India's Mahindra Logistics posts a loss for fourth straight quarter

Mahindra Logistics

29/01/2024 13:26

BENGALURU, Jan 29 (Reuters) - Indian freight operating
company Mahindra Logistics  MALO.NS  reported a loss for a
fourth straight quarter, hurt by mounting costs and a persistent
decline in its express cargo business amid stiff competition.
    The logistics arm of the tech-to-tractor conglomerate
Mahindra Group posted a consolidated net loss after tax of 174.1
million rupees ($2.1 million) in the quarter ended Dec. 31,
compared with a profit of 13.9 million rupees a year ago. 
    During the quarter, a 6% jump in total expenses to 14.13
billion rupees outweighed a 5% rise in revenue to 13.97 billion
rupees. 
     "Q3 FY24 was a period of moderate demand. Continuing growth
in engineering and FMCG segments were offset by slow growth in
other markets," CEO and Managing Director Rampraveen Swaminathan
said in a statement. 
    The company's profitability has been hit by intensive
competition from international and domestic players in the
previous quarters as well. 
    Persistent losses in the express cargo business Rivigo,
which was acquired in 2022, also weighed on Mahindra Logistics'
profit. 
    Festive season volume growth was offset by lower volumes due
to increased shutdowns in e-commerce and some automotive
original equipment manufacturers, CEO Swaminathan said. 
    Mahindra Logistics incurred a 99.4-million-rupees loss from
its mainstay segment of supply chain management during the
reported quarter. 
    The company competes with firms such as Delhivery  DELH.NS ,
which has yet to report earnings for the December quarter, while
peers like Blue Dart Express  BLDT.NS  have reported a marginal
increase in quarterly profit after four quarters of losses. 
    Shares of Mahindra Logistics closed 1% higher ahead of
results. 

($1 = 83.1050 Indian rupees)

 (Reporting by Manvi Pant and Hritam Mukherjee in Bengaluru;
Editing by Eileen Soreng and Mrigank Dhaniwala)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))