India's Mahindra Logistics reports sharp fall in Q3 profit as costs surge

Mahindra Logistics

01/02/2023 13:46

BENGALURU, Feb 1 (Reuters) - Indian logistics solutions provider
Mahindra Logistics  MALO.NS  reported a 21.5% fall in its third-quarter profit
on Wednesday as costs ballooned. 
    In recent months, delivery service providers have seen their profits dwindle
due to a rise in fuel prices and wages, while surging inflation has also led to
fewer delivery orders.
    "The consumer and e-commerce businesses did witness a softer demand
environment," Mahindra Logistics Managing Director and CEO Rampraveen
Swaminathan said in a statement.
    The company's consolidated net profit after tax fell to 13.9 million Indian
rupees ($169,762.70) for the three months ended Dec. 31, compared with 17.7
million rupees a year earlier. Its overall expenses rose 17.3% to 13.32 billion
rupees, mainly due to higher operational costs. 
    Mahindra Logistics also flagged weakness in its freight forwarding service
due to a sharp drop in freight rates.
    Still, revenue from operations rose 17% to 13.3 billion rupees.        
($1 = 81.8790 Indian rupees)
 (Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Shinjini Ganguli)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))