and consulting industries.
Mahindra Logistics planned to set up a 1mn sq ft multi-client warehouse park in Pune’s Talegaon in 3 phases with the partnership of Ascendas-Firstspace. The 1st phase of 0.5mn sq ft will be operational by the end of the year. The second project in Ascendas-Firstspace’s micro-market, the 40-acre Pune Talegaon-II Logistics Park is their second project overall.