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Mahindra Logistics Net Profit Rises 20 % To Rs 12 Cr In Mar Qtr

The growth in overall quarterly revenue was achieved despite continuing softness in the enterprise mobility segment, due to COVID-related volume reductions

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Mahindra Logistics on Thursday reported a 20 per cent growth in net profit to Rs 12 crore in the March 2021 quarter, mainly driven by e-commerce, consumer, automotive and freight forwarding businesses.

The company had posted a net profit of Rs 10 crore in Q4 FY20, according to a release.

The net sales also rose nearly 20 per cent to Rs 974 crore in the quarter as compared to Rs 812 crore in the March quarter of FY20.

The growth in overall quarterly revenue was achieved despite continuing softness in the enterprise mobility segment, due to COVID-related volume reductions, Mahindra Logistics said.

The supply chain segment during the quarter increased 28 per cent year-on-year, sustained by higher business volume across end-markets, while the revenue from warehousing services and solutions was up 12 per cent with a continued focus on a solutions-led approach to customer's requirements, the company said.

For 2020-21, profit after tax (PAT) declined a whopping 47 per cent to Rs 29 crore from Rs 55 crore recorded in FY20.

Revenue fell six per cent to Rs 3,264 crores as compared to Rs 3,471 crores in the financial year ended March 2020.

“We delivered continuing growth in Q4, FY20-21, driven by market recovery and execution of our strategy of providing customised, integrated solutions to our customers. Our revenue growth was driven by e-commerce, consumer, automotive and freight forwarding businesses,” said Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics.

Strong momentum in the supply chain has offset the continuing softness in the enterprise mobility segment, which remains impacted by the COVID-19 pandemic, he said.

“We continue to expand and grow our service lines. During the quarter, 'Edel', our 100 per cent electric-powered vehicles solution, commenced operations in the last mile delivery services.

“We are again witnessing a significant increase in the spread of the Covid-19 pandemic. In this challenging environment, we are focused on the safety and health of our employees and partners. We are also partnering with local authorities and supporting COVID-19 relief activities across multiple regions,” said Swaminathan. 

(PTI)