BENGALURU (Reuters) – Indian logistics solutions provider Mahindra Logistics reported a 21.5% fall in its third-quarter profit on Wednesday as costs ballooned.
In recent months, delivery service providers have seen their profits dwindle due to a rise in fuel prices and wages, while surging inflation has also led to fewer delivery orders.
“The consumer and e-commerce businesses did witness a softer demand environment,” Mahindra Logistics Managing Director and CEO Rampraveen Swaminathan said in a statement.
The company’s consolidated net profit after tax fell to 13.9 million Indian rupees ($169,762.70) for the three months ended Dec. 31, compared with 17.7 million rupees a year earlier. Its overall expenses rose 17.3% to 13.32 billion rupees, mainly due to higher operational costs.
Mahindra Logistics also flagged weakness in its freight forwarding service due to a sharp drop in freight rates.
Still, revenue from operations rose 17% to 13.3 billion rupees.
($1 = 81.8790 Indian rupees)
(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Shinjini Ganguli)
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