Mahindra Logistics net profit falls 59 pc to Rs 10 crore
The logistics firm had reported a net profit of Rs 24 crore in the corresponding quarter a year ago, it said in a statement.
The company said its revenue fell 20 per cent to Rs 812 crore as against Rs 1,015 crore in the corresponding quarter a year ago.
Rampraveen Swaminathan, managing director and CEO of Mahindra Logistics, said: "The fourth quarter of 2019-20 was a challenging period, with continued softness in the auto sector and the onset of the COVID-19 pandemic. The nationwide shutdown of industries, facilities and movement of goods has had an impact on logistics, transportation and mobility."
He added that the company's priority has been the safety of customers, employees and vendors, and strict adherence to government norms. "We have initiated several practices including work from home, social distancing, sanitisation and digital communication. We have also launched programmes to support our ecosystem through measures such as driver helpline, emergency cab services and other relief programmes."
He also said that during the quarter, the firm continued to execute its strategy and delivered strong growth in e-commerce, consumer and freight forwarding.
"Our non-M&M warehousing and value-added business grew by 24 per cent during the year. We remain focused on delivering value through customized solutions, operational excellence and enhanced digitisation," Swaminathan said.
During the last financial year 2019-20, the company reported a net profit of Rs 55 crore, down 37 per cent as compared with Rs 86 crore a year ago.
The company said its board of directors has recommended a dividend of 15 per cent (Rs 1.50 per share).
It said its warehousing and value-added services revenue continued to grow strongly with non-Mahindra warehousing and value-added services segment recording year-on-year growth of 24 per cent in full financial year 2019-20 and 10 per cent growth in the fourth quarter of 2019-20.
During the quarter, e-commerce, freight forwarding, consumer and pharma verticals sustained the growth trajectory, driven by new business acquisitions in existing and new customers in these verticals, it said. NAM HRS