Shares of Mahindra Logistics were plunging on Wednesday after the company posted weak second-quarter earnings.
What Happened: The logistics operator reported a loss of ₹15.5 crore for the second quarter, a massive swing from the ₹11.9 crore profit it posted a year ago.
This was despite a 2.9% increase in revenue, which reached ₹1,364.8 crore in the September quarter compared with ₹1,326.3 crore a year ago.
In addition to the loss, the company’s EBITDA also dropped by 20.7% to ₹53.6 crore in the quarter, down from ₹67.6 crore in the same period the previous year. The EBITDA margin came in at 3.9%, down from 5.1% last year.
The Way Ahead: “Overall new order intake remained robust across our business segments and we continued to consolidate our business operations in Q2, 2024. Our organic growth in 3PL remained positive driven by our end market diversification programs, despite headwinds in the Ecommerce segment,” said Rampraveen Swaminathan, the MD and CEO of Mahindra Logistics
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He also expressed optimism that the the upcoming festive season would spruce up demand and said the company will focus on accelerating margins driven by synergies in the network business and other cost reduction programs.
Price Action: Mahindra Logistics’ share price was down 4.07% at ₹353.95 at open on Wednesday
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