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Mahindra Logistics Q4 loss widens to Rs 120.85 mn amid slow volume

2024-04-26

Mahindra Logistics announced that it had experienced a fifth consecutive quarterly loss, attributing it to the sluggish growth in volume within its core business of supply chain management.

The consolidated net loss for the logistics division of the Mahindra Group was reported to be Rs 120.85 billion for the quarter ending on March 31.

Logistics firms were anticipating a subdued fourth quarter due to a slowdown in activity preceding the general elections in India.

The decline in demand within crucial manufacturing sectors such as automotive and industrial goods was stated to have a direct impact on third-party logistics providers.

Mahindra Logistics, which derives over 90% of its revenue from supply chain management, revealed that 80% of this revenue was derived from the automotive segment.

Despite a 2% decrease in diesel prices and a 7% decrease in aviation turbine fuel (ATF) prices year-on-year in the fourth quarter, it was noted that this reduction did not offset the effects of the subdued volumes.