Mahindra Logistics Q1 Results: Profit Falls 55% To Rs 22.90 Crore

Mahindra Logistics Ltd. on Monday reported a 55% fall in net profit on a year-on-year basis for the first quarter of fiscal 2025, due to higher startup costs and expenses on manpower and warehouse leasing.

The logistics arm of the Mahindra Group reported a standalone profit of Rs 22.90 crore in the quarter-ended June, according to its stock exchange notification. That compares with the Rs 2.96-crore analysts' estimate tracked by Bloomberg.

Revenue increased by 10% year-on-year for the three months ended June, reaching Rs 1,156 crore, in comparison to Rs 1,050.92 crore in the same quarter in the previous fiscal. Analysts had projected revenue of Rs 1,465.3 crore.

Contract logistics experienced a 9% revenue growth year-on-year in the first quarter of financial year 2025, while freight forwarding business saw a 12% increase quarter-on-quarter, driven by growth in demand for in-bound ocean cargo, the company said.

The company said its express business saw an improvement of 2% year-on-year in terms of revenue and a 16% decline in loss driven by continuous cost optimisation.

At the same time, mobility and last-mile delivery continued their improvement journey, it said, adding that warehouse space under management in the third-party logistic business stood at over 20 million square feet.

"Despite the muted demand environment, the quarter gone by saw healthy order booking in 3PL and cross-border business. The cross-border business saw good traction, driven by growth in demand for inbound ocean cargo," said Rampraveen Swaminathan, managing director and CEO at Mahindra Logistics.

The mobility, last-mile delivery and auto outbound logistics business 2x2, continued their improvement journey and delivered a healthy performance, he said.

"Earnings were impacted due to extended startup costs, coupled with higher manpower and warehousing lease costs. The Express business was impacted by lower volume, which was offset by our cost optimisation initiatives. We expect to see strong improvement in the overall operating performance in the later part of the year," Swaminathan said.

Shares of the company closed 2.02% higher at Rs 523.40 per share, as compared to a 0.13% decline in the BSE Sensex.

(With Inputs From PTI)