Mahindra Logistics, a leading integrated logistics firm, has announced a consolidated net loss of ₹10.75 crore for the quarter ending September 30, 2024. This marks an improvement from the loss of ₹15.93 crore reported during the same period last fiscal year. The company’s revenue from operations surged to ₹1,521.10 crore, up 11.45% from ₹1,364.76 crore in Q2 FY2024.
In a statement, Mahindra Logistics emphasised its commitment to expanding capacity and investing in the eastern and northeastern regions of India. These investments, aimed at enhancing warehouses, delivery stations, and express logistics, are expected to contribute positively to the company’s growth in the latter part of the fiscal year.
The firm reported a significant 65% year-on-year increase in revenues from its freight forwarding business, largely attributed to improved pricing in ocean freight. However, it acknowledged that ongoing geopolitical conflicts continue to exert pressure on the cross-border market, requiring careful monitoring.
Additionally, losses from the express logistics segment were reduced by 32% year-on-year, thanks to continuous cost optimisation efforts. The company also noted a 10% decrease in EBITDA losses quarter-on-quarter, reflecting effective management strategies. “Growth in volumes continues to be a key priority for the business as it progresses towards an EBITDA breakeven,” the company stated.
In the third-party logistics (3PL) sector, Mahindra Logistics reported over 21.6 million square feet of warehouse space under management, which is pivotal for its operational capabilities. The firm highlighted a robust revenue performance with a year-on-year growth rate of 11.5%. The 3PL contract logistics, cross-border, and last-mile delivery segments saw strong growth, driven by new account additions, innovative offerings, and a stable pricing environment for cross-border services.
Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics, noted the company’s proactive approach to expanding capacity and resources in contract logistics and last-mile delivery in anticipation of the upcoming festive peak. He acknowledged that while a soft demand environment and challenging operating conditions have impacted the express business, he is optimistic that the second half of the fiscal year will be stronger, buoyed by festive demand and margin improvement initiatives across all business segments.
With strategic investments and an expanding infrastructure network, Mahindra Logistics is positioning itself for future growth in an evolving logistics landscape.
