Slump in auto sector pulls down Mahindra Logistics profit by 24%
Mahindra Logistics serves over 400 corporate customers across various industries like automobile, engineering, consumer goods and e-commerce.
New Delhi: An unprecedented slowdown in the automotive sector pulled down Mahindra Logistics profit after tax to Rs 19 crore in the first fiscal quarter, 24 per cent lower from Rs 24 crore in the corresponding period of the previous financial year.
The profit before tax was also down 24 per cent from Rs 38 crore to Rs 29 crore. Revenue came down by 3 per cent from Rs 928 crore to Rs 899 crore.
Earnings before interest, tax, depreciation and amortisation (EBITDA) however moved up 8 per cent to Rs 47 crore in Q1 FY20 from Rs 43 crore in Q1 FY19. Still, the earnings per share are down by 23 per cent from Rs 3.36 to Rs 2.60.
“This quarter saw a mixed performance from the end-use sectors,” said CEO of Mahindra Logistics Pirojshaw Sarkari. “The auto industry is facing its worst slowdown in a long time. This impacted our supply chain management business.”
On the other hand, consumer, pharma and e-commerce verticals continued to grow.
“I am confident about long-term growth prospects of the organised third-party logistics industry in the country. Keeping that in mind, we have continued to invest in our digital and transformation projects,” Sarkari said in a statement on Thursday.
Mahindra Logistics serves over 400 corporate customers across various industries like automobile, engineering, consumer goods and e-commerce. The company pursues an asset-light business model, providing customised and technology-enabled solutions that span across the supply chain and people transport operations. (ANI)