Mahindra Logistics Ltd. (MLL) reported a 55% drop in standalone profit, falling to Rs 10.15 crore for the June 2024 quarter, compared to Rs 22.90 crore in the same period last year. The decline was attributed to higher startup costs, increased manpower expenses, and warehouse leasing costs. Despite this, the company saw a 10% increase in revenue, reaching Rs 1,156.66 crore, up from Rs 1,050.92 crore year-on-year.
The company’s contract logistics segment grew by 9% year-on-year, and its freight forwarding business saw a 12% increase quarter-on-quarter, driven by higher demand for inbound ocean cargo. MLL’s express business experienced a 2% year-on-year revenue increase but faced a 16% reduction in profit after tax (PAT) losses due to cost optimisation efforts.
The mobility and last-mile delivery segments also showed improvement, with the third-party logistics (3PL) business managing over 20 million square feet of warehouse space. MLL’s cross-border business saw positive traction, particularly in inbound ocean cargo.
Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics Ltd., commented on the results, noting that while earnings were impacted by startup costs and increased operational expenses, there was healthy order booking in 3PL and cross-border businesses. Swaminathan expects significant improvements in overall operating performance as the year progresses.
