BENGALURU (Reuters) – Indian freight operating company Mahindra Logistics reported a loss for a fourth straight quarter, hurt by mounting costs and a persistent decline in its express cargo business amid stiff competition.
The logistics arm of the tech-to-tractor conglomerate Mahindra Group posted a consolidated net loss after tax of 174.1 million rupees ($2.1 million) in the quarter ended Dec. 31, compared with a profit of 13.9 million rupees a year ago.
During the quarter, a 6% jump in total expenses to 14.13 billion rupees outweighed a 5% rise in revenue to 13.97 billion rupees.
“Q3 FY24 was a period of moderate demand. Continuing growth in engineering and FMCG segments were offset by slow growth in other markets,” CEO and Managing Director Rampraveen Swaminathan said in a statement.
The company’s profitability has been hit by intensive competition from international and domestic players in the previous quarters as well.
Persistent losses in the express cargo business Rivigo, which was acquired in 2022, also weighed on Mahindra Logistics’ profit.
Festive season volume growth was offset by lower volumes due to increased shutdowns in e-commerce and some automotive original equipment manufacturers, CEO Swaminathan said.
Mahindra Logistics incurred a 99.4-million-rupees loss from its mainstay segment of supply chain management during the reported quarter.
The company competes with firms such as Delhivery, which has yet to report earnings for the December quarter, while peers like Blue Dart Express have reported a marginal increase in quarterly profit after four quarters of losses.
Shares of Mahindra Logistics closed 1% higher ahead of results.
($1 = 83.1050 Indian rupees)
(Reporting by Manvi Pant and Hritam Mukherjee in Bengaluru; Editing by Eileen Soreng and Mrigank Dhaniwala)
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